Answer:
outstanding, $1,000 par value, 30 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 440,000 shares outstanding, selling for $62 per share; the beta is 1.05. Market: 11 percent market risk premium and 5.2 percent risk-free rate. What is the company's WACC
Answer:
$2,933
Explanation:
The company had a net income of $8,110, and paid 30% of it to its shareholders, therefore:
$8,110 x 0.30 = $2,433.
But it also repurchased $500 worth of common stock, and this is to be distributed among the sharedholders as well, thus:
$2,433 + $500 = $2,933
Answer:
The company that is most likely not be able to increase prices in near future is Option A: A firm in a capital-intensive industry in which excess capacity exists.
Explanation:
Capital intensive industry are the industries that require huge investments as they are ones which have big machinery and infrastructure. They make huge profits as well. Initially industrial progress was expensive and people faced many problems in their business in the late 19th century. The start up costs of these bug industries used to extremely high.
Excess capacity means a situation where the demand for the goods is less than productive capacity. Thus, Option A industries are very less likely to increase prices in near future as it has excess capacity.
A SWOT analysis can contribute to the strategic planning process by evaluating all of these.