Answer:
a. 10.14%
Explanation:
WACC = wE*rE + wP*rP + wD*rD(1-tax) whereby;
w= weight of...
r = cost of..
Find the market values;
Common equity(E) = 5,000,000* 8 = 40,000,000
Preferred stock(P) = 10,000,000
Debt (D) = 100,000 *1000 *0.96 = 96,000,000
Total value = 146,000,000
Therefore;
wE= 0.2740
wP = 0.0685
wD = 0.6575
Cost of capital;
rE = 19% or 0.19
rP = 15% or 0.15
rD = 9% or 0.09
WACC = (0.2740*0.19) + (0.0685 * 0.15) + [0.6575*0.09(1-0.34)]
WACC = 0.0521 + 0.0103 + 0.0391
WACC = 0.1015 or about 10.14%
The answers the fit the given blanks above are FINANCIAL INTERMEDIARIES and FIRMS, respectively. In a capitalist economy, the businesses are held private and therefore, the production and the operation of the business for their profit is only owned by them.
<h3>Amount of cost to the building is $69,645
</h3>
Explanation:
The total property value of Tonto Company = $140,000.
The total property (building, equipment and land) value of Tonto Company = $140,000.
The building was appraised at $98,000,
The land was appraised at $63,000
The equipment was appraised at $36,000.
- The total current value of the 3 assets = $98,000 + $63,000 + $36,000
- The total current value of the 3 assets = $197,000.
- Amount of cost to the building = ($98,000 x $140,000) / $197,000.
- Amount of cost to the building = $69,644.67
Amount of cost to the building = $69,645
Answer:
$288,500
Explanation:
Particulars Amount
Retained Earnings Dec 31, 2012 $306,800
Less: Net Loss for the Year $4,000
Less: Dividend declared and paid in 2013 <u>$14,300</u>
Retained Earnings Dec 31, 2013 <u>$288,500</u>
Answer:
Standard.
Explanation:
In the context above, it can be seen that the 1988 was been provided to be a standard for growth and high export year against all other years. Therefore, in a bid to improve its manufacture growth, different things are expected to change back or better than the model or steps that are been used. Objectives to determine a huge success in the current project is seen to be in a cue with that of the year discussed above.
