Two-year-old Maya is building a block tower. Her father begins by pointing to where each block needs to go as Maya piles them up
2 answers:
You might be interested in
Answer:
Re = 16.02%
Explanation:
current stock price 36 x 7,660,000 = 275,760,000
cost of equity = 17.5%
current short term debt = 141,600,000
cost of short term debt = 8.5%
current long term debt = 210,600,000
cost of long term debt = 10.5%
total financing = 627,960,000
- equity = 275,760,000 / 627,960,000 = 0.4391
- short term debt = 141,600,000 / 627,960,000 = 0.2255
- long term debt = 210,600,000 / 627,960,000 = 0.3354
WACC = (0.4391 x 0.175) + (0.2255 x 0.085 x 0.75) + (0.3354 x 0.105 x 0.75) = 0.0768 + 0.0144 + 0.0264 = 0.1176 or 11.76%
under the new structure:
total financing = 627,960,000
- equity = 325,760,000 / 627,960,000 = 0.5188
- short term debt = 141,600,000 / 627,960,000 = 0.2255
- long term debt = 160,600,000 / 627,960,000 = 0.2557
assuming WACC remains unchanged:
0.1176 = (0.5188 x Re) + (0.2255 x 0.085 x 0.75) + (0.2557 x 0.105 x 0.75) = (0.5188 x Re) + 0.0144 + 0.0201 = (0.5188 x Re) + 0.0345
0.5188 x Re = 0.1176 - 0.0345 = 0.0831
Re = 0.0831 / 0.5188 = 0.1602 or 16.02%
Answer:
d.Level 2
Explanation:
Based on the information provided within the question it can be said that Yuki is in the level 2 of the level-5 leadership pyramid. This level emphasizes an individuals contributions towards the other members of a group and adding their individual capabilities to the group in order to help the group achieve their overall goals. Which is exactly what Yuki is doing as described in the question.
