Answer:
The difference between two WACC is 1.2%.
Explanation:
As we know that
WACC = Ke * Ve / (Ve + Vd (1-Tax)) + Kd * Vd*(1-tax) / (Ve + Vd*(1-Tax))
Using the Book Value Method:
WACC = 14% *$65 / ($65m + $45m (1-40%))
+ 6% *$45m*(1-.4) / ($65m + $45m (1-40%))
WACC = 10% + 1.8% = 11.8%
<u>Using the market value method:</u>
Market Value of Common Stock = Common Shares * Market value per share
Market Value of Common Stock = 10 million * $22.5 per share = $225m
WACC = 14% *$225 / ($225m + $50m (1-40%))
+ 6% *$50m*(1-.4) / ($225m + $50m (1-40%))
WACC = 12.35% + 0.7% = 13%
The difference between two WACC is 1.2%.
Answer:
<em>End up losing because it is legally binding the clause that would limit the statute of limitations to 18 months.</em>
Explanation:
Within UCC 2-725, in cases that involve the exchange of goods, a 4-year restriction law applies. The parties can reduce the duration to not less than 1 year (but not extend it).
When a delivery tender is made, an action for violation of warranty accrues (the statute begins to run).
However if the warranty specifically applies to future performance and violation disclosure must postpone that performance, the penalty will occur when the breach is discovered or should have been discovered.
A business partnership is a specific kind of legal relationship formed by the agreement between two or more individuals to carry on a business as co-owners. A partnership is a business with multiple owners, each of whom has invested in the business.
Answer:
FV= $46,031.45
Explanation:
Giving the following information:
Monthly deposit= $450
Number of months= 59
Interest rate= 0.21/12= 0.0175
To calculate the final value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {450*[(1.0175^59) - 1]} / 0.0175 + 450
FV= $46,031.45
Answer:
See complete solution in the picture attachment.
Explanation:
