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zvonat [6]
3 years ago
7

Which of the following statements is CORRECT? a. The WACC that should be used in capital budgeting is the firm's marginal, after

-tax cost of capital. b. The WACC is calculated using before-tax costs for all components. c. For a given firm, the after-tax cost of debt is always more expensive than the after-tax cost of non-convertible preferred stock. d. The after-tax cost of debt usually exceeds the after-tax cost of equity. e. Retained earnings that were generated in the past and are reported on the firm's balance sheet are available to finance the firm's capital budget during the coming year.
Business
1 answer:
Musya8 [376]3 years ago
3 0

Answer:

A. The WACC that should be used in capital budgeting is the firm's marginal, after-tax cost of capital

Explanation:

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A college student purchased a car priced at $10,000. She paid $1,000 down and agreed to a monthly payment of $200 per month for
Fynjy0 [20]

Answer:

$10,600

Explanation:

The total amount that the students will pay will be the total of monthly installments plus the deposit

Deposit =$1000

total monthly installments = $200 x 48 = $9600

The total amount he will pay = $ 9600 +$1000

=$10,600

5 0
3 years ago
Williamson Industries has $7 billion in sales and $2 billion in fixed assets. Currently, the company's fixed assets are operatin
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Answer: Williamson industries would have obtained $7.78 billion in sales

Explanation: According to the question, the company is having a total of $2 billion in fixed assets. The fixed assets are currently operating at 90% (0.9) of its total capacity. At his level, the company is able to achieve a sales figure of $7 billion. The implication is as follows;

Fixed assets (at 100%) = 2 billion

Fixed assets (at 90%) = 2 * 0.9

Fixed assets (at 90%) = 1.8

If the company utilizes $1.8 billion to achieve a $7 billion sales figure, then operating at full capacity (100%) would yield the following;

7/x = 90/100

(Where x equals sales level at 100% capacity)

7/x = 0.9

Cross multiply

x = 7/0.9

x = 7.7777...

x ≈ 7.78

Therefore, if Williamson Industries had been operating at full capacity, it would have obtained a sales level of $7.78 billion

3 0
3 years ago
Planning for the possiblity that your home might get struck by lightning and catch on fire is part of a plan for _____.
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2 years ago
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Answer:

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Explanation:

because he can get in contact with Steve while in the hotel

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2 years ago
A person who holds him- or herself out as a specialist or knowledgeable in a certain type of business is one type of
ruslelena [56]

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Explanation:

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