Waiting is a bad idea because you could lose good opportunities in the time you wait. Choosing the same career as someone you admire might not be what you would best enjoy or succeed in, and the job that earns you the most money isn't necessarily the most enjoyable. The answer is A :)
Answer:
The gross profit margin of Candy Company is 65% (second option)
Explanation:
The gross profit margin is defined as:
Mg = (sales - costs) / price of sales
If for Candy Company the cost are $112,000 and sales $320,000 then the gross profit margin is:
Mg = ($320,000- $112,000) * 100% / $320,000 =
Mg = $208,000 * 100% / $320,000 = 0.65 * 100%
Mg = 0.65 * 100%
Mg = 65%
Answer:
C. Reject W
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) which is shown below:
Expected return = Risk-free rate of return + Beta × (Market rate - Risk-free rate of return)
= 7% + 1.6 × (12%-7%)
= 7% + 1.6 × 5%
= 7% + 8%
= 15%
The Project W should be rejected as it gives only 14% expected return which is less than the derived expected return.
Answer:
A.8.85%
Explanation:
Computation to determine the weighted average cost of capital for Zonk based on the new capital structure.
First step is to calculate the Cost of equity capital using this formula
Cost of equity capital = Risk free rate + (Beta*Market premium)
Let plug in the formula
Cost of equity capital = 2.3% + (1.13*5.3%)
Cost of equity capital=8.28%
Now let determine theWeighted average cost capital
Weighted average cost capital = [.70*.14*(1-.35)]+(.30*.0828)
Weighted average cost capital= [.70*.14*.65]+.02484
Weighted average cost capital=0.0637+.02484
Weighted average cost capital= .0885*100
Weighted average cost capital= 8.85%
Therefore the weighted average cost of capital for Zonk based on the new capital structure is 8.85%
