Why should you keep your checkbook balanced?

32,500 shares of common stock outstanding at a price per share of $80 and a rate of return of 12.95 percent. The firm has 7,350

pashok25 [27]

Answer:

WACC = 11.1%

Explanation:

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.

Market of securities

Common stock = $80 × 32,500= 2,600,000.

Preferred stock = $95.50 × 7,350= 701,925.00

Bond = 407,000/100 × 111.5= 453,805.00

Cost of each capital type

Common stock= 12.95

Preferred stock = (7.90%× 100)/95.50= 8.3%

Bond= 8.11%× (1-0.4)=4.87%

WACC

Type Market Value Cost Market value cost

Common stock 2,600,000. 12.95% 336,700.00

Preferred 701,925.00 8.3% 58,065.00

Bond 453,805.00 4.87% 22,100.30

Total 3,755,730.00 416,865.30

WACC = (416,865.30 / 3,755,730.00) × 100

= 11.1%

WACC = 11.1%

4 0

4 years ago

Frank bought some mini blinds. Although he did not receive a written warranty, the blinds should be expected to open and close p

SIZIF [17.4K]

Answer:

C.Implied warranty

Explanation:

An implied warranty is an assumed assurance that the product purchased is fit to function as intended. The implied warranty can be oral, written, or silent.

An implied warranty protects customers from dishonest traders. All products and some services carry an implied warranty, written or not. The warranty guarantees that the product conforms to the buyer's expectations. For example, if you buy a car, you expect the engine to start and the vehicle to move.

Frank has an implied warranty. He's expectations are the blind will work. Products with an implied warranty may also come with other forms of assurances such as express or full warranties.

8 0

3 years ago

Determining the payment options to be offered to a business's customers is which function?

11Alexandr11 [23.1K]

Answer:

Pricing

Explanation:

5 0

3 years ago

A debit balance in the Allowance for Doubtful Accounts A. is the normal balance for that account.B. indicates that actual bad de

charle [14.2K]

Answer: The correct answer is "D".

Explanation: A debit balance in the "Allowance for Doubtful Accounts" indicates that actual bad debt write-offs have exceeded previous provisions for bad debts. So there was an estimating error of "Allowance for Doubtful Accounts".

8 0

4 years ago

At the break-even point:

OlgaM077 [116]

Answer:

D. Contribution margin would be equal to total fixed costs

Explanation:

As we know that

break even point is the point at which the firm is earning no profit or no loss suffered

In equation, it is

Total cost = Total revenues

In addition,

The contribution margin = Sales - variable expenses

Therefore

The contribution margin = Fixed cost = break even point

If we subtract the contribution margin from the fixed cost the amount should be zero which implies the break even point

5 0

3 years ago