I'm contacting you to inquire about the suitable name for a water bottling company

Lucas Corp. has a debt-equity ratio of .8. The company is considering a new plant that will cost $115 million to build. When the

charle [14.2K]

Answer:

$122,475,000; $119,489,600; $117,047,000

Explanation:

Given the following :

Cost of new plant = $115m

Debt to equity ratio =. 0.8

After issuing new equity:

Floatation cost incurred (equity) = 8.5%

Floatation on new debt = 4%

Calculating weighted return of debt and equity:

Debt: = [0.8/(1 + 0.8)] × 4% = 0.0178

Equity : [1 / (1+ 0.8)] * 8.5% = 0.0472

A) all equity raised externally:

Weighted average Floatation cost:

0.0178 + 0.0472 = 0.065

Initial cash flow will the be :

(1 + 0.065) * cost of new plant

1.065 * $115,000,000 = $122,475,000

B.) company uses 55% Retained earning:

Weighted return on equity will the be :

0.0472 * (1 - 55%) = 0.02124

Weighed Floatation cost = 0.02124 + 0.0178 = 0.03904

(1+0.03904) * $115,000,000 = $119,489,600

C.) Company uses 100% Retained earnings :

Equity return will be 0%

(1 + 0.0178) * 115000000

= $117,047,000

6 0

3 years ago

g "The cost of salaries paid to employees who work in a factory maintaining the heating system is considered:"

Doss [256]

Answer:

Factory overhead

Explanation:

FACTORY OVERHEAD can be defined as the costs which are often incurred during the manufacturing process and they don't include the costs of direct labor and the costs of direct materials which is why FACTORY OVERHEAD are often aggregated into the cost pools as well as been allocated to units produced during the manufacturing period.

In order word FACTORY OVERHEAD can be seen as the total cost which is been involved in operating all of the production facilities of a manufacturing business in which they cannot be traceable directly to a product and it also include the cost of salaries which is been paid to employees who work in a factory .

6 0

3 years ago

In order to make a resume persuasive and not self centered omit the use of the word

vlada-n [284]

"I', "ME", and "My" are the answr

4 0

3 years ago

Job interviews can change your life. They can also be stressful, but if you learn about the process and prepare yourself ahead o

tankabanditka [31]

Answer:

Employment interviews will persuade almost every applicant of client potential. A further description is provided below.

Explanation:

A dialogue somewhere between a prospective employer and a somewhat job seeker or is considered as a Job interview. A career interesting interview to further decide however if a candidate or a job seeker is eligible for a corporate job or not.
It could perhaps become an influential tactic if the person interviewed anything other than that doesn't have reliable details.

7 0

3 years ago

on january 1 year 1 abc merchandising company was started the company experienced the following events during the first year of

Alik [6]

Answer: $390

Explanation:

Revenue for a merchandising business is realized when the business sells some of its goods to customers. This can either be in cash or on account which would mean that the customer did not pay cash but now owes them.

The business sold merchandise costing $350 for $390 on account so this is the amount that they will recognize as revenue.

6 0

3 years ago