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
krok68 [10]
2 years ago
15

Adamson Corporation is considering four average-risk projects with the following costs and rates of return:

Business
1 answer:
Jlenok [28]2 years ago
7 0

Answer:

a. Cost of debt = Interest * (1 - Tax rate)

= 10%*(1 - 0.30)

= 7%

Cost of preferred stock = Dividend/ Issue price

= 5/48

= 10.42%

Cost of common stock (Cost of retained earnings) = (D1/P0) + g

= (4/33) + 0.07

= 0.12 + 0.07

= 0.19

= 19%

b. Fund                         Cost        Weight       Cost * Weight

Debt                           7%          0.15                 1.05%

Preferred stock        10.42%     0.10                1.042%

Retained earnings     19%         0.75               <u>14.25%</u>

WACC                                                               <u>16.342%</u>

You might be interested in
"A respondent of a survey is asked whether their most recent dining experience was excellent, good, fair, or poor. The person in
34kurt

Answer:

The correct word for the blank space is: Ordinal.

Explanation:

Ordinal data is one of the four (4) types of measurement scales that values in order of importance the rating that can be provided over a subject. However, the difference between each of the rates is not clear. Usually, this approach aims to measure <em>comfort, experience </em>or <em>satisfaction</em>.

4 0
3 years ago
Your company has a cost differentiation strategy regarding its products. there are several new entrants into your saturated mark
gtnhenbr [62]

1) Change the nature of the product

2) Give away discounts

3) Reduce the price of the product compared to the competitiveness of the market

7 0
2 years ago
Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy he will receive the cas
lubasha [3.4K]
<span>Henry must make set premium payments on his insurance policy until he dies, and if he cancels the policy he will receive the cash value. His plan is a whole life policy.</span>
5 0
2 years ago
Dawn is selecting an alternative processing facility for her organization's primary data center. she would like to have a facili
Iteru [2.4K]

The best option in the situation of Dawn is to chose a primary site, for it will be able to provide her the alternative she needs in her facility and organization’s primary data center as this allows multiple servers and network allocation that is needed by them.

5 0
3 years ago
we have 8 note books and 12 pencils in a group how many people can get notebooks and pencils if we divide each supply equally wi
notsponge [240]
I'm thinking 3 persons
7 0
2 years ago
Other questions:
  • Washington Company has two divisions: the Adams Division and the Jefferson Division. The following information pertains to last
    5·1 answer
  • Suppose you buy a CD for $750 that earns 4% APR and is compounded quarterly. The CD matures in 3 years. Assume that if funds are
    12·2 answers
  • Your favorite photo can now be printed on your favorite credit card. You can design your own dresses online and have them sent t
    14·1 answer
  • Following are financial statement numbers and ratios for CVS Health Corporation for the year ended December 31, 2016. Total reve
    8·1 answer
  • Upstream from Umami Snacks is the set of firms that supply the raw materials, information, and expertise to make the seaweed cri
    7·1 answer
  • Pink cheques, an insurance company, recently came under close scrutiny after its top management was involved in a major scam. Th
    14·1 answer
  • List the 5 tests of whether personal property has become a fixture
    6·1 answer
  • Begin with a single sum of money at period 0. First, calculate a future value of that sum at 12.01%. Then discount that future v
    11·1 answer
  • A broker's listing agreement specifies that a 5½% commission is to be paid on the sale price. The sales associate for the firm
    10·1 answer
  • What are the factors that determine whether to use paid employees, temporary employees or volunteers for different functions of
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!