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lukranit [14]
3 years ago
10

If a company has a capital structure of $5,000,000 common stock with a cost of 17%, $2,000,000 bonds at 4%, $1,000,000 of short

term debt with a cost of 7%, and $2,000,000 preferred stock with a cost of 3%, what is the weighted average cost of Capital?
Business
1 answer:
rjkz [21]3 years ago
3 0

Answer:

Explanation:

Weighted Average Cost of Capital; formula is as follows;

WACC = wE*re + wP*wp + wD*rd(1-tax)

where w= weight of...

r = cost of ...

E= common equity

P = preferred stock

D = Debt

Find the weights of each source of capital;

WACC = (0.50*0.17) +(0.20*0.03) + [0.20*0.04(1-0.40)] +[0.10*0.07(1-0.40)]

WACC = 0.085 +0.006 + 0.0048 + 0.0042

WACC = 0.1 or 10%

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3 years ago
Which of the following options is a challenge to the sustainability of strategically implementing an information​ system? A. Man
Ludmilka [50]

Answer:

D. Customers and suppliers willing to learn and evolve with new technology

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2- Manage proper communication strategy that conveys the benefits of adopting the new system and conduct training for all the users.

However, there will still be resistance from certain suppliers and customers  to the adoption of the new system. Which can lead to failed implementation of the system. However by doing the following, any organization can make sure that customers and suppliers quickly become an integral part of the IT system:

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3 0
3 years ago
Liberty is calculating her cost of goods sold to enter on her Schedule C. Her inventory at the beginning of the year amounted to
MakcuM [25]

Answer:cost of goods sold for  Liberty to enter on her Schedule C = $12,000

Explanation:

 Cost of goods sold (COGS) of a company are all the  costs ie( the raw materials and labor ) involved directly in the production of the particular  goods sold by the company.

Given

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5 0
3 years ago
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I believe the answer is: by informing readers of the education options being described

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3 0
3 years ago
Read 2 more answers
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