Answer:
c. 15.8%
Explanation:
The cost of equity is the WACC (weighted average cost of equity)
WACC formula = wE*rE + wD*rD(1-tax) , whereby
wE = weight of equity = 65%
rE = cost of equity = 20%
wD = weight of debt=35%
rD(1-tax ) = after tax cost of debt =8%
WACC = (0.65 *0.20) + (0.35*0.08)
= 0.13 + 0.028
= 0.158 or 15.8%
Therefore, the overall cost of capital is 15.8%
Interest rate and years of repayment
Answer:
"Organizational schizophrenia" is the appropriate answer.
Explanation:
- It's also provided mostly by examining current literature as well as by adopting a qualitative phenomenological method through conversation as well as interviewing with focused collective discussions.
- That would be a very essential idea to clarify as well as study extensively. There seems to be some consensus among the focal group that perhaps the comparison is quite beneficial for comprehending certain occurrences well within the field of the organization.
Answer:
incremental IRR 15,404%
Project A is better than project B
Explanation:
the incremental IRR will be the internal rate of return after subtracting the cashflow of the smaller project from the bigger project.
Project A Project B Difference
F0 -54500 -79400 -24900
F1 16400 0 -16400
F2 28900 48300 19400
F3 31700 42100 10400
Now, we calcualte the internal rate of return of this "differential" project:
We have a project that reuqires an investment of 24,900
Then another of 16,400 and then, we receive 19,400 and 10,400
we use excel IRR function and get -15.4035%
As the differential IRR is negative can determnate the better project which is A
