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Sergio039 [100]
3 years ago
10

The Whalers are interested in trading their star left tackle. He is a veteran and makes $1.6 million per year. They are consider

ing signing a player from another team who makes $1 million per year. How much money would they save by trading their current left tackle and signing the player from the other team for three years?
Business
1 answer:
Romashka-Z-Leto [24]3 years ago
3 0

Answer:

$1,800,000

Explanation:

The veteran player makes $1.6 million per year.

The new prayer will be paid $1 million per year.

the Savings per year will be

= $1, 600,000 - 1,000,000

= $ 600,000

The savings in three years will be

=$600,000 x 3

=$1,800,000

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You are given the following information for Watson Power Co. Assume the company’s tax rate is 24 percent. Debt: 14,000 6.3 perce
Alenkinab [10]

Answer:

10.18%

Explanation:

The computation of the WACC is shown below:

But before that following calculation is to be done

The value of debt is

= 14000 × $1,000 × 107%

= $14,980,000

The value of equity is

= 470,000 × $65

= $30,550,000

The value of preferred stock is

= 20,500 × $86

= $1,763,000

Now

value of total capital is

= $14,980,000  + $30,550,000 + $1,763,000

= $47,293,000

Now we find the cost of debt using excel function i.e.

= RATE(nper,pmt,pv,fv)) × 2

= RATE(29 × 2,1000 × 6.3% ÷ 2,-1000 × 107%,1000)) ×2

= 5.80%

Now  

Cost of common stock is

= 5.2% + 1.16 × 7%

= 13.32%

cost of preferred stock is

= (100 × 4.1%) ÷ 86

= 4.77%

Now finally  

WACC = weight of debt × cost of debt ×(1 - tax rate) + weight of equity × cost of equity + weight of preferred stock ×cost of preferred stock

= ($14,980,000 ÷ $47,293,000) × 5.80% × (1  - 24%)+($30,550,000 ÷ $47,293,000) × 13.32% + ($1,763,000 ÷ $47,293,000) ×4.77%

= 10.18%

5 0
3 years ago
If the demand and supply curves for product X are stable, a goverment mandated increase in the price of X will:_______
shepuryov [24]

Answer: C. . increase the quantity supplied of X and decrease the quantity demanded of X.

Explanation:

If the demand and supply curves for product X are stable, a goverment mandated increase in the price of X will result into the increase the quantity supplied of X and decrease the quantity demanded of X.

This is because when there is a rise in price, the suppliers will be willing to supply more while the consumers will demand less of the product.

4 0
3 years ago
Explain the vertical integration options and directions for the following providers: (a) a major academic medical center such as
kvasek [131]

Answer:

(a)<u> Backward vertical integration</u> (b) <u>Forward vertical integration</u> (c) <u>Backward vertical integration</u>

Explanation:

(a) An academic medical center is an example of backward vertical integration. The specialist and faculties from the university will provide treatment to the patients. Such medical centers have tertiary service with several intermediaries.

(b) Here, there is no intermediary between patients and general surgery group. The general surgery group treat patients directly. So here there is a forward vertical integration system.

(c) A manufacturer of durable medical equipment will supply to retailers who in turn supply these to hospitals where the patients will receive service from these equipment. So, it is an example of backward vertical integration.

3 0
3 years ago
Ralph was involved in a bar fight and sustained a blow to the back of the head from a beer bottle. he was dazed and could not se
My name is Ann [436]
Occipital lobe

The occipital lobe is one of the four major lobes in the brain's cerebral cortex. It is located at the back of the head (see attached image). The occipital lobe's primary function is processing and making sense of visual information we receive through our eyes. Damage or trauma to the occipital lobe (in John's case when he got hit on the back of his head) can cause temporary or permanent vision impairment, subject to the severity of the trauma. 

6 0
3 years ago
Which loan type allows you borrow up to the cost of attendance, minus other aid you have received?.
nikdorinn [45]

A subsidized loan is such a loan where the borrower is allowed to borrow up to the cost of attendance less any other aids received.

<h3>What is a subsidized loan?</h3>

A type of education or student loan where the amount to be borrowed is determined as per the cost of the student's attendance, which is subtracted from other financial benefits received in this regard, is known as a subsidized loan.

Hence, subsidized loan is explained as above.

Learn more about subsidized loans here:

brainly.com/question/2256061

#SPJ1

4 0
2 years ago
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