The label on a box of bran cereal carries a "high-fiber" claim. what type of claim is this?

AZ Products has 375,000 shares of common stock outstanding at a market price of $35 a share. Next year's annual dividend is expe

My name is Ann [436]

Answer:

The firm's weighted average cost of capital 5.81%

Explanation:

In order toTo calculate WACC, we need to calculate the cost of equity and after-tax cost of debt. The WACC can be calculated with the use of following formula:

WACC = After-Tax Cost of Debt*Weight of Debt + Cost of Equity*Weight of Equity

Where,

After-Tax Cost of Debt = Pretax Yield*(1-Tax Rate)

Market Value of Debt = Outstanding Bonds*Par Value*Current Selling Percentage

Cost of Equity = D1/Current Market Price + Growth Rate

Market Value of Equity = Number of Common Shares Outstanding*Current Market Price

Weight of Debt = Market Value of Debt/(Market Value of Debt + Market Value of Equity)

Weight of Equity = Market Value of Equity/(Market Value of Debt + Market Value of Equity)

Therefore, Market Value of Debt = 7,500*1,000*98.60% = $7,395,000

Market Value of Equity = 375,000*35 = $13,125,000

Weight of Debt = 7,395,000/(13,125,000 + 7,395,000)

Weight of Equity =$13,125,000 /($13,125,000 + 7,395,000)

Cost of Equity = 1.50/35 + 2% = 6.28% 0.01801

After-Tax Cost of Debt = 7.65*(1-34%) = 5.05%

Using the values calculated above in the formula for WACC, we get,

WACC = 5.05%*7,395,000/(13,125,000 + 7,395,000) + 6.28% *$13,125,000/($13,125,000 + 7,395,000) = 5.81%

5 0

4 years ago

the two ways that a company can issue new securities and thereby raise capital in the primary market are through:

Airida [17]

Private Placement and Investment Banking Process, are the two ways that a company can issue new securities and thereby raise capital in the primary market

<h3>What is Primary Market?</h3>

The primary market is the area of the capital market where securities are issued and sold to buyers directly by the issuer, who then receives the proceeds.

Companies, governments, or public sector organizations can raise money in a primary market by issuing bonds, and corporations can do the same by selling new stock in an IPO (IPO). A financing syndicate of securities dealers, investment bank, or underwriter is frequently used for this.

Securities are issued by firms to investors directly in the primary market. Either a further public offering (FPO) or an IPO is used to issue securities (FPO). Through an initial public offering (IPO), a business can raise capital from investors and go public.

A business can raise money on the primary market by selling preference shares. Securities, equity, and debt

To know more about Primary markets, visit:

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3 0

1 year ago

On April 1, Construction Contractors, Inc., contracts to build a store for Discount Retail, Inc., at a specific location in Elec

mr Goodwill [35]

Answer:

c. the contract is discharged.

Explanation:

As the contract is not feasible to be completed not because of any parties of the contract, but because of externalities.

This provides for the no fault conditions on both the parties of the contract.

Here the construction was to be done by the Construction Contractors Inc. for Discount Retail Inc, at a place in Electro City.

But now the construction cannot happen as because Electro City has an amendment providing no construction at the particular place where Discount Retail Inc. wants the construction.

5 0

3 years ago

The unemployment rate in the United States is usually ________ than the unemployment rates in most other high-income countries

bogdanovich [222]

Answer:

The answers are:

lower
more stringent

Explanation:

In order for an individual to be considered unemployed, the individual must be over 18 years old, be currently out of job, but actively seeking a new job.

The current unemployment rate in the US is 3.7% (as of August 2019) while the unemployment rate in the EU is 6.2%.

In order for an individual to collect unemployment benefits, usually he or she must meet the following requisites:

They must be out of work through no fault of their own.
They must meet minimum earnings or job tenure requirements.
They must be able, available, and actively seeking work.

4 0

3 years ago

What have you learned about yourself as a consumer and the role you play that you hadn’t realized before? financial

Butoxors [25]

Answer:

My role as a consumer does much more than benefit me.

Explanation:

When I purchase goods or services, not only does the money I spend re-enter the monetary cycle, it also gives the producer money to continue providing their wares to other people. In a way, the economic system we live in is a lot like a natural ecosystem. Every action we take, be it buying or selling, serves to benefit or punish someone else.

6 0

2 years ago