Answer: inputs
Explanation: they are required for processing and necessary for the output product
If you'd like to calculate the overall percentage of tax deducted from your paycheck, first add up the dollar amounts of each tax withheld. Divide the total of your tax deductions by your total, or gross, pay. Multiply the result by 100 to convert it to a percentage.
D Allocating is the correct answer
Answer:
c. −1.84%
Explanation:
the dividend growth model:
P₀ = Div₁ / (Re - g)
currently
- P₀ = 22
- Div₁ = 0.85 x 1.06 = 0.901
- g = 0.06
22 = 0.901 / (Re - 0.06)
Re - 0.06 = 0.901 / 22 = 0.041
Re = 0.041 + 0.06 = 0.1009 = 10.09%
if stock price increases to $40, then
40 = 0.901 / (Re - 0.06)
Re - 0.06 = 0.901 / 40 = 0.0225
Re = 0.0225 + 0.06 = 0.0825 = 8.25%
decrease in Re = 8.25% - 10.09% = -1.84%
Answer:
9.55%
Explanation:
WACC for the project=We*Ke+Wp*Kp+Wd*Kd*(1-tax rate)
We=weight of equity=equity value/total cost of the project=$880,000/$1,708,000=51.52%
Wp=weight of preferred stock=preferred stock value/total cost of the project=$78,000/$1,708,000=4.57%
Wd=weight of debt=value of debt/total cost of the project=$750,000/$1,708,000=43.91%
Ke=cost of equity=13.2%
Kp=cost of preferred stock=9.9%
Kd=cost of debt=8.7%
tax rate=40%
WACC for the project=(51.52%
*13.2%)+(4.57%
*9.9%)+(43.91%
*8.7%)*(1-40%)=9.55%
