Answer:
C) Using the deductive outline in the second response
Explanation:
an indirect approach will not work
Answer: 9.03%.
Explanation:
Given: The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40 percent.
Debt to equity ratio is .54
i.e.
Adding denominator to numerator on both the sides, we get,
i.e. Weighted equity =
From (i)
Adding denominator to numerator on both the sides we get,
Thus, weight of debt=
Now,
Weighted average cost of capital=(Weight of equity) × (cost of equity)+(Weight of debt)×(Cost of debt)×(1-tax rate)
Hence, the weighted average cost of capital is 9.03%.
Answer:
True - Contracts that cannot be completed in less than one Year must be written
Explanation:
The extract from the scenario that requires focus for the answer to the question is that ''<u>In 2006 Mann and Harris were asked by HIS to work on another conversion of an apartment building</u> known as Park West. For this project Mann and Harris were again <u>orally promised </u>a bonus (above their salary) using the formula similar to the Windsor Park conversion.<u> It was understood that this project would also require two or three years to complete.</u>''
Under statute of frauds, it is required that contracts that will last for more than 1 year should be written to be enforceable.
<u>At the point where Mann and Harris were asked to perform another construction of apartment that would take up to two or three years to complete, they ought to have requested that the contract be in writing.</u>
His had taken undue advantage of the knowledge of the Law and refused to them the bonus, yet in the eyes of the Law, according to statute of frauds, he cannot be wrong.
Answer:
The correct answer is (d)
Explanation:
As a manager, Jeff has to take care of all the operational activities of the textile factory. In that regard, he is trying to develop a crises plan in case of any emergency, to avoid heavy damages and losses. The best way to design a crises plan is to start a crises management team which will devise plans, in the event of an environmental crisis.