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nignag [31]
3 years ago
12

Suppose that TipsNToes, Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of de

bt is 9 percent, while its cost of equity is 15 percent. If the appropriate weighted average tax rate is 34 percent, what will be TipsNToes' WACC?
Business
1 answer:
Anit [1.1K]3 years ago
5 0

Answer:

9.564%

Explanation:

Given that,

Cost of Debt = 9%

Tax Rate = 34%

Weight of Debt = 60%

Cost of Equity = 15%

Weight of Equity = 40%

TipsNToes' WACC:

= [Cost of Debt × (1 - Tax Rate) × Weight of Debt] + [Cost of Equity × Weight of Equity ]

= [9 × (1 - 0.34) × 0.60] + (15 × 0.40)

= 9.564%

Therefore, the TipsNToes' WACC will be 9.564%

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Answer:

A) Overcoming

Explanation:

In this production process the fact that operation Y can only process 50 units per hour while the preceding operation (X) can process 55 units per hour will result in a queue and a capacity constraint.

If operation Y's effective capacity is increased to match operation X's, then the constraint has been overcome.

7 0
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The _____ is a law passed in 1914 that seeks to prevent practices that may cause injury to customers, that cannot be reasonably
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The Federal Trade Commission Act is a law passed in 1914.

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marin [14]

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In this case, Herb Kelleher, the CEO has better relations with his company employees as he interact with the people well which is interpersonal skills.

8 0
3 years ago
According to generally accepted accounting principles (GAAP), revenue is recognized as income when:
bogdanovich [222]

Answer:

the transaction is complete and the goods or services are delivered.

Explanation:

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The revenue recognition principle applies when the revenue is realized or earned whether cash is received or not plus it also follows the accrual basis of accounting. Here, realizable means that customer received the product but the payment is made at the later date

4 0
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ratelena [41]

Number 4 bottom answer

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