Answer:
WACC = 0.16637 OR 16.637%
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wE * rE
Where,
- w represents the weight of each component based on market value in the capital structure
- r represents the cost of each component
- D and E represents debt and equity respectively
To calculate WACC, we first need to calculate the Market value an cost of equity.
The market value of equity = 30 million shares * $40 per share
MV of equity = $1200 million
The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.
P0 = D1 / (r - g)
40 = 4 / (r - 0.07)
40 * (r - 0.07) = 4
40r - 2.8 = 4
40r = 4+2.8
r = 6.8 / 40
r = 0.17 or 17%
MV of debt = 40 million * 96.5% => $38.6 million
Total MV of capital structure = 38.6 + 1200 = 1238.6 million
WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17
WACC = 0.16637 OR 16.637%
Answer:
From the given variables, an outsider might be able to understand roughly 35% of the organization's culture.
Explanation:
Culture is ultimately a state of mind, a mode of perception and a collective conscious.
Symbols, Ceremonies, dress and other observable aspects of culture reflects a certain degree of the internal culture, yet to understand it full, it is vital to observe the human behavior and the inter relationships within the organization.
Moreover, the power distance between ranks, distribution of authority and responsibilities, reward systems, means of communication and organizational goals also influences the culture within a company. These aspects are difficult for an outsider to see as they do not stay inside and get exposed to the internal environment of the organization.
The next step after publishing a project schedule activities, start/end times and resources are identified is TO CONFIRM THE AVAILABILITY OF RESOURCES
Once the resources are identified the project manager should make sure that the identified resources are available
Answer:
The correct answer is (A)
Explanation:
Commercial finance is another way to generate funds, but they come with certain drawbacks compared to commercial banks. Commercial finance usually give loans to customers who are interested in more risky investments. The interest they charge is usually higher which can only be paid if a client invests in riskier investments to earn higher returns.
Answer: d) obligations arising from past transactions and payable in assets or services in the future.
Explanation:
Liabilities are financial obligations meant to be catered for by an organization in the running of its business.
