Answer:
The WACC for this project is 10.605%
Explanation:
The WACC or the weighted average cost of capital is the weighted average return that the company is expected to pay its capital providers.The WACC is calculated by multiplying the cost of each component by their respective weights in the capital structure. The WACC is calculated using the following formula,
WACC = wD * (1-tax) * rD + wP * rP + wE * rE
Where,
- wD, wP and wE represents the weight of debt, preferred stock and common equity respectively as a proportion of total capital.
- rD, rP and rE is the cost of debt, preferred stock and equity respectively.
- The (1-tax) is used in debt component to calculate the after tax cost of debt
WACC = 750000/1708000 * (1-0.25) * 0.096 + 78000/1708000 * 0.107 + 880000/1708000 * 0.135
WACC = 0.10605 or 10.605%
Answer:
C)Contact potential investors that are Retail Investors to ascertain investor interest
Explanation:
According to the jobs act, an issuer or a broker dealer that presents the issuer could deal in the communciation prior to the registration statements would be filed in the SEC but the same should not be considered for the potential investors where the retail investors would not certain the interest of an investor
Therefore the option c is relevant
Lower car insurance rates serve as a reason for good driving.
My guess would be B , Hope I helped :)
Answer:
$400,000
Explanation:
Computation for the manufacturing margin for the company under variable costing
Using this formula
Manufacturing margin= Sales - Total variable production cost
Let plug in the formula
Manufacturing margin=( 5,000*$172)- (5,000*$92)
Manufacturing margin=$860,000-$460,000
Manufacturing margin= $400,000
Therefore the manufacturing margin for the company under variable costing is $400,000
