Answer:
a) 13.18%
b) 9.06%
c-1) 14.55%
c.2) 11.805%
c.3) 9.06%
Explanation:
debt = 60%, cost of debt = 5.4% x 0.75 = 4.05%
equity = 40%, Re = ?
WACC = 7.7%
7.7% = (40% x Re) + (60% x 4.05%)
7.7% = (40% x Re) + 2.43%
(40% x Re) = 5.27%
Re = 5.27% / 40% = 13.175 = 13.18%
13.18% = ReU + (ReU - 0.054) x 1.5 x (1 - 25%)
13.18% = ReU + (ReU - 0.054) x 1.125
0.1318 = ReU + 1.125Reu - 0.06075
0.19255 = 2.125ReU
ReU = 0.19255 / 2.125 = 9.06%
ReL = 9.06% + (9.06% - 5.4%) x 2 x 0.75
ReL = 14.55%
ReL = 9.06% + (9.06% - 5.4%) x 1 x 0.75
ReL = 11.805%
Answer: Geocentric managers
Explanation: Geocentric managers are the managers that accept the fact that every country have different culture and environment which can affect the business overall. Therefore, these managers use different techniques and procedures for different economies.
These are usually the managers of multinational corporations operating globally. These managers usually do not lack resources and can use the latest and best techniques for their operations.
Answer:
Karns Company
Perpetual inventory system
1) Merchandise Inventory $174,000 Dr.
Account Payable $ 174,000 Cr
Karns Company purchased merchandise on account from Bailey Office Suppliers for $ 174.000, with terms of 2/10, n/30
2) Account Payable $ 6,800 Dr.
Merchandise Inventory $ 6,800 Cr.
Karns returned some merchandise and paid S1S6.800 as payment in full
Answer:
indifference point: 18.52 as it cannot sale half unit it is between 18 and 19 units.
Explanation:
We want to know at which level of sales both alternatives yield the same income:
the income function is: (sales price - variable cost ) Q - fixed cost
(500 - 50)x - 8,000 = (800-80)x - 13,000
13,000 - 8,000 = (720 - 450)X
5,000 = 270X
X = 5,000 / 270 = 18,5185 = 18.52
The indifference point will be between 18 and 19 units. as it cannot sale half units.
The answer would of been D because that is the right answer
