The statement that ten percent of your grade for this assignment is based on your explanation of two basic principles of communication
is false because the answer is based on the grading rubric
of the week one assignment that was given.
Answer:
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm can be made up of one or more of the following components namely debt, preferred stock and common equity. The WACC is normally calculated using the market value of these components. The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- wD, wP and wE represents the weight of debt, preferred stock and common equity in the capital structure based on the market value
- rD, rP and rE are the cost of debt, preferred stock and common equity respectively.
To calculate the weight that should be assigned to the preferred stock in the calculation of WACC, we need to determine the market value of preferred stock and the market value of the capital structure.
Market Value - Debt = 10000 * 1000 * 1.01 = $10.1 million
Market Value - Preferred stock = 1 * 114.50 = $114.5 million
Market Value - Common equity = 26 * 15 = $390 million
Total MV of capital structure = 10.1 + 114.5 + 390 = $514.6
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Answer:
The correct option is :
This stock is overvalued; you shouldn't consider adding it to your portfolio.
Explanation:
The stocks that are in cedar valley corporation has a price that exceedes its present value from this statement the first given option doesn't justify as the stocks rates are not undervalued.
Now, in the second option its again given that the stock will be overvalued which is true but it should be added to the portfolio is not correct. so, this option is not considered.
In the third option it mentions that stock is overvalued which is the correct option and also that it shouldn't be added in portfolio.
And the last one states that its undervalued which restricts the option at this point only.
So, third option is correct.
Answer:
B. $ 12 comma 600 comma 000
Explanation:
15,000 units x $700 cost per unit = 10,500,000 total cost
markup policy for the firm: 20% of total cost
the sales price will be the total cost for the order plus a 20% of that cost as a gross profit margin.
sales price = cost x (1 + 20%)
sales price = total cost x 1.20
sales price = 10,500,000 x 1.2 = 12,600,000
Answer:
(A) Accounts Payable - Liabilities
(D) Equipment - Assets
(E) Supplies - Assets
(F) Retained earning - Owner's Equity
(H) Cash - Assets
Explanation:
The major categories in a balance sheets are: Assets, Liabilities and Owner's Equity,
Assets are many things (as equipment, machinery, Receivables, etc) that belongs to the company, please see details in the answer.
Liabilities represent the obligations of the company with all kind of creditors.
And finally Owner's Equity it's the Capital that support part of the Assets along with the Liabilites.
