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Arada [10]
2 years ago
13

MicroTech Corporation maintains a capital structure of 40 percent debt and 60 percent common equity. To finance its capital budg

et for next year, the firm will sell 11% coupon bonds at par value (assume no flotation costs). The firm will finance the rest of its capital expenditures with retained earnings. MicroTech expects next year's dividend to be $1.30 per share. Dividends are expected to grow at 7% per year for the foreseeable future. The current market value of MicroTech's common stock is $30 per share. If the firm has a corporate tax rate of 21%, what is its weighted cost of capital for next year?
Business
1 answer:
timama [110]2 years ago
5 0

Answer:

weighted cost of capital for next year is 10.27 %.

Explanation:

Weighted cost of capital = Ke × (E/V) + Kd × (D/V)

Ke = Cost of Equity

    = Dividend Yield + Expected growth rate

    = $1.30 / $30.00 + 0.07

    = 0.11333 or 11.33 %

Kd = Cost of Debt

     = Interest × (1 - tax rate)

     = 11% × ( 1 - 0.21)

     = 8.69 %

Weighted cost of capital =  11.33 % × 60% + 8.69 % × 40%

                                         = 10.27 %

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The accounting records of Tuel Electronics show the following data.Beginning inventory 3,880 units at $8Purchases 8,660 units at
Scrat [10]

Answer:

FIFO

FIFO means First in First Out. This method values cost of sales at the earliest prices

Cost of Goods Sold = (3,880 units × $8) + (5,430 units × $10)

                                 = $85,340

LIFO

LIFO means Last in Fist Out. This method values cost of sales at the latest prices.

Cost of Goods Sold = (8,660 units × $10) + (650 units × $8)

                                 = $91,800

Weighted Average Cost

The unit cost is re-calculated with every new purchase of units made. The cost of sale will be valued on the newly calculated average unit cost.

Unit Cost = Total Cost ÷ Total Units

                = (3,880 units × $8) + (8,660 units × $10) / 12,540 units

                = $9.381

Cost of Goods Sold = Units Sold × Unit Cost

                                 = 9,310 units × $9.381

                                 = $ 87,337.11

7 0
2 years ago
May a broker subtract desk expenses from an independent contractor's commission check?
Pavel [41]

Sales representatives and brokers should work under a signed labor agreement that may or may not permit broker deductions.

How Do Brokers Work?

A broker is a person or business that stands between a potential investor and a securities exchange. Individual traders and investors require the services of exchange members since securities exchanges only accept orders from people or companies who are members of that exchange.

Brokers offer that service and are paid in a variety of methods, including commissions, fees, or payments from the exchange itself. To assist investors in deciding which broker is best for them, Investopedia routinely examines all of the major brokers and keeps a list of the top online brokers and trading platforms.

to know more about broker

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7 0
1 year ago
Consider the scenario, and then answer the question.You work for a marketing consulting firm. The company has hired two interns
KiRa [710]

Answer:

a. Resist humor and sarcasm.

b. Be concise.

d. Care about tone.

Explanation:

Sending a message to the supervisor is considered formal writing. As such, it should have formal writing characteristics.

It should be void of humor and sarcasm because the tone is meant to be professional and business like. Messages should be concise and straight to the point. And as this is a formal letter, care must always be taken to ensure that the tone is formal.

8 0
3 years ago
Bellingham Company produced 1,800 units of product that required 2.5 standard direct labor hours per unit. The standard fixed ov
Ostrovityanka [42]

Answer: yes I did it was wrong lol I did already have the time for you to do something with your phone or your keyboard

Explanation:

Bm is not the day that I don’t55 think I can have yuuu on it for me

5 0
2 years ago
Explain different ways to increase job satisfaction for managers?​
marin [14]

Answer:

Do the right thing, impress your manager

Explanation:

I see this is the solution

5 0
2 years ago
Read 2 more answers
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