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2 years ago

While reading difficult content, you should always start with

Business

2 answers:

xeze [42]2 years ago

8 0

Answer:

a.Surveying the chapter

Explanation:

Surveying the content can help you identify and have a better context on what the chapter and the document in general will tell you, this can help you better understand what you are going to be reviewing and reader and give you an easier look at what you are about to read.

Ivanshal [37]2 years ago

5 0

I would go with a because you need to preview/ survey the content.

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570,000. The firm will raise the $570,000 in capital by issuing $230,000 of debt at a before-tax cost of 11.1%, $20,000 of prefe

exis [7]

Answer:

WACC = 12.040%

Explanation:

WACC represents weighted average cost of all sources of financing. In the question there are three sources of finance 1) Equity 2) Preferred Stock 3) Debt.

1) Equity: The firm intends to raise $ 320,000 from equity out of total financing of $ 570,000 e.g. 56% of total financing comes from Equity. Thus multiplying the cost of equity 14.7% (given) with ratio of equity financing, we get to weighted average cost of equity of 8.253%.

2) Debt: The firm is raising $ 230,000 from debt e.g. 40% of total financing. The proportion of debt is multiplied by post tax cost of debt as the interest expense is deductible expense for tax purposes in most of the jurisdiction. Therefore we reduce the cost of debt with element of (1 - tax rate), thus we get to 8.325% = 11.1 (1 - 25%) as total cost of debt. In order to get weighted average cost of debt we multiply this post tax cost of debt with ratio of debt financing 40%, thus weighted average cost of debt is 8.325 * 40% = 3.359%

3) Preferred Stock: The firm is also raising finance from preferred stock having cost of 12.2%. Proportion of financing from preferred stock is 4% in total mix of financing, thus weighted average cost of preferred stock is 12.2% * 4% = 0.428%.

Now adding weighted average cost of all three sources of funding, we get WACC: 8.253% + 3.359% + 0.428% = 12.040%

3 0

2 years ago

In an organization, the functional level is made up of ________, which provide specific and focused strategic direction.

never [62]

The functional level of an organization is made up of departments, which provide specific and focused strategic direction for the company to achieve its objectives and goals set out in the planning.

<h3 /><h3>Functional level</h3>

It provides support for the strategy developed in the organization, with the general objective of generating greater competitiveness for the company, effectively maintaining the corporate performance of each integrated system.

Therefore, functional departments exist in a company so that each sector has the necessary focus on resources, units and people in order to generate greater compliance with the organizational strategy and objectives.

The correct answer is:

Departments

Find out more information about functional level here:

brainly.com/question/26064163

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2 years ago

What is the legal business name of a sole proprietorship

I am Lyosha [343]

Answer:

i dont know

Explanation:

4 0

2 years ago

The balance sheet is a financial statement that measures the flow of funds into and out of various accounts over time, while the

ValentinkaMS [17]

Answer:

The given statement is <u>False.</u>

A balance sheet is often described as a "snapshot of a company's financial condition.

7 0

3 years ago

The operating revenues of the three largest business segments for Time Warner, Inc., for a recent year follow. Each segment incl

Kisachek [45]

Answer:

Time Warner, Inc.

Turner Home Box Office Warner Bros. Total

Segment Revenues

(in millions) $21,700 $22,200 $80,600 $124,500

Variable costs 4,774 10,434 25,792 41,000

Contribution margin $16,926 $11,766 $54,808 $83,500

Contribution ratio 78% (100 - 22) 53% (100 -47) 68% (100 -32) 67%

b. Certainly, Turnover and Warner Bros. are more profitable businesses than Home Box Office in terms of total contribution margin (dollars) and contribution margin ratio.

Explanation:

a) Data and Calculations:

Segment Revenues

(in millions)

Turner (cable networks and digital media) $21,700

Home Box Office (pay television) 22,200

Warner Bros. (films, television, and videos) 80,600

Assume that the variable costs as a percent of sales for each segment are as follows:

Turner 22%

Home Box Office 47%

Warner Bros. 32%

b) The contribution margin ratio for the three segments can easily be determined by subtracting the variable costs percentages from 100 for each segment instead of doing more computations (Contribution margin/Sales Revenue * 100). But the results are the same for either method.

6 0

2 years ago