Answer:
WACC for A: 9.05%
WACC for B: 9.50%
WACC for C: 12.20%
WACC for D: 12.65%
Explanation:
WACC for a division will be equal: Percentage of Debt in capital employed by the Division x Cost of Debt + Percentage of Equity in capital employed by the Division x Cost of equity = 50% x 6% + 50% x ( Risk free rate + Beta of each Division x Risk premium) = 3% + 50% x ( 4% + beta of each Division x Risk premium)
Risk premium for the 4 Divisions is equal to (Cost of equity for the whole firm - Risk free rate) / beta = 9%
Thus WACC for a division will be equal: 3% + 50% x ( 4% + beta of each Division x 9%).
Substitute beta of each Division from A to D provided in the question, we have: WACC for A: 9.05%; WACC for B: 9.5%; WACC for C: 12.2%; WACC for D: 12.65%.
TRUE. After explaining a new procedure to her employees, amy asks, "is there anything that wasn't clear?" she is asking this question to encourage feedback.
Answer:
Use a budget to live within your means and build saving
Explanation:
Taking loans in engaging in capital projects are not to be discouraged,but the opinion or the fear of the masses is, if such loans could be paid back or the lender will be forced to apply foreclosure on your assets.
Through living within your means and with a healthy and well planned saving budget,all borrowed money will be definitely paid back to the lender .
Answer: the correct answer is Alternative D. The excerpt enlicits many times how unnecessary it is to fight for a situation that is settled and that won't change the living standarts of workers for best. It even says that <u>the social reform would turn those standarts to what they were in colonial times</u>. Analyzing those opinions, it is possible to conclude that alternative D is the one that best summons what is said.
Answer:
$83,000
Explanation:
The computation of the actual manufacturing overhead cost is shown below:
= Indirect labor + depreciation on plant + machinery repair + plant supplies + plant utilities
= $11,000 + $48,000 + $11,000 + $6,000 + $7,000
= $83,000
Only these five items would be considered as a actual manufacturing cost. The rest of the items would be ignored
