Answer:
Explanation:
A Living Document. A business plan is often referred to as a “living document”. This is because a these plans are constantly changing. Whenever new developments in competition, marketing tools, the legal factors which relate to an industry, or others change a business plan must be updated so as to keep relevant.
Cost of equity capital is closest to: 16 percent
Solution:
WACC is covered on page 120 Corporate Finance, under Capital Structure.
Using the standard equation for WACC = %wt Equity x cost of equity (re) + %wt Debt x cost of debt (rd).
Since there is a 20% tax rate for the firm, the cost of borrowing is reduced by that amount. So the cost of debt is 4%, not 5%.
Plug the formula: 10% = 50% x re + 50% x 4%
The formula ( i.e. 0.1+(0.1-0.05)(1)(1-0.2)) in CFAI reading is questionable.
The calculation is 0.1+(0.1-0.05*(1-0.2))*(1)=16%
Answer:
This type of argument ties to make a connection between people living in different parts of the world using both geographic and demographic variables. The geographic variables are the foreign cities (London, Sao Paulo, and Tokyo) and the demographic variables would be the education and income levels (wealthy MBAs).
Answer:
a.
Explanation:
Based on the information provided within the question it can be said that the statement that is true from the ones provided is that Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer. Wholesome Pet Foods is a high quality provider, meaning that their products tend to be more expensive, and even still they have been incredibly successful because their clients do not mind paying more for better quality product. Therefore an increase in price will not affect their loyal customers.
Answer:
$26,830
Explanation:
Given that
Accounts Receivable balance = $17,470
Credit sales = $46,800
Collected accounts receivable = $37,440
The computation of Accounts Receivable balance is given below:-
= Accounts Receivable balance + Credit sales - Collected accounts receivable
= $17,470 + $46,800 - $37,440
= $64,270 - $37,440
= $26,830
