1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sauron [17]
3 years ago
12

Mike and Marianne pulled their resources together to open a coffee place. They each put $20,000 and also took a bank loan of $20

,000. Interest rate the bank charges is 8% and estimated tax rate is 30% for their business. If they both want a 12% return on their investment, what is the weighted average cost of capital
Business
1 answer:
snow_tiger [21]3 years ago
5 0

Answer:

WACC= 9.8%

Explanation:

<em>The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool. </em>

After-tax cost of debt = (1- tax rate) × before tax cost of debt  

= (1-0.3)× 8% = 5.6%

Total Equity = 20,000× 2= 40,000.

Bank loan = 20,000

Total value fund = 40,000 + 20,000 = 60,000

WACC= 5.5%× (2/6)  + 12%× (4/6) = 9.8%

WACC= 9.8%

     

You might be interested in
The Omega started the year with $650,000 in the common stock account and $1,318,407 in the additional paid-in surplus account. T
V125BC [204]

Answer:

$17,597

Explanation:

Calculation to determine the cash flow to stockholders

Using this formula

Cash flow to stockholders = Dividends paid - Common stock issued

Let plug in the formula

Cash flow to stockholders= Dividends 68,500 - (1299,310+ 720,000)- (1318407+ 650000)

Cash flow to stockholders= Dividends 68,500 - (2,019,310-1,968,407)

Cash flow to stockholders= 68,500-50,903

Cash flow to stockholders= $17,597

Therefore the cash flow to stockholders if the firm paid $68,500 in dividends is $17,597

5 0
3 years ago
Carroll Corporation has two products, Q and P. During June, the company's net operating income was $28,000, and the common fixed
Kruka [31]

Answer:

$36,000

Explanation:

Calculation to determine what the segment margin for Product P was

Using this formula

Net operating profit= (Segment margin Q + Segment margin P) - Common fixed expenses

Let plug in the formula

28,000= (52,000 + segment margin P) -60,000

88,000= 52,000 + segment margin P

36,000= segment margin P

Therefore the segment margin for Product P was:$36,000

6 0
3 years ago
How can verbal feedback affect customer encounters? Give 3 real lifelexamples. (good or bad) Follow the​
yawa3891 [41]

Explanation:

Example 1: the numeric NPS response

Everyone loves a handy dandy NPS survey. They give you an easy glimpse into how your customers are thinking about your brand or your business, and quantify just how happy they are with your services.

But, not all NPS surveys or responses are created equal.

Let’s say your business sends out an NPS survey to a random sample of customers. Of that sample, 65% are promoters (and gave you a 9-10 rating), 25% are neutral (a 7-8 rating), and 10% are detractors (a 0-6 rating). Of that sample, only a handful of the promoters wrote feedback about why they picked the score they did. The rest simply clicked a number and then went about their day.

Where do you go from here? How can you convert those neutral customers into promoters, and raise the bar for the detractors to bring them closer to your ideal score without written feedback?

NPS is helpful, but only when it gives you a clear picture of what your customer was thinking and provides tangible feedback you can incorporate into your organization.

Example 2: a “yes” or “no” response to an FCR survey

Now, let’s say every time a customer creates a Support ticket, your organization sends an automated First Contact Resolution survey once the ticket is closed.

Most often, a FCR survey is just one question – Were we able to help you resolve your issue? – with a simple “yes” or “no” response.

Receiving a “yes” is, of course, great – it means your agents were able to help your customer get to the bottom of their issue and helped make their day a little better. Receiving a “no,” on the other hand, is the exact opposite; it means your agents weren’t able to successfully meet the needs of your customer, and they’ve been left frustrated by the experience, with their issue still unresolved.

So what happens after a “no”?

Depending on what you use to capture FCR. it could be nothing. “No” responses are simply filed away in a folder, maybe you ping your agents to get more context on the particular issue, and everyone pretends it didn’t happen.

If you want to turn those “no” responses into actionable customer feedback, however, it’s crucial to have tools for your business like Service Recovery.

With Service Recovery, you have the ability to flag any “no” responses and fire off a follow-up survey to your customer, get more clarity from them on how you missed the mark, and dig in deeper to resolve their issue.

Plus, you get the added benefit of being able to re-survey your customers, which means even more insight for your team on the value of being able to circle back on negative FCR responses.

Win, win, and win.

8 0
2 years ago
The stockholders of a construction firm decide to start a steel company, but they want to have limited liability. After completi
Serga [27]

Answer:

Corporation

Explanation:

The stockholders of then firm want to start a Corporation ,

Corporation -

It is the group of people or an organisation , which is authorized by the state

as a single association .

The stockholders want to start a steel company , but have limited liability . Hence ,

They started the process after the completion of the plan , and payed the fees to the state government .

5 0
4 years ago
Calla Company produces skateboards that sell for $68 per unit. The company currently has the capacity to produce 95,000 skateboa
Alenkasestr [34]

Answer:

since the special order does not affect current normal sales, its analysis should only consider incremental expenses, not regular expenses:

A) Income statement without the special order

total revenue = $68 x 80,100 = $5,446,800

- COGS                                     = ($2,446,880)

  • Direct materials $897,120
  • Direct labor $608,760
  • Overhead $941,000            

gross profit                               = $2,999,920

- SG&A                                      = ($1,022,000)

  • Selling exp. $559,000
  • Administrative exp. $463,000

net income                               = $1,977,920

B) incremental revenue from special order = 14,900 x $63 = $938,700

incremental costs:

  • direct materials = ($897,120 / 80,100 units) x 17,900 = $200,480
  • direct labor = ($608,760 / 80,100 units) x 17,900 = $136,040
  • overhead = ($658,700 / 80,100 units) x 17,900 = $147,200
  • selling expenses = [($335,400 / 80,100 units) x 17,900] + ($2.70 x 17,900) = $74,952 + $48,330 = $123,282
  • administrative expenses = $940
  • total incremental costs = $607,942

incremental gain from special order = $938,700 - $607,942 = $330,758

Income statement with the special order

total revenue                            = $6,385,500

- COGS                                     = ($2,930,600)

  • Direct materials $1,097,600
  • Direct labor $744,800
  • Overhead $1,088,200            

gross profit                               = $3,454,900

- SG&A                                      = ($1,146,222)

  • Selling exp. $682,282
  • Administrative exp. $463,940

net income                               = $2,308,678

8 0
4 years ago
Other questions:
  • Suppose the target range for the federal funds rate is 2 to 2.5 percent but that the equilibrium federal funds rate is currently
    7·1 answer
  • Loban Company purchased four cars for $9,000 each and expects that they will be sold in 3 years for $1,500 each. The company use
    12·1 answer
  • The city of Mesa has developed a street improvement plan that will add lanes to one of the major north/south corridors. Because
    8·1 answer
  • Pagent, a company that manufactures watches, introduces a new range of watches with a safety application programmed into it. Thi
    8·1 answer
  • A percentage of the money the salon takes in from sales may be offered to practitioners as a:
    10·1 answer
  • In 2019, Ben purchases and places in service a new auto for his business. The auto costs $57,000 and will be used 100 percent fo
    12·1 answer
  • You have the following information on Marco's Polo Shop: total liabilities and equity = $210 million; current liabilities = $50
    12·1 answer
  • Peyton’s Palace has net income of $15 million on sales revenue of $130 million. Total assets were $96 million at the beginning o
    12·1 answer
  • When is it permissible to access nonâ€""va websites for personal use using va computers?
    8·2 answers
  • Write a for loop that prints in ascending order all the positive integers less than 200
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!