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
What is the ultimate aim of customer relationship management maintain high customer loyalty?
Misha Larkins [42]
The ultimate aim of customer relationship management is to produce high customer equity. Hope I helped! :)
5 0
3 years ago
Coates Inc. experienced the following events in 2014, in its first year of operation: (1) Received $20,000 cash from the issue o
Nata [24]

Answer:

Explanation:

Please see attached file

7 0
3 years ago
1. Who benefits when a customer purchases strawberries from a store?
Vedmedyk [2.9K]
The customer and the store and the producer of the strawberries both benefit
4 0
3 years ago
Countries with democratic regimes, market-based economic policies, and strong protection of property rights are more likely to a
vlabodo [156]

Answer:

Explanation:

There are different categories of evaluations a manager must make when examining a country's attractiveness such as Evaluation of Benefits, Evaluation of Costs and Evaluation of Risks. All these evaluation are necessary for high and sustained economic growth rates as well as means of attraction for location for international business for countries with market-based economic policies.

Cost evaluation provide insight on the total cost of the project.

Each of the given item are positioned below to the appropriate category of evaluations a manager must make when examining a country's attractiveness.

A. Evaluate Benefits

1. Middle-class population growth potential

2. First-mover advantages

7. Free market economy

B. Evaluate Costs

4. Infrastructure issues

5. Resolving contract disputes

6. Bribe payments

C. Evaluate Risks

3. Unaxpestec political change

8. economic uncertainty

8 0
3 years ago
Marcelino Co.'s March 31 inventory of raw materials is $90,000. Raw materials purchases in April are $560,000, and factory payro
melisa1 [442]

Answer:

Marcelino Co.

1. Assignment of underapplied or overapplied overhead to the Cost of Goods Sold account:

a. Materials purchases (on credit) = $560,000

b. Direct materials used in production = $450,000

c. Direct labor paid and assigned to Work in Process Inventory =  $359,000

d. Indirect labor paid and assigned to Factory Overhead = $23,000

e. Overhead costs applied to Work in Process Inventory = $179,500

f. Actual overhead costs incurred, including indirect materials. (Factory rent and utilities are paid in cash.) = $196,000

g. Transfer of Jobs 306 and 307 to Finished Goods Inventory = $844,000

h. Cost of goods sold for Job 306 = $350,500

i. Revenue from the sale of Job 306 = $655,000

j. Assignment of any underapplied or overapplied overhead to the Cost of Goods Sold account. (The amount is not material.) = $16,500

2. Journal Entries:

Debit Cost of Goods Sold $16,500

Credit Manufacturing Overhead $16,500

To assign underapplied overhead to the cost of goods sold.

Journal Entries to record April Transactions:

a. Debit Raw materials inventory $560,000

   Credit Accounts payable $560,000

To record the purchase of raw materials on account.

b. Debit Work in process inventory $450,000

   Credit Raw materials inventory $450,000

To record the materials used in production.

c. Debit Work in process inventory $359,000

  Credit Cash 359,000

To record payment for direct labor costs.

d. Debit Factory overhead $23,000

  Credit Cash $23,000

To record payment for indirect labor costs.

e. Debit Work in process inventory $179,500

   Credit Factory overhead $179,500

To record overhead assigned to WIP.

f(1). Debit Factory overhead $54,000

      Credit Raw materials inventory $54,000

To record indirect materials used in production.

f(2). Debit Factory overhead $24,000

      Credit Cash $24,000

To record payment for factory utilities.

f(3). Debit Factory overhead $56,000

      Credit Accumulated depreciation-factory equipment $56,000

To record factory equipment depreciation.

f(4). Debit Factory overhead $39,000

      Credit Cash $39,000

To record payment for factory rent.

g. Debit Finished Goods Inventory $844,000

   Credit Work in process inventory $844,000

To record the transfer of Jobs 306 and 307 to Finished Goods Inventory.

h. Debit Cost of goods sold $350,500

   Credit Finished goods inventory $350,500

To record the cost of Job 306 sold.

 

i.  Debit Cash $655,000

   Credit Sales Revenue $655,000

To record the sale of Job 306.

j. Debit Cost of goods sold  $16,500

  Credit Factory overhead $16,500

To assign the underapplied overhead.

Explanation:

a) Data and Calculations:

March 31 Inventory of raw materials = $90,000

Raw materials purchases in April = $560,000

Factory payroll cost in April = $368,000

Overhead costs incurred in April:

Indirect materials,                           $54,000

Indirect labor,                                  $23,000

Factory rent,                                   $39,000

Factory utilities,                              $24,000

Factory equipment depreciation, $56,000

Total overhead costs                  $196,000

Predetermined overhead rate = 50% of direct labor costs

Sale of Job 306 = $655,000

Cost Sheet:

                                             Job 306      Job 307        Job 308

Balances on March 31

Direct materials                     $31,000      $37,000       $68,000

Direct labor                              21,000         18,000         39,000

Applied overhead                   10,500          9,000          19,500

Beginning work in process $62,500     $64,000      $126,500   $253,000                        

Costs during April

Direct materials                   135,000      200,000        $115,000    450,000

Direct labor                         102,000        153,000         104,000    359,000

Applied overhead                 51,000         76,500          52,000      179,500

Total cost of production $350,500     $493,500     $397,500  $1,241,500

Status on April 30   Finished (sold)  Finished (unsold)  In process  Total

Underapplied or Overapplied Overhead:

Actual overhead costs = $196,000

Overhead assigned =        179,500

Underapplied overhead   $16,500

4 0
2 years ago
Other questions:
  • The principle benefit of tariff protection goes to a. foreign consumers of the good produced. b. domestic consumers of the good
    12·1 answer
  • Profit Margin, Investment Turnover, and ROI Briggs Company has operating income of $56,496, invested assets of $214,000, and sal
    10·1 answer
  • In a conditional expression that includes logical operators, the and operator has a lower order of precedence than the _________
    7·1 answer
  • Which element of the Word window allows a user to see the size percentage, number of pages, and number of words in the document?
    13·2 answers
  • All the following are necessary to effect mentoring except
    6·2 answers
  • A decrease in direct materials costs often results in a,a. Favorable sales volume variance. b. None of the answers are correct.
    8·2 answers
  • A major concern related to higher education’s business model is that colleges and universities cannot or will not control their
    6·2 answers
  • Integrated health systems or ____________ have been a key provision in the aca; these systems better coordinate care and improve
    7·1 answer
  • ) Sill Corporation makes one product. Budgeted unit sales for January, February, March, and April are 9,900, 11,400, 11,900, and
    14·1 answer
  • A firm has a marginal cost of $20 and charges a price of $40. the lerner index for this firm is? 0.33. 0.20. 0.50. 0.75.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!