1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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>
You might be interested in
A plan to exploit experience-based cost and location economies, transfer core competencies with the firm, and pay attention to l
ikadub [295]

Answer:

D) transnational strategy.

Explanation:

A transnational strategy is more personalized or custom fit than other global or international strategies. When corporations follow this approach, they will generally coordinate the subsidiary's operations with the headquarters, and will work closely together. Generally it focuses on marketing and operational activities, e.g. international retail stores.

8 0
3 years ago
Schager Company purchased a computer system on January 1, 2014, at a cash cost of $23,000. The estimated useful life is 10 years
MakcuM [25]

Answer:

Accumulated depreciation= $7,272

Explanation:

Giving the following information:

Purchased: January 1, 2014, at a cash cost of $23,000.

The estimated useful life is 10 years.

The estimated residual value is $2,800.

Under the double-declining balance, we need to use the following formula for each year:

Annual depreciation= 2*[(book value)/estimated life (years)]

2014= [(23,000 - 2,800)/10]*2= 4,040

2015= [(20,200 - 4,040)/10]*2= 3,232

Accumulated depreciation= $7,272

3 0
2 years ago
What is the most important way the federal reserve ensures the United States money supply is safe and in circulation
BlackZzzverrR [31]

Answer:

Federal Reserve increases the money supply in the hands of the public if it buys back issued securities from large banks.

Explanation:

Federal Reserve increases the money supply in the hands of the public if it buys back issued securities from large banks. Conversely, Federal Reserve decreases the money supply in the hands of the public if it sells securities. As a result, the money supply increases.

Federal reserve provides and maintains an effective and efficient payment system. It also regulates banking operations.

5 0
2 years ago
Actual indirect materials costs$11,800 $6,700 Actual indirect labor costs 55,600 45,900 Other overhead costs 16,000 49,900 Overh
dusya [7]

Answer:

See below

Explanation:

1. Actual costs = $11,800(indirect material + $55,600(indirect labor) + $16,000(other overhead costs) = $83,400(actual cost)

$91,400(overhead applied) - $83,400(actual cost) = Overhead applied is greater than the actual cost which means that overhead was over applied by $8,000

2. Debit: Manufacturing overhead $8,000

______ Credit: Cost of goods sold $8,000

3. Actual costs = $6,700(indirect material) + $45,900(indirect labor) + $49,900(other overhead costs) = $102,500

$96,700(overhead applied) - $102,000(actual costs) = Overhead applied is less than the actual costs which means that overhead was under applied by $5,800

4. Debit : Cost of goods sold $5,800

_______ Credit: Manufacturing overhead $5,800

7 0
3 years ago
Who do you think has the least<br> influence? Why?
tatuchka [14]

Answer:

good stuff

Explanation:

people these days (including me sometimes) put more energy into bad things and negative things .and its partly social media's fault.

3 0
2 years ago
Other questions:
  • Select the correct answer.
    5·1 answer
  • On october 1, 2014, donald anderson exchanged an apartment building having an adjusted basis of $375,000 and subject to a mortga
    8·1 answer
  • Multiple Production Department Factory Overhead Rates The total factory overhead for Bardot Marine Company is budgeted for the y
    6·1 answer
  • During a year which of the three latitudes experiences the greatest variation in average daily insolation at the top of the atmo
    10·1 answer
  • Norr and Caylor established a partnership on January 1, 2010. Norr invested cash of $100,000 and Caylor invested $30,000 in cash
    7·1 answer
  • Assume that you are part of the accounting team for Logan Digital. The company currently expects to sell 362 units for total rev
    5·1 answer
  • Southland Company is preparing a cash budget for August. The company has $17,000 cash at the beginning of August and anticipates
    15·1 answer
  • A lender agrees to loan you 80% of the first $ 60,000 and 70% of the remainder of the purchase price of a home. The contract pri
    9·1 answer
  • If each of two competing monopolists undertakes equal advertising efforts to attract consumers away from the other, the total re
    6·1 answer
  • Dunn Sporting Goods sells athletic clothing and footwear to retail customers. Dunn's accountant indicates that the firm's operat
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!