Compared to a corporation, a partnership is more difficult and expensive to establish.

Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its cost of equity is 16 p

yKpoI14uk [10]

Answer and Explanation:

a. The computation of the wacc is as followS;

= cost of common stock × weight of common stock + cost of debt × weight of debt × (1 - tax rate)

= 0.16 × 0.70 + 0.08 × 0.30 × (1 - 0.30)

= 0.112 + 0.0168

= 0.1288

= 12.88%

b. The after tax cost of debt is

= 0.08 × (1- 0.30)

= 0.056

So the capital should use the cost of debt

6 0

2 years ago

Muhammad deposited $800 at the beginning of each quarter for 8 years into an IRA. Given an interest rate of 8% compounded quarte

Nastasia [14]

Answer:

$18,775

Explanation:

We can calculate the future value of the investment by using the following formula:

Future Value = P * [1 - (1+i)^-n] / i

Here,

P is the periodic payments of $800

n is the number of periodic payments made which is 4 in a year and 32 in 8 years. So n = 32 number of payments.

r is the annual interest rate which is 8%

i is interest earned after on periodic periodic is:

i = Annual interest rate / Number of periodic payments in a year = 8% / 4

= 2%

By putting this value in the equation, we have:

Future Value = $800 * [1- (1 + 2%)^-32] / 2%

Future Value = $18,775

8 0

3 years ago

In November 2009, Perrigo Co. (PRGO) had a share price of $39.20. They had 191.33 million shares outstanding, a market-to-book r

lubasha [3.4K]

Answer:

$0.86

Explanation:

Earnings per Share = Earnings attributable to holders of Common Stock ÷ Weighted Number of Common Stocks Outstanding.

where,

Earnings attributable to holders of Common Stock = $163.82 million

and,

Weighted Number of Common Stocks Outstanding = 191.33 million

Therefore

Earnings Per Share = $163.82 million ÷ 191.33 million

= $0.86

7 0

2 years ago

If Penny bought a stock for $80 dollars and could sell it 15 years later for 4 times what she originally paid, what is Penny’s r

Anna11 [10]

Answer:

10%

Explanation:

Data provided in the question

Purchase value of the stock = $80

Number of years = 15

Times = 4

So, the return on owning this stock is

= Number of times^(1 ÷ number of years) - 1

= 4^(1÷15) - 1

= 4^0.0666666667 - 1

= 1.0968249797 - 1

= 0.0968249797

= 10% round off

All other things that are mentioned in the question is not relevant. Hence, ignored it

5 0

3 years ago

__________ is credited with being the first restaurant to franchise.

Mazyrski [523]

During 1850,Frederick Henry Harvey is the one founded the first restaurant chain in the U.S. The first of the Harvey House restaurants opened in 1876, in a terminal of the Atchison, Topeka & Santa Fe Railroad. In 1887, there was a Harvey House restaurant in every 100 miles along the 12,000‑mile‑long Atchison, Topeka & Santa Fe line. He strongly believe that quality control established is the reason why regular field visits to his restaurants, and provided services similar to those used today by franchisors

3 0

3 years ago