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MA_775_DIABLO [31]
4 years ago
5

Pearson Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity

on the company's outstanding bonds is 10%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 12.80%. What is Pearson's cost of common equity? Do not round intermediate calculations. Round your answer to two decimal places.
Business
1 answer:
babunello [35]4 years ago
8 0

Answer:

284%

Explanation:

You calculate it using the conversion method

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HELP!!!
Anarel [89]

Answer:

About 250 ; 2000 bicycles

Explanation:

Opportunity cost simply means the loss incurred on a certain option when the alternative opruoonos chosen.

The opportunity cost of increasing shoe production from 10,000 to 20,000 pairs

The value of 20,000 (x axis) on the y axis is about 3750

Value of point A in the y - axis = 4000

Hence opportunity cost = (4000 - 3750) = 250 bicycles

B.)

The opportunity cost of increasing shoe production from 50,000 to 60,000 pairs

The value of 60,000 (x axis) on the y axis is about 0

Value of point B in the y - axis = 2000

Hence opportunity cost = (2000 - 0) = 2000 bicycles

3 0
3 years ago
On March 1, 2021, Beldon Corporation purchased land as a factory site for $64,000. An old building on the property was demolishe
Fofino [41]

Answer:

$638,000

Explanation:

The answer is simply the expenditure minus any selling from salvages.

First total Expenses(cost for land + cost for building) are as follow;

Land purchase: 64,000

Demolition: 6,000

Architect’s fees: 16,000

Legal fees for title investigation of land 4,000

Property taxes on land 3,400

Construction costs 540,000

Interest on construction loan 7,000.

.........................................................................

                     Total expenses = 64,000 +6,000+16,000+ 4,000+3,400+ 540,000 +7,000 = 640,400

                     Salvage sales = 2,400

                     Net Capital Cost = Total expenses - Salvage sales = $638,000

7 0
3 years ago
For the fundraiser will sold 225 candy bars here in the dollar for each almond candy bar he sells and $0.75 for
Leya [2.2K]
<span>187.5.......................................</span>
8 0
3 years ago
You recently sold 200 shares of Apple stock to your brother. The transfer was made through a broker, and the trade occurred on t
FromTheMoon [43]

Answer:

The correct answer is letter "E": A secondary market transaction.

Explanation:

The secondary market refers to all transactions of securities that happen after the stock's initial offering. It can also refer to the exchanges themselves where these transactions take place. The New York Stock Exchange (<em>NYSE</em>) and the National Association of Securities Dealers Automated Quotation (<em>NASDAQ</em>) are examples of secondary market exchanges.

3 0
3 years ago
At the beginning of the year, Blevins Company estimated manufacturing overhead cost of $416,000 and direct labor cost of $520,00
777dan777 [17]

Answer:

Allocated MOH= $29,520

Explanation:

Giving the following information:

Estimated manufacturing overhead cost= $416,000

Direct labor cost= $520,000.

The firm allocates manufacturing overhead based on direct labor cost. For August, direct labor cost was $36,900.

First, we need to calculate the estimated overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 416,000/520,000= $0.8 per direct labor dollar.

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH=  0.8*36,900= $29,520

3 0
3 years ago
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