Answer:
The answer is 11.44%
Explanation:
Solution
Given that:
Glass maker has a pre-merger of =$5 debt
Equity =$10
The rate on debt =11%
The risk free rate =6%
Tax rate =40%
The levered beta is =1.36
Equity risk premium is= 4%.
Now,
the next step is to find discount to use for Glass maker free cash flows and interest tax savings
Cost of equity (Ke) = Risk free return + Beta ( Market return - Risk free return )
= 6% +1.36( 10%-6%)
=11.44%
Therefore, the rate to be used to discount free cash flows and interest tax savings is 11.44%
Answer:
The correct answer would have to order as: D, C, B, E, A
Explanation:
The given events would be placed in the following order to show how an improvement in pizza making technology would lead to an increase in wing production.
D: Better pizza making technology is developed
C: Fewer workers are needed to make as much pizza as before or even more.
B: Workers are available to make more wings
E: Some workers are no longer needed for pizza making.
A: More workers making wings means increased production.
the answer is d because they really don't
want anyone having under a 3.0
Answer:
Minimum transfer price = $86
Explanation:
Pump Division is operating at full capacity, hence it has no excess capacity
This implies that it can not produce enough to meet both the internal demand (from the Pool Division ) and external buyers.
Hence, it implies that Pump Division cannot accommodate the demands of the Pump Division at a price lower than the external price of $86. Any price lower than $86 would result into a loss in contribution.
To maximize and optimize the group profit, the minimum transfer price should be set as follows:
Minimum transfer price = External selling price at which Pump Division sells to outside customers
Minimum transfer price = $86
Answer:
The correct answer is: records and information life cycle.
Explanation:
The records and information life-cycle management is a practice that implies a set of steps to store and dispose of information. The approach comprehends the creation of the piece of information, processing, distribution, organization, storage, and eventual disposition.