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Semenov [28]
3 years ago
14

Let's say Capital Theatre has the cost of debt of 10%, the cost of equity of 18%, and the debt ratio of 45% (i.e., the firm fina

nces 45% of the market value of its assets with debt). If the tax rate is 21%, what is the weighted average cost of the firm
Business
1 answer:
Papessa [141]3 years ago
8 0

Answer:

The weighted average cost of the firm is 13.46%

Explanation:

To calculate the weighted average cost of the firm we have to use the following formula

WACC = After tax Cost of Debt*Weight of Debt + Cost of Equity*Weight of Equity . We have all the details so we can proceed with the formula

 WACC = 10%*(1-21%)*45% + 18%*55%

              = 13.455%

               =13.46%. Weighted average cost of the firm

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It costs Vaughn Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit.
11Alexandr11 [23.1K]

Answer:

Effect on income= $4,800 increase

Explanation:

Giving the following information:

Unitary variable cost= $18

A foreign wholesaler offers to purchase 4800 units at $21 each. Vaughn would incur special shipping costs of $2 per unit if the order were accepted.

Because it is a special order and there is unused capacity, we will not take into account the fixed costs.

Effect on income= 4,800*21 - 4,800*(18 + 2)= $4,800 increase

3 0
3 years ago
Coca-Cola spent $102 million through The Coca-Cola Campaign focusing on water stewardship, healthy and active lifestyles, commun
Harman [31]

Answer:

True

Explanation:

Corporate Social Responsibility (CSR) is a means by which corporate bodies meet the immediate needs of the people in a particular community

4 0
3 years ago
if you have a successfully crowdfunded product and you know you are going to miss your advertised ship date, what should you do?
alina1380 [7]

If you have a successfully crowdfunded product and you know you are going to miss your advertised ship date, what you should do is: C) Be honest; alert your backers and notify others through the crowdfunding site.

<h3>What is a product?</h3>

A product is any physical object (tangible item) that is typically produced by a manufacturer in order to satisfy and meet the demands, needs or wants of every customer.

<h3>What is crowdfunding?</h3>

Crowdfunding can be defined as a strategic process which typically involves obtaining small amounts of capital or money (funds) from a large group of individuals, usually over the Internet, in order to finance a new project, business venture or product.

In this scenario, the best thing to do is being honest, especially by alerting your backers, guarantors, and all of the people who provided the fund through the crowdfunding site.

Read more on a crowdfunding here: brainly.com/question/21940014

#SPJ1

Complete Question:

If you have a successfully crowdfunded product and you know you are going to miss your advertised ship date, what should you do?

A)Do nothing.

B)Change the date on your crowdfunding site but do not draw attention to it.

C)Be honest; alert your backers and notify others through the crowdfunding site.

D)Shift the blame to someone else (manufacturers, distributors, suppliers, etc.).

3 0
1 year ago
when merchandise purchased on account is returned under the perpetual inventory system, the buyer would debit:
NeX [460]

Answer:

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5 0
3 years ago
A newly issued 20-year maturity, zero-coupon bond making annual coupon payments is issued with a yield to maturity of 8% and fac
Natali [406]

Answer:

1st Year = $80

2nd Year= $166.40

3rd Year= $345.26

Explanation:

Imputed Interest income in this case can be referred to where the investor does not receive any fixed annual interest payments but the bond itself has been purchased at a discount to the face value.

6 0
3 years ago
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