Answer:
FALSE
Explanation:
Project scope statements are a type of program or tool that helps to generate various activities to maintain the project's aim.
- Developing a project scope plan is a long process and may involve the input of various partners and consultants from the external part of the organization.
Sometimes, consumers also may be a part of the project scope plan.
Answer:
After cost of debt is 4.27%
Cost of equity of 15.75%
WACC is 7.37%
Explanation:
US Steel cost of debt can be ascertained dividing the interest expense by the total value of debt since that gives the percentage of the debt paid as coupon interest to bondholders;
cost of debt =$214.0million/$3,160.million=6.77%
after tax cost of debt(Kd) =7.13%*(1-0.37)=4.27%
Cost of equity can be computed using the below formula:
Ke=Rf+beta*(Mp)
Rf is the risk free rate of 2.5%
Mp is the market premium of 5%
beta is 2.65
Ke=2.5%
Ke=2.5%+(2.65*5%)=15.75%
WACC=Ke*E/V+Kd*D/V
E is weight of equity of 1.17
D is the weight of debt 3.16
V is the sum of the weights (1.17+3.16)=4.33
WACC=(15.75%*1.17/4.33)+(4.27%*3.16/4.33)=7.37%
Answer:
B. Mix up the letters and numbers into a hard-to-guess combination
Answer:
Margin of safety = 3190.922902 units rounded off to 3191 units
Explanation:
Margin of safety is the cushion or extra number of units that the business sells over the break even point in units. The break even point is the point where total revenue equals total cost and the business earns no profit or no loss. To calculate the margin of safety in units, we deduct the break even number of units from the budgeted number of units or sales.
Margin of safety = Budgeted units - Break even number of units
First we need to calculate the break even in units. The formula for break even in units is,
Break even in units = Fixed cost / (Selling price per unit - Variable cost per unit)
Break even in units = 9376 / (6.74 - 2.33)
Break even in units = 2126.077098 rounded off to 2126 units
Margin of safety = 5317 - 2126.077098
Margin of safety = 3190.922902 units rounded off to 3191 units