<span>If the kitchen in an operation has sewage backup the manager should call a plumber to come fix the issue. If the sewage is backing up to the point it could contaminate any food being cooked/served, the manage should temporarily close down the restaurant until everything is fixed and working properly. </span>
Answer:
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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%
A.exclusive it’s not an intense level of distribution
Okay so rewards and penalties make people make better decisions. So like if I don't get questions wrong on a test I receive $5 from my parents, but if I fail a test I'm grounded for a week. So I study more to get money. (this is not actually me just making an example). Rewards make people want to do better, and so do penalties. I don't want to do bad and get punished for it.
