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natta225 [31]
4 years ago
5

Calhoun produce, a ____, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be

sold.
Business
1 answer:
Morgarella [4.7K]4 years ago
7 0
Calhoun produce, a commission merchant, takes possession of truckloads of tomatoes, arranges for storage, and transports them to auctions to be sold, over the past 15 years their business evolved from a predominately row crop farm to a diversified Agricultural Business. Commission merchants are obliged to manage the business according to the instructions of the principal and, if they are authorized to act at their discretion, they must perform the act of commerce with prudence and according to the use of commerce, taking care of the business as if it were their own.
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Rollins Corporation is estimating its WACC. Its target capital structure is 20% debt, 20% preferred stock, and 60% common equity
katrin2010 [14]

Answer:

A. What is the company's cost of preferred equity?

  • 8.42%

B. What is the company's cost of common equity?

  • 11.45%

C. What is the company's WACC?

  • 9.31%

Explanation:

20% debt ⇒ after tax cost of debt 3.76%

20% preferred stock ⇒ 8.42%

60% common equity ⇒ 11.45%

in order to determine the after tax cost of debt we must first determine the yield to maturity of debt:

approximate YTM = {37.5 +[(1,000 - 1,150.78)/40]} / [(1,000 + 1,150.78)/2] = 33.7305 / 1,075.39 = 3.3166% x 2 = 6.2732%

after tax cost of debt = 6.2732% x 0.6 = 3.76%

cost of preferred stocks = 8 / (100 x 0.95) = 8 / 95 = 8.42%

cost of equity (Re) = 2.45% + (1.8 x 5%) = 2.45% + 9% = 11.45%

WACC = (60% x 11.45%) + (20% x 8.42%) + (20% x 3.76%) = 6.87% + 1.684% + 0.752% = 9.306% = 9.31%

3 0
4 years ago
An example of a loan that tends to have a lower interest rate is a(n) __________ loan.
Setler79 [48]
The answer is : A. Home loan

Home loan only have about 4 -5 % interest rate. Compared to other options :

- Credit Card Loan : about 15 %  of interest rate
- Paycheck Loan : also about 15 % of interest rate
- Unsecured Loan : usually above 20 % interest rates


6 0
3 years ago
Read 2 more answers
The 3 types of partnerships are general partnership, unlimited partnership and unlimited liability partnership. Please select th
Rufina [12.5K]
True, Because The 3 Types Of The Partnerships Are General Partnerships, Because They Are Unlimited Partnership Because Of The Liability Partnership.
6 0
3 years ago
​Carpenters, Inc., a manufacturing​ company, acquired equipment on January​ 1, 2017 for $ 520 comma 000. Estimated useful life o
san4es73 [151]

Answer:

Annual depreciation= $47,618

Explanation:

Giving the following information:

Purchasing price= $520,000

Useful life= 7 years

Residual value= $20,000

New useful life= 9 years

First, we need to determine the annual depreciation and accumulated depreciation before January 2020.

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (520,000 - 20,000)/7= 71,429

Accumulate depreciation= 71,429*3= $214,287

New annual depreciation:

Book value= 520,000 - 214,287= 305,713

Annual depreciation= (305,713 - 20,000) / 6

Annual depreciation= $47,618

5 0
4 years ago
Match each type of tariff with an example of its use.
Anna35 [415]

a. revenue tariff----------------a 6% tariff on oranges to provide money for the government.


Revenue tariff alludes to a set of rates planned for expanding public revenue. It can likewise be said as a tax exacted on import and fare to fund-raise for the government. Revenue tariff is any schedule or arrangement of rates or changes that are proposed to create income for the government.  

b. protective tariff---------a 50% tariff on oranges to shield domestic orange growers from international competition.


Protective tariffs are tariffs that are established with the point of ensuring a domestic industry. Tariffs are likewise forced keeping in mind the end goal to raise government income, or to decrease a bothersome action. In spite of the fact that a tariff can all the while secure household industry and procure government income, the objectives of assurance and income augmentation recommend distinctive duty rates, involving a trade off between the two points.  

c. retaliatory tariff-----------a 200% tariff on oranges to reply to a high tariff imposed by another country.


Retaliatory tariff refers to a tariff imposed as a methods for constraining a foreign government and expected to urge the give of correspondence benefits.  

Retaliatory tariff is a tariff imposed to pressure another nation into evacuating its own tariffs or making exchange concessions.

6 0
3 years ago
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