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kipiarov [429]
4 years ago
14

Alloy Supply Co. has a new project that will require the company to borrow​ $3,000,000. Acme has made an agreement with three le

nders for the needed financing. First National Bank will give​ $1,500,000 and wants​ 6% interest on the loan. Banner Bank will give​ $1,000,000 and wants​ 9% interest on the loan. Western National Bank will give​ $500,000 and wants​ 7% interest on the loan. What is the weighted average cost of capital to acquire the​ $3,000,000?
Business
1 answer:
forsale [732]4 years ago
7 0

Answer:

The weighted average cost of capital to raise $3000000 is 7.17%

Explanation:

The weighted average cost of capital to acquire $3000000 is the weighted average of the cost of each financing option that the company will use to raise this amount. The weights of each option is the finance provided by the option divided by the total finance required. thus the weighted average cost of capital is,

Assigning the weights to each loan,

  • First National Bank = 1500000 / 3000000 = 1/2
  • Banner Bank = 1000000 / 3000000 = 1/3
  • Western National Bank = 500000 / 3000000 = 1/6

Weighted average cost of capital = 1/2 * 0.06  +  1/3 * 0.09  +  1/6 * 0.07

Weighted average cost of capital = 0.07166 or 7.166% rounded off to 7.17%

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Yanka [14]

Answer:

The answer is (C) Jade has lost a significant chunk of its global cadre in the recent past owing to its failure to offer feasible options to address the dual-career couples dilemma.  

Explanation:

This is a commonplace problem for expatriates who are married, and with both husband and wife thriving in their respective careers. If both individuals have office-based jobs that require them to be based from certain locations, an international work placement for either one would be difficult for either partner to accept if they do not wish to be away from their partners. If the company cannot come up with a good solution to this issue, they will have significant amount of talents that are not appropriately used to their extent – or worse, losing a number of them to competing firms.  

4 0
4 years ago
The practice of subcontracting work to other people or companies is called
MAXImum [283]
The practice of subcontracting work to other people or companies is called outsourcing. Many companies will outsource work if they can have it completed for cheaper, better quality and/or at a faster rate. Outsourcing within the home country and out of the home country has become extremely popular over the years.
5 0
3 years ago
Sommer, Inc., is considering a project that will result in initial aftertax cash savings of $1.79 million at the end of the firs
iren [92.7K]

Answer:

Maximum initial cost would be $58,116,883.12

Explanation:

1,790,000 increased at 3%

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.119 + 0.02 = 0.139

ER 0.15

Kd(after-tax) Kd(1-t) = 0.047

DR 0.85

WACC = 0.139(0.15) + 0.047(.85)

WACC 0.06080

Now that we have the rate, we calculate the present value using the gordon method

1,790,000 / (0.06080-0.03) = 58,116,883.12

4 0
3 years ago
At the beginning of a year, a company predicts total direct materials costs of $1,010,000 and total overhead costs of $1,270,000
marin [14]

Answer:

1.267 = Overhead Rate

Explanation:

<em>As general approach,</em> the manufacturing rate, along with any rate is done by dividing the cost by a cost driver.

\frac{Cost\:Of\: Manufacturing\: Overhead}{Cost\: Driver}= $Overhead \:Rate

In this case teh cost is the manufacturing overhead and the cost driver the direct materials cost:

\frac{1,270,000}{1,010,000}= $Overhead Rate

<em>Using Direct Materials cost, the rate would be:</em>

1.257425743= $Overhead Rate

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As of July 31, 2022, Walmart has 10,585 stores and clubs in 24 countries, operating under 46 different names. [2][3][4] The company operates under the Walmart name in the United States and Canada, as Walmart de México y Centroamérica in Mexico and Central America, and as Flipkart Wholesale in India.

Learn more about Walmart here

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7 0
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