1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ira [324]
3 years ago
14

Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its costs of equity is 15

percent, and the cost of debt is 8 Percent. The relevant tax rate is 35 percent. What is Mullineaux's WACC?Common stock weight = 70%Debt weight = 30%Cost of Equity = 15%Cost of Debt = 8%Tax Rate = 35%WACC= ?
Business
1 answer:
likoan [24]3 years ago
5 0

Answer:

12.06%

Explanation:

The formula to compute WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

= (0.30 × 8%) × ( 1 - 35%) +  (0.70 × 15%)

= 1.56% + 10.5%

= 12.06%

Simply we multiply the cost of each capital structure with its weightage so that the correct weighted average cost of capital can come

You might be interested in
9) Napier Co. provided the following information on selected transactions during 2018: Purchase of land by issuing bonds $1,000,
4vir4ik [10]

Answer:

($1,100,000)

Explanation:

Given that

Loans made to affiliated corporations = $1,400,000

Proceeds from sale of Equipment = $300,000

The computation of net cash provided (used) by investing activities is here below:-

Net cash provided(used) by investing activities = (Loans made to affiliated corporations) - Proceeds from sale of Equipment

= ($1,400,000) - $300,000

= ($1,100,000)

So, for computing the cash provided(used) by investing activities we simply applied the above formula.

7 0
3 years ago
The managing activity of organizing
lukranit [14]

Answer:

A). determines groups and assigns work activities

Explanation:

Organizing is the function of management that allows development of an organizational structure and allocate the work activities to ensure the completion of objectives.

The managing activity of organizing determines the groups suitable for the objective and the assign task or work on the basis of skills and other parameters to the groups.

Hence, the correct answer is "A)".

4 0
3 years ago
Which of the following represents the correct formula for calculating cost of goods manufactured?
denis23 [38]

Answer:

B) Direct materials used + direct labor + factory overhead + beginning work in process - ending work in process.

Explanation:

The formula to compute the  cost of goods manufactured is shown below:

= Direct material used + Direct labor + Manufacturing Overhead

where,

Manufacturing Overhead equal to

= Factory overhead + Beginning work-in-process - Ending work-in-process

Or we can say that

Direct material used + direct labor + factory overhead + beginning work in process - ending work in process

6 0
3 years ago
You have the following information for Wildhorse Co. for the month ended October 31, 2017. Wildhorse Co. uses a periodic method
Dmitry [639]

Answer:

The weighted-average cost by unit is $28,338.

Explanation:

AVCO Perpetual chart is attached.

AVCO Perpetual chart shows purchases , sales and balance of each period. Highlighted you will find the balance at the end of every purchase or sale.

When you have a purchase: Use the following formula to get the weighted-average cost by unit:

(P₁*Q₁)+(P₂*Q₂)/(Q₁+Q₂)

P₁ and Q₁ are the balance from operation that you made before.

P₂ and Q₂ is the data of the new operation (new purchase)

When you have a sale: you only discount the Quantity and use the average cost by unit to get the final inventory.  

The balance at the end of October is

Units Unit Cost Total

76         $28,338          $2.153,720 

Download xlsx
3 0
3 years ago
Sarah is paid minimum wage as a fast food worker. although she has enough money for food, clothing, and shelter, her wage is sig
Ksivusya [100]

Sarah can best be labeled as living in <u>"relative"</u> poverty.

Relative poverty is the condition in which individuals do not have the base measure of salary required with a specific end goal to keep up the normal way of life in the general public in which they live. Relative neediness is viewed as the least demanding approach to quantify the level of destitution in an individual nation. Relative destitution is characterized with respect to the individuals from a general public and, in this manner, varies crosswise over nations. Individuals are said to be devastated on the off chance that they can't stay aware of the way of life as dictated by society.

3 0
3 years ago
Other questions:
  • Why is a relentless workaholic quickly overwhelmed?
    15·1 answer
  • As of January 1, 2021, Farley Co. had a credit balance of $523,000 in its allowance for uncollectible accounts. Based on experie
    10·1 answer
  • Why might a large research company use the Linux operating system? A. It can be modified to fit the specific needs of the compan
    7·1 answer
  • How does corruption limit investment and economic growth? Instructions: In order to receive full credit, you must make a selecti
    12·1 answer
  • What is the correct answer If marginal cost is rising in a competitive firm's short-run production process and its average varia
    10·1 answer
  • Lever Europe, a division of Unilever, markets Snuggle fabric softener. But in 10 European countries, it uses seven brand names,
    7·1 answer
  • Even though Miller loves bacon, he is worried about his cholesterol. He is also concerned how eating bacon may affect it. Before
    8·1 answer
  • On June 1, 2018, Andre Company and Agassi Company merged to form Lancaster Inc. A total of 800,000 shares were issued to complet
    6·1 answer
  • Vella owns and operates an illegal gambling establishment. In connection with this activity, he has the following expenses durin
    6·1 answer
  • What are new and innovative ways for CPG companies to gather consumer data?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!