Answer:
A key reason that companies all over the world choose to import goods is to extend their profit margin. High taxes, wage minimums, and material costs in certain countries make it more useful to import products from a country where fees, wages, and material costs are considerably lower.
Explanation:
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Answer:
13.54%
Explanation:
Debt Equity Ratio (Debt/Equity)=0.57
Yield to Maturity (YTM) on bonds (Cost of Debt) (Kd) = 11%
Cost of Equity (Ke) = 17%
Income Tax Rate= 32%
Computation of WACC
Particulars Proportion (1) Cost (2) Weighted Cost (1*2)
Equity 0.6369 17 10.8273
Bond (Debt) 0.3631 7.48 <u>2.7160</u>
Total 1 <u>13.5433</u>
Therefore, the WACC of Company= 13.54%
<u>Working Note 1</u>
<u>Computing Proportion</u>
Debt/Equity=0.57
Therefore Debt= 0.57 Equity
Lets assume Equity = 10
So Debt = 5.7
Hence, Proportion is as follows:
Equity= 10/15.7 =0.6369
Debt= 5.7/15.7 = 0.3631
<u>Working Note 2</u>
After tax cost of Debt = 11 * (1 - 0.32)
After tax cost of Debt = 11 * 0.68
After tax cost of Debt = 7.48%
Answer:
negligence
Explanation:
In order to be successful in a product liability action based on negligence the following elements must be proved: Duty
,Breach of Duty
,Cause in Fact
,Proximate Cause and Damages(plaintiff)