Answer:
8.038%
Explanation:
For the computation of the firm's WACC first we need to find out the cost of equity which is shown below:-
Cost of equity = Expected dividend ÷ (Price of the stock × (1 - Flotation cost)) + Growth rate
= $0.65 ÷ ($15.00 × (1 - 10%)) + 6.00%
= 10.81%
Now
WACC = Weight debt × (Cost of debt) × (1 - Tax rate) + Weight of equity × Cost of equity
= 45% × 7.75% × (1 - 40%) + 55% × 10.81%
= 8.038%
Answer:
Future Value= $156,901.16
Explanation:
Giving the following information:
Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded semi-annually.
To calculate the future value of this investment, we need to use the following formula:
FV=PV*(1+i)^n
PV= 98,000
i= 0.08/2= 0.04
n= 6*2= 12
FV= 98,000*(1.04^12)= $156,901.16
This is an example of a people constraint. A constraint is something that holds you back from completing something. In this scenario, there aren't enough people available to complete all of the projects Rachel is wanting to have completed so there is a people restraint with regards to completing activities.
Answer:
The Matching Principle
Explanation:
The Matching Principle of accounting holds that revenues should be matched with expenses. Hence the name.
This is to say, that revenues should only be recognized when the associated expenses with those revenues have been spent.
For example, in numeral a), we can see that Norfolk Southern Corporation recieved cash in advance, but it only recognized revenue once it had performed the services associated with that cash collection.
