Answer:
WACC = 11.6%
Explanation:
<em>The weighted average cost of capital (WACC) is the average cost of all the various sources of long-term finance used by a business weighted according to the proportion which each source of finance bears to the the entire pool of fund. </em>
To calculate the weighted average cost of capital, follow the steps below:
<em>Step 1: Calculate cost of individual source of finance </em>
Cost of Equity= 13.5%
After-tax cost of debt:
= (1- T) × before-tax cost of debt
= 7%× (1-0.4)= 4.2%
<em>Step 2 : calculate the proportion or weight of the individual source of finance . (This already given) </em>
Equity = 80%
Debt= 20%
<em>Step 3:Work out weighted average cost of capital (WACC) </em>
WACC = ( 13.5%× 80%) + ( 4.2%× 20%) = 11.64%
WACC = 11.6%
Answer:
The message is designed to persuade <u>the audience/prospective consumers.</u>
Specifically, the primary purpose fo this message is to <u>sell animation products.</u>
The secondary purpose is to <u>position </u><em><u>Akihabara Imports</u></em><u> as an appealing brand or the best place to purchase Animation Products.</u>
<u />
The questions to ask when profiling an audience are:
E) Who is my primary Audience?
It is important to know who one is advertising to. That is, those who can actually purchase ones product(s) must be identified. It is illogical, for instance, to advertise Mannequins to Farmers. They have no use for it.
B) Why am I writing this message?
As already stated above, the purpose of advert must be clear. When you know want to achieve, the next question to ask is 'how can I achieve this?', 'who can help us achieve this'?
C) What is my relationship with the audience
If a business is a first timer in the market, it means there is no relationship at all with the target audience. An existing business with a history of transactions with the target audience would most likely approach it's adverts differently.
Please Note:
- You don't need to like you audience to sell or advertise to them. However, it is critical to have a value adding mentality to succeed in the market place.
Cheers!
Answer: True
Explanation: By conducting a small project as a proposal, a contractor is actually showing in a small scale that he is both capable, is the right man for the job (external project) and is able to ensure the external project is completed with its goals and objectives accomplished. It is these goals that drive the project, and all the planning and implementation . As such, the project has to be compelling and complete.
True gives the answer to the question.
Answer:
If the Division is eliminated, income will decrease by $280
Explanation:
Giving the following information:
Sales= $72,000
Expenses= $76,000 sales.
Avoidable Expenses - Unavoidable Expenses
Cost of goods sold: $56,000
Direct expenses: 9,250 - $1,250
Indirect expenses: 470 - 1,600
Service department costs: 6,000 - 1,430
We need to determine if eliminating the Division will increase income.
Current loss= $4,000
Effect on income= unavoidable costs - current loss
Effect on income= -(1,250 + 1,600 + 1,430) + 4,000
Effect on income= $280 decrease
