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lesya [120]
3 years ago
14

Suppose that PAW, Inc. has a capital structure of 60 percent equity, 10 percent preferred stock, and 30 percent debt. If the bef

ore-tax component costs of equity, preferred stock and debt are 17.5 percent, 12 percent and 6.5 percent, respectively, what is PAW's WACC if the firm faces an average tax rate of 28 percent?
Business
1 answer:
Anastasy [175]3 years ago
7 0

Answer:

The answer is: 13.10%

Explanation:

To calculate PAW Inc.'s weighted average cost of capital (WACC) we can use the following formula:

= (0.60 x 17.5%) + (0.10 x 12%) + [(.30 x 6.5%) x (1 - .28)] =

= 0.105 + 0.012 + (0.0195 x 0.72) = 0.105 + 0.012 + 0.01404 = 0.13104 x 100% =

= 13.104%

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In a certain economy, when income is $100, consumer spending is $60. the value of the multiplier for this economy is 4. it follo
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The multiplier is the factor by which gains in total output are greater than the change in spending that caused it. It is  used in reference to the relationship between investment and total  income. Let us with C denote the change in consumption and with Y the change in income. If consumption increases by X then the <span>multiplier is</span>:
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3 years ago
An example of a transfer payment is:________
Fed [463]

Unemplyment benefits are an example of a transfer payment. So, the correct option of this question is b.

Transfer payment is payment made or income received in which goods and services are not paid is known as transfer of payment. It is one-way payment. Transfer Payment is also known as Government transfer as it is given by the Government without goods and services being received in return. Transfer of payment is based on the concept of donor and recipient. A donor gives up something of value without receiving anything in return.

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6 0
2 years ago
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Answer:

is calculated after the variable cost per unit is calculated

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Costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

In Financial accounting, fixed cost can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities, etc.

On the other hand, variable costs can be defined as expenses that are not constant and as such usually change directly and are proportional to various changes in business activities. Some examples of variable costs are taxes, direct labor, sales commissions, raw materials, operational expenses, etc.

Using the high-low method, the fixed cost can only be calculated after the variable cost (VC) per unit is calculated through the application of either the low or high level of activity.

3 0
3 years ago
When evaluating​ strategies, IFRS stands for what​ term?
sleet_krkn [62]

Answer:

C) International Financial Reporting Standards

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The International Financial Reporting Standards are accounting standards which are recognized and issued out by the International Accounting Standards Board (I.A.S.B) and the International Financial Reporting Standard Foundation with the former being responsible for accepting or approving and issuing of standards used in accounting by accountants. These accounting standards make up a standard manner in which a company or firm's financial performance is evaluated using their financial statements which should be understandable. These accounting standards are used by firms which own shares on a public stock exchange.

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3 years ago
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