_____ is not a primary concern when writing menu copy.

R.S. Green has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year’s annual dividend is expec

zhannawk [14.2K]

Answer:

WACC 6.18%

Explanation:

to get the cost of capital we solve using the gordon model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

$\frac{divends}{Price} = return-growth$

$\frac{divends}{Price} + growth = return$

$$Cost of Equity =\frac{D_1}{P)} +g$

D1 1.55

P 28

f 0.00

g 0.02

$$Cost of Equity =\frac{1.55}{28} +0.02$

Ke 0.075357143

Then for the cost of debt, we need to calculate the YTM of the bonds:

which is the rate at which the present value of the coupon payment and maturity equals the market price:

For the complexity this is done with excel or a financial calculator there is also an approximation formula

YTM with excel: 0.073516565

now that we good this we need to determinate the weigth of equity and debt:

250,00 shares x 28 dollars each = 7,000,000

1,500 bonds of $1,000 each at 98% = 7,350,000

value of the company: 7,000,000 + 7,350,000 = 14,350,000

Ew: 7,000,000 / 14,350,000 = 0.487804878

Dw: 7,350,000 / 14,350,000 =0.512195122

Now we got all values and we can determinate the WACC:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.075357143

Equity weight 0.487804878

Kd 0.074

Debt Weight 0.512195122

t 0.34

$WACC = 0.075357143(0.48780487804878) + 0.074(1-0.34)(0.51219512195122)$

WACC 0.0617752 = 6.18%

7 0

3 years ago

Sparks Fireworks manufactures and sells fireworks. Their raw materials used is $71,500. Their beginning raw materials inventory

algol13

Answer:

The correct answer would be, $70500

Explanation:

Raw Material Turnover means what amount of raw materials is used within a specific period of time. So the raw material turnover would be calculated by adding the beginning inventory with the amount of material used within the period, and then the remaining material will be deducted. So the whole calculations are shown as follows:

Beginning Raw Material Inventory: $5000

Raw Material Used: $71500

Ending Raw Material Inventory: $6000

Raw Material Inventory Turnover:

Beginning Inventory + Raw Material Used - Ending Raw Material

= 5000+71500-6000= $70500

7 0

4 years ago

Outstanding Job Hours to Print Job Penalty for not completing job in 24 hoursJob A 6 -$120Job B 9 -$200Job C 12 -$360Job D 16 -$

pav-90 [236]

Answer:

Option D is correct

Explanation:

The cumulative loss in penalty of this option is the highest compared to the rest which makes it logical.

7 0

4 years ago

Johnson’s Fruit Farm is one of several stores in the county where customers can purchase locally grown fruits and vegetables. Ho

Vlada [557]

Answer:

The answer is: True

Explanation:

Strategic positioning refers to carrying out activities that will differentiate your business from its competition.

By offering weekly workshops, Johnson's Fruit Farm is developing a core competency which will help them gain competitive advantage over other stores in their county.

7 0

3 years ago

Please somebody help me

Andre45 [30]

anthro > PhD

telle> traininng

network> Bachlors

7 0

3 years ago