Answer:
WACC is 9.35%
Explanation:
In order for us to compute the weighted average cost of capital, we have to first find the cost of equity (Ke) and the cost of debt (Kd)
1. Ke can be found by using CAPM - Capital Asset Pricing Model.
CAPM Formula: Ke = Rf + b(Rm-Rf)
where Rf = Risk free rate; Rm = Return expected of the market; b = beta
Therefore = Ke = 3% + 0.9(11%-3%) = 10.2%
2. Kd = Coupon rate (1 - tax rate), coupon rate is 7%, tax rate is 35%
therefore Kd = 7 (1-0.35) = 4.35%
Lastly we apply the WACC Formula which is Ke* (equity value/Total value of equity and debt) + kd*(debt value/Total value of equity and debt)
We are not given the values of equity and debt, bur we are given the fractions; we will use the fractions.
Therefore: Ke* (equity value/Total value of equity and debt) + kd*(debt value/Total value of equity and debt) = (10.2%*85%)+(4.35%*15%) = 9.35%
Answer:
The correct answer is False.
Explanation:
It is not true that Bossiddy and Charan consider that the synergy process is the most important, without ignoring that it is very useful for achieving organizational goals. What these authors propose is that the process executed by people is the most important among the top 3 (people, strategy and operations.
Answer:
The answer is through legal redress known as Specific Performance.
Explanation:
A contract is an agreement between two or more people. It is legally binding and enforceable. Each individual must satisfy their separate obligations.
Since the contract has been signed. This means it is legally binding.
Since it is legally binding, the best course of action is to proceed to court of law.
In law, this known as Specific Performance. Specific Performance is a resolution used by competent court of law to order a party to perform a specific act like order the owner of the land to relinquish the land. Specific Performance is an equitable remedy.
Answer:
Manufacturing overhead= $57,600
Explanation:
<u>To calculate the Conversion costs, we need to use the following formula:</u>
Conversion costs= direct labor + manufacturing overhead
<u>Now, if direct labor is 60% of conversion costs, then:</u>
Conversion costs= direct labor / (1 - 0.4)
Conversion costs= 86,400 / 0.6
Conversion costs= $144,000
<u>Finally, we determine the manufacturing overhead:</u>
Manufacturing overhead= 144,000 - 86,400
Manufacturing overhead= $57,600
Answer:
B. Internal Revenue Code.
Explanation:
The federal tax laws of the U.S. are jotted under Title 26 in the U.S. Code. The Internal Revenue Code has been headed under Title 26. The laws have been divided and organized separately. The income tax, gifts, and excise taxes are arranged by dividing them into subtitles. Internal Revenue Service has been assigned the task of looking into the implementation of the laws.