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DanielleElmas [232]
3 years ago
14

ABC Corporation has the following information: Total market value of a company’s stock: $650 million Total market value of the c

ompany’s debt: $150 million Cost of Equity: 10% Cost of Debt: 8% Corporate tax rate is 35 percent What is the WACC of ABC Corporation?
Business
1 answer:
Jobisdone [24]3 years ago
7 0

Answer:

WACC of ABC Corporation is 91%

Explanation:

WACC = Kd * (1+T) * Debt/Debt+Equity + Ke * Debt/Equity

Kd = Cost of debt

T = Corporate tax rate

WACC = 0.08*(1-0.35)*(150m/150m+650m) + 0.10*(650m/150m+650m)

WACC = 0.08 *0.65*0.1875 + 0.10*0.8125

WACC = 0.00975 + 0.08125

WACC = 0.091

WACC = 91%

Therefore, the WACC of ABC Corporation is 91%

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-Ricky Ripov’s Pawn Shop charges an interest rate of 15.25 percent per month on loans to its customers. Like all lenders, Ricky
yuradex [85]

Answer:

183.00%

449.15%

Explanation:

The computation of annual percentage rate and the effective annual rate  shown below:

Annual percentage rate is

= Interest rate per month × Total Number of months  in a year

= 15.25% × 12  months

= 183.00%

The effective annual rate is

= (1 + nominal interest rate ÷ periods)^ number of period - 1

= (1 + 15.25% ÷ 12)^12 - 1

= 449.15%

6 0
4 years ago
Jeremy wants to avoid conflict with his new coworkers. he should ______. a. spread gossip with them b. treat them all with respe
Maru [420]

Jeremy wants to avoid conflict with his new coworkers. He should treat them all with respect.

Option B is correct answer.

Conflict in workplace :

Conflict is a difference or disagreement between two or more people. Conflict in the workplace is a normal part of human interaction, yet, handling and resolving conflicts that arise is probably one of the biggest challenges employees face.

What is good conflict in the workplace?

Positive conflict is constructive in nature. It produces new ideas, solves continuous problems, provides an opportunity for people and teams to expand their skills, and fosters creativity. When opposing ideas are explored, a breakthrough of thinking can occur.

Learn more about workplace conflicts :

brainly.com/question/17112762

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8 0
2 years ago
The following transactions were completed by Daws Company during the current fiscal year ended December 31:
boyakko [2]

Answer:

Explanation:

The T account is presented below:

                          Allowance for Doubtful Debts  

Jan 29                  $5,850                      Jan 1 Beginning balance $54,200

Aug 9                   $11,850                      April 18                 $4,000

Dec 31                  $52,160                     Nov 7                    $7,000

Dec 31   Unadjusted

              balance    $4,660                

                                                          Dec 31 Adjusting entry   $64,660

                                                          Dec 31 Adjusted balance $60,000

4 0
3 years ago
Knowles & Foreman Company took the following data from its income statement at the end of the current year:Per-unit product
Slav-nsk [51]

Answer:

d. 1,680 units

Explanation:

7 0
3 years ago
A monopsonistic employer in an unorganized (nonunion) labor market will: Group of answer choices pay a wage rate in excess of la
pogonyaev

Answer:

pay a wage rate less than labor's MRP

Explanation:

A monopsonistic employer in an unorganized (nonunion) labor market will: "pay a wage rate less than labor's MRP"

The above statement is based on the idea that Monopsony is a market situation whereby a single buyer or firm is the only purchaser of a good or service, which in most cases has to do with the purchase of labor.

And given the fact that the firm is the sole purchaser of labor, where there is no labor union, there is a high tendency that such firm or employer pays a wage rate less than labor's marginal revenue productivity.

3 0
3 years ago
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