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noname [10]
4 years ago
10

. El Capitan Foods has a capital structure of 36% debt and 64% equity, its tax rate is 35%, and its beta (leveraged) is 1.4. Bas

ed on the Hamada equation, what would the firm’s beta if it used no debt, i.e. what is its unleveraged beta?
Business
1 answer:
almond37 [142]4 years ago
5 0

Answer:

The firm's unleveraged beta is 1.0251

Explanation:

Hamada's equation  is used to separate the financial risk of a levered firm from its business risk.

The Hamada equation:

Bu= Bl/(1 + (1 − T)(D/E))

Bl = 1.4

wd = 0.36

Tax rate = 35%

D/E = wd / (1 – wd) = 0.5625 = 56.25%

= 1.4/ (1+(1-0.35)(0.5625))

=1.4/ 1 + (0.65)(0.5625)

=1.4/1.36

= 1.0251

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Assume an organization's current service level on order fill is as follows:
frosja888 [35]

Answer:

Answer for the question:

Assume an organization's current service level on order fill is as follows:

Current order fill 80%

Number of orders per year 5,000

Percent of unfilled orders back-ordered 70%

Percent of unfilled orders cancelled 30%

Back order costs per order $150

Lost pretax profit per cancelled order $12,500

a) What is the lost cash flow to the seller at this 80 percent service level?

b) What would be the resulting increase in cash flow if the seller improved order fill to 92 percent

c) If the seller invested $2 million to produce this increased service level, would the investment be justified financially?

d) What is the role of activity-based costing in customer relationship management? In customer segmentation?

is given in the attachment.

Explanation:

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7 0
3 years ago
Unicef is an intergovernmental organization (IGO) but it has independent national committees in 36 countries.
pav-90 [236]

Answer:

C. NGOs

Explanation:

NGO is the acronym for Non-governmental organization and it is mainly a non-criminal, non-profit, voluntarily inclined groups which is independent of governmental influence and policies.

They are organized on community or local, national and international levels to attend to social issues or political purposes.

Hence, the independent national committees in 36 countries that rely on private funding are NGOs.

3 0
3 years ago
When a closed economy is in equilibrium, we know with certainty that
faust18 [17]

Answer:

inward shift in the supply curve.

Explanation:

= I = S + (T-G). shift in the supply curve.

4 0
3 years ago
The balance sheet of Messi Services included the following shareholders' equity section at December 31, 2018: ($ in millions) Co
Yuri [45]

Answer: The answer is c $1,080 $560

Explanation:

The journal entry will be

Dr: common stock $200 million

Dr: paid in capital $180 million

In the stockholders equity section , the treasury stock is seen as a separate line item in the stockholders equity. The treasury stock will be deducted from the total stockholders equity. The treasury stock is not a part of paid in capital nor part of the retained earning.

Therefore the balance in the paid in capital excess of par Retained Earnings is 1,080 $560

6 0
4 years ago
Read 2 more answers
Gabriel put $6000 in a 2-year CD paying 4% interest, compounded monthly. After 2 years, he withdrew all his money. What was the
NeTakaya
First, we calculate for the effective annual interest given the interest in the scenario. 
                          ieff = (1 + i/m)^m - 1
Substituting the values,
                          ieff = (1 + 0.04/12)^12 - 1 = 0.0407
The effective interest is equal to 4.07%. 

The future amount after 2 years,
                         F = ($6000) x (1.0407)^2 = $6498.86
5 0
4 years ago
Read 2 more answers
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