Answer:
Explanation:
Book value of shareholders equity = Book value of mailing machine + net working capital - Long term debt = 64500 + 57200 - 111300 = $ 10400
Answer: 7.80%
Explanation:
At the end of 2016, Josh received a dividend of $1.37 and at the end of 2020, he received one of $1.85.
You can calculate the growth rate with the formula:
Dividend Growth Rate = (Dividend received at end of 2020/Dividend received at end of 2016) ^ (1/n) - 1
2016 to 2020 is 4 years.
Dividend growth rate = (1.85 / 1.37)¹/⁴ - 1
= 0.07798518
= 7.80%
Answer:
component cost of debt to calculate wacc = 0.7
Explanation:
given data
par value = $1000
time = 20 year
rate = 7%
tax rate = 40%
tax rate = 30 %
to find out
cost of debit use to calculate wacc
solution
we know cost of debt before tax is 7%
so when tax is 30 % cost of debt after tax is = 7% ( 1 - tax rate )
cost of debt after tax = 7% ( 1- 0.30 )
cost of debt after tax = 4.9 .......................1
and
so when tax is 40 % cost of debt after tax is = 7% ( 1 - tax rate )
cost of debt after tax = 7% ( 1- 0.40 )
cost of debt after tax = 4.2 .......................2
so
from equation 1 and 2
component cost of debt to calculate wacc = 4.9 - 4.2
component cost of debt to calculate wacc = 0.7
Answer:
E. If Projects S and L have the same NPV at the current WACC, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the WACC used to evaluate the projects declined.
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
