Answer:
Equivalent Units of Production (EUP) = 3,520 units
Explanation:
Units Completed = Beginning inventory units + Units Started - Ending Inventory
Equivalent Units of Production (EUP) = Beginning Work in Process (WIP) + Started and Completed Units + Ending Work in Process (WIP) x % of conversion
Units Completed = 200 + 3,200 - 400 = 3,000
EUP = 200 + 3,000 + 400 x 80% = 3,520
Answer:
Risk-free rate = 3.5%
Market risk-premium = 6.9%
Cost of equity (Ke) = ?
Ke = Rf +β(Rm - Rf)
Ke = Rf + Market risk premium
Ke = 3.5 + 6.9
Ke = 10.4%
Cost of debt (Kd) = 5.4%
Market value of debt (D) = 12
Market value of equity (E) = 88
Market value of the company (V) = 100
WACC = Ke(E/) + Kd(D/V)(1-T)
WACC = 10.4(88/100) + 5.4(12/100)(1-0.40)
WACC = 9.152 + 0.3888
WACC = 9.54%
Explanation:
In this case, there is need to calculate cost of equity according to capital asset pricing model, which is risk-free rate plus market risk-premium.
Then, we will calculate the weighted average cost of capital, which equals cost of equity multiplied by the proportion of equity in the capital structure plus after-tax cost of debt multiplied by the proportion of debt in the capital structure. Since the proportion of debt in the capital structure is 12%(12/100), the proportion of equity will be 88%(88/100).
Corporations usually employ <u>investment banking firms</u><u /> to help sell their securities in the primary market.
These types of banking firms provide their services which include giving advice about the purchase of investments, or the sale of securities for cash, etc. They are very important for corporations because they provide important help regarding these types of sales.
Step 1 – Build a $1,000 emergency fund
Step 2 – Pay off all debt using the debt snowball
Step 3 – Save 3 to 6 months of expenses in savings
Step 4 – Invest 15% of household income into Roth IRAs and pre-tax retirement
Step 5 – College funding for children
Step 6 – Pay off home early
Step 7 – Build wealth and give