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anzhelika [568]
3 years ago
9

were hired as a consultant to Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity.

The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is Quigley's WA
Business
1 answer:
Kitty [74]3 years ago
4 0

Answer:

8.15%

Explanation:

The computation of the WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of  common stock) × (cost of common stock)

= (0.35 × 6.50%) × ( 1 - 40%) +  (0.10 × 6%) +  (0.55 × 11.25%)

= 1.365% + 0.6% + 6.1875%

= 8.15%

We simply multiplied the weighted of each capital structure with its cost so that the weighted cost of capital could come

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How do the Iowa Caucuses work?
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Unlike primary elections in most other U.S. states, where registered voters go to polling places to cast ballots, Iowans instead gather at local caucus meetings to discuss and vote on the candidates
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3 years ago
Sole Purpose Shoe Company is owned and operated by Sarah Charles. The company manufactures casual shoes, with manufacturing faci
IgorLugansk [536]

Answer:

1. The reason Sarah might want to use standard costs to compare with her actual costs is:

a. Management can evaluate the differences between standard costs and actual costs to focus on correcting the cost variances.

2. Drawbacks of using Standard Costs are:

c. Standards limit operating improvements because employees may be discouraged from improving beyond the standards.

d. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization.

e. Standards may become "stale" in a dynamic manufacturing environment.

Explanation:

Standard costs encourage the pursuit of management goals.  They are the costs that should be under a particular type of circumstances.  They are usually compared with actual costs to determine their differences or variances.  Their use helps management to focus on how to improve overall performance.

5 0
3 years ago
A real estate agent earned ​$4800commission on a property sale of ​$240 comma 000.What is her rate of​ commission?
dsp73

Answer:

Her rate of commission is 2 percent

Explanation:

Commission=  $4800

Sale of property = $240,000

Rate of​ commission =  (Commission/ Sale Of Property )* 100

Rate of​ commission= $ 4800/ $ 240,000 * 100

Rate of​ commission= 0.02 * 100

Rate of​ commission= 2%

The above solution can be checked by putting in the values of percent and commission

(Check)

2% of $ 240,000

= (2/100) * $ 240,000

= 2* $2400

= $ 4800

Thus 2 percent of $ 240,00 is equal to $ 4800

3 0
4 years ago
Explain business activities and classification ?<br><br>​
nexus9112 [7]

Answer:

Business activities may broadly be classified into two categories namely (A) Industry and (B) Commerce. Industry involves production of goods and services whereas commerce is concerned with the distribution of goods and services.

Explanation:

hope helps

7 0
3 years ago
Read 2 more answers
c) The Flint, Michigan, water crisis highlighted a major issue in the United States regarding old lead-based pipes used to trans
aalyn [17]

Answer:

'Prevention is better than cure ' protecting children from exposure to lead is the most important for their lifelong health . prevention is the best way to consider with lead poisoning. we can not find safe blood lead level in the children it has been recognized , even low levels of lead in their blood have been prove to affect intelligent quotient , academic achievement and to giving attention ability . The impact of lead exposure can not be corrected. so before it occurs parents and others can take the most important step to obstruct lead exposure . If everyone can take steps for their children then we can prevent potential lead poisoning ( primary prevention)

To reduce the use and set free of lead some efforts are needed to continue to reduce occupational and exposures , specially for children and women of child- bearing age . Interventions include get riding of unimportant uses of lead such as in paint, ensuring the safe recycling of waste that is lead containing , for that we should educate the people about the importance of computers and of safe disposal of lead acid batteries and monitoring of blood lead levels in children , workers and women of childbearing age .

Secondary prevention aims on the early discovery of lead poisoning . To reduce the impact of lead in patients with recognized blood lead levels   that the secondary prevention strategic manner globally.

The United Nations Environment Programme and World Health Organization   jointly initiated the Global Alliance to Eliminate Lead Paint to achieve international aims to prevent children's exposure to lead from paints containing lead and to reduce occupational exposures to lead paint . Its main objective is to promote a aspect of the manufacture and sale of paints containing lead. International Week gives a chance to prepare political and social commitment for further progress.

The Ministry of Environment , Forest and Climate Change (MOEFCC) , Government of India has also prohibited manufacture , import business as well as export of decorative and household paints that is lead containing   or mix with lead in excess of 90 parts per million with a remark as Regulation on Lead content i Household and Decorative paints Rules , 2016' this act passed in November 2016.

Some health tips to save guard lead exposure are -

  • Children should get four to six small meals during the day and should get a healthy diet sufficient in iron , calcium and vitamin c .
  • Lead can be brought into the living space from outside areas through shoes , so whenever inter the home take shoes off at the door .
  • During pregnancy women should be counseled about the impact of pica.
  • Wash our hands properly after and before of every meal , we know that it is a simple yet very important and effective method to preventive measures , specially during a young child's crawling and hand in mouth stage .
  • The area where the child is playing should be cleaned regularly .
  • Give safe items and toys to infants and toddlers .
  • If a family home has lead pipes , use first water from pipes for other purpose ( other use ) before the morning use.

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