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3 years ago

The example approval form in the activity shows that

Business

2 answers:

I am Lyosha [343]3 years ago

7 0

D hope this helps!!

kupik [55]3 years ago

6 0

I just took the test and the answer is D. Most HOA requirements are quite specific. I hope this helps :)

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Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist

iris [78.8K]

Answer:

a. With New Stock = 8.307%

b. With Old stock = 7.971%

Explanation:

The weighted average cost of capital (WACC) defines the cost rate that blends the capital structure cost including equity, debt, and preferred stock.

Requirement A

If it uses retained earnings as its source of common equity,

Given,

The weight of the combination of the capital structure is -

$W_{d}$ = 40% = 0.40; $W_{p}$ = 5% = 0.05; $W_{e}$ = 55% = 0.55

For cost of debt, we have to find cost of debt after tax, $R_{d}(1 - t)$ =

6.9% x (1 - 0.40) = 4.14%

Cost of preferred stock, $R_{p}$ = 6.4%

Cost of new Equity, $R_{e}$ = 11.51%

We know, the weighted average cost of capital (WACC) =

$W_{d}$ x $R_{d}$ + $W_{p}$ x $R_{p}$ + $W_{e}$ x $R_{e}$

= (0.40 x 4.14%) + (0.05 x 6.4%) + (0.55 x 11.51%)

= 1.656% + 0.32% + 6.3305%

= 8.307%

Requirement B

If it has to issue new common stock, the weighted average cost of capital (WACC) = $W_{d}$ x $R_{d}$ + $W_{p}$ x $R_{p}$ + $W_{s}$ x $R_{s}$

Given,

The weight of the combination of the capital structure is -

$W_{d}$ = 40% = 0.40; $W_{p}$ = 5% = 0.05; $W_{e}$ = 55% = 0.55

For cost of debt, we have to find cost of debt after tax, $R_{d}(1 - t)$ =

6.9% x (1 - 0.40) = 4.14%

Cost of preferred stock, $R_{p}$ = 6.4%

Cost of new Equity, $R_{s}$ = 10.9%

Therefore, putting the value in the equation,

WACC = (0.40 x 4.14%) + (0.05 x 6.4%) + (0.55 x 10.9%)

WACC = 1.656% + 0.32% + 5.995%

WACC = 7.971%

4 0

3 years ago

Which term refers to the target toward which the open management system is directed?

ipn [44]

<span>The correct answer is organizational objectives</span>

<span>Organizational objectives are the targets toward which the open management system is directed. </span>
Organizational objectives are derived from the organization’s Mission and Vision. An organization that is
accomplishing its objectives, is also simultaneously accomplishing its purpose and thereby justifying its reason for existence(mission)

6 0

4 years ago

(1) Real-Balances Effect

ozzi

Answer:

(A) 5 and 10.

Explanation:

Factor which can shift the Investment spending:

(5) Profit Expectations

If the firm forecast a good economy will probably invest more than if it forecast a bad economy. businessman will increase and decrease their investment based on expepectations.

(10) Degree of Excess Capacity

Assuming a rational behavior, company's will investment if needed. So if there is a portion of unsued capital they will use it before investing to acquire more. Once the current capital is used or near max capacity they will invest. Below a certain threshold they won't.

4 0

4 years ago

What is the Total Cost of a stock purchase if the stock price is $12, shares purchased 100, with a 2% Broker's Fee? (Stock Price

earnstyle [38]

It's a so I need 20 characters hhhhhhh

5 0

4 years ago

Read 2 more answers

In the long run, assuming that the owner of a firm in a competitive industry has positive opportunity costs, she a. should exit

Svetradugi [14.3K]

Answer:

c. will earn zero economic profits but positive accounting profits

Explanation:

A competitive industry is characterised by many buyers and sellers of homogenous goods and services.

There are no barriers to entry and exit of firms. If firms in a competitive industry earn economic profit in the short run, firms enter into the industry in the long run and economic profit falls to zero.

A competitive firm earns accounting profit but doesn't earn economic profit.

Accounting profit = Revenue - Cost

Economic profit = Accounting profit - Opportunity cost

I hope my answer helps you.

5 0

3 years ago