Answer:
0.4766
Explanation:
Given:
WACC = 9.7%
Company’s cost of equity = 12%
Pretax cost of debt = 7.5%
Tax rate = 35%
Now,
WACC
= Weight × Cost of equity + (1 - weight) × Pretax cost of debt × (1-tax rate)
or
0.097 = weight × 0.12 + ( 1 - weight ) × 0.075 × (1 - 0.35)
or
0.097 = 0.12 × weight + 0.04875 - 0.04875 × weight
or
0.04825 = 0.07125 × weight
or
weight = 0.6772
also,
weight = 
or
= 
or
= 
+ 1
or
1.4766 = + 1
or
= 0.4766
Answer:
TRUE
Explanation:
Kleister Company:
1. Issues bonds for $100 million - INFLOW
2. Repays a long-term notes payable of $10 million. - OUTFLOW
3. The company also repurchases its own shares for $12 million - OUTFLOW
4. Issues stock dividends with a market value of $5 million. - NOT A CASH FLOW
It is therefore true that Net cash flow from financing activities will be: $78 million [100 million - 10 million - 12 million] since the dividends are stock dividends not cash dividends
Answer:
$86,000
Explanation:
FIFO means first in, first out. It means that the first purchased inventory is the first to be sold.
This means thay the 500 units sold would be taken from the earliest purchased inventory and the ending inventory would be the most recently purchased inventories.
Ending inventory = (80 × $150) + (370 × $200) = $12,000 + $74,000 = $86,000
I hope my answer helps you
Answer:
C. The second statement is correct
Distributive strategies focus on dividing the pie and integrative strategies on expanding the pie.
Explanation:
Distributive negotiation is a type of negotiation that both parties agrees to sharing existing resources within themselves so that they can part ways and it's mostly a win-lose situation while the integrative negotiation is a type where both parties seek to further expand the existing resources be looking forward to a collaborative process, it's always a win-win situation for both parties.
