Which option, within the Word Options dialog box, allows users to add the Auto Text function to the Ribbon?

Currently, Forever Flowers Inc. has a capital structure consisting of 20% debt and 80% equity. Forever's debt currently has an 7

Allisa [31]

Answer:

WACC = 11.6%

Explanation:

The weighted average cost of capital (WACC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund.

To calculate the weighted average cost of capital, follow the steps below:

Step 1: Calculate cost of individual source of finance

Cost of Equity= 13.5%

After-tax cost of debt:

= (1- T) × before-tax cost of debt

= 7%× (1-0.4)= 4.2%

Step 2 : calculate the proportion or weight of the individual source of finance . (This already given)

Equity = 80%

Debt= 20%

Step 3:Work out weighted average cost of capital (WACC)

WACC = ( 13.5%× 80%) + ( 4.2%× 20%) = 11.64%

WACC = 11.6%

4 0

3 years ago

Hagelin Co. wants to issue new 15-year bonds for some much-needed expansion projects. The company currently has 8 percent coupon

Natasha2012 [34]

Answer:

YTM 7.02%

Explanation:

we will calcualte the YTM of the current bonds to know the market rate.

Issuing the bonds at this rate will put them at par value.

The YTM is the one which mades the future coupon payment and maturity equal to the market price.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

Coupon payment: 1,000 x 8%/2 = 40

time 30 (15 years x 2 payment)

$40 \times \frac{1-(1+r)^{-30} }{r} = PV\\$

PV coupon

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 30.00

$\frac{1000}{(1 + r)^{30} } = PV$

PV maturity 355.24

PV coupon + PV maturity = 1,090

For maths reason the only way to solve for rate is with trial and error

we can, however use excel to do it more quickly than by hand:

we write on A1 cell 0.1

en on B1 cell: =PV(A1,30,40)

on C1 cell= 1,000/power(1+A1;1/30)

on D1 =B1+C1

What we are doing is expressing the formulas on excel

then we use goal seek on D1

w e want it on 1090 cahnging the cell A1 which is the rate

this give us the semiannual rate of :

0.035100422

we multiply by 2 to get the annual rate:

0.070200843

YTM = 7.02%

we need to issue the bond at this rate.

8 0

4 years ago

Which statement is TRUE concerning the relationship between efficiency and equity? Policies designed to increase equity will als

Orlov [11]

Answer:

Option C Policies designed to increase efficiency may decrease equity.

Explanation:

The reason is that the company if the company wants to increase its efficiency then it will have to invest in the operations that will increase its efficiency. This investment will come from raising finance either from the issuance of shares or borrowing money. So this means policies designed to increase efficiency requires investment so the option C is what the explanation is saying.

5 0

3 years ago

Read 2 more answers

(A) Prepare an individual income tax return.George Large (SSN 000-11-1111) and his wife Marge Large (SSN 000-22-2222) live at 20

tatuchka [14]

Answer:

Explanation:

prepare from 1040 to disclose Income and respective Tax

FORM 1040

Amount ($)

Salary Received 80,000

Business Income- Wn1) 2,789

Total Income 82,789

Less - Itemized wise Deduction-Wn2 21,405

Total Income 61,384

Standard deduction 11,900

Total Taxable Income 49,484

tax

From 0-$17400 10% 1,740

From $17400-$70700 15% 4,813

Total Tax Liability 6,553

Schedule A

wn2

Real Estate Tax 2,500

Interest on Mortgage 4,500

Gifts to Charity 3,500

Unreimbursed Job Expeses(FORM 2106) 10,905

Total Itemized wise Deduction 21,405

wn1

Income from rubbery toy boat 15,000

Less cost

Cost of suppies 5000

Business phone call 3500

Cost of suppies 500

Total 9000

Total Business Income 6,000

Less- FORM 8829 Expeses 3211

Business Income- 2,789

FORM 2106

Car expenses 9990

Travelling Expense 665

Meal Expenses 5500

Total 10655 5500

Less Reimbursement 5000

Total 10655 500

Expenses Allowed 10655 250

Total 10905

FORM 8829

25% is used for Business

Income from buisness 6000

Mortgage Interest' -1125

Reat estate tax -625

Utility Bills -500

Depreciation -961

Total Business Income 2789

Calculate depreciation

Lesser of fair market value or adjusted cost 1,70,000

Less - value of Land -20,000

Total 1,50,000

Basis of building 37,500

rate of depreciation 2.56%

960

3 0

3 years ago

__________ conflict management norms resolve conflict openly, whereas __________ conflict management norms tend to avoid address

Valentin [98]

Answer:

_active_conflict management norms resolve conflict openly, whereas _passive_ conflict management norms tend to avoid addressing conflict

6 0

3 years ago