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Alex777 [14]
3 years ago
11

Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt–equity ratio of .75. The cost of equity is 11.6 p

ercent and the pretax cost of debt is 6.7 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 40 percent?
Business
1 answer:
raketka [301]3 years ago
7 0

Answer:

the capital structure weight of the firm's equity will be 57.14 %.

Explanation:

Weighted Average Cost of Capital is the return that is required by the providers of long term sources of finance.

A debt–equity ratio of 0.75 means:

Debt : Equity = 0.75 : 1

The Total Ratio will be = 0.75 + 1.00

                                     = 1.75

Therefore, the  capital structure weight of the firm's equity will be :

Equity Weight = Equity Ratio ÷ Total Ratio

                       = 1.00 ÷ 1.75

                       = 0.5714 or 57.14 %

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Answer:

c. The medical center will prevail based upon the written contract

Explanation:

Since they later signed a written contract where it is stated in paper and has their signature that the medical center could not assure nor take any responsibilities for the birth of a kid without any medical, mental or physical defects the medical center has the upperhand on the court, as well as they did in Scalisi et al. v. New York University Medical Center that promised a perfect designed baby, the Scalsi decided for invitro fertilization because of the wife´s family medical history and tendency to autism, and they ended up with a baby with autism, so they sue the New York University Medical center, but the court sided with the NYUMC because of the written contract where it stated that they couldn´t assure the baby to be born without any medica, mental or physical defects.

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2 years ago
Pacific Division has the following information:
Luden [163]

Answer:

it will be a net loss of 560,000

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That's because, the Division cover a good portion of their allocate fixed cost.

Explanation:

The fixed expense are allocate cost. Are unavoidable cost It will remain even if the division is dropped.

The sales and variable cost will be zero.

\left[\begin{array}{cccc}&Continued&Discontinued&Differential\\Sales&1,200,000&0&-1,200,000\\Variable&-640,000&0&640,000\\Allocate cost&-620,000&-620,000&0\\Result&-60,000&-620,000&-560,000\\\end{array}\right]

After posting the values, we calculate the differential income.

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5 0
3 years ago
The three major types of firms in the united states are called
Nina [5.8K]
The three major types are;
1. Partnerships
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5 0
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Towson Corp., was organized on January 2, 2018. During the first year of operation, Towson issued 50,000 shares of $9 par value
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Paid in Capital Common Stock in Excess to par = (35-9)*50,000=1,300,000

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Explanation:

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LenKa [72]

Answer:

Option (B) is correct.

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An import quota is defined as the restriction on the imports from the other nations. It is the direct restriction on the quantity of goods imported from the other countries. This restriction takes place to protect the domestic producers of the home nation from the foreign competition.

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