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3 years ago

One calculates the after-tax weighted average cost of capital (WACC) using which formula?

Business

1 answer:

olya-2409 [2.1K]3 years ago

6 0

Answer:

Weighted average cost of capital

= Ke(We) + Kp(Wp) + Kd(Wd)(1 - T)

Where

Ke = Cost of equity

We = Weight of equity in the capital structure

Kp = Cost of preferred stock

Wp = weight of preferred stock in the capital structure

Kd = Cost of debt

Wd = Weight of debt in the capital structure.

T = Tax rate

Explanation:

Weighted average cost of capital equals cost of equity multiplied by the weight of equity in the capital structure plus cost of preferred stock multiplied by weight of preferred stock in the capital structure plus after tax cost of debt multiplied by weight of debt in the capital structure.

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Park's competitor's times interest earned is 4.0. Is Park in a better or worse position than its competitor to make interest pay

Amiraneli [1.4K]

Answer:

In the first part of the question we calculate that Park's times interest earned ratio is $1885000 / $145000 = 13 times

if Park's competitor has a times earned ratio of 4, it means that Park is in a much better financial position to make interest payments.

The times interest earned ratio measures how many times a company can pay their interest expense with their current EBIT or operating revenue. The higher the ratio, the better since it shows a healthier financial position.

Neither park nor its competitor are currently at risk of not paying their debt, but what happens if something goes wrong and sales decrease or costs increase? Or everyone has to stay home for a while? Park can handle a bad economy better than its competitors.

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3 years ago

All licensees should give earnest money checks to their sponsoring broker immediately who must deposit said earnest money by:___

Lady bird [3.3K]

Answer:

b)the next business day of contract acceptance.

Explanation:

A license which is reffered to as a permit to authority should make sure their sponsoring brokers were given earnest money checks after the contract has been accepted so that it can becomes a legal deal.

It should be noted that All licensees should give earnest money checks to their sponsoring broker immediately who must deposit said earnest money by the next business day of contract acceptance.

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3 years ago

During ________, the project manager performs several activities to assess the size, scope, and complexity of the project and to

Ratling [72]

During Project, initiation the project manager performs several activities to assess the size, scope, and complexity of the project and to establish procedures to support subsequent activities.

The developer engages in a number of tasks to determine the project's size, scope, and complexity and to set up the procedures that will support following tasks.
Using a Work Breakdown Structure, project activities are defined as the initial planning activity.
This activity's goal is to create a shared understanding of the project's scope.
A sample work breakdown structure looks like this. It is a description of the work that needs to be done to finish a project's deliverables.

<h3>What is the initiation phase?</h3>

The initiation phase is the beginning of the project.
In this phase, the idea for the project is explored and elaborated. The goal of this phase is to examine the feasibility of the project.

Learn more about Work Breakdown Structure brainly.com/question/14262396

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2 years ago

When Hal sees the RFP issued by one of his customers, he is concerned that the company has changed its specifications since it p

lozanna [386]

Complete question:

When Hal sees the RFP issued by one of his customers, he is concerned that the company has changed its specifications since it placed a previous order with him. His company's products do not meet the new specifications. In this situation, being the current vendor __________.

A will necessitate renegotiating price and delivery terms.

B allows for a straight rebuy.

C offsets a consensus buying center culture.

D will probably not be an advantage in getting the new order.

E will allow Val to get the order even though his products do not meet the specifications.

Answer:

In this situation, being the current vendor will probably not be an advantage in getting the new order.

Explanation:

A request for proposal (RFP) is a paper which requests prospective suppliers to make business proposals to submit proposals, which are often made by a bidder, by an organization, corporation or a bidder involved in purchasing a product, service or valued item.

The RFP outlines the tendering process and contract requirements and directs the design of the tender.

Government organizations use RFPs mainly to get the lowest bid possible.

RFPs allow the requester to obtain multiple bidders.

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3 years ago

An automobile company shuts down a factory, forcing hundreds of workers into unemployment. the positive externality is that the

lesya692 [45]

<span>An automobile company shuts down a factory, forcing hundreds of workers into unemployment. The positive externality is that the workers will enter school to train for a new career.
Education and training is considered as a positive externality. When people are educated and trained, they will get more opportunities for employment. </span>

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3 years ago