Joey's father is in a car accident and cannot work. what type of insurance replaces his father's earnings?

15-10 A firm has 60,000 shares whose current price is $45.90. Those stockholders expect a return of 14%. The firm has a 3-year l

krek1111 [17]

Answer:

before taxes:

WACC 8.74959%

after a 21% tax-rate:

WACC 7.23587%

Explanation:

Equity: 60,000 x $45.90 = 2,754,000

Liabilities: 1,900,000 + 22,000 x 925 = 22,250,000

Value: 25,004,000

We solve for weights:

Ew = 2,754,000 / 25,004,000 = 0,1101423772196449

Lw = 22,250,000 / 25,004,000 = 0,8898576227803551

Cost of debt will be the market value rate of the bond That is the rate at which the future coupon payment and maturity matches the market price of the bond

we solve this using excel goal seek:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 35.00

time 20

rate 0.040545327

$35 \times \frac{1-(1+0.0405453269606019)^{-20} }{0.0405453269606019} = PV\\$

PV $473.3728

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $1,000.00

time 20.00

rate 0.04055

$\frac{1000}{(1 + 0.0405453269606019)^{20} } = PV$

PV 451.6270

PV c $473.3728

PV m $451.6270

Total $924.9998

a semiannual rate of 0.04055 is the market rate thus, cost of debt is

0.04055 x 2 = 0.081

Now we can solve for the WACC without taxes:

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

Ke 0.14000

Equity weight 0.1101

Kd 0.081

Debt Weight 0.8899

t 0

$WACC = 0.14(0.1101) + 0.081(1-0)(0.8899)$

WACC 8.74959%

wiht taxes of 21%

t 0.21

$WACC = 0.14(0.1101) + 0.081(1-0.21)(0.8899)$

WACC 7.23587%

4 0

4 years ago

Derek has the opportunity to buy a money machine today. The money machine will pay Derek $44,309.00 exactly 16.00 years from tod

LenKa [72]

Answer:

$11,160.097

Explanation:

Data provided in the question:

Future value of machine = $44,309.00

Time, n = 16 years

Discount rate, r = 9.00% = 0.09

Now,

The amount Derek is will to pay will be the present value of the machine

Also,

we know

Future value = Present value × (1 + r)ⁿ

on substituting the respective values, we get

$44,309.00 = Present value × (1 + 0.09 )¹⁶

or

$44,309.00 = Present value × 3.97

or

Present value = $44,309.00 ÷ 3.97

or

Present value = $11,160.097

6 0

3 years ago

What form of business defamation arises when an unfair and untrue oral statement is made about a competitor?

vivado [14]

Answer:

Business slander

Explanation:

Business slander - it is considered to be business defamation when one party used unfair statements toward another competitive partner. This kind of statement is considered to be objectionable when parties comment or try to damage the competitor's reputation for personal interest.

Slander in business gives the right to person to file a civil action against the false statement by another person.

8 0

3 years ago

Why are slide presentations universal in business environments?

Stella [2.4K]

Answer: C. because they are easy to use and can accommodate all varieties of information

Explanation:

ape x just took it

6 0

3 years ago

Recently when Mosaic Ltd was falling short of funds to meet the floatation costs of its upcoming issue of preference shares, the

slavikrds [6]

Answer:

The floatation cost may be defined as the cost that is incurred or earned by any organization or a firm whenever they issue new stocks in the market. Here in the context, Mosaic Ltd is having shortage of money to incur the cost of the upcoming preference shares that they will issue. So they had raised deposits from another firm, Rosaic Ltd which had a surplus amount of fund. The money raised by Mosaic is a kind of security bond or transfer of money to another party for the safe keeping. The other firm i.e Mosaic Ltd. will return the money to Rosaic Ltd. later.

3 0

4 years ago