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n200080 [17]
2 years ago
9

Jenkins Inc. has a target capital structure of 40% debt and 60% common equity, with no preferred stock. The YTM on the company’s

bonds is 9%, and its tax rate is 40%. The company’s CFO estimates that the company’s WACC is 11.5%. What is the company’s cost of common equity?
Business
1 answer:
Natalka [10]2 years ago
5 0

Answer:

15.57%

Explanation:

The WAAC (Weighted average cost of capital) is given by:

WAAC = M*W_d*(1-T)+E*W_E

Where M is the rate to maturity of the company's bonds, Wd is the fraction of debt, We is the fraction of equity, T is the tax rate, and E is the rate of cost of common equity. Applying the given data:

0.115=0.09*0.4*(1-0.4)+E*0.6\\E=0.1557\\E=15.57\%

The company’s cost of common equity is 15.57%.

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​A(n) ______ reveals how a​ firm's operations impact the natural environment. This document discloses to shareholders informatio
pickupchik [31]

Answer:

D. sustainability report

Explanation:

Here is the missing options in the question:

A. form 10K

B. Annual Report

C. environmental report card

D. sustainability report

E. form 8K.

Sustainability report : It is an initiative of the corporates that helps the world to know their impact on the global environment, economy and Socially. These report are backed by factual data and information, which can be positive or negative. This report build trust among stakeholder about the organization and help in maintaining a sustainable economy and world.

8 0
3 years ago
The following information was drawn from the Year 1 accounting records of Ozark Merchandisers: Inventory that had cost $15,000 w
Westkost [7]

Answer :

1. A. Operating activities.

2. The sale price of the land should be shown in the investing activities

$25,813.20

Explanation :

As per the data given in the question,

The interest expense is reported in the operating activities section of the cash flow statement

Net sales = Gross sales - Sale returns - Sales discounts

=$27,000 - $660 - $526.80

= $25,813.20

The sales discount is come from

= ($27,000 - $660) × 2%

= $526.80

The preparation of the multi step income statement is presented below:

                                        Ozark Merchandisers

                                        Income Statement

Net sales revenue  $25,813.20

Less: Cost of goods sold  ($15,000 - $400) $14,600

Gross profit $11,213.20

Less: expenses

Selling and administrative expense $2,835

Income from operations  $8,378.2

Add: Gain on sale of land  $900   ($6,900 - $6,000)

Less: Interest expense         $200

Net income     $9,078.20

The sale price of the land  i.e $6,900 should be shown in the investing activities as it reflects the cash inflow position

This is the answer and the given options are incorrect

3 0
3 years ago
The addition of acceptance criteria factors to the milestone schedule in a project charter helps the team understand who will ju
Aleksandr-060686 [28]

Answer:

Standards or criteria that will be used

Explanation:

A project charter is an informal contract between a project team and the project sponsor. The project charter shows a detailed plan of each aspect of a project; from scope to objectives, etc as well as grants the project team the power to create a project plan.

A project charter helps the project team to develop an understanding of the project to be undertaken, thereby enhancing team performance. Before a project charter is signed between both parties, all risks must have been eliminated.

When acceptance criteria factors are added to the schedule of a project charter, it helps the project team to know who will be judging the quality of their work as well as the standard that the judge will be using.

I hope this helps.

3 0
3 years ago
What two steps can you take to help correct this? UC is having issues using Informatica Cloud Louder to export +10MOrder records
Ilia_Sergeevich [38]

Answer:

b, c

<u>Explanation</u>:

Remember, the number of order is quite large over 10 million. Therefore, the best step to carry out is

1. Export in multiple batches: This implies that instead of trying to export the whole batch at once, which might not be possible it is best to export in fewer batches.

2. Use PK Chunking: This method involves the use of an <em>automated system</em> that reduces large orders into smaller chunks.

7 0
2 years ago
Let's assume that a firm produces 40 products. Its total weekly cost (TC) at this output is $1200. This includes TVC and TFC. We
ikadub [295]

Answer:

$15

Explanation:

The computation of the average fixed cost is shown below:

As we know that

Average fixed cost is

= Total fixed cost ÷ Quantity

where,

Total fixed cost is

= Total cost - total variable cost

= $1,200 - $200 × 3

= $1,200 - $600

= $600

And the quantity is 40 products

So, the average fixed cost is

= $600 ÷ 40

= $15

3 0
3 years ago
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