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LenaWriter [7]
2 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]2 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.

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Rufus, a supervisor at an automobile store, is considered friendly by his subordinates and has the authority to assign important
Citrus2011 [14]

Answer:

a. Task-oriented

Explanation:

Since Rufus, is already considered friendly by his subordinates and has the authority to assign important work to high performers under his wing, with the only limitation being that he does not chalk out clear objectives for his workers. According to Fiedler's contingency leadership theory model, the leadership styles that Rufus should follow in order to be a better leader is Task-oriented  leadership.

The reason for the above suggestion is that Task-oriented leaders are focused on getting the job done and achieving set goals. These category of leaders are not as bothered about employees as they are about developing clear objectives required for achieving tasks meeting goals.

7 0
3 years ago
Moringa products corporation had common stock of $820,000 and retained earnings of $1,250,000 on january 1. during the year, $75
blondinia [14]

Based on the beginning retained earnings balance and the net income as well as dividends, the retained earnings balance will be $1,585,500.

<h3>How much are retained earnings on Dec. 31?</h3>

This can be found as:

= Beginning retained earnings + Net income  + dividends paid

Solving gives:

= 1,250,000 + 287,500 + 48,000

= $1,585,500

Find out more on retained earnings at brainly.com/question/25998979.

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5 0
1 year ago
What does it mean if your net assets increase
Bad White [126]
When a company earns income, it becomes larger because net assets have increased. Even if a portion of the profits is later distributed to shareholders as a dividend, the company has grown in size as a result of its own operations.
5 0
2 years ago
Read 2 more answers
The fictional country of Alpetra increases the income tax rate so that tax revenues increase by $50 million. If GDP, consumption
bezimeni [28]

Answer:

There is no change in investment for Apletra.

Explanation:

Because GDP, consumption, and government spending remains the same there would also be no chane in investment for Alpletra.

5 0
3 years ago
Becoming a manager meams
Lesechka [4]

Answer:

The statement is: True.

Explanation:

Being a manager implies handling groups of people with diverse cultures, experiences, and personalities. To perform a proficient work, executives should have a well-defined method of working but be able to adapt it according to their subordinates and the situation the firm is facing. In some cases, their ego will have to be left behind to reach the company's goals.

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2 years ago
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