Answer:
Option B. 5.28%
Explanation:
The cost of unquoted debt can be found from the following formula:
Cost of Debt = Interest rate * (1 - Tax rate)
The interest rate here is 8% and tax rate is 34%.
So by putting the values we have:
Cost of Debt = 8% * (1 - 34%) = 5.28%
So the cost of debt to the company is 5.28% and rate of return for appraising this opportunity as well.
Stakeholder buy-in is when a project manager involves stakeholders in decision-making to reach a broader consensus.
<h3 /><h3>What is Stakeholder buy-in?</h3>
Stakeholder are important people in the business or company.
They usually have a share in a business or organization. Some of them are committed to a company with their substance and are usually involved when making important decision.
Therefore, Stakeholder buy-in is when a project manager involves stakeholders in decision-making to reach a broader consensus.
Learn more on Stakeholder below
brainly.com/question/15532995
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Answer:
a. Cost of debt = Interest * (1 - Tax rate)
= 10%*(1 - 0.30)
= 7%
Cost of preferred stock = Dividend/ Issue price
= 5/48
= 10.42%
Cost of common stock (Cost of retained earnings) = (D1/P0) + g
= (4/33) + 0.07
= 0.12 + 0.07
= 0.19
= 19%
b. Fund Cost Weight Cost * Weight
Debt 7% 0.15 1.05%
Preferred stock 10.42% 0.10 1.042%
Retained earnings 19% 0.75 <u>14.25%</u>
WACC <u>16.342%</u>
Functional-level managers
Hope this helps :)
Answer:
Indirect method
Explanation:
The indirect method reconciles the <em>Operating income</em> to the <em>Operating cash flow</em> by adjusting the Operating Income by (1) <u>Non-cash items previously added or deducted from Operating Income</u> and (2) <u>adjusting for changes in working capital items.</u>