The following data were selected from the records of Sykes Company for the year ended December 31, Current Year.

EastWind [94]

The overall capitalization rate by direct market extraction assuming each property is equally comparable to the subject is 11.4%

Explanation:

Capitalization is the accounting of expenditures and the regular distribution of investments in fixed reserves over future years. Capitalisation, in other words, includes an expense usually documented in a temporary account and reported as an income account on a permanent basis.

Take the average of the three property capitalization rates to find the overall capitalization rate.

4 0

3 years ago

As a new leader you have decided to apply the path-goal theory in managing your staff. one of the two important personal charact

Anton [14]

A subordinate should have the ability to manage the organization's workforce as a leader. The subordinates' impression of their talents is an important personal quality.

<h3>What is the path-goal leadership theory?</h3>

According to the path-goal theory, a leader's conduct is influenced by their employees' satisfaction, motivation, and performance. The manager's task is considered as improving employees ’ performance in choosing the best pathways to achieve both their own and the company's goal.

Inclusive leaders,
follower traits,
task characteristics, and
motivation is all aspects of the path-goal theory

As a result, the two most important personal characteristics of subordinates in the theory. for example locus of control and abilities perception.

Learn more about Path goal theory:

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6 0

1 year ago

If the demand for insulin is inelastic, an increase in insulin prices leads to

exis [7]

Extent to which the demand<span> for a good changes when income changes.</span>

6 0

3 years ago

There is no important area of human activity than management since its task is that of getting things done through people". Disc

AysviL [449]

Answer:

Yes, it is very much true that management is one of the important human activity and it takes getting work done through other people. We can define management as working with and though other people to get the work done in an effective and efficient way. Working with other people is not that much easy as it looks because every person has its own goals and objective so an effective manager has to keep people motivated for the organizational vision, goals and objectives. Management involves planing, organizing, leading and controlling, where in the first step we have to actually draft a plan where we need to go and where we have to reach. In the next step, manager assigns work to different people that who will be doing what and then manager leads them and keep them motivated all the times. Last step involves keeping track of the progress that whether we are moving in the right direction or not. Therefore, management is very important human activity because we have deal with different people in it.

8 0

2 years ago

Biden Resorts Company currently has 0.2 million common shares of stock outstanding and the stock has a beta of 2.2. It also has

frutty [35]

Answer:

Hence, the weighted average cost of capital is 15.87%.

Explanation:

We have to find current weights,

Value of equity = Shares x Share price = 0.2 x 10 = $2 million

Face Value of Bonds FV = $1 million

Semi annual coupon P = 1 x 8% / 2 = $0.04 million

Number of coupons remaining n = 5 x 2 = 10

Semi annual yield r = 13.65% / 2 = 6.825%

Value of Debt = Px [1 - (1 + r)-n] / r + FV / (1 + r)n

= 0.04 x [1 - (1 + 0.06825)-10] / 0.06825 + 1 / (1 + 0.06825)10

= $0.8 million

Total Value = 2 + 0.8 = $2.8 million

Weight of Debt = 0.8 / 2.8 = 28.57%

Weight of Equity = 2 / 2.8 = 71.45%

Amount of Debt to be raised = Weight of debt x Capital

= 0.2857 x 7.5

= $2.14 million

Since the amount of debt to be raised is less than $2.5 million, the yield will be 13.65%

Cost of Equity = Risk Free Rate + Beta x (Market Return - Risk Free Rate)

= 3% + 2.2 x (10 - 3)

= 18.4%

The weighted average cost of capital:-

WACC = Weight of Debt x Cost of Debt x (1 -Tax Rate) + Weight of Equity x Cost of Equity

= 0.2857 x 13.65% x (1 - 0.3) + 0.7145 x 18.4%

= 15.87%

8 0

3 years ago