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2 years ago

You are given the following information for Lightning Power Co. Assume the company's tax rate is 35 percent.

Business

1 answer:

olga55 [171]2 years ago

5 0

Answer:

The company's WACC is 9.14%

Explanation:

cost of preferred stock

= (dividend on preferred stock)/(current market price)

= [$100*4%]/$72

= 5.56%

total finance = debt + equity + preferred stock

= (8,000*$1,060) + (310,000*$57) + (15,000*$72)

= $8,480,000 + $17,670,000 + $1,080,000

= $27,230,000

weight of debt = debt/total finance

= $8,480,000/$27,230,000

= 0.31

weight on equity = equity/total finace

= $1.080.000/$27,230,000

= 0.04

WACC

= (weight of debt*after tax cost of debt) + (weight on equity*cost of equity)

= (0.31*0.0393) + (0.65-0.1185) + (0.04*0.0556)

= 9.14%

Therefore, The company's WACC is 9.14%

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Candy Emporium is a legal entity whose assets and liabilities are separate from its owners. It can receive, own, and transfer pr

lora16 [44]

Answer:

Corporation

Explanation:

According to my research on the different types of businesses, I can say that based on the information provided within the question Candy Emporium is considered to be a Corporation. This is because a Corporation is defined as a legal entity in which all assets and liabilities are separate and distinct from the people or person who founded the business. Which is why they are sometimes known as a "legal person" since they have all the rights and responsibilities as if they were an individual person. Since the description in the question is on par with the definition of a Corporation then we can say that this is what Candy Emporium is.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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3 years ago

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Wade Company estimates that it will produce 6,000 units of product IOA during the current month. Budgeted variable manufacturing

Elodia [21]

Explanation:

STATIC BUDGET ACTUAL VARIANCE

Units 6000 6500

variable costs

Direct material 30000 27500 2500 favorable

Direct labor 66000 65000 1000 favorable

Manufacturing overhead 102000 110000 8000 Unfavorable

Fixed costs

Depreciation 7500 7500 None

supervision 3500 3700 200 Unfavorable

Total expenses 209000 213700 4700 unfavorable

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2 years ago

If Wesley Corporation has 80,000 shares of common stock authorized. 50,000 shares of common stock issued, and holds 12,000 share

Vesna [10]

Answer: E. 18,000

Explanation:

Wesley Corporation has 80,000 shares of common stock authorized. This the total amount of common stock that is available for sale by the company.

Only 50,000 shares of common stock were issued and 12,000 shares of common stock as held as treasury stock.

Then the total number of outstanding shares of Wesley Corporation amounts to 80,000 - 50,000 - 12,000 = 18,000

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3 years ago

If income increases by $100 and consumption increases by $75, the slope of the consumption function equals _____.

Rainbow [258]

Answer:

3/4

Explanation:

The marginal propensity to consume mpc, is the slope of the consumption function and it is what this question requires us to find

We have income increase to be = 100 dollars

Then consumption increase = 75 dollars

MPC = increase in consumption ,75/increase in income 100

= 75/100

= 3/4

Therefore the marginal propensity to consume also called the slope is 3/4

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3 years ago

The relationship between pepe's pizzeria and its customers functions at which level of the relationship marketing continuum?

maks197457 [2]

The relationship between Pepe’s pizzeria and its consumer functions at the level of the relationship marketing continuum in the social interaction. This level focuses more on the relationship and interaction of the people or the society of which the pepe’s pizzeria and the consumers are in the level of social interaction as they establish a relationship between the two parties.

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3 years ago

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