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
Sergeeva-Olga [200]
3 years ago
5

​Andyco, Inc., has the following balance sheet and an equity​ market-to-book ratio of 1.4. Assuming the market value of debt equ

als its book​ value, what weights should it use for its WACC​ calculation? g

Business
1 answer:
Digiron [165]3 years ago
5 0

Answer:

29.80%

70.20%

Explanation:

The computation of weights should it use for its WACC is shown below:-

FMV of Andyco's Equity = Equity × Equity market-to-book ratio

= $690 × 1.4

= $966

Weight for Debt = Debt ÷ (FMV Equity + Debt)

= $410 ÷ ($966 + $410)

= $410 ÷ $1,376

= 29.80%

Weight for Equity = FMV Equity ÷ (Debt + FMV Equity)

= $966 ÷ ($410 + $966)

= $966 ÷ $1,376

= 70.20%

Therefore we have applied the above formula

You might be interested in
Which of the following is a distinct advantage of exporting? A. Absolute control over operations in the foreign nation B. It may
victus00 [196]

Answer: B. It may help a firm achieve experience curve and location economies

Explanation: Exporting is defined as the act of conveying or sending commodities abroad or to another country, in the course of commerce. Exporting provides a distinct advantage to firms in that it helps them achieve experience curve (which posits that the more experience a business has in the production of product, the lower its costs in producing the product) and location economies (the production of a good or product under the most optimum settings that confers an added advantage in cost of productions over their competitors).

7 0
3 years ago
Which demand situation occurs when a competitor offers a similar product or service at a lower price?
Naya [18.7K]

Answer:

Falling demand

Explanation:

Falling demand refers to a situation where the sales volume of a good or service is on a continuous decline compared to the previous seasons. Consumers are no longer finding that particular product or service appealing to buy. Falling or declining is also referred to as faltering demand.

The introduction of a similar product by competitors at a lower price may lead to a decline in demand for the existing goods. Customers will prefer the new cheaper product. As a result, the more expensive and old product will experience falling demand.

3 0
3 years ago
Steve goes to Tri-State University and pays $40,000 in tuition. Steve works to pay for his schooling and has an AGI of $37,000.
Lemur [1.5K]

Answer:

His American Opportunity tax credit is $2,500.

Explanation:

A taxpayer who has a modified adjusted gross income of $80,000 or less can claim the credit for the qualified expenses of an eligible student.

Taxpayers will receive a tax credit based on 100% of the first $2,000, plus 25% of the next $2,000 that is paid during the taxable year for tuition, fees and course materials and also, 40% of the credit (up to $1,000) is refundable.

Therefore, His American Opportunity tax credit is $2,500.

6 0
3 years ago
Suppose social security contributions rise by​ $1 billion while social security benefits also rise by​ $1 billion.​ Further, per
Nadya [2.5K]

Answer:

The answer will be A

Explanation:

As the social security contributions and benefits remain the same in proportion, personal and national income will remain the same.

As disposable income is defined as personal income-personal taxes, and the personal income taxes fall by 500 million (included in the contibutions), this would mean that the disposable income increases.

8 0
3 years ago
Caveman Clubs Inc. tested a new graphite golf club that they have developed, Model X-5. They did a series of experiments with go
Ostrovityanka [42]

Answer:

The Answer is B. Quantitative data

Explanation:

The testing on the golf club, determined a improvement in the driving distance and this was measured numerically and showed in form of a percentage in comparison with average measurements.

When the information is presented with numerical data support, we can say its a quantitative data, because it tells us "how much?".

When the information is presented just with adjetives, telling us about the performance its a qualitative data, because it tell us "how things happened?"

A control variable is the data that is going to modified in order to see changes is the independent variable. In this case, the control variable  could be the weight of the club (assumption), and the independent variable the driving distance data(not percentage).

4 0
3 years ago
Other questions:
  • What is one effective way for employees to keep their skillsets current
    11·2 answers
  • Who sells the best pasteles online thats trust worthy and good reputation?
    11·1 answer
  • Broom Corporation transfers assets with an adjusted basis of​ $300,000 and an FMV of​ $400,000 to Docker Corporation in exchange
    11·2 answers
  • Which of the following is true of relevant costs? a.Relevant costs are past costs that do not differ from one alternative to ano
    10·1 answer
  • Blooming Sun investment corporation is facing problems in their records
    5·1 answer
  • The maintenance department of a large hospital uses about 816 cases of liquid cleanser annually. Ordering costs are $12 and carr
    12·1 answer
  • How to get a refund on Brainly
    7·2 answers
  • 6. What are complements? evonomics
    10·1 answer
  • This type of organization allows for many people to make decisions about the same service or need within the company.
    11·1 answer
  • When your influence as a manager is multiplied far beyond the results that can be achieved by just one person acting alone, you
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!