A blue-collar worker is someone in a professional or clerical job who usually earns a salary.

Turnbull Co. is considering a project that requires an initial investment of $570,000. The firm will raise the $570,000 in capit

ss7ja [257]

Answer:

WACC = 10.868%

Explanation:

The following data table will show the easiest way to calculate weighted average cost of capital.

Capital components Investment ($) Weight

Debt Capital (Wd) 230,000 230,000 ÷ 570,000 = 0.40

Equity Capital (We) 320,000 320,000 ÷ 570,000 = 0.56

Preference capital (Wp) 20,000 20,000 ÷ 570,000 = 0.04

Total Investment $570,000 1.00

We know,

WACC = [Wd × Kd (1 - T)] + [Wp × kp] + [We × ke]

Given,

Kd (1 - T) = 9.6% × (1 - 0.25) = 7.2%

kp = 10.7%

ke = 13.5%

WACC = [0.40 × 7.2%] + [0.04 × 10.7%] + [0.56 × 13.5%]

or, WACC = 2.88% + 0.428% + 7.56%

Therefore, WACC = 10.868%

8 0

3 years ago

The relationship between borrowed reserves (BR), the nonborrowed monetary base (MBn), and the monetary base (MB) is Question 14

AnnyKZ [126]

Answer:

Option C.

Explanation:

Borrowed reserves = Monetary base - Nonborrowed monetary base

Borrowed reserves are the money that the Federal Reserves System member borrows from the Federal Reserve Bank to maintain the required reserve.

Amount of total currency which is in circulation in the public in the present time or the amount of currency which is held in the commercial bank deposits in the central bank's reserves is termed as Monetary Base.

The fund that is held by a financial institution in cash is termed as Nonborrowed Monetary Base.

3 0

3 years ago

create your brief definition of advertising including the two supplemental terms competitive act and informative act.

nordsb [41]

Answer:

Advertising is a means of communication with the users of a product or service. Advertisements are messages paid for by those who send them and are intended to inform or influence people who receive them, as defined by the Advertising Association of the UK.

3 0

2 years ago

At December 31, 2017, Twin Rivers Company had 450,000 shares of common stock issued and outstanding, 350,000 of which had been i

Feliz [49]

Answer:

3.033

Explanation:

Outstanding shares 350,000

Shares of common stock issued 450,000

Net income $1,160,000

Hence;

$350,000 X 8/12 = $233,333

$450,000 X 4/12 = $150,000

$233,333+150,000=$383,333

$1,160,000/ $383,333 = 3.033

Twin Rivers' 2017 earnings per common share, rounded to the nearest penny is 3.033

8 0

3 years ago

Read 2 more answers

A commercial bank holds $500,000 in checkable deposits liabilities and $120,000 in reserves. If the required reserve ratio is 20

scZoUnD [109]

Answer: E.) Amount created by Single Bank $20,000 and Amount Created by Banking System $100,000

Explanation:

The required reserve ratio = 20%

Checkable deposit liabilities = $500,000

Reserve = $120,000

The required reserve refers to a designated percentage of a commercial bank's deposit which is the minimum that must be held by a commercial bank. Regulation is usuay pronounced by the central bank of the nation.

Banking system loan increase :

Reserve ratio × Checkable deposit liabilities

20% × $500,000 = 100,000

Commercial bank maximum

Reserve amount - required reserve amount

$120,000 - (0.2 × 500,000)

$120,000 - $100,000 = $20,000

7 0

3 years ago