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Julli [10]
4 years ago
8

You were hired as a consultant to giambono company, whose target capital structure is 40% debt, 15% preferred, and 45% common eq

uity. the after-tax cost of debt is 6.00%, the cost of preferred is 7.50%, and the cost of retained earnings is 12.00%. the firm will not be issuing any new stock. what is its wacc?
Business
1 answer:
Harrizon [31]4 years ago
6 0

The calculation of the Weighted Average Cost of Capital ( WAAC ) can be done using the following formula:

Weighted Average Cost of Capital = (Cost of debt * Weight of debt) + (Cost of Preferred* Weight of Preferred) +( Cost of equity * weight of equity)

Following information is available:

Cost of debt = 6%

Weight of debt = 40%

Cost of Preferred = 7.50%

Weight of Preferred = 15%

Cost of equity or retained earnings = 12%

Weight of equity = 45%

Hence, Weighted Average Cost of Capital = (6%*40%) + (7.5%*15%) + (12%*45%) = 8.925%

Hence, Weighted Average Cost of Capital is <u>8.925% </u>


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Answer:

a. All of these

Explanation:

Based on the answers provided within the question it can be said that all of the answers are reasons as to why their predictions are often so far off. It is hard to predict how technology will affect humans as a civilization since there are an immense number of variables that need to be taken into account. Each of which can spark a ripple affect and change all of humanity. Imagination is the only tool we truly have in order to make these predictions.

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Goods where, by nature or design, exclusion is impractical or impossible, but use or enjoyment can potentially exhaust the good
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Goods where, by nature or design, exclusion is impractical or impossible, but use or enjoyment can potentially exhaust the good are called common-pool goods/resources.

Some examples of common-pool resources are forests, rivers, fishing areas (manmade or nature made). Common-pool goods refers to goods that are available to a group of people and not just an individual.  
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3 years ago
In the long run, the most important source of increase in a nation's standard of living is a: Group of answer choices high rate
Kruka [31]

In the long run, the most important source of increase in a nation's standard of living is high rate of economic growth.

<h3>What is economic growth?</h3>

This refers to continuous increase in the total amount of goods and services produced within a country.

The long run is a period in which all factors of productions are variable hence high rate of economic growth is essential towards a nation's standard of living.

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6 0
2 years ago
Ten million miles-that’s how far you travel if you went to the moon 41 times. Coincidentally, that’s also how far domino’s pizza
Nata [24]

Answer and Explanation:

1. Domino's Pizza did the following steps to enhance employees job satisfaction and retention

They focus on the managers retention so that good managers would be able to manage their team possibly well and thus the whole team can be in a satisfied stage.

  • They hired capable managers and used certain online test to assess them.
  • Gave tools to managers to assess the productivity of their employees. Thus incentive plans were given to stores based on minimized turn around time and high standard service level.
  • Proper training mechanism for managers to enrich them with new skill set to manage their peers.
  • Stock option and additional incentive, promotional packages offered to managers to promote their good practices in work field.

2. Better retention of employees and minimized attrition rate. It also enhances productivity and minis ed turn around time. This give refreshment to the entire Domino's Pizza organisation and results in driving healthy competition.

3. They focused only on managers for employee retention plan. Apart from that they have to start focus on all categories of employees. Employee engagement, their satisfaction level has to be enriched to retain them, Additional incentive plans for high quality performance, service level enhancement training's, extra benefits for long year service etc can enrich the employees with more satisfaction. Job rotation can also be introduced to enhance employees skill set in various discipline.

6 0
3 years ago
At the price of $5 per pack of batteries, Duracell sells 10,000 packs of batteries and Energizer sells 15,000 packs of batteries
Verdich [7]

Answer:

28,000

Explanation:

To get this answer you have to assume perfect competition scenario, since in this case supply = demand. In this case:

At $7,5

Energizer sells 16,000 => Supply Energizer = 16,000

Duracell sells 12,000 => Supply Duracell = 12,000

Total Supply = 16,000+12,000

6 0
3 years ago
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