Answer:
Companies have a corporate social responsibility towards their environment.
Explanation:
Corporate social responsibility implies that companies are expected to engage in industrial practices that would not result in harm to their environment. For example, the amount of carbon being released into the environment must be controlled as excessive release of carbon can be detrimental to health. It is also not right for waste to be discharged into the oceans because the health of the sea animals, the ocean itself and those who swim in it are at risk.
To promote sustainability, companies avoid practices that would eventually harm their environment. Abiding by these practices might take a longer route, but is eventually cost effective and beneficial.
You should see what you need to do to get hired. Do something you love or are interested in.
Answer:
(A) Cost of equity= 15.74%
(B) WACC = 12.86%
Explanation:
Palencia paint corporation has a 35% debt from it's target capital structure and 65% common equity
The before-tax cost debt is 10%
Marginal tax rate is 25%
Po is $22.00
Do is $2.25
Constant rate(g) is 5%
(A) The cost of common equity can be calculated as follows
= [Do(1+g)/Po] + g
=[2.25(1+0.05)/22] + 5%
= [2.25(1.05)/22] + 5%
= 2.3625/22 + 5%
= 0.1074+5%
= 0.1074×100+5%
= 10.74%+5%
Cost of equity = 15.74%
(B) The WACC can be calculated as follows
= weight of debt×after-tax cost of debt + weight of equity×cost of equity
= (35%)(10%)(1-25%) + (65%)(15.74%)
= (35%)(10%)(1-0.25) + (65%)(15.74%)
=(35%)(10%)(0.75) + (65%)(15.74%)
= 2.63% + 10.23%
= 12.86%
Hence the cost of equity is 15.74% and the WACC is 12.86%
Answer:
Cash Anders received from the sales of equipment was $37,000
Explanation:
The equipment with a book value of $40,000 and an original cost of $210,000 was sold at a loss of $3,000
In Anders Company
The carrying amount of the equipment = book value of equipment = $40,000
The equipment was sold at a loss of $3,000. Therefore:
The carrying amount of the equipment - Sales price (Cash Anders received from the sales) = $3,000
Cash Anders received from the sales = The carrying amount of the equipment - $3,000 = $40,000 - $3,000 = $37,000
