Need help asap, I don't understand economics at all :(

Turnbull Co. is considering a project that requires an initial investment of $1,708,000. The firm will raise the $1,708,000 in c

exis [7]

Answer:

The weighted cost of capital for the project which is also the project discount rate is 10.12%

Explanation:

WACC=Ke*E/V+Kd*D/V*(1-t)+Kp*P/V

Ke is the cost of equity of 13.2%

Kd is the cost of debt of 8.7%

Kp is the cost of preferred stock of 9.9%

E is the market value of equity raised of $880,000

D is the market value of debt issued of $750,000

P is the amount of preferred stock sold to investors of $78,000

V is the sum of the market values above=$880,000+$750,000+$78,000=$1708000

WACC=(13.2%*880,000/1708,000)+(8.7%*750,000/1708,000*(1-0.25))+(9.9%*78,000/1708000)=10.12%

8 0

3 years ago

Brianna is the top-performing cheerleader and captain of the cheer team. Which of the following statements would result in the a

Reptile [31]

C should be the correct answer if not it’s A

3 0

3 years ago

The following events occurred last year for the Bronze Company: Purchase of treasury stock $50,000 Issuance of common stock 90,0

Lana71 [14]

Answer:

Net Cash Flow from Financing Activities $150,000

Explanation:

Data provided in the question:

Purchase of treasury stock = $50,000

Issuance of common stock = 90,000

Payment of dividends to common stockholders = 10,000

Sale of equipment = 17,000

Now,

Net cash flow from financing activities will be

Issuance of common stock $90,000

Purchase of treasury stock $50,000

Payment of dividends to common stockholders $10,000

==============================================================

Net Cash Flow from Financing Activities $150,000

Note: Sales of equipment is not included in financing activity

6 0

3 years ago

can someone check how many ti i k t o k followers i have alexaasalvatore if u actually searh it ill give brainiest

tekilochka [14]

6034 followers currently

7 0

3 years ago

g The current ratio is a.a solvency measure that indicates the margin of safety for bondholders. b.used to evaluate a company's

adoni [48]

Answer:

b.used to evaluate a company's liquidity and short-term debt paying ability.

Explanation:

The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It tells investors and analysts how a company can maximize the current assets on its balance sheet to satisfy its current debt and other payables.

The current ratio is sometimes referred to as the “working capital” ratio and helps investors understand more about a company’s ability to cover its short-term debt with its current assets.

A company with a current ratio less than one does not, in many cases, have the capital on hand to meet its short-term obligations if they were all due at once, while a current ratio greater than one indicates the company has the financial resources to remain solvent in the short-term.

3 0

3 years ago