Answer:
a.Year Cashflow [email protected]% PV [email protected]% PV
$ $ $
0 (1,000) 1 (1,000) 1 (1,000)
1-15 72 11.1184 800 7.6061 548
15 1,000 0.5553 555.3 0.2394 239
NPV 355.3 NPV 213
Kd = LR + NPV1/NPV1 + NPV2 x (HR – LR)
Kd = 4 + 355.3/355.3 + 218 x (10 – 4)
Kd = 4 + 355.3/573.3 x 6
Kd = 7.72%
b. Kp = D/Po
Kp = $100/$1,111
Kp = 0.09 = 9%
c. Ke = D1/Po (1 – FC) + g
Ke = $4.3995/$50(1-0.15) + 0.05
Ke = $4.3995/$42.50 + 0.05
Ke = 0.1535 = 15.35%
WACC = Wdrd(1 – T) + Wprp + Were
WACC = 0.3(7.72)(1-0.4) + 0.1(9) + 0.6(15.35)
WACC = 1.39 + 0.9 + 9.15
WACC = 11.44%
Explanation:
In this case, we need to calculate cost of debt, cost of preference shares and cost of equity. Cost of debt is calculated based on internal rate of return. Cost of preferred stock is the ratio of dividend paid to the market price. Cost of equity is a function of D1 divided by current market price after floatation cost plus growth rate. WACC is equal to cost of each source multiplied by respective weights.
Answer:
B. Flattened management hierarchies.
Explanation:
In this scenario, the line workers at a Virginia steel mill developed a new process that made the line safer. The process went through only one level of management before it was approved by the vice president of operations. Hence, this is an example of a flattened management hierarchies.
A flattened management hierarchy can be defined as an organizational structure which eliminates a middle manager and allows the employees to be involved directly with the decision-making process.
Hence, by the removal of the middle management in an organization, the flattened management hierarchy creates a direct relationship between employees and the top executives of the company; thus, giving room for innovation and actions by employees in the decision-making process.
Answer:
Explanation:
please find the attached for the full explanation of the answer.
before answering the total current assets that will be recorded by Symphony one needs to understand what a current asset is. A current asset can be referred to a short term meaning that its span of life is short it can not be longer than 12 months hence current.
we also need to explain an asset: an item of property owned by a person or company, regarded as having value and available to meet debts, commitments, or legacies
Answer:
$87,900
Explanation:.
Calculation to List the items and amounts that should be included in the Land account
Purchase price $70,000
Broker’s fees $6,000
Title search and other fees $5,000
Demolition of old building $5,700
Grading $1,200
Land acquisition cost $87,900
($70,000+$6,000+$5,000+$5,700+$1,200)
Therefore the amounts that should be included in the Land account will be $87,900
Answer:
A) Tony's opportunity cost for spending 10 hours planting seeds is $250, since that is the amount he could earn be teaching guitar lessons.
B) Tony's accountant will calculate the cost of planting seeds at $130, since it includes only the cost of the seeds
C) Tony's accounting profit is $170 (= $300 - $130). Revenue from selling wheat - accounting cost of planting wheat seeds.
D) Tony's economic loss is $80 [= $300 - ($130 + $250)]. Economic profit or loss is calculated with the formula: economic profit = total revenue - (accounting costs + opportunity costs)