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zhuklara [117]
3 years ago
5

CoffeeCarts has a cost of equity of ​, has an effective cost of debt of ​, and is financed with equity and with debt. What is th

is​ firm's WACC?
Business
1 answer:
-Dominant- [34]3 years ago
8 0

Complete Question:

Coffee Carts has a cost of equity of 15.5%, has an effective cost of debt of 3.9%, and is financed 75% with equity and 25% with debt. What is the firm's WACC?

Answer:

The firm's WACC is:

= (0.75 * 0.155) + (0.25 * 0.039)

= 0.11625 + 0.00975

= 0.126

= 12.6%

Explanation:

CoffeeCarts Company's WACC (Weighted Average Cost of Capital) is the average rate that the company is expected to pay to all its security holders (stockholders and debt holders) who financed its assets.  We can calculate CoffeeCarts' WACC by multiplying the cost of each capital source (equity and debt) by its relevant weight, and then adding the products together.  The weight is the proportional percentage of each class  of finance source to the whole.

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The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for
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Answer:

The answer is:

This statement is false. Fluorescent light bulbs (FLB) and incandescent light bulbs (ILB) are substitute goods, so a decrease in the price of one of them (FLB) should increase the quantity demanded for that product (FLB) and decrease the quantity demanded of the other (ILB).

A decrease in the price of any product (including ILB) would never decrease its quantity demanded.

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3 years ago
(Disregard income taxes in this problem.) Compute the following:a.An investment of $10,000 has an investment/inflow ratio of 6.2
aleksandrvk [35]

Answer:

Explanation:

a) Investment/flow ratio =10000/annual cash flow=6.2

So, the annual cash flow is 10000/6.2=1613

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So, the investment is 2000*6.14=12280

4 0
2 years ago
In his 1935 book, Harold Laswell described politics as "Who Gets What When How." The American concept of pluralism, or group pol
KatRina [158]

Answer:

D) influencing decisions affecting one's life.

Explanation:

Pluralism is an American theory of governance that states that political power is controlled by several groups of people and not the citizens as a whole. These several groups of people constitute organizations, activists, environmentalists, and other impactful groups who seek recognition and acceptance from the populace and who make decisions that affect the citizens. One attribute of Pluralism is the fact that no single elite or groups of elites control decision making in governance.

The groups of people have powers that are limited in scope and regulated by competition with other groups. Moreso, these groups seek approval from the populace and that is why opinion polls, surveys, elections, etc., are carried out in order to ascertain which entities are more popular with the people.

4 0
3 years ago
Nile Corp. has identified three cost pools to allocate overhead costs. The following estimates are provided for the coming year:
True [87]

Answer:

Overheads cost allocated to Mossman Job  = $449

Explanation:

We have been provided the cost of each activity and their respective drivers.

There are three activities

Supervision of Direct Labor = $304,000 for 760,000 labor hours

Machine Maintenance = $153,600 for 960,000 hours

Facility rent = $165,000 for 110,000 square feet

Activities of Mossman Job and respective costs will be as follows:

Supervision of Direct Labor = $304,000/760,000 X 260 labor hours = $104

Machine Maintenance = $153,600/960,000 X 1,500 = $240

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Net Overheads cost allocated to Mossman Job = $104 + $240 + $105 = $449

6 0
3 years ago
Two firms, A and B, each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution a
katrin2010 [14]

Answer:

20 more tons of pollution into the air, and Firm B will emit 100 fewer tons of pollution into the air.

Explanation:

It is given that :

Amount of tons of pollutants emitted by the two firms A and B earlier = 100 tons

Cost of pollutants by firm A = $ 200 per ton of pollutions

Cost of pollutants by firm B = $ 100 per ton of pollutions

Since the cost for eliminating the pollutants into the air is more for the firm A, the ticket is also more valuable for firm A. And therefore, firm A will buy all the tickets form firm B for an amount around $ 101 to $ 199. It will do so as to have a positive consumer and also to produce surplus.

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4 0
3 years ago
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