Increase price value profit becomes higher than price, what happens to a company
I don’t remember that question
Answer:
Letter E is correct. <u>Ethical climate.</u>
Explanation:
The ethical climate is a relevant part of the organizational climate.
Each company has a code of ethics that must be shared equally by all employees. Therefore, decisions and actions should be based on this code, in order to comply with legal policies and social behaviors, reduce conflicts, reduce abuse of authority, and maintain a favorable and positive organizational climate for conducting organizational activities suitable and ideal for the well-being of all employees.
Answer:
The WACC is 10.93%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital stricture may be formed of the following components namely debt, preferred stock and common stock. The WACC assigns the weights to each of these components based on the finance provided by each of the above components as a proportion of total capital structure or total assets.
The WACC is calculated by taking the market value of each component. The formula for WACC is as follows,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- r represents the cost of each component
- D, P and E represents debt, preferred stock and Common stock respectively.
- We take after tax cost of debt. So we multiply rD with (1-tax rate)
Debt = 377000 * 106.5% = $401505
Preferred stock = 6850 * 90.50 = $619925
Common stock = 27500 * 70 = $1925000
Total assets = 401505 + 619925 + 1925000 = $2946430
WACC = 401505/2946430 * 7.81% * (1-0.35) + 619925/2946430 * 6.9% +
1925000/2946430 * 13.45%
WACC = 0.1093 or 10.93%
