<span>Answer:
At what unit sales level would WCC have the same EPS, assuming it undertakes the investment and finances it with debt or with stock? {Hint: V = variable cost per unit = $8,160,000/440,000, and EPS = [(PQ - VQ - F - I)(1 - T)]/N. Set EPSStock = EPSDebt and solve for Q.} Round your answer to the nearest whole.
units
At what unit sales level would EPS = 0 under the three production/financing setups - that is, under the old plan, the new plan with debt financing, and the new plan with stock financing? (Hint: Note that VOld = $10,200,000/440,000, and use the hints for Part b, setting the EPS equation equal to zero.) Round your answers to the nearest whole.
Old plan units
New plan with debt financing units
New plan with stock financing units
On the basis of the analysis in parts a through c, and given that operating leverage is lower under the new setup, which plan is the riskiest, which has the highest expected EPS, and which would you recommend? Assume here that there is a fairly high probability of sales falling as low as 250,000 units, and determine EPSDebt and EPSStock at that sales level to help assess the riskiness of the two financing plans. Round your answers to two decimal places.
EPSDebt = $
EPSStock = $</span>
Answer:
Explanation:
as the discount rate gets larger, the price of the bond will decrease. as the coupon rate increases, the bond price will increase. bond prices are calculated by taking the present value of the coupons and face value of bonds. If the coupons are larger, the present value of the coupons will also be larger.
Answer:
a.
16%
b.
17.3%
c.
23.25%
d.
16%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
As have the cost of capital, we need to calculate the cost of equity.
Cost of Capital = (Cost of Equity x Weightage of equity) + (Cost of Debt x Weightage of Debt)
a.
No Debt
16% = (Cost of Equity x 1 ) + (8.75% x 0)
16% = Cost of Equity + 0
Cost of Equity = 16%
b.
15% Debt and Equity is 85% (100%-15%)
16% = (Cost of Equity x 85% ) + (8.75% x 15%)
0.16 = (Cost of Equity x 0.85) + 0.013125
0.16 - 0.013125 = Cost of Equity x 0.85
0.146875 = Cost of Equity x 0.85
Cost of Equity = 0.146875 / 0.85 = 0.17279
Cost of Equity = 17.3%
c.
50% Debt and Equity is 50% (100%-50%)
16% = (Cost of Equity x 50% ) + (8.75% x 50%)
0.16 = (Cost of Equity x 0.50) + 0.04375
0.16 - 0.04375 = Cost of Equity x 0.50
0.11625 = Cost of Equity x 0.50
Cost of Equity = 0.11625 / 0.50 = 0.2325
Cost of Equity = 23.25%
d.
WACC for b and c are 16%
Answer:
b. $2,200.
Explanation:
Net income = Revenue - Expenses
Net income = $5,400 - $3,200
Net income = $2,200
Therefore, the amount of net income for the year is $2,200
The right Response is Option B i.e
B. <u>Evaluation</u>
The steps of the nursing process include assessment, nursing diagnosis, planning, intervention, and evaluation. These five steps are used cyclically and repeatedly during patient care. The sequence must be followed from start to finish to ensure that the needs of the patient are addressed.
<u>Steps/Phases of the Nursing Process:</u>
- Assessment
- Diagnosis
- Outcome Identification
- Planning
- Implementation
- Evaluation
To learn more about Nursing Process, click the links.
brainly.com/question/8887891
brainly.com/question/14555445
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Correct Question - In which step of the nursing process does the nurse determine the outcome of medication administration?
A. Planning
B. Evaluation
C. Assessment
D. Implementation
