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lubasha [3.4K]
3 years ago
12

Granite works maintains a debt-equity ratio of .65 and has a tax rate of 21 percent. the pretax cost of debt is 9.8 percent. the

re are 25,000 shares of stock outstanding with a beta of 1.2 and a market price of $25 a share. the current market risk premium is 8.5 percent and the current risk-free rate is 3.6 percent. this year, the firm paid an annual dividend of $1.90 a share and expects to increase that amount by 3 percent each year. using an average expected cost of equity, what is the weighted average cost of capital?
Business
1 answer:
guajiro [1.7K]3 years ago
7 0
<span>9.20 percent

Re= 0.036 +1.2(0.085) = 0.138
Re= [($1.10 x 1.02)$19] +.02 = 0.0790526

ReAverage = (0.138 + 0.0790526)/2 = 0.108526

WACC = (1/1.65)(0.108526) + (0.65/1.65)(0.098)(1-0.32) = 9.20 percent</span>
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Under Armour wants to assess its brand equity more effectively and asks its marketing team to convince upper management why it i
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Answer:

The correct answer is letter "A": Brand equity is strategically important and correlates directly to Under Armour's profitability.

Explanation:

Brand equity refers to the perception consumers have about a firm that affects its value. Brand equity could be positive or negative. It is an important element for companies aiming to settle in the market through marketing strategies that generate more profits by attracting more customers. Brand equity can be measured by <em>price, customer satisfaction, popularity, brand awareness </em>or <em>market share.</em>

<em />

<em>Thus, the marketing team of Under Armour could state that conducting a brand equity measurement is crucial because it is related to the firm's ability to generate profit.</em>

3 0
3 years ago
Which of the following is a false completion of the following: "Congress has the authority to declare war..."
Yakvenalex [24]

Answer: E. and exercise this authority with great frequency

Explanation:

The Congress has the authority to declare war but has not been exercising this authority with great frequency most times they are reluctant to declare war and has only declared eleven wars in the history of America.

They have rarely exercise this power one of the reasons being to cut down funding of war, they preferred to authorize presidential military action without a declaration of war.

8 0
3 years ago
Which of these should you consider while communicating in a diverse workplace?
Ivahew [28]

Answer:

A. Culture

Explanation:

Culture is very important and is reflective of how people communicate and etc. For example, the big business setting in China differs from America, so you would want to know how to be respectful of their culture. In China, when giving and receiving business cards, you have to accept it with two hands, not one hand. Failure to do so will cause you to look rude!

I hope this helps clear things up!

6 0
3 years ago
In determining whether to issue a loan, banks are not allowed to ask about an applicant's
Firlakuza [10]

Answer:

country of origin.

Explanation:

Banks have a set of requirements that borrowers need to meet to qualify for a bank loan. The banks will ask questions to determine if the customer is eligible for a loan. Most of the questions pertain to the purpose of the loans and the customer's ability to repay.

The bank will ask about employment history, credit history, tax information, personal information, the purpose of the loan,  collateral, and other questions related to the ability to repay. A person's country of origin is unnecessary and may elicit elements of discrimination.

3 0
3 years ago
Read 2 more answers
Beth sells candles from her website. She can get a candle from her suppliers at a cost of $3 to her. The candles have been selli
statuscvo [17]

Answer:

$10.67

Explanation:

Data provided in the question:

Initial cost = $3

Initial selling cost = $5

Initial sales = 4000

with $1 increase in price she loses 300 sales per month

Now,

Let the increase in price which maximizes the profit be '$x'

Therefore,

Final selling price = $5 + x

Final sales = 4000 - 300x

Thus,

Revenue = Final selling price × Final sales

= ( 5 + x)( 4000 - 300x)

= 20,000 - 1500x + 4000x - 300x²

= 20,000 + 2500x - 300x²

Total Cost = Initial cost × Final sales

= 3(4000 - 300x )

= 12,000 - 900x

Now,

Profit = Total revenue - Total cost

or

P = [ 20,000 + 2500x - 300x² ] - [ 12,000 - 900x ]

or

P = 8,000 + 3400x - 300x²

for point of maxima \frac{dP}{dx}=0

Thus,

0 = 0 + 3400 - 300(2x)

or

0 = 3400 - 600x

or

600x = 3400

or

x = \frac{17}{3}

Hence,

The price will be = $5 + x = 5 + \frac{17}{3}

= $10.67

7 0
3 years ago
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