Answer: .27
Explanation:
The Debt to Equity Ratio is the amount of Debt per dollar that the company owes per dollar of Equity. It must add up to 1.
The Weighted Average Cost of Capital measures just how much a company needs to pay to it's capital holders including shareholders and debt holders.
The formula is,
WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of debt)
Remember that Debt is tax deductible so the After tax cost of debt should be,
= 5.2% ( 1 - tax rate)
= 5.2% * ( 1 - 39%)
= 3.172%.
The debt weight is the amount of debt that the company has per dollar so that means that it is also the Debt to Equity ratio. Denote it as 'x' to find it. Remember that they must add up to one.
WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of debt)
8.59% = 10.6% ( 1 - x) + 3.172%( x)
8.59% = 10.6% - 10.6%x + 3.172%x
8.59% = 10.6% - 7.428%x
7.428%x = 10.6% - 8.59%
7.428%x = 2.01%
x = 0.271
= 27%
Debt to Equity is 0.27.
Answer:
458,000
Explanation:
Beginning inventory = 1,200 units
Budgeted sales = 456,000 units
Desired ending inventory = 3,200 units
Now,
Production Required is given as:
= ( Budgeted Sales + Ending Inventory Required ) - Beginning Inventory
on substituting the respective values, we get
Production Required = 456,000 + 3,200 - 1,200
or
Production Required = 458000
True because many people have different styles so might like different things do it can be hard to make something many people like
Suppliers will keep raising prices as long as there is excess demand, & quantity demanded exceeds the quantity supplied. Hopes this helps
