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
LenaWriter [7]
3 years ago
12

Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capita

l budgeting? a. Retained earnings. b. Preferred stock. c. Accounts payable. d. Long-term debt. e. Common stock.
Business
1 answer:
slavikrds [6]3 years ago
6 0

Answer:

c. Accounts payable.

Explanation:

The capital structure is a mix of debt and the equity

And, the formula to compute the weighted average cost of capital is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of  common stock) × (cost of common stock)

Since the account payable is the current liabilities and therefore it is not use for computing the WACC.

You might be interested in
Dylan made a presentation on the organization of the federal government of the United States. What indicates that Dylan's presen
Zolol [24]

Answer:

The presentation made good use of visual aids.

Explanation:

Given that a well-organized presentation is a type of presentation that attracts and satisfies the audience's curiosity and at the same time is well relevant to the topic of discussion.

Hence, in this case, the correct answer to the question is "The presentation made good use of visual aids."

This is because the visual aids in the presentation attract the audience and at the same time depicts relevant points to the topic

3 0
3 years ago
A local county commissioner is under fire for utilizing an out-of-county florist owned by her daughter to purchase flower arrang
Nastasia [14]
A conflict of interest
5 0
2 years ago
Generally, retirement benefits, including Social Security or pensions, receive a cost of living increase (COLA), annually,
d1i1m1o1n [39]

Answer:$4,998

Explanation:

3 0
3 years ago
Read 2 more answers
Which of the following illustrates economies of scale , diseconomies of scale , and constant returns to scale ?
Lerok [7]

Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale

Explanation:

Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.

Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".

4 0
3 years ago
Bonner Metals wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 8.5 percent bo
11Alexandr11 [23.1K]

Answer: 8.99%

Explanation:

The coupon rate on the new bonds if the firm wants to sell them at par will be calculated thus:

Par value = 1000

Selling value = 959

Maturity = 16 × 2 = 32

Coupon = 8.5% = 8.5% × 1000 = $85

Semiannual PMT = $85/2 = $42.5

The coupon rate on the new bonds will be:

= Rate(32, 42.5, -959, 1000) × 2

= 8.99

Coupon rate = 8.99%

3 0
3 years ago
Other questions:
  • The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.Accounts Debit CreditCash $1
    7·1 answer
  • n a perfectly competitive industry, the equilibrium price is $56 and the minimum average total cost of the industry's firms is $
    10·1 answer
  • One reward of starting your own business is _____.
    6·2 answers
  • Which of the following statements about today's job market is accurate? a. Today the emphasis is on what the applicant wants. b.
    8·1 answer
  • A rotational molding operation has fixed costs of $7,000 per year and variable costs of $52 per unit. If the process is automate
    11·1 answer
  • Neehara recently opened a premium bakery. she did not have enough savings and hence she applied for a loan to obtain the additio
    13·1 answer
  • Which type of insurance is MOST LIKELY classified into categories such as term, whole, and variable?
    6·1 answer
  • Nikita wants to apply for student aid to fund her college education. Arrange the steps involved in Nikita's application for fina
    12·2 answers
  • How do contact lists differ from an address book?
    5·1 answer
  • Specter Co. combines cash and cash equivalents on the balance sheet. Using the following information, determine the amount repor
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!