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3 years ago

Determining the magnitude of possible losses from a premature death can be complicated. the best method is the

1 answer:

4 0

Determining the magnitude of possible losses from a premature death can be complicated. The best method is the needs-based approach.
When it comes to this approach, you are appealing to the immediate needs of the people who are left behind when their loved one dies prematurely. You want to help them by providing them with everything they may need in order to deal with their loss.

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The debt has an interest rate of 8.50% (short term) and 10.50% (long term). The expected rate of return on the company's shares

viva [34]

Answer:

Re = 16.02%

Explanation:

current stock price 36 x 7,660,000 = 275,760,000

cost of equity = 17.5%

current short term debt = 141,600,000

cost of short term debt = 8.5%

current long term debt = 210,600,000

cost of long term debt = 10.5%

total financing = 627,960,000

equity = 275,760,000 / 627,960,000 = 0.4391
short term debt = 141,600,000 / 627,960,000 = 0.2255
long term debt = 210,600,000 / 627,960,000 = 0.3354

WACC = (0.4391 x 0.175) + (0.2255 x 0.085 x 0.75) + (0.3354 x 0.105 x 0.75) = 0.0768 + 0.0144 + 0.0264 = 0.1176 or 11.76%

under the new structure:

total financing = 627,960,000

equity = 325,760,000 / 627,960,000 = 0.5188
short term debt = 141,600,000 / 627,960,000 = 0.2255
long term debt = 160,600,000 / 627,960,000 = 0.2557

assuming WACC remains unchanged:

0.1176 = (0.5188 x Re) + (0.2255 x 0.085 x 0.75) + (0.2557 x 0.105 x 0.75) = (0.5188 x Re) + 0.0144 + 0.0201 = (0.5188 x Re) + 0.0345

0.5188 x Re = 0.1176 - 0.0345 = 0.0831

Re = 0.0831 / 0.5188 = 0.1602 or 16.02%

4 0

3 years ago

Sara borrowed $500 for four years at 3 percent interest, compounded annually. Use the formula to calculate the total amount she

topjm [15]

The answer is 562.754405
The total amount she will have to pay back in four years is. 562.754405

6 0

3 years ago

Read 2 more answers

If inflation is increasing at 2.4 percent per year, and your salary increases at the same rate, how long will it take your salar

Oksana_A [137]

Answer:

it take 29.23 years, my salary to double.

Explanation:

To make the salary double I have to increase the value of salary by 100%. If inflation rate is 2.4 percent per year and salary increase the same rate the time period to make it double can be calculated as follow.

As every year 2.4% has compounding effect, so we will use compounding formula to solve this problem.

Target value = Existing value ( 1 + growth rate )^time period

200% = 100% ( 1 + 2.4% )^n

2 = 1 ( 1 + 0.024 )^n

2 = 1 ( 1.024 )^n

2 = 1.024^n

Taking log on both sides to solve the n

Log 2 = n Log 1.024

n = Log 2 / Log 1.024

n = 29.23 years

I will take 29.23 year to double the salary

5 0

3 years ago

The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processin

Digiron [165]

Answer:

$95,400

Explanation:

Step 1 : Find the equivalent units of production in Ending Work in Progress

Materials = 18,000 x 100 % = 18,000 units

Conversion costs = 18,000 x 60 % = 10,800 units

Step 2 : Calculate the Cost of units in Ending Work in Progress

Cost of units in Ending Work in Progress = 18,000 x $2.75 + 10,800 x $4.25

= $95,400

Conclusion :

The ending work in process inventory was $95,400.

3 0

3 years ago

Sheffield Corp. uses the periodic inventory system. For the current month, the beginning inventory consisted of 488 units that c

swat32

Answer:

$80,544

Explanation:

We will calculate the amount of cost of goods sold using FIFO as;

= (Beginning inventory unit × Cost of each inventory) + [(Units sold during the month - Beginning inventory units) × Unit cost of the first purchases made by the company]

= (488 × $65) + [(1,206 units - 488 units) × $68]

= $31,720 + $48,824

= $80,544

Therefore, the cost of goods sold using FIFO is $80,544

4 0

3 years ago