Answer:
Raising the Funds through Retained Earnings
WACC = Ke(E/V) + Kp(P/V) + Kd(D/v)(1-T)
WACC = 14.7(0.36) + 12.2(0.06) + 11.1(0.58)(1-0.40)
WACC = 5.292 + 0.732 + 3.8628
WACC = 9.89%
Raising New Equity
WACC = Ke(E/V) + Kp(P/V) + Kd(D/v)(1-T)
WACC = 16.8(0.36) + 12.2(0.06) + 11.1(0.58)(1-0.40)
WACC = 6.048 + 0.732 + 3.8628
WACC = 10.64%
Difference in WACC = 10.64% - 9.89%
= 0.75%
Explanation:
WACC equals cost of equity multiplied by proportion of equity in the capital structure plus cost of preferred stock multiplied by proportion of preferred stock in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure.
In this case, there is need to calculate WACC if funds were raised through retained earnings and WACC if funds were raised through new common stock. Then, we will determine the difference in WACC.
Answer:
C. financing activities
Explanation:
Dividends are a part of financial flow and treated as reward for equity holders that are financing the business. Not a part of investing (A) or business operating (B) activities. There is no non-operating activities (D) as a category in Cash Flow statement.
Answer: Theory X manager
Explanation: The classical theory of management focuses on the efficiency and productivity from the employees. Unlike the modern theory, it does not take into consideration the human attributes and behavior of the employees.
The X managers assumes that his subordinates are little motivated and inefficient. These managers use authoritarian style and strictly monitors the performance of employees. The liberty of employees under such managers is very low.
Hence, from the above we can conclude that option A is correct.
Answer: Less than one year, guaranteed returns
, and a money market product
What I put for my answer think its right
Explanation:
