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3 years ago

I need to figure out the owners equity ! HELP

Business

1 answer:

motikmotik3 years ago

4 0

Owners equity is $82365 - $70500 which gives $11365. Therefore when you add $70500 + $11365, this would give $82365.

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R.S. Green has 250,000 shares of common stock outstanding at a market price of $28 a share. Next year’s annual dividend is expec

zhannawk [14.2K]

Answer:

WACC 6.18%

Explanation:

to get the cost of capital we solve using the gordon model:

$\frac{divends}{return-growth} = Intrinsic \: Value$

$\frac{divends}{Price} = return-growth$

$\frac{divends}{Price} + growth = return$

$$Cost of Equity =\frac{D_1}{P)} +g$

D1 1.55

P 28

f 0.00

g 0.02

$$Cost of Equity =\frac{1.55}{28} +0.02$

Ke 0.075357143

Then for the cost of debt, we need to calculate the YTM of the bonds:

which is the rate at which the present value of the coupon payment and maturity equals the market price:

For the complexity this is done with excel or a financial calculator there is also an approximation formula

YTM with excel: 0.073516565

now that we good this we need to determinate the weigth of equity and debt:

250,00 shares x 28 dollars each = 7,000,000

1,500 bonds of $1,000 each at 98% = 7,350,000

value of the company: 7,000,000 + 7,350,000 = 14,350,000

Ew: 7,000,000 / 14,350,000 = 0.487804878

Dw: 7,350,000 / 14,350,000 =0.512195122

Now we got all values and we can determinate the WACC:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.075357143

Equity weight 0.487804878

Kd 0.074

Debt Weight 0.512195122

t 0.34

$WACC = 0.075357143(0.48780487804878) + 0.074(1-0.34)(0.51219512195122)$

WACC 0.0617752 = 6.18%

7 0

3 years ago

When it is reported that a nation is experiencing a "balance of payments deficit," this is best interpreted to mean that the nat

JulsSmile [24]

<span>When it is reported that a nation is experiencing a "balance of payments deficit," this is best interpreted to mean that the nation is experiencing? If it is reported that the nation is experiencing a balance of payments deific, the country is importing more goods, services and capital than it is exporting. When this happens, the nation has to borrow funds and items from other countries to help pay for what they are importing until the have the cash funds to pay for them, themselves. When this starts the happen, the nation that this is hurting should try and balance their payments and monitor transactions better to eliminate this in the future. </span>

8 0

3 years ago

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Telecom Company is preparing its annual budgeted income statement. What is the best place to locate the amount of interest expen

anyanavicka [17]

Answer: d. Cash Budget

Explanation:

The Cash budget is used to project the company's expected position in terms of the cash it holds in the future. As such, the budget contains both cash receipts and cash disbursements.

Some of the disbursements include expenses and loan payments. The loan payments are where the interest expense will be found for the coming year.

5 0

3 years ago

Which Command Staff member approves the Incident Action Plan and all requests pertaining to the ordering and releasing of incide

____ [38]

Answer: Incident commander

Explanation: Incident commander is that individual on whose authority, the whole team responding to an incident will act. Incident commander is responsible for setting priorities and objectives while acting on an incident.

These types of designations are usually given to the heads of relief teams acting on some disaster or natural calamity.

Hence from the above we can conclude that the right option is D.

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3 years ago

Select all that apply.

Semenov [28]

Answer:

Wildlife conservationists.

Explanation:

Wildlife conservationists are those people who do the practice of protecting wild species and their habitats to prevent species from going extinct. If anyone wants to make a career in Agriculture, Food & Natural Resources, he/she must have to know which species are endangered now and which species might be endangered in the future. Along with this, they must have to understand how those species could be saved from being extinct. After knowing all of these, he/she might select their career as a wildlife conservationist. Among the other three professions which are said in question aren't possible to choose from the side of a person who knows Agriculture, Food & Natural Resources.

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3 years ago

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