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Karo-lina-s [1.5K]
3 years ago
15

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

ercent, and the cost of debt is 10 percent. The relevant tax rate is 30 percent. What is the companyâs WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
alexira [117]3 years ago
6 0

Answer:

The company WACC is 13.30%

Explanation:

For computing the WACC, first we have to find the weight-age of both debt and equity.

Since in the question, the weightage of debt and equity is given which is equals to

Debt = 30%

And, Equity or common stock = 70%

So, we can easily compute the WACC. The formula is shown below

= Weighted of debt × cost of debt × (1- tax rate) + Weighted of equity × cost of equity

= 0.30 × 0.10 × (1 - 0.30) + 0.70 × 0.16

= 0.021 + 0.112

= 13.30%

Hence, the company WACC is 13.30%

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Feliz [49]

Answer:

D. Cournot model.

Explanation:

This is explained to be a model pattern wherever 2 companies in most cases that are in duopoly are seen to provide a sort of product at the same time meeting a needed amount and most importantly severally as a kind of competition. As seen above, that was the case of the two firns in the above question. Founding economist fathers has explained that if a game contains a continuous strategy set then it's not forever simple to depict the strategic kind and outcome matrix is an in depth kind as a tree. so as to gift Cournot game, new notation are going to be helpful if a game contains a continuous strategy.

7 0
2 years ago
Corporate executives at LikeReal, Inc. decide to compete in the remote model airplane industry by making the largest model plane
steposvetlana [31]

Answer:

Business strategy

Explanation:

The idea to compete in a remote model air-plane industry is a part of the business strategy of like real.  This is a business strategy because the decision has been made to compete in an industry to gain more customers and to improve their share in the market.  It will also help like real to strengthen their performance and organisational goals.

5 0
3 years ago
Management is a process designed to achieve an organization's objectives by using its resources ____________ (accomplishing the
katrin [286]

Answer:

efficiently, effectively

Explanation:

Management can be regarded as coordination as well as administration of set and various tasks within an organization so that some set goals cn be achieved. Some of the administration activities to reach these goal could be putting up a strategy

as well as coordination of the efforts of employees as well as utilization of available resources.

It should be noted that Management is a process designed to achieve an organization's objectives by using its resources efficiently (accomplishing the objectives with a minimum of resources) and effectively

(having the intended result).

5 0
3 years ago
Troy has $50 a month transferred electronically from his checking account to his savings account. This is an example of:
kupik [55]

Answer:

Saving plan

Explanation:

The saving plan are the life insurance plans that offers the various opportunity to an individual in order save and accumulated the fund for the upcoming future

Since Troy has $50 a month and the same is transferred electronically from his checking account to his saving account so automatically he saves each month

Therefore the same represent the saving plan

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3 years ago
In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 uni
Mariana [72]

Answer: Option (c) is correct.

Explanation:

Given that,

Beginning work in process = 20,000 units and 70% completed

So, Units transferred = 20,000 × 30%

                                   = 6,000

Direct transferred = 80,000 units

Ending work in process = 10,000 × 40%

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Therefore,

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= Beginning WIP transferred + Direct transferred  + Ending work in process

= 6,000 + 80,000 + 4,000

= 90,000 units

3 0
3 years ago
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