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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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Answer:

Long term liability

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Long term liability is defined as the amount of money a business owes that is due above a year. It is liabilities that do not affect the current liquidity of the business and its ability to do business.

In this scenario Chestelle Corporation has borrowed a large amount of money that is due in 4 years. It is due in over a year so it is a long term liability.

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3 years ago
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Answer:

Verrecchia Company

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1. Jan. 5 Issued 10,000 shares of common stock for $12 cash per share:

Assets (Cash) would increase by $120,000

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2. Jan. 18 Repurchased 4,000 shares of common stock at $15 cash per share.

Assets (Cash) would decrease by $60,000

Equity (Common Stock) would decrease by $60,000

3. Mar. 12 Sold one-fourth of the treasury shares acquired January 18 for $18 cash per share.

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Equity (Common Stock) would increase by $18,000

4. July 17 Sold 500 shares of the remaining treasury stock for $13 cash per share.

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Assets (Cash) would increase by $175,000

Equity (Preferred Stock) would increase by $125,000

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Explanation:

The Financial Statement effects of each transaction is a reflection of how each transaction affects at least two opposite elements of the financial statement.  Every transaction affects the elements of the financial statement in one way or another, which enables the accounting equation to remain in balance.

For example, a transaction may increase the assets and also increase either the liabilities or equity side of the balance sheet.

In our example, the transactions affected only the balance sheet.  This means that each transaction increases or decreases the assets, liabilities, or equity sections.

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capital production

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Think of a time when you were leading a group project. What kinds of problems emerged? How did you hanlde them? How might those
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When leading a group project the most rising problem is deadlines and team coordination this can be handled by effective communication.

<h3>What is a group?</h3>

A group is referred to as a collection of people who come together to form a relationship or connection with each other. These groups mainly form to perform collaborative activities to achive something.

Working in a group was quite difficult as every individual have own perspective which causes differences of opinion and disagreement within the group.

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This will be helpful in the Restaurant business by dealing with customers and timely delivery of the demanded dish or service to them.

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