Answer:
WACC = 0.16637 OR 16.637%
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wE * rE
Where,
- w represents the weight of each component based on market value in the capital structure
- r represents the cost of each component
- D and E represents debt and equity respectively
To calculate WACC, we first need to calculate the Market value an cost of equity.
The market value of equity = 30 million shares * $40 per share
MV of equity = $1200 million
The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.
P0 = D1 / (r - g)
40 = 4 / (r - 0.07)
40 * (r - 0.07) = 4
40r - 2.8 = 4
40r = 4+2.8
r = 6.8 / 40
r = 0.17 or 17%
MV of debt = 40 million * 96.5% => $38.6 million
Total MV of capital structure = 38.6 + 1200 = 1238.6 million
WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17
WACC = 0.16637 OR 16.637%
The global market entry strategy that Mary Kay used when it entered
India was the exporting market entry strategy. The priorities of Mary Kay when
doing business was God first, family second and career third. In India however
it was adapted that faith first, family second and career third. Mary Kay does this for the purpose of the
religion and for the sake of respecting those who practice their religions.
The answer is <u>"Analyzing the organization and the environment".</u>
<u></u>
SWOT analysis refers to an important tool that helps organizations or businesses in the assessment and revelation period of strategic planning. Since it gives an inside and out perspective on the present and forward-looking circumstance of a business, the term SWOT is frequently connected with strategic planning. Both assume a vital job in the high-level planning of businesses as they include imperative information, which once recognized and analyzed, can accomplish long term business development and achievement. However, they are connected, the two ideas are distinctive components during the process of business planning.
Answer:
Explanation:
The solution to the above problem is shown in the attached picture below. It is because of the arrangement i had ti use pen and book. Thank you
The option that makes the most sense for the party by Mr and Mrs Atoll is one case of 24 sodas at $18.50.
<h3>Why this option is the cheapest</h3>
The reason for this is that given the guests they are entertaining, this option is the most cheapest and effective.
How to calculate for the way that the drink would go round
a. Each bottle is $1.5. Two bottles for 1 = 1.5x2 = 3 dollars
b. six packs at 5$. One= $0.88
c. A case of 24 sodas at $18.5. one soda is going to be 18.5/24 = $0.77
d. Two cases of 24 soda at 18.5 = $1.54
Given the calculations that have been done above, option c at $0.77 is the cheapest. It would require them to send the less money in getting sodas that would go round twice for 10 people.
Read more on the economy here: brainly.com/question/1106682
