1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
RoseWind [281]
3 years ago
11

Sixx AM Manufacturing has a target debt—equity ratio of 0.55. Its cost of equity is 16 percent, and its cost of debt is 10 perce

nt. If the tax rate is 33 percent, what is the company's WACC?
Business
1 answer:
Natalija [7]3 years ago
8 0

Answer:

WACC = Ke(E/V) + Kd(D/V)(1-T)

WACC = 16(100/155) + 10(55/155)(1-0.33)

WACC = 10.3226 + 2.3774

WACC = 12.7%

Explanation:

WACC is a function of cost of equity and proportion of equity in the capital structure  plus after-tax cost of debt and proportion of debt in the capital structure. Since debt-equity ratio is 0.55(55/100), it implies that the total value of the firm is 55 + 100 = 155. Thus, debt proportion will be 55/155 while equity proportion is 100/155.

You might be interested in
When Pete Mills went to withdraw $10,100 from the NFA Mutual fund, he was informed that the fund would charge 6 percent of the a
aivan3 [116]

Answer:

Option (A) is correct.

Explanation:

Given that,

Amount withdraw by Pete Mills = $10,100

Mutual charges on amount withdrawn = 6%

Therefore, the dollar amount of the withdrawal charge;

= Amount withdraw by Pete Mills × Percent charges by mutual fund on withdrawal of fund

= $10,100 × 0.06

= $606.00

Hence, the correct answer is $606.00

6 0
3 years ago
Vanessa is the purchasing manager at General Things, a maker of housewares. She has evaluated the first year's performance of Hu
klemol [59]

Answer: The options are given below:

A. Vanessa should define new performance outcomes that do not include checking order status.

B. Hunter should develop more realistic goals that do not include checking order status.

C. Vanessa and Hunter should set new performance standards that are more realistic.

D. Vanessa should arrange for training so Hunter can learn how to look up the status of orders.

E. Vanessa should provide Hunter with ongoing performance feedback.

The correct option is D. Vanessa should arrange for training so Hunter can learn how to look up the status of orders.

Explanation: From the scenario given above, we can conclude that Hunter is a good purchasing agent, but a bad record keeper, since he finds it difficult to quickly come up with information about orders.

The next reasonable step to take in order to make Hunter perform better would be to arrange a training for Hunter in order to make him a better record keeper, and therefore be able to keep the records on his orders in a way that he will be able to quickly come up with the status of the orders of employees.

3 0
3 years ago
With ______, books don't have to be printed on paper to be distributed.
Leokris [45]
<span>With eBooks, regular paper books will not have to be printed thus saving the environment by reducing the numbers trees cutted for the sake of production of paper. It will also reduce the costs required for purchasing normal papers. Inks will be saved as well saving costs on them. EBooks can be accessible anywhere and anytime, there is no need to carry around a heavy book when you can access it through your smart phone or tablet. The world is going digital, so why not books!</span>
3 0
3 years ago
You are the production head and you decide to introduce a new product in your production line. Market survey reveals that price
Ne4ueva [31]

Answer:

the following table shows the profits generated by each output quantity, assuming selling price is Rs40. Since marginal costs of production are lower than selling price, the more you sell, the higher your profit. Profit is maximized at 1,000 units =  Rs35,960

Explanation:

output          variable costs       fixed costs       total revenue      profits

0                          00                     620                     0                     (620)

100                      280                   620                   4,000              3,100

200                     480                   620                   8,000              6,900

300                     640                   620                   12,000            10,740

400                     820                   620                   16,000            14,560

500                    1,040                  620                   20,000           18,340

600                    1,300                  620                   24,000           22,080

700                    1,620                  620                   28,000           25,760

800                    2,020                 620                   32,000           29,360

900                    2,620                 620                   36,000           32,760

1000                   3,420                 620                   40,000           35,960

8 0
3 years ago
On September 1, 2021, Middleton Corp. lends cash and accepts a $4,000 note receivable that offers 10% interest and is due in six
iris [78.8K]

Answer:

Middleton Corp. will report interest revenue of 133.33 for the period of 2021.

Explanation:

The adjusting entry for the interest receivable for the period ended 31 december will require the Middleton Corp. to record the 4 months interest as interest revenue for the period ended 2021.

The interest on the note for this period is ending 2021 is,

Interest revenue = 4000 * 0.1 * 4/12 = 133.33

The entry on 31 December will be

Interest receivable    133.33 Dr

   Interest Revenue       133.33 Cr

8 0
3 years ago
Read 2 more answers
Other questions:
  • Ray Schultz, a highly competent employee, had been overlooked for a promotion twice in the span of six months and he recently fi
    10·1 answer
  • Susan is creating a spreadsheet and she needs to enter the days of the week in column A.Susan should ?
    13·1 answer
  • Which statement accurately interprets the information on the chart
    8·2 answers
  • Current Attempt in Progress The following information is available for Zoe’s Activewear Inc. for three recent fiscal years. 2022
    12·1 answer
  • Wims, inc., has current assets of $5,000, net fixed assets of $23,000, current liabilities of $3,500, and long-term debt of $7,9
    10·1 answer
  • Assume that you have just purchased some shares in an investment company reporting $500 million in assets, $50 million in liabil
    8·1 answer
  • Please help I will mark you as brainliest!!
    7·1 answer
  • As project manager, Gabriella has discovered a major problem that could affect the remainder of the project.
    5·1 answer
  • Choose the best answer to fill in the blanks. When writing for business, it is important to be _______ and make sure that you al
    11·1 answer
  • After the required beginning date (RBD), what is the amount of penalty that applies to a required minimum distribution (RMD) fro
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!