Answer:
WACC = 0.16637 OR 16.637%
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wE * rE
Where,
- w represents the weight of each component based on market value in the capital structure
- r represents the cost of each component
- D and E represents debt and equity respectively
To calculate WACC, we first need to calculate the Market value an cost of equity.
The market value of equity = 30 million shares * $40 per share
MV of equity = $1200 million
The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.
P0 = D1 / (r - g)
40 = 4 / (r - 0.07)
40 * (r - 0.07) = 4
40r - 2.8 = 4
40r = 4+2.8
r = 6.8 / 40
r = 0.17 or 17%
MV of debt = 40 million * 96.5% => $38.6 million
Total MV of capital structure = 38.6 + 1200 = 1238.6 million
WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17
WACC = 0.16637 OR 16.637%
Inga Ingerton's assets price = $35,000, ; Assessed fee = 40% = 0.forty, ; mill levy rate = 83, ; Inga's annual tax on belongings = $14,000 x zero.083.
Annual taxes are generally designed to price for a mixture of interest or repute of a person for a tax yr. A tax year usually is much like a calendar year however it is able to additionally be a 12-month duration whenever a central authority corporation wants to control a given annual tax. Annual taxes are not limited to one level of government.
In a nutshell, to estimate taxable earnings, we take gross income and subtract tax deductions. what's left is taxable profits. Then we practice the ideal tax bracket (based totally on earnings and filing popularity) to calculate tax legal responsibility.
The costs observe in taxable profits—adjusted gross income minus both the usual deduction or allowable itemized deductions. profits as much as the same old deduction (or itemized deductions) is for that reason taxed at a 0 price. Federal profits tax quotes are progressive: As taxable income will increase, it's far taxed at better fees.
Learn more about annual tax here: brainly.com/question/26316390
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Answer:
I don't know but good luck finding the answer
Explanation:
Answer:
Explanation:
4 worries about Bold and Best (BB) are:
- Demand for BB may fall in the next few years, as customers are now less interested in purchasing BB or there is another substitute product for BB which is available in the market.
- Input costs/Production cost for BB may rise in the next few years, may be because of shortage of raw materials.
- The decline in BB sales may affect Baldwin's profitability as a whole because BB's revenue is currently the largest portion of the total revenue.
- Real purchasing power of customers fall because of a rise in expected inflation in the economy, which will lead to a fall in sales of BB.
Answer:
B. a decrease; a decrease
Explanation:
Substitutes' goods are products that can be consumed in place of each other. If one product is missing, consumers will be ready and willing to buy its substitute. An increase or fall in the price of a good or services will cause the demand for its substitute to move in the opposite direction.
Equilibrium quantity is when supply matches the demand. If the price of Tuna fish decreases, its demand will increase as more customers will afford it. Tuna and chicken are substitutes, should the price of Tuna decrease, customers will prefer to consume Tuna over chicken. Consequently, the demand for chicken will reduce w leading to a decrease in its price.
