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AnnZ [28]
3 years ago
9

Acme Supply Co. has a new project that will require the company to borrow $3,000,000. Acme has made an agreement with three lend

ers for the needed financing. First National Bank will give $1,500,000 and wants 10% interest on the loan. Lockup Bank will give $1,000,000 and wants 12% interest on the loan. Southern National Bank will give $500,000 and wants 13% interest on the loan. What is the weighted average cost of capital for this $3,000,000?​
Business
1 answer:
aleksley [76]3 years ago
4 0

Answer:

WACC = 10(1,500,000/3,000,000) + 12(1,000,000/3,000,000) + 13(500,000/3,000,000)

WACC = 5 + 4 + 2.17

WACC = 11.17%

Explanation:

WACC is a function of interest charged by each bank and the proportion of funds provided by each bank in relation to the total amount required by the investor.

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Answer:

C

Explanation:

When a company utilizes outsourcing it arranges for other organization in the supply chain to perform functions that were previously performed internally.

5 0
3 years ago
Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract
yanalaym [24]

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3 years ago
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Hope this helps!
8 0
3 years ago
LO 1.2What are the key differences between financial accounting and managerial accounting?
Alex_Xolod [135]

Answer:

Difference between managerial accounting and financial accounting is described as follows:-

  • Managerial accounting is the accounting process for observing and recording business transaction whereas information and facts of accounts that are collected to make financial statement called financial accounting.
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5 0
3 years ago
How do you find the total fixed cost using the table
iogann1982 [59]

Answer:

Total cost (TC) = Total variable cost (TVC) + Total fixed cost (TFC)

Therefore,

Total fixed cost = Total cost - Total variable cost

hope am helpful

6 0
2 years ago
Read 2 more answers
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