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
Anna35 [415]
3 years ago
6

If the managers of HHH Enterprises were to commit to an investment project under consideration, they would obtain 40% of the mon

ey to buy the needed assets from lenders (wd) and 60% from owners (we). Lenders would be expected to charge an 8% annual interest rate (kd), and owners would expect a 12% annual rate of return on equity (ke). If the project were undertaken, the company’s marginal yearly income tax rate t would be 30%. What would we compute the annual weighted average cost of capital (WACC) for the project to be? A. 8.24% B. 11.60% C. 7.28% D. 9.44% E. 10.40%
Business
1 answer:
Mamont248 [21]3 years ago
6 0

Answer:

D. 9.44%

Explanation:

The computation of the weighted average cost of capital is shown below:

Weighted average cost of capital is

= Cost of debt × (1 - tax rate) × weight of debt + cost of equity × weight of equity

= 8% × (1 - 0.30) × 40% + 12% × 60%

= 2.24% + 7.2%

= 9.44%

Hence, the weighted average cost of capital is 9.44%

Therefore the right option is D.

You might be interested in
Kohl's Corporation decided to discontinue its Kohl's credit card operations. What factors would this department store company ha
mart [117]

Answer:

The most likely factor that this department store company would have considered in discontinuing its credit card operations is the issue of bad debt.

Bad debt may likely have prevented them from making the required profit to cater for the needs of the company such as payment of salaries and purchase of goods which if not treated may lead to the collapse of the company.

3 0
3 years ago
Hilton Hotels customizes rooms and lobbies according to location. Northeastern hotels are sleeker and more cosmopolitan. Southwe
Otrada [13]

Answer:

Geographic segmentation

Explanation:

it is strategy related to geographic segmentation. it include strategy to provide all those facilities to the customer on the basis of location of customers. As it is given in question Hilton hotels provide more sleeker rooms in northeastern side while more rustic hotels in southwestern hotels.

In generally speaking, geographic segmentation strategy totally based on the preference of targeted customers.

Example of Geographic segmentation approach include  large production of raincoats to those areas that experience heavy rainfall etc

4 0
3 years ago
Which is an example of something that is inelastic?
Inessa [10]

Explanation:

example of something that is inelastic is a type of cancer medication

6 0
3 years ago
Case D. Stewart Company reports the following inventory record for November:
worty [1.4K]

The cost of ending inventory and the cost of goods sold under each of the following methods: Under the LIFO method, Sales Less: Cost of Goods sold Gross Profit less: Selling, admin, depreciation Income before.

Final in, first out (LIFO) is a technique used to account for inventory. beneath LIFO, the expenses of the maximum recent products bought (or produced) are the primary ones to be expensed. LIFO is used most effectively inside the USA and governed via the commonly ordinary accounting standards (GAAP).

The LIFO method is used within the COGS (value of products sold) calculation while the fees of manufacturing a product or obtaining inventory have been growing. this will be because of inflation.

The ultimate-In, First-Out (LIFO) method assumes that the last unit to arrive in stock or greater latest is offered first. the first-In, First-Out (FIFO) approach assumes that the oldest unit of inventory is sold first.LIFO effects decrease internet earnings because the price of products offered is better, so there may be a decrease in taxable profits.” decreased tax legal responsibility is a key reason some organizations decide on LIFO.

Learn more about LIFO here: brainly.com/question/24938626

#SPJ4

5 0
1 year ago
Your shared monthly living expenses (rent + utilities) have been $750 per month, living with three
gizmo_the_mogwai [7]

Answer:

Your shared monthly living expenses (rent + utilities) have been $750 per month, living with three  other students. One of your roommates has to suddenly move out! How much will your share of  the expenses increase to, until you can find a new roommate?​

if $750= 1 month

?= 12 months

then we have; $9000 per year shared by 4 friends

9000/4= $2250 per person in a year and

2250/12= $187.5 per person in a month

If someone left, then we have

$750= 1 month

?= 12 months

$9000/3= $3000 per person in a year

$3000/12= $250 per person in a month

So therefore, the share of expenses monthly increases from $187.5 to $250

Explanation:

7 0
3 years ago
Other questions:
  • You go to an all-you-can-eat buffet. if you maximize utility, the marginal utility of the last bite that you eat will be:
    8·1 answer
  • Explain the hipp of the primary sources below source: letter written by john rolfe
    7·1 answer
  • Preparing a Selling and Administrative Expenses Budget Fazel Company makes and sells paper products. In the coming year, Fazel e
    9·1 answer
  • If we want to use a measure of inflation that foreshadows price changes before they affect prices at the retail level, we would
    11·1 answer
  • Jordan has the following assets and liabilities:-Two Cars $10,000-House $200,000-Mortgage $100,000-Cash $1,000-Car Loans $3,000-
    12·1 answer
  • Dave brags to his dad that his $45,000 starting salary as a computer programmer is much higher than his dad's $28,000 starting s
    9·2 answers
  • What steps can be taken to build a sound financial reputation
    7·2 answers
  • Miller Mining, a calendar-year corporation, purchased the rights to a copper mine on July 1, Year 1. Of the total purchase price
    8·1 answer
  • Beverly Company has determined a standard variable overhead rate of $3.10 per direct labor hour and expects to incur 0.50 labor
    10·1 answer
  • Mullineaux Corporation has a target capital structure of 70 percent common stock and 30 percent debt. Its cost of equity is 16 p
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!