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irakobra [83]
3 years ago
10

Haslem, Inc. has 3 million shares of common stock outstanding, 1 million shares of preferred stock, and 80,000 bonds. The common

stock is selling for $50 per share, the preferred stock is selling for $33 per share, and the bonds are 25 year, 8.5%, $1,000 bonds that are presently selling for $1,080 (semiannual interest). The preferred stock pays an annual dividend of $2.70, and the common dividend paid in the year just ended was $2.40. The dividend on the common stock is projected to grow at a rate of 6% indefinitely
Business
1 answer:
Marysya12 [62]3 years ago
4 0

Answer:

8.37%

Explanation:

WACC = [E / (D + E)](Re) + [D / (D + E)](Rd)(1 - T)

E = market value of equity

D = market value of debt

Re = cost of equity

Rd = cost of debt

T = taxes

  • E = 3,000,000 common stocks x $50 = $150,000,000
  • DP = 1,000,000 preferred stock x $33 = $33,000,000
  • DB = 80,000 bonds x $1,080 = $86,400,000
  • Re = (dividend / stock price) + growth rate = ($2.4 / $50) + 6% = 0.048 + 6% = 0.108 or 10.8%
  • Rdp = $2.70 / $33 = 8.18%
  • Rdb = $85 / $1,080 = 7.87%
  • T = 33%

WACC = [E / (D + E)](Re) + [DP / (D + E)](Rdp)(1 - T) + [DB / (D + E)](Rdb)(1 - T)

since the numbers are too large, I will divide the calculation into three parts:

  • [E / (D + E)](Re) = [$150,000,000 / ($119,400,000 + $150,000,000)](10.8%) = ($150,000,000 / $269,400,000) x 10.8% = 0.5568 x 10.8% = 0.0601 or 6.01%
  • [DP / (D + E)](Rdp)(1 - T) = ($33,000,000 / $269,400,000) x 8.18% x (1 - 33%) = 0.1225 x 8.18% x 67% = 0.0067 or 0.67%
  • [DB / (D + E)](Rdb)(1 - T) = ($86,400,000 / $269,400,000) x 7.87% x 67% = 0.0169 or 1.69%

WACC = 6.01% + 0.67% + 1.69% = 8.37%

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Answer:

Cashflow from Operating Activities

Net Income                                                                 $120,400

Adjastment for Non-Cash Items

Depreciation                                                                  $5,300

Amortization                                                                   $3,400

Adjastments of Items appearing elsewhere

Loss from the sale of land                                            $4,000

Net Cash flow from operating activities                    $133,100

Explanation:

Net Income is reconciled in the cashflow statement via the indirect method. Its is adjasted for Non-Cash Items, Items appearing elsewhere in the cashflow statement and Working Capital Movements

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15 points & Brainliest! please show your work first & explain why & how you got it. Alegbra 2 questions!
jasenka [17]
18a.

the y-intercept is the value of the function at x = 0.
so y-intercept is 5/8.

constant multiplier you can find by dividing a y-value by the previous y-value:

(y at x = 1) / (y at x = 0) is
(15 / 32) / (5 / 8)
but dividing by fraction is same as multiplying by reciprocal:

(15 / 32) · (8 / 5) ⇒ (15 · 8) / (32 · 5) ⇒ (3 · 1) / (4 · 1) = 3/4
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the constant multiplier is 3/4 (you can confirm by repeat multiplying the y-values by 3/4 to get the next one)

18b.

y-intercept is 0.01

constant multplier:

(y at x = 1) / (y at x = 0) = 0.1 / 0.01 = 10

constant multiplier is 10

18c.

y = m/n(o/p)^x

y intercept is at x = 0:
y = m/n(o/p)^0
since anything to power of 0 is 1, we are left with
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7 0
3 years ago
An organization accused of illegal discrimination may be able to successfully defend its employment practices by showing that th
alexgriva [62]

Answer:

a bona fide occupational qualification

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An example of this can be seen when the film recording industry needs to hire an Asian actor to play a character of Asian origin. This industry uses nationality as a discriminatory factor to hire someone, but in this scenario, this does not discriminate.

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Answer:

It is 15.68 times

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Price-Earnings Ratio = Market Price per share (MPS)/Earning per share (EPS).

Where EPS = $231,971 /55,100

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Hence, Price-Earnings Ratio = 66/4.21

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P/E ratio shows the expectations of the market and is the price you  pay per unit of current earnings.

The  ratio is as well being used for valuing companies and to find out whether they are overvalued or undervalued most especially by the investors.

8 0
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