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3 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]3 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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New Jersey raises its minimum wage while neighboring Pennsylvania does not. Economists compared the labor market in both states

ollegr [7]

Answer:

Natural experiment

Explanation:

Natural experiment is the study of empirical, which comprise of the individuals who are exposed to the control as well as the conditions of the experimental , which are determined or evaluated by the nature or through other kinds of factors that are outside the person control.

The procedure of governing the exposures resemble the random experiment. This experiment are not controllable and are the observational studies. So, the event is naturally occurring, then it is an example of the natural experiment.

6 0

4 years ago

Park Co. is considering an investment that requires immediate payment of $21,705 and provides expected cash inflows of $6,700 an

hjlf

Answer:

The net present value of this investment is $989.32

Explanation:

The Net Present Value is calculated by taking the Present Day (discounted) value of all future net cash flows based on the business cost of capital and subtracting the initial cost of investment.

Input Value Cash flow

CF0 ($21,705)

CF1 $6,700

CF2 $6,700

CF3 $6,700

CF4 $6,700

Cost of Capital = 7%

Input the values in a financial calculator we get the result;

Net present value = $989.3154

= $989.32

Conclusion :

The net present value of this investment is $989.32

8 0

3 years ago

Which of the answer choices shows the correct punctuation? if managers don't prepare for international business trips, by learni

Mandarinka [93]

The correct use is:

If managers don't prepare for international business trips by learning about the culture, they will be at a disadvantage when negotiating deals abroad.

Punctuation means the marks, such as period, comma, and parentheses, used in writing to separate sentences and their elements and to clarify meaning.

5 0

3 years ago

Which department is responsible for initiating the purchase of materials?

IceJOKER [234]

I would say the inventory department.

4 0

4 years ago

You are a manager in a supermarket. One evening, you hear raised voices and see Chuck shouting at a customer, "I’m not going to

shusha [124]

Answer:

punishment

Explanation:

Basically, the manager is trying to change the behavior of his employee, Chuck. In management and organizational psychology, that is often referred to as the reinforcement theory of motivation.

In this example, the manager uses remuneration punishment in order to alter Chuck's noted behavior pattern.

NOTE - This is not to be confused with negative reinforcement, which is also related to the reinforcement theory. Although the term negative may imply some similarities with punishment, negative reinforcement is a different concept. While punishment is directly weakening the unwanted behavior, negative reinforcement is strengthening a desired behavior, by means of removing an unwanted consequence for the employee when he follows the wanted behavior pattern.

For example, a form of negative reinforcement would be if Chuck knew upfront that his pay would be reduced if he yelled at his customers and he avoided yelling in the first place because of that.

3 0

3 years ago