Answer:
A.8.85%
Explanation:
Computation to determine the weighted average cost of capital for Zonk based on the new capital structure.
First step is to calculate the Cost of equity capital using this formula
Cost of equity capital = Risk free rate + (Beta*Market premium)
Let plug in the formula
Cost of equity capital = 2.3% + (1.13*5.3%)
Cost of equity capital=8.28%
Now let determine theWeighted average cost capital
Weighted average cost capital = [.70*.14*(1-.35)]+(.30*.0828)
Weighted average cost capital= [.70*.14*.65]+.02484
Weighted average cost capital=0.0637+.02484
Weighted average cost capital= .0885*100
Weighted average cost capital= 8.85%
Therefore the weighted average cost of capital for Zonk based on the new capital structure is 8.85%
Answer:
Direct Marketing
Explanation:
These companies and many more rely on selling door to door, using home sales parties, etc. They do not involve huge media campaigns. They are pretty much focused on their investments in advertising. Since they normally know better who are they're targetting.
Answer:
E. High-involvement.
Explanation:
High involvement management is focused on employee involvement in day-to-day running of the business. Employees are allowed to make decisions about execution of their jobs and participate in other aspects of the business. It reduces negativity an employee bfeels in performing his job because he is involved and makes decisions in the process.
This results in higher productivity and better performance of the firm by improving employee skill and motivation.
Answer:
In an Internal Service Fund, the expectation is that:_____.
A. Each year's revenues should equal each year's expenses because the revenues are simply an allocation of that year's expenses.
Explanation:
There are two proprietary funds used in governmental accounting. One is the internal service fund. The other one is the enterprise fund. The internal service fund tracks the goods or services rendered by a service department to other governmental departments. It is established on a cost reimbursement basis. This is why the expenses for the year are expected to equal the annual revenue.
