Discuss business rules. How do you translate business rules into data-model and database? Provide few examples.

Take It All Away has a cost of equity of 10.54 percent, a pretax cost of debt of 5.27 percent, and a tax rate of 35 percent. The

bogdanovich [222]

Answer:

9%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of common stock x Weightage of common stock ) + ( Cost of preferred stock x Weightage of preferred stock ) + ( Cost of debt ( 1- t) x Weightage of debt )

As WACC is calculated using Market values.

Company Value = 100%

Value of Debt = 28%

Value of Debt = 100% - 28% = 72%

WACC = ( 10.54% x 72% ) + ( 5.27% x 28% )

WACC = 7.59% + 1.48% = 9.07% = 9% (rounded off)

6 0

3 years ago

Last year both a borrower and a lender expected an inflation rate of 3 percent when they signed a long-term loan agreement with

valentina_108 [34]

Answer:

B. The lender would benefit.

Explanation:

Based on the information provided within the question it can be said that in this scenario the one who would benefit from a lower inflation rate would be the lender. That is because by there being a lower inflation rate it means that the money that the borrower needs to pay back the loan does not have the buying power he predicted it would have when he borrowed it. Meaning that he would need to pay more money to the lender than originally anticipated.

4 0

3 years ago

Read 2 more answers

The following data relate to direct labor costs for the current period:

mr Goodwill [35]

Answer:$2,125 unfavorable

Explanation:

Given

Standard costs 9,000 hours at $5.50

Actual costs 8,500 hours at $5.75

we have two formulas to calculate for direct labor rate variance is:

1ST ----Direct Labor rate variance = (Actual Rate- Standard Rate ) x Actual hour

=( $5.75 -$5.50) x 8,500 = $2,125 unfavorable

2ND----Direct Labor Rate Variance=Actual Direct Labor Cost Incurred - Standard Direct Labor Cost Based on Actual Hours

=Actual Hours x Actual Rate -Actual Hours x Standard Rate

= ($5.75 x 8,500 hours)-($5.50 x 8,500 hours)

$48,875 - $46,750 = $2,125 unfavorable

when the actual rate is higher than the standard rate, the Direct Labor Rate Variance is unfavorable and if the actual rate is lower than standard rate, the variance is favorable.

3 0

3 years ago

Performance evaluations for the purpose of determining compensation and special rewards should focus on?

Rainbow [258]

Performance evaluations for the purpose of determining compensation and special rewards should focus on activities and results related to the salesperson's current job and situation.

Performance Evaluation is defined as a formal and productive procedure to measure an employee's work and results based on their job responsibilities. Although the specific criteria depend on the characteristics of a particular selling situation, comprehensive evaluations of salesperson performance require that four dimensions be addressed: behavioral, professional development, results, and profitability criteria. System of review and evaluation of job performance. Assesses accomplishments and designs plans for development. Purposes for Performance Appraisal. Performance evaluations should always be based on the actual job description.

To learn more about Performance evaluations here

brainly.com/question/27548455

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7 0

1 year ago

Sales is in Units of $1000.00 and Advertising is in Units of $100. what is the value of sales increase when we say it is increas

8_murik_8 [283]

Answer:

The value of sales increase when when advertising is increased by one unit is $123.3

Explanation:

The value of sales increase is obtained by differentiating the sales equation (Y) with respect to advertising (X)

Y = 45.9 + 123.3X

dY/dX = 123.3

Increase in sales when advertising is increased by one unit = $123.3

8 0

3 years ago