1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
swat32
4 years ago
8

Hibiscus Co has a debt-equity ratio of 0.80. The firm is analyzing a new project which requires an initial cash outlay of $300,0

00 for new equipment. The flotation cost for new equity is 9% and for debt 4.95%. What is the initial cost of the project including the flotation costs?
Business
1 answer:
morpeh [17]4 years ago
8 0

Answer:

$321,600

Explanation:

debt equity ratio = debt / equity

since the debt to equity is 0.8, that means that for every $ invested from equity, $0.80 will be borrowed. If the new project requires an initial cash outlay of $300,000:

  • then $300,000 / $1.80 = $166,667 will be new equity
  • and $133,333 will be new debt

total cost of initial outlay including flotation costs = ($166,667 x 1.09) + ($133,333 x 1.0495) = $181,667 +  $139,933 = $321,600

flotation costs include all the costs associated with issuing new stocks or taking new debt.

You might be interested in
In a planning context, A. open facts are preferred to closed facts. B. None of the choices are correct. C. new facts are preferr
Snowcat [4.5K]

Answer:

The correct answer is letter "A": open facts are preferred to closed facts.

Explanation:

While planning a project, open facts are those that have not happened yet in contrast to closed facts that are those that already occurred. Managers prefer to start from the bottom while planning since it is better to explore the new path with a "clean sheet" than being subject to events that already took place and condition the course of a project.

<em>Open facts, then, are more preferred than closed facts.</em>

5 0
3 years ago
Kilala moba ako filipino ako panget mo ​
hammer [34]

Answer:

Mas pangít ka

Mas pangít ka sa daga

Kamuka mo si babalu

5 0
3 years ago
1. Which country has the comparative advantage in DVDs? (Remember! OOO Output –Other goes Over!) [2 pts]
yarga [219]
The answer is Country B


Comparative advantages can be described as a country's ability to product a certain product in higher quantities and lower price (efficiently) compared to another country.

In this case, Country A can product  100 CDs and only 100 DVDs, by while country B has the capacity to produce 50 CDs but 200 DVDs.

Clearly Country B has a better infrastructure to produce DVDs in bulk

5 0
3 years ago
Read 2 more answers
Data is oftentimes considered a defensible source of competitive advantage; however, advantages based on capabilities and data t
Likurg_2 [28]

Data is oftentimes considered a defensible source of competitive advantage; however, advantages based on capabilities and data that others can acquire will be short lived.

<h3>What is data?</h3>

It should be noted that data simply means the facts and statistics that are used to analysis.

In this case, data is oftentimes considered a defensible source of competitive advantage; however, advantages based on capabilities and data that others can acquire will be short lived

Learn more about data on:

brainly.com/question/26711803

#SPJ1

4 0
2 years ago
Who is responsible for fiscal​ policy?
TiliK225 [7]

Answer:

C. The federal government controls fiscal policy. 

Explanation:

Fiscal policy are policies enacted by the government using its spending or taxes to stabilise the economy. There are two types of fiscal policy, expansionary and contractionary fiscal policy.

1. Expansionary fiscal policy is a policy that increases the money supply in an economy. They include :

A. Reduction of taxes - this increases disposable income and increases consumer spending which increases money supply.

B. Increased government spending- this is when government increases its spending usually on public projects.

2. Contractionary fiscal policy are policies that reduces the money supply in an economy. They include:

A. Increase in taxes- an increased tax reduces disposable income and money supply in an economy.

B. Reduced government spending - reduced government spending reduces money supply.

Monetary policy is policy controlled by the Federal Reserve.

I hope my answer helps you.

3 0
3 years ago
Other questions:
  • Members of the board of directors of have received the following operating income data for the year just​ ended:
    5·1 answer
  • The owners of a chain of​ fast-food restaurants spend $ 25 million installing donut makers in all their restaurants. This is exp
    9·1 answer
  • A Subaru representative has a solid relationship with Phil, a satisfied customer. Phil loves Subaru and will not accept anything
    11·1 answer
  • Which activity would a marketer consider to occur at a place, as defined in the four Ps of marketing? A. a person researching ma
    10·1 answer
  • Peach Company uses a weighted-average process-costing system. Company records disclosed that the firm completed 40,000 units dur
    14·1 answer
  • Adjusting Entries On May 31, the following data were accumulated to assist the accountant in preparing the adjusting entries for
    5·1 answer
  • an architectural design company just won the bid for a huge project. to ensure that everyone does the right work at the right ti
    12·1 answer
  • Jim paid $250,000 for an apartment building with a fair market value of $260,000. At the time of the sale, the building was appr
    13·1 answer
  • You want to be able to withdraw $35,000 each year for 15 years. Your account earns 9% interest. a) How much do you need in your
    10·1 answer
  • According to market technicians, it is time to sell stock in a head-and-shoulders formation when?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!