Answer:
14.35%
Explanation:
Simon Software Co
rs= 12%
D/E = 0.25
rRF= 6%
RPM= 5%
Tax rate = 40%.
We are going to find the firm’s current levered beta by using the CAPM formula which is :
rs = rRF+ RPM
12%= 6% + 5%
= 1.2
We are going to find the firm’s unlevered beta by using the Hamada equation:
=bU[1 + (1 −T)(D/E)]
Let plug in the formula
1.2= bU[1 + (0.6)(0.25)]
1.2=(1+0.15)
1.2= 1.15bU
1.2÷1.15
1.0435= bU
We are going to find the new levered beta not the new capital structure using the Hamada equation:
b= bU[1 + (1 −T)(D/E)]
Let plug in the formula
= 1.0435[1 + (0.6)(1)]
=1.0435(1+0.6)
=1.0435(1.6)
= 1.6696
Lastly we are going to find the firm’s new cost of equity given its new beta and the CAPM:
rs= rRF+ RPM(b)
Let plug in the formula
= 6% + 5%(1.6696)
= 14.35%
Higher revenues – demand from positive consumer support.
Improved brand and business awareness and recognition.
Better employee motivation and recruitment.
Answer:
$32,000
Explanation:
Calculation for the balance of Maxwell's Capital account
Using this formula
Assets =Liabilities-Owner's Equity
Where,
Liabilities =$84,000
Owner's Equity=$52,000
Let plug in the formula
Assets =$32,000
Therefore the balance of Maxwell's Capital account will be $32,000
I’m sorry I don’t know the answe
Then the total budget variance is $1000
The entire budget variance formulation: overall budget variance = (general amount x general rate) - (actual amount x actual fee). = (350 x $12) - (four hundred x $thirteen) = $4200 - $5200 = $one thousand adverse.
A budget variance is an accounting time period that describes times wherein actual prices are both better or lower than the usual or projected expenses. A destructive, or terrible, financial variance is indicative of a financial shortfall, which may additionally arise due to the fact sales pass over or expenses are available higher than expected.
A price range variance is a difference between the budgeted or baseline quantity of fee or sales and the real amount. The budget variance is favorable while the real sales are higher than the finances or while the actual expense is less than the finances.
Sensible budget variance analysis can assist finance teams to spot tendencies, capacity issues, opportunities, and threats in deliberate budgets so that you can make the modifications important to gain their objectives. A finances variance evaluation can also assist spot deviations among the centered vs. real budgets.
Learn more about budget variance here: brainly.com/question/25790358
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