Answer:
WACC 8.53600%
Explanation:
The Weighted average cost of capita lconsiders the weight of the equity times the cost of it.
And the wight of the dbet times the cost of financing after the tax shield.
Ke 0.11000
Equity weight 0.65
Kd 0.06
Debt Weight 0.35
t 0.34
WACC 8.53600%
Answer:
The correct answer is option a.
Explanation:
A budget line represents the maximum possible combination of two goods that can be purchased by an individual by spending all of his income.
George has a weekly income of $50.
He spends this income on donuts and coffee.
The price of a donut is $1 and the price of coffee is $2.50.
As George's income increase to $100, George will be able to afford more coffee and donuts as the price of coffee does not change.
So, the budget line will shift to the right, indicating the increase in the quantity of goods George can afford.
Answer: Business ethics
Explanation: Business ethics is that branch of ethics, which examines the problems that arise due to unethical behavior of employees within an organisation. Such a behavior can result into serious issues like insider trading or false whistle blowing etc.
Business ethics helps to form the guidance on value and norms that an employee should follow in the form of code of ethics.
Answer: Option D
Explanation: In simple words, a wholesaler refers to the company or an individual who deals with the retailers usually. They are the second in the supply chain.
The wholesaler procures material in bulk from the manufacturer and sells them in relatively small quantities to the retailers.
In the given case, dawn has been purchasing from the manufacturer and selling them to the retailers . Hence he is a wholesaler.
Answer:
a) Identify which project should the company accept based on NPV method.
- Project 2 has a higher NPV = $98,960
b) Identify which project should the company accept based on simple pay back method if the payback criteria is maximum 2 years.
- Project 2 has a shorter payback period = 2 years and 5 months
c) Which project Giant Machinery should choose if two methods are in conflict.
- If two projects are in conflict, then you must choose the project based on their NPV.
Explanation:
Project 1 Project 2
Cost $175, 000 $185 ,000
Future Cash Flows
Year 1 $76,000 $83,000
Year 2 $67,000 $65,000
Year 3 $55,000 $87,000
Year 4 $78,000 $69,000
Year 5 $65,000 $57,000
NPV:
Project 1 = -175000 + 76000/1.09 + 67000/1.09² + 55000/1.09³ + 78000/1.09⁴ + 65000/1.09⁵ = $91,090
Project 2 = -185000 + 83000/1.09 + 65000/1.09² + 87000/1.09³ + 69000/1.09⁴ + 57000/1.09⁵ = $98,960
Payback:
Project 1 = -175000 - 76000 - 67000 = 32000 after 2 years, then 32000 / 55000 = 7 months
Project 2 = -185000 - 83000 - 65000 = 37000 after 2 years, then 37000 / 87000 = 5 months
