I think the answer is rating scale test! hope this helped
I believe the answer is: 4).Take out only the number of eggs you expect to use in a short period of time and crack them as needed
If we leave the eggs out of the refrigerator a long period of time, we would risk the egg becoming spoiled and can no longer be usable. Because of this we shall not take more than we need and we must used the egg as soon as it is taken our and cracked. (so the bacteria have no time to spoil the egg)
Answer:
Cost of common equity=15.74%
WACC=11.91%
Explanation:
Complete Question:
Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its before-tax cost of debt is 8%, and its marginal tax rate is 40%. The current stock price is P0=$22.00. The last dividend was D0=$2.25, and it is expected to grow at a 5% constant rate. What is its cost of common equity and its WACC?
Answer and Explanation:
First we have to calculate the cost of equity which shall be calculated as follows:
Cost of equity=D0(1+g)/P0+g
In the given question:
D0=$2.25
P0=$22.00
g=growth rate=5%
Cost of common equity=$2.25(1+5%)/$22.00+5%
=15.74%
Now we will calculate the WACC which shall be determined through following mentioned formula:
WACC=[Portion of Equity in capital structure*Cost of equity+Portion of Debt in capital structure*Post tax cost of debt]/Portion of Equity in capital structure+Portion of Debt in capital structure
WACC=[65%*15.74%+35%*(1-40%)*8%]/100%
WACC=11.91%
Answer: $27569.81
Explanation:
Based on the information given in the question, the amount that Marko is willing to pay today to buy ABC Co. goes thus:
For Year 1:
Discount factor = 12%
12% at Year 1 = 0.892857
Amount = $6500
PV = $6500 × 0.892857
= $5803.57
For Year 2:
Discount factor = 12%
12% at Year 2 = 0.797194
Amount = $11500
PV = $11500 × 0.797194
= $9167.73
For Year 3:
Discount factor = 12%
12% at Year 3 = 0.71178
Amount = $17700
PV = $17700 × 0.71178
= $12,598.51
The amount that Marko is willing to pay today to buy ABC Co will be:
= $5803.57 + $9167.73 + $12,598.51
= $27569.81
Answer:
Net Present Value = $22,815 - $22,000 = $815
Since the value is positive the project shall be accepted.
Explanation:
Cost of project = $22,000
That is initial outflow.
Cash inflow = $5,000 each for 7 years.
Expected rate of return for 7 years = 12%
Therefore, Present value of $1 for 7 years @ 12% = 4.563
Therefore, Cumulative present value of cash flow = $5,000 
4.563 = $22,815.
Net Present Value = $22,815 - $22,000 = $815
Since the value is positive the project shall be accepted.
