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3 years ago

Exercise 4

Business

1 answer:

Sindrei [870]3 years ago

8 0

Answer:

The Kay Company

Weighted Average Cost of Capital:

a) using the book value weights = 13.1%

b) using the market value weights = 13.2%

c) Some of the factors that affect the Cost of Capital include market opportunities, capital provider's preference, market risk, inflation, reserve policy, budget surplus and deficit, trade activity, foreign trade surpluses and deficits, country risk, and finally, but not the least important, exchange rate risk.

Explanation:

a) Data and Calculations:

Capital structure as at 31st March, 2019:

Based on Based on % Costs

Book Value Market Value

Debentures 300,000 330,000 7

Preference 100,000 110,000 9

Equity 1,500,000 1,700,000 15

Debt 200,000 180,000 10

Total 2,100,000 2,320,000

b) The WACC (Weighted Average Cost of Capital) is the cost of capital based on the relative weights of each capital class.

c) WACC based on the Book Value weights:

= 1,500,000/2,100,000 * 15% + 300,000/2,100,000 * 7% + 100,000/2,100,000 * 9% + 200,000/2,100,000 * 10%

= 0.107 + 0.01 + 0.004 + 0.01

= 0.131

= 13.1%

d) WACC based on the Market Value weights:

= 1,700,000/2,320,000 * 15% + 330,000/2,320,000 * 7% + 110,000/2,320,000 * 9% + 180,000/2,320,000 * 10%

= 0.11 + 0.01 + 0.004 + 0.008

= 0.132

= 13.2%

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Ghella [55]

Answer:

Explanation:

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Local or Global Consumer Markets

In general, when consumers are looking for new solutions they try to distinguish the different services/products of business and industry in the locality where they reside. As such, businesses need to target their product and service based businesses to the appropriate markets. Consumers located anywhere in the global market can purchase a product via the internet as long as they can have their purchase delivered locally and cost effectively. However, most service businesses can only provide services to customers within their local target market. For example, while a computer store can ship computers all over the world, a hairstylist will only attract clients within a reasonable driving distance from her home or business. As a result, businesses need to consider how their customer base will influence their marketing efforts.

pl. make it as brainliest if it's helpful to you...!!

5 0

2 years ago

Melina manages a team that is all remote. She wants to collaborate with her team to design and build a culture when working remo

Nitella [24]

The right answer is keep social exchanges proactive and with intent.

What are Social exchanges ?

Social exchange Proposition proposes that social behavior is the result of an exchange process.
The reason for this exchange is to increase benefits and less costs.

According to this proposition, people weigh the implicit benefits and pitfalls of their social connections. When the pitfalls overweigh the prices, they will terminate or abandon the relationship.

Most connections are made up of a certain quantum of give- and- take, but this doesn't mean that they're always equal.

Social exchange suggests that it's the valuing of the benefits and costs of each relationship that determine whether or not we choose to continue a social association.

Melina manages a platoon that's all remote. She wants to unite with her platoon to design and make a culture when working. So the suggestion to her and her team is to keep social exchanges proactive and with intent.

Learn more about Social exchanges here:

brainly.com/question/5660582

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2 years ago

1. Under a shipment contract, the seller is required only to the goods into the hands of a carrier and title passes to the buyer

taurus [48]

Answer:

<h2>1) The answer is option a) or True.</h2><h2>2) Generally all contracts are assumed to be <u>Shipment </u> contracts if nothing to the contrary is stated in the contract.</h2><h2>3) The seller is required to deliver the goods to a particular destination in a destination contract,usually directly to the <u>buyer</u><u>.</u></h2><h2>4) The answer is option a) or True.</h2><h2 />

Explanation:

A shipment contract mandates that the seller of any good or service is obligated to deliver the specified shipment to a common carrier for delivery to the buyer but not directly to the buyer's destination.Under the shipment contracts,the seller is not responsible for the condition of the shipment or package during the delivery point and time to the buyer.
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3 0

3 years ago

A. the ability to merely project one's abilities in the lack of actual accomplishments B. the ability to reduce the dependence o

MissTica

A leadership is best described as the ability to influence a group toward the achievement of a vision or set of goals.

<h3>What is a leadership?</h3>

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Hence, it is best described as the ability to influence a group toward the achievement of a vision or set of goals.

Therefore, the Option D is correct.