What is alternating currents

Fama’s Llamas has a WACC of 9.7 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 7.5 percent.

Bezzdna [24]

Answer:

0.4766

Explanation:

Given:

WACC = 9.7%

Company’s cost of equity = 12%

Pretax cost of debt = 7.5%

Tax rate = 35%

Now,

WACC

= Weight × Cost of equity + (1 - weight) × Pretax cost of debt × (1-tax rate)

or

0.097 = weight × 0.12 + ( 1 - weight ) × 0.075 × (1 - 0.35)

or

0.097 = 0.12 × weight + 0.04875 - 0.04875 × weight

or

0.04825 = 0.07125 × weight

or

weight = 0.6772

also,

weight = $\frac{\textup{Equity}}{\textup{Debt + Equity}}$

or

$\frac{\textup{1}}{\textup{weight}}$ = $\frac{\textup{Debt+equity}}{\textup{Equity}}$

or

$\frac{1}{0.6772}$ = $\frac{\textup{Debt}}{\textup{Equity}}$ + 1

or

1.4766 = $\frac{\textup{Debt}}{\textup{Equity}}$ + 1

or

$\frac{\textup{Debt}}{\textup{Equity}}$ = 0.4766

5 0

3 years ago

Select the correct answer. If a company produces, promotes, and sells bags made of recycled paper, which concept is it using? A.

igomit [66]

Answer:

If a company produces, promotes, and sells bags made of recycled paper, which concept is it using?

The concept used by the company that produces, promotes, and sells bags made of recycled paper is societal marketing concept

Explanation:

This concept simply entails running of a long term interest which does not only suits customers wants alone but also makes the priority of the company paramount.

4 0

3 years ago

What is the primary reason that so many new businesses fail??

morpeh [17]

The reason why business fail is because they find it extremely hard to compete with the well known business. for example a man that opens up a buisiness that sells soap and decides to name the soap and company labbi but everyone goes to dove because it's more well known and been out for years and delivers high quality

3 0

3 years ago

You have $12,500 you want to invest for the next 30 years. You are offered an investment plan that will pay you 7 percent per ye

lubasha [3.4K]

Answer:

Balance after 30 years = $151,018.50

Explanation:

In order to calculate this, we will calculate the future value on an amount invested, gaining interest over the years of investment, and this is given by:

$FV = PV (1 + r)^{t}$

where:

FV = future value

PV = present value

r = interest rate

t = time in years.

Hence the future value is calculated as follows:

1. For the first 10 years at 7% interest:

7% interest = 7/100 = 0.07

$FV = 12,500 (1 + 0.07)^{10}$

$FV = 12,500 (1.07)^{10}\\FV = 12,500 * 1.967 = 24,589.392$

2. For the last 20 years at 9.5%(0.095) interest:

Note that for the remaining 20 years, the present value (PV) used = 24,589.392, as ending balance after the first 10 years

$FV = 24,589.392 (1 + 0.095)^{20}$

$FV = 24,589.392 (1.095)^{20}\\FV= 24,589.392 * 6.1416\\FV = 151,018.496$

Total Future value earned = $151,018.50

5 0

3 years ago

You are a sales manager for a car dealership who wants to effectively target potential customers. Write a paper that details how

fenix001 [56]

Answer:

answer is given below

Explanation:

As sales managers of car dealerships, we need to create a plan to effectively target potential customers.
In order to effectively target potential buyers, we need to determine both demographic and behavioral data. With respect to demographics, it is important to have information about age, gender, and income levels so that we can consider former consumer trends. Getting this type of data helps our dealerships identify the consumer trends that best target our marketing campaigns. In addition to this data, monitoring our social media feeds also helps us gain insight into our automakers by providing us with demographics and behaviors.
There are various resources available to assist in the decision-making process, focusing on potential buyers. One specific source we want to use is Axion. Many people have experimented with FICO assessment. The company can be used by car businesses to help them focus on family units and performance insights by providing reliable data,

4 0

3 years ago

What is alternating currents​

What is alternating currents