Answer:
WACC - new project = 6.408% rounded off to 6.41%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure can consist of one or more of the following components namely debt, preferred stock and common equity. The WACC is calculated as follows,
WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- r represents the cost of each component
- D, P and E represents debt, preferred stock and common equity
- rD * (1 - tax rate) is the after tax cost of debt
We first need to calculate the WACC of the company and then adjust it for the new project.
WACC = 35% * 3.28% + 65% * 10.4%
WACC = 7.908%
As the new project is less risky and has an adjustment factor of -1.5%, the required rate of return for the new project will be,
WACC - new project = 7.908% - 1.5%
WACC - new project = 6.408% rounded off to 6.41%
Answer:Customers coming to a fine dining restaurant look for an experience where they are not doing much. They want to feel special and your staff can do that by simply knowing everything that there is in the menu.
Explanation:
What are customers looking for from a restaurant?
Answer:
The equivalent units of conversion is 351,300
Explanation:
The computation of the conversion equivalent units is shown below:
= (Units completed and transferred out × conversion percentage) + (Ending Inventory × conversion percentage)
= 348,000 × 100% + $33,000 × 10%
= 348,000 + 3,300
= 351,300
All other information which is given in the question are not relevant. So, ignore other information.
Code of conduct. This is a set of rules that everyone is expected to know and follow to the fullest extent.
Answer:
11.24%
Explanation:
Fisher equation:
(1 + nominal interest rate) = (1 + real interest rate) x (1 + expected annual inflation)
1 + nominal interest rate = 1.03 x 1.08
--> Nominal interest rate = 11.24%
