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3 years ago

In one or two sentences, describe which is greater: gross pay or net pay.

Business

1 answer:

ArbitrLikvidat [17]3 years ago

4 0

Answer:

Gross pay

Explanation:

Gross pay is before all taxes and deductions. Therefore that value is greater than net pay which is after all taxes and deductions

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32,500 shares of common stock outstanding at a price per share of $80 and a rate of return of 12.95 percent. The firm has 7,350

pashok25 [27]

Answer:

WACC = 11.1%

Explanation:

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.

Market of securities

Common stock = $80 × 32,500= 2,600,000.

Preferred stock = $95.50 × 7,350= 701,925.00

Bond = 407,000/100 × 111.5= 453,805.00

Cost of each capital type

Common stock= 12.95

Preferred stock = (7.90%× 100)/95.50= 8.3%

Bond= 8.11%× (1-0.4)=4.87%

WACC

Type Market Value Cost Market value cost

Common stock 2,600,000. 12.95% 336,700.00

Preferred 701,925.00 8.3% 58,065.00

Bond 453,805.00 4.87% 22,100.30

Total 3,755,730.00 416,865.30

WACC = (416,865.30 / 3,755,730.00) × 100

= 11.1%

WACC = 11.1%

4 0

4 years ago

What are corporate bonds

mixer [17]

A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, M&A, or to expand business. The term is usually applied to longer-term debt instruments, with maturity of at least one year.

8 0

3 years ago

Read 2 more answers

Why might safety be more of a concern for a carpenter working on a construction site than for a joiner working in a workshop?

pychu [463]

Carpenters have more risk of injury when working with dangerous equipments and being in unsafe areas which is why there may be a bigger safety concern.

4 0

3 years ago

Read 2 more answers

All but one of the following is a reason for outsourcing services. Select one: a. Avoids coordination expenses and delays b. All

Sveta_85 [38]

Answer:

Avoids coordination expenses and delays.

Explanation:

Outsourcing can be defined as a type of business practice in which an organization assigns some of its activities to a third party. It can also be described as the practice in which a company hires another company to carry out various operations and tasks.

The importance of outsourcing include:

- It gives the organization access to more skilled individuals.

- it lowers the cost of production.

- it provides more flexibility to the employees.

- it enables the company to concentrate on more vital operations.

6 0

3 years ago

Read 2 more answers

What is the eventual effect on real GDP if the government increases its purchases of goods and services by $50,000? Assume the m

Finger [1]

Answer:

a. The real GDP increases by $200,000.

a. The real GDP increases by $150,000.

Explanation:

a. What is the eventual effect on real GDP if the government increases its purchases of goods and services by $50,000?

Eventual effect on real GDP = Amount of increase in government spending * (1 /(1 - MPC)) = $50,000 * (1 / (1 – 0.75)) = $200,000

Therefore, the real GDP increases by $200,000.

a. What is the eventual effect on real GDP if the government, instead of changing its spending, increases transfers by $50,000?

Eventual effect on real GDP = (Amount of increase in government transfers * (1 /(1 - MPC))) - Amount of increase in government transfers = ($50,000 * (1 / (1 – 0.75))) - $50,000 = $150,000

Therefore, the real GDP increases by $150,000.

3 0

3 years ago