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2 years ago

Relevancy ranking suggests internet search result will be placed in order of

1 answer:

8 0

Relevancy ranking suggests internet search result will be placed in order of the order of the most relevant to the search query. The first item on the ranking should be the most relevant and then as the list goes down they are less related to the topic being searched for.

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Horford Co. has no debt. Its cost of capital is 8.9 percent. Suppose the company

blsea [12.9K]

Answer:

A. 12.1%

B. 8.9%

Explanation:

a. Calculation for What is the company's new cost of equity

Using this formula

New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]

Let plug in the formula

New cost of equity=[0.089+[(0.089-0.057)*(1)*1]

New cost of equity=[0.089+0.032*(1)*1]

New cost of equity=[0.121*(1)*1]

New cost of equity=0.121*100

New cost of equity=12.1%

Therefore the company's new cost of equity will be 12.1%

b. Calculation for What is its new WACC

Particular Weight Cost Weighted cost

Equity 0.5000 *12.1% = 0.0605

Debt 0.5000 * 5.7% =0.0285

WACC =0.089*100

WACC =8.9%

(0.0605+0.0285)

Therefore the new WACC will be 8.9%

4 0

2 years ago

Colombo Enterprises has a defined benefit pension plan. At the end of the reporting year, the following data were available: beg

nordsb [41]

Answer:

The correct answer is $12,400.

Explanation:

According to the scenario, the computation of the given data are as follows:

We can calculate the pension expense by using following formula:

Pension expense = Interest cost + Service cost - Expected return on plan assets.

Where, Interest cost = $6,400

service cost = $17,000

Expected return on plan assets = $11,000

So, by putting the value, we get

Pension expense = $6,400 + $17,000 - $11,000 = $12,400

Hence, Journal entry for the following are as follows:

Pension Expense A/c Dr. $12,400

To Cash $12,400

8 0

3 years ago

You are saving for a Porsche Carrera Cabriolet, which currently sells for nearly half a million dollars. Your plan is to deposit

Firdavs [7]

Answer:

1. $486,134.86

2. $525,593.86

3. $602,492.04

Explanation:

You need to use the formula to calculate the future value of a constant annual deposit:

$Future\text{ }value=Deposit\times \bigg[\dfrac{(1+r)^n-1}{r}\bigg]$

Where r is the expected percent return, and n the number of years.

1. For a deposit of $30,800 at the end of each year for the next 11 years, with 7% interest.

You will have saved:

$Future\text{ }value=\$ 30,800\times \bigg[\dfrac{(1+0.07)^{11}-1}{0.07}\bigg]$

$Future\text{ }value=\$ 30,800\times 15.7835993=\$486,134.86$

2. For a deposit of $33,300 each year, for the same number of years and with the same interest rate.

You will have saved:

$Future\text{ }value=\$ 33,300\times \bigg[\dfrac{(1+0.07)^{11}-1}{0.07}\bigg]$

$Future\text{ }value=\$ 33,300\times 15.7835993=\$525,593.86$

3. For a deposit of $30,800 each year, but with 11 percent interest, for 11 years.

$Future\text{ }value=\$ 30,800\times \bigg[\dfrac{(1+0.11)^{11}-1}{0.11}\bigg]$

$Future\text{ }value=\$ 30,800\times 19.56143=\$602,492.04$

3 0

2 years ago

Vendor analysis has the greatest potential for savings for items which have:_______

EleoNora [17]

A. low annual cost-volume.

B. high cost per unit.

C. high annual cost-volume.

D. high a

7 0

2 years ago

Which of the following is an example of a soft skill?

Nuetrik [128]

Answer:

Ability to work well with a project team

Explanation:

7 0

3 years ago