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Fynjy0 [20]
3 years ago
15

A company is 49% financed by risk-free debt. The interest rate is 8%, the expected market risk premium is 6%, and the beta of th

e company’s common stock is .59. a. What is the company cost of capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Cost of capital
Business
1 answer:
NemiM [27]3 years ago
3 0

Answer: 9.81%

Explanation:

Cost of capital = (cost of debt * weight of debt) + ( cost of equity * weight of equity)

Cost of Equity = Risk free rate + beta * Market risk premium

= 8% + 0.59 * 6%

= 11.54%

Cost of capital = (8% * 49%) + (11.54% * 51%)

= 9.81%

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Pension plan assets were $200 million at the beginning of the year. The return on plan assets was 5%. At the end of the year, re
Nata [24]

Answer:

Pension plan assets at the year end will be $214

Explanation:

Wee have given pension plan assets = $200 million

Return on plan assets = 5%

So return will be equal to = $200×0.05 = $10 million

Cash contribution is given $12 million

Retiree benefits is $8 million

We have to find the amount of pension plan assets at the year end

Pension plan assets is equal to = Plan assets at beginning of the year + actual return - retiree benefits = $200 + $10 +$12 - $8 = $214

So pension plan assets at the year end will be $214

7 0
3 years ago
In your opinion, is management still relevant as a course of study today? Explain using relevant examples.
alina1380 [7]

Yes, "management" is still relevant as a course of study today.

Management is one of the most relevant course offered by an educational establishment such as a university. The course polishes the skills of student and enlighten them on how to be useful in management of a company.

  • <em>Business Administration</em>, <em>Business Management, Management Studies, Commerce, Hospital Management, Hospitality Management </em>are examples course that falls under the umbrella of Management

  • Auditors, Accountants, Revenue officers are examples employee who learnt the management course.

In conclusion, studying a management course in a country will employment opportunities makes its easy for a student to get a job.

Learn more about this here

<em>brainly.com/question/24227339</em>

7 0
3 years ago
Financing, market research, risk-taking, and other services are considered to be ________ functions.
Artyom0805 [142]

Answer:

Facilitating functions

Explanation:

Facilitating functions are those in a business activity that helps make the exchange and physical processes run smoothly.

They do not involve direct exchange of title of products or physical handing of goods.

For example the activities of marketers of a product results in easy sale of the product by the manufacturer.

Also activities like financing, market research, and risk taking are all facilitating activities that make a business run smoother

7 0
3 years ago
A groundskeeper must buy bags of fertilizer. Each bag treats $10000$ square feet of ground and costs $\$27$. The groundskeeper c
castortr0y [4]

Answer:

$162

Explanation:

As we know that

1 square feet = 0.1 square yard

which means

10,000 square feet = 0.1 × 10,000

                                = 1,000 square yards

And, the given cost is $27

So, the cost for 6,000 square yards would be

= (6,000 square yards × $27) ÷ (1,000 square yard)

= ($162,000) ÷ (1,000 square yard)

= $162

We applied the unitary method for above calculation.

5 0
3 years ago
LO 1.1The managers of an organization are responsible for performing several broad functions. They are ________.
sveticcg [70]

Answer:

planning, controlling, and evaluating

Explanation:

Planning includes all strategies employed in order to achieve an organisation's set goals and objectives.

Controlling involved monitoring all the plans put in place to achieve an organisation's objectives.

Evaluation is assessing the outcome of the organisation to determine if it is in line with set objectives.

I hope my answer helps you.

8 0
3 years ago
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