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zhannawk [14.2K]
3 years ago
11

What is the weighted average cost of capital for a corporation that finances an expansion project using 35% retained earnings an

d the rest as debt capital
Business
1 answer:
Sindrei [870]3 years ago
4 0

Answer:

11.75%

Explanation:

In order to calculate the weighted average cost of capital (wacc), we can use the following formula:

wacc = (weight of debt x cost of debt after tax) + (weight of equity x cost of equity)

In this question, since the information about cost of debt and cost of equity are missing, let us assume the cost of debt = 10%, and cost of equity = 15%. The calculated wacc will be equal to:

wacc = [ (1-0.35) x 0.1 ] + [ 0.35 x 0.15 ]

          = 11.75%

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A company can sell any mix of Product A and Product B at full capacity. The company has 100,000 hours of capacity. The demand fo
Marta_Voda [28]

Answer:

Company A produce 100,000.

Explanation:

According to the question , the computation is shown below:-

Particulars                                     Product A      Product B

Contribution margin per unit         $20                 $30

Hours per unit                                1                       2

Contribution margin per unit         20                    15

As we can see that the company A produces 100,000 and the same is the answer

8 0
3 years ago
The monetary inflation needed to relieve the social and economic hardships of the late nineteenth century eventually came as a r
AnnZ [28]

Answer:

Came as a result of:an increase in the international gold supply .

6 0
3 years ago
Nabisco used a free-standing rack in the shape of a bus to promote its Ritz and other cracker products. The goal of the sales pr
blagie [28]

Answer:

point-of-purchase display              

Explanation:

Point-of-purchase display: The term "point-of-purchase display" is also denoted as "POP display" is described as one of the different marketing materials or advertising that is being placed next to any merchandise that it has been promoting. However, these items are being generally located or present in any checkout area or some other location whereby that specific purchase decision is being made.

In the question above, the given type of sales promotion is referred to as a point-of-purchase display.

8 0
3 years ago
When a person places him or herself in a position in which he or she might be exploited by another, and does so willingly with t
dalvyx [7]

Answer:

vulnerability

Explanation:

When an individual is vulnerable, it means that he/she is being exposed to the possibility of being physically or emotionally wounded.

Usually individuals place themselves in a position of vulnerability in a relationship when they have a very high degree of affection for the other person and assume the risk of being emotionally exposed.

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3 years ago
Jerilyn is in the early stages of an inoperable cancer. she has prepared a signed and witnessed written document directing her f
klemol [59]

Answer:

Living will.

Explanation:

Living will can be described as a legal document in which an individual clearly states the type of treatment he or she will prefer in a situation whereby they are unable to communicate their wishes.

A living will enables an individual to make the right decision on the form of life support treatment that he or she would prefer to help aviod any form of confusion.

6 0
3 years ago
Read 2 more answers
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