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3 years ago

Production Budget

Business

1 answer:

9966 [12]3 years ago

5 0

Answer and Explanation:

The preparation of production budget is shown below:-

Weightless Inc

Production Budget

For the month ending October 31

Units Bath Scale Units Gym Scale

Expected Units to

be sold 150,000 90,000

Desired Inventory,

October 31 12,500 8,000

Total 162,500 98,000

Less: Estimated Inventory,

October 1 -18,000 -10,000

Total Units to be

produced 144,500 88,000

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Time Warner shares have a market capitalization of billion. The company is expected to pay a dividend of per share and each shar

Ad libitum [116K]

Complete Question:

Time Warner shares have a market capitalization of $50 billion. The company is expected to pay a dividend of $0.30 per share and each share trades for $30. The growth rate in dividends is expected to be 7% per year. Also, Time Warner has $15 billion of debt that trades with a yield to maturity of 8%. If the firm's tax rate is 30%, what is the WACC?

Answer:

7.5%

Explanation:

We can calculate WACC using the following formula:

WACC = Ke * MV of Equity / (MV of Equity + MV of Debt) + Kd * MV of Debt / (MV of Equity + MV of Debt)

Here:

Market Value of Equity is $50 billion

Market Value of Debt is $15 billion

Ke is % (Step 1)

Kd is 8%

By putting values, we have:

WACC = 8.07% * $50 Billion / ($50 Billion + $15 Billion) + 8% * $50 Billion / ($50 Billion + $15 Billion)

WACC = 7.5%

Step 1: Calculate Ke

We can calculate Ke using the following formula:

Ke = Do * (1 + g) / P + g

Here

Do is the dividend per share which is $0.3

g is the growth rate which is 7%

And

P is the market value of share which is $30 per share.

Ke = $30 * (1 + 7%) / $30 + 7% = 8.07%

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3 years ago

Ace Products has a bond issue outstanding with 15 years remaining to maturity, a coupon rate of 7.4% with semiannual payments of

frutty [35]

Answer:

Current yield is 6.17%

YTD is 5.43%

YTC is 4.26%

Explanation:

Tenor: 15 years

-> number of payment (NPer) is 30 (= 15 years * 2 for semiannual)

Coupon rate: 7.4%

- > semiannual payments (PMT): $37 = ($1000*7.4%/2)

Future value (FV): $1000

Present value (PV): $1200

Current yield = annual coupon/ current price = $37*2/$1200 = 6.17%

Extra: 

We use excel to calculate yield to date (YTD) or nominal yield:

= Rate(Nper, PMT, - PV,FV) = Rate(30,37,-1200,1000) = 2.717% semiannual

-> annual rate is 5.43%

The bond issue is callable in 5 years at a call price of $1,074, then FV is $1074

Yield to call = rate(10,37,-1200,1074) = 2.13% semiannual

-> annual rate is 4.26%

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3 years ago

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Sauron [17]

Answer: length- roads, yard stick, square footage in a room

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True or False: Potential customers and non-potential customers are mixed together in the marketplace, so it is impossible to ens

Jobisdone [24]

The marketplace is full of both potential and non-potential customers which makes this statement True.

<h3>Are both potential and non-potential customers in the market?</h3>

The market does indeed have both potential customers for a product and non-potential customers who would not want to buy the product.

As a result, it is not possible to directly market to only potential customers, but to the entire marketplace.

Find out more on potential customers at brainly.com/question/3053467.

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2 years ago

Which savings account can a financial institution end?

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