Answer:
Option (B) is correct.
Explanation:
Given that,
Total Assets = $23,610
Interest-Bearing Debt (market value) = $11,070
Average borrowing rate for debt = 10.2%
Common Equity:
Book Value = $6,150
Market Value = $25,830
Marginal Income Tax Rate = 37%
Market Beta = 1.73
Hence,
Weight on equity capital = Equity ÷ (Debt + Equity)
= 25,830 ÷ (11,070 + 25,830)
= 25,830 ÷ 36,900
= 70%
Therefore, the weight on equity capital is 70%.
Answer: true
Explanation: stockholders also known as shareholders are individuals or entities that own shares of stock in a corporation. They are therefore the real owners of a publicly traded business, however, management runs it. Therefore, it can be said that stockholders in a corporation entrust control over the company's daily operations to managers selected by the board of directors to run the company.
As far as I remember the four stages or steps in production planning and control are:
- Routing,
- Scheduling,
- Dispatching, and
- Follow-up.
to me, it seems to be part of the <u>scheduling </u>step.
Good luck on your exam
Answer:
Ans. the rate of return of this invesment is 3.5278% annual.
Explanation:
Hi, what we need to do here is to find the future value of all six payments, beginning when the child turns 12, which will end when he turns 17. One year later (when the child turns 18) he will receive $25,000 per year, for the next 4 years. This is the equation that we need to use (and solve for "r").
Where:
A1=$14,000
A2=$25,000
So, everything should look like this
As you can see, this would take forever to solve, so what we have to do is to use MS Excel, we have to use the "Goal Seek" function. Please check the MS Excel spread sheet attached to this answer.
Please use this function with the following parameters.
Set Cell: G7
To Value: 0
By changing cell: G2
Ans. 3.5278%
Best of luck.