Answer:
The WACC is 13.37%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure is made up of debt, preferred stock and common stock. In this question, there are only two components present in the capital structure i.e. debt and common stock.
The formula for WACC is,
WACC = wD * rD * (1 - tax rate) + wE * rE
Where,
- w represents the weight of each component in the capital structure or value of each component as a proportion of total assets
- r represents the cost of each component
- we take after tax cost of debt. So we multiply cost of debt by (1 - tax rate)
We first need to determine the cost of equity using the CAPM,
rE = 0.05 + 1.25 * 0.07 = 0.1375 or 13.75%
We know that assets = debt + equity
Assets = (0.95 * 10) + (2.8 * 50)
Assets = 9.5 + 140
Assets = 149.5 million
The WACC for ABC is:
WACC = 9.5/149.5 * 0.12 * (1 - 0.35) + 140/149.5 * 0.1375
WACC = 0.1337 or 13.37%
Fkat regressive is the answer
Answer:
<u>Balance of payments surplus</u>
Explanation:
Balance of payments refers to a record of a country's trade position during a period.
Three components of Balance of payments are. current account, capital account and the financial account.
In the scenarios wherein a nation's exports exceed the imports, it reveals a surplus. Conversely, if imports exceed exports, it reveals a deficit.
Borrowings by a nation to fund it's deficit is regarded as an inflow in the balance of payments account.
Thus, in the given case,
Balance of payment position for the FY 2015-16 = $20 - $18 + $40 = +$42
Which indicates balance of payments surplus position.
Answer: $650,000
Explanation:
Given that,
Fair and par value of issued bonds = $150,000
Prior acquisition, McGuire reported
Total assets = $500,000
Liabilities = $280,000
Stockholders’ equity = $220,000
At that date, Able reported
Total assets = $400,000
Liabilities = $250,000
Stockholders’ equity = $150,000
Account payable to McGuire = $20,000
Total assets reported by McGuire after acquisition:
= Total assets + Fair value of investment
= $500,000 + $150,000
= $650,000
Answer: idle production capacity
Explanation:
Idle capacity refers to the remaining amount of capacity that is left in a company when both the productive and the protective capacity have been removed from consideration.
Since the plane has a capacity of 120 passengers but he has averaged only 24 passengers, a load factor of 20 percent. Once the plane takes off, the other 96 seats generate no sales and profits to the airline for that flight, then the unique aspect of services does this situation describe idle production capacity.
