Answer:
14.143%
Explanation:
Data provided in the question:
market value of debt = $3,000
Coupon rate, r = 7% = 0.07
Expected earnings before interest and taxes = $1,200
Tax rate = 34% = 0.34
The unlevered cost of capital, Ra = 12% = 0.12
Now,
Value of firm = VU + Tax
Here
VU = [expected earnings before interest and taxes( 1 - t )] ÷ [ Ra ]
= [$1,200 ( 1 - 0.34)] ÷ 0.12
= $6,600
Thus,
Value of firm = $6,600 + ( $3,000 × 0.34 )
= $6,600 + 1,020
= $7,620
Thus,
Equity = Value of firm - Debt
= $7,620 - $3,000
= $4,620
Therefore,
Cost of equity = Ra + [ (Debt ÷ Equity ) × (1 - t ) × (Ra - r ) ]
= 0.12 + [ (3,000 ÷ 4,620) × (1 – 0.34) × (0.12 - 0.07) ]
= 0.14143
or
= 0.14143 × 100%
= 14.143%
The answer is C. analyze your current personal and financial situation
Answer:
Operating expenses
Explanation:
Before a business yields a profit as an output , there is a need for some input from the business owners. One of these input is operating expenses .
Operating expenses is supporting cost of keeping the business running in the course of normal production , different from the cost of production and is necessary as every form of other cost may not get a desired result without the operating cost.
Examples include rent , payroll ,transportation , security fees among others.
Answer:
As a store manager, Liandra has to play the role of negotiator, such as purchasing products at a fair price for her company. As she handles this responsibility, Liandra is playing the decisional role.
Explanation:
A manager is someone who supervises, controls and administers an organization or company. There are different types of managers in an organization. An example is a store manager whose major role is to maintain the overall image of the store. There are different roles that a manager can play in an organization, namely; decisional, disseminator, and leadership. These roles are further explained below;
1. Decisional role
As the name suggests, this is a role where the manager has to make a choice on multiple alternatives. As she handles the responsibility of purchasing products at a fair price, she makes decisions on which products are of quality and which ones have a good price on behalf of her company.
2. Disseminator
A disseminator is a manager in the field of communication charged with the responsibility of passing information about an organization to the employees.
3. Leadership
Leadership can be defined as the role of taking charge in directing people and resources in a certain direction. The role of leadership can be taken by different people as various levels of management.
Answer:
Total Material Variance = $2,400 Unfavorable
Explanation:
Total Materials Variance = Standard Cost - Actual Cost
Here, standard cost = Standard Quantity 
Standard Rate
Standard quantity for actual output = 5,400
Standard Rate = $2.00 per pound
Standard Cost = 5,400 $2.00 = $10,800
Actual Cost = Actual Quantity Actual Rate
= 6,000 $2.20 = $13,200
Total Material Variance = $10,800 - $13,200 = - $2,400 Unfavorable
Since the value is negative the variance is unfavorable, as actual cost is more than standard cost.
