Answer:
its weighted cost of capital for the coming year is 9.64%
Explanation:
WACC is the minimum return expected from a project. It shows the risk of the company.
<u>Calculation of WACC.</u>
Capital Source Weight Cost Total
Debt 40% 6.60% 2.64%
Common Equity 60% 11.67% 7.00%
Total 100% 9.64%
Cost of Debt = Market Interest Rate × ( 1 - tax rate)
= 11%×(1-0.40)
= 6.60%
Cost of Equity = (Next year`s dividend/Current Market Price of a share)+Expected growth rate
= ($1.40/$30)+0.07
= 11.67%
Answer:
Journal entry is given below
Explanation:
To record the payment of interest and the discount amortization at the end of period 1 we should debit the Interest expense and credit cash and discount
DATA
Interest expense in year 1 = $38,936
Interest to be paid = $36,450
Discount amortization = $2,486
Entry DEBIT CREDIT
Bond interest expense $38,936
Cash $36,450
Discount on bonds $2,486
D, minimalism, since they want to get rid of items
Answer: (A) Many new competitors
Explanation:
The many new competitors is the basically refers to the rival in the business or the same type of industry that selling the similar types of products and the services in the market.
Due to the new competitors in the market the level of the competition become increase as they sell the similar goods and the services at low price.
According to the given question, Jamie is the company manager and he investigate that the legislator propose the various types of new laws for deregulate the marketing industry.
Therefore, based on the given scenario, Jamie is facing the many new competitors in the market.
Answer:
customers refuse to buy products produced by a racially diverse workforce
Explanation:
Customer discrimination is an occurrence when customers don't want anything to do with a group of people or a particular race. Any product or service from such people are not appreciated, they don't have interest as a result of feeling superior.
