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ale4655 [162]
2 years ago
5

Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expect

ed to grow at a constant 3% rate after Year 3. Wilde's tax rate is 25%. Year 1 Year 2 Year 3 Interest expenses $80 $95 $140 What is the horizon value of the interest tax shield
Business
1 answer:
raketka [301]2 years ago
6 0

Answer: $400.56

Explanation:

Horizon value = Tax shield in 3rd year * (1 + growth rate) / (Required return - Growth rate)

Tax shield in year 3 = Interest expense * tax rate

= 140 * 25%

= $35

Horizon value = 35 * ( 1 + 3%) / (12% - 3%)

= $400.56

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Indirect costs occur when
nikklg [1K]

Answer:

The answer is A. resources are shared by more than one product or service.

Explanation:

Indirect cost are costs that are not directly related or traced to any product or activity. They are shared or used by more than one activities. Examples include, Adminstrative expenses, advertising expenses, telephone expenses, rent, office expenses etc.

Like direct cost, indirect cost can be fixed or variable.

Indirect costs are used by business as a whole and not just limited to a particular product.

Option B is not correct. Cost that are directly traced or related to a product is known as direct material. For example, direct labour and direct material used to produce a particular good.

Option C and D are also wrong

5 0
3 years ago
_____ comprises a range of practices concerned with increasing awareness, fostering learning, speeding collaboration and innovat
vesna_86 [32]
Knowledge management comprises a range of practices concerned with increasing awareness, fostering learning, speeding collaboration and innovation, and exchanging insights of individuals, teams, or entire organizations.
7 0
3 years ago
A _____ is a document that outlines specific information about your proposed business, including product, location, and marketin
grandymaker [24]

Well it is not letting me answer this without putting 20 characters so this is my answer <em><u>B</u></em>

7 0
3 years ago
Read 2 more answers
In a market economy, why must the government play a primary role in dealing with pollution, vaccinations, and medical research
stealth61 [152]

Answer:

Explanation:

The government needs to be on top of these situations because each of these factors plays a huge role in the wellness and size of a population. A market economy needs a certain healthy and large population in order to function correctly. The population needs to produce the products and services while at the same time purchasing those products and services from one another in order for the market cycle to function. If such factors as disease and pollution make people sick it will severely cripple the market economy.

4 0
2 years ago
Dividends on Preferred and Common Stock Pecan Theatre Inc. owns and operates movie theaters throughout Florida and Georgia. Peca
Sergio039 [100]

Answer:

Year 1, $24,000; Year 2, $72,000; Year 3, $108,000; Year 4, $138,000; Year 5, $168,000; and Year 6, $210,000.

30,000 shares of 2% preferred stock $100 par

100,000 shares of common stock $25 par

dividends distributed per preferred stock $2 x 30,000 stocks = $60,000

                             Year        Year        Year        Year         Year         Year

                                1               2             3              4              5               6

total dividends 24,000   72,000   108,000  138,000   168,000   210,000

<u>distributed                                                                                                          </u>

to preferred     24,000   72,000    84,000    60,000     60,000    60,000

<u>stocks                                                                                                                 </u>

per preferred      0.80        2.40        2.80           2               2              2

<u>stock                                                                                                                   </u>

to common            0             0         20,000    78,000   108,000   150,000

<u>stocks                                                                                                                 </u>

per common            0              0          $0.20       $0.78     $1.08        $1.50

<u>stock                                                                                                                   </u>

7 0
3 years ago
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