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2 years ago

Which of the following is not a characteristic of an organizational objective?

Business

1 answer:

lozanna [386]2 years ago

3 0

Answer: Long-term

Explanation: If you look at your smart goal longterm is not in there

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Green Roof Foods currently has a debt-to-equity ratio of .63, its cost of equity is 13.6 percent, and its pretax cost of debt is

Snowcat [4.5K]

Answer:

d.9.34%

Explanation:

The formula for the weighted average cost of capital is provided below as a starting point for solving this question:

WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)

weight of equity=1-debt %=1-50%=50%

weight of debt=50%

cost of equity=13.6%

after-tax cost of debt=7.8%*(1-35%)

after-tax cost of debt=5.07%

WACC=(50%*13.6%)+(50%*5.07%)

WACC=9.34%

The discount rate is computed based on the target or preferred capital structure

8 0

3 years ago

The date on which the principal amount is repaid to the bondholder is known as the ________.

blagie [28]

The answer is “Bond Maturity Date”.

8 0

1 year ago

First to answer gets Brainliest

igor_vitrenko [27]

You need to go into excel and make it there

6 0

3 years ago

Canyon Buff Corp. is considering the purchase of a new piece of equipment which would cost $11,000. This equipment will have a f

Furkat [3]

Answer:

Tax shield on depreciation = 600

Explanation:

given data

new piece of equipment = $11,000

salvage value = $1,000

marginal tax rate = 30%

average tax rate = 20%

time period = 5 year

to find out

net effect of annual depreciation on the free cash flow

solution

we know here cost of asset and Salvage value so we get depreciation cost

depreciation cost is = 11000 - 1000 = 10000

and

annual depreciation = 2000

so that Tax shield on depreciation will be

Tax shield on depreciation = 2000 × 30%

Tax shield on depreciation = 600

5 0

3 years ago

You are attempting to value a call option with an exercise price of $100 and one year to expiration. The underlying stock pays n

Anastasy [175]

Answer:

$13.64

Explanation:

Given:

Exercise price,X = $100

Current price = $100

Value when price is up, uS = $120

Value when price is down, dS= $80

Risk free interest rate = 10%

First calculate hedge ratio, H:

$H = \frac{C_u - C_d}{uS - dS}$

Where,

Cu = uS - X

= 120 - 100

= $20

$H = \frac{20 - 0}{120 - 80} = \ftac{1}{2}$

A risk free portfolio involves one share and two call options.

Find cost of portfolio:

Cost of portfolio = Cost of stock - Cost of the two cells.

= $100 - 2C

This portfolio is risk free. The table below shows that

_______________

Portforlio 1:

Buy 1 share $80; Write 2 calls: $0; Total: ($80 + 0) $80

____________________

Portforlio 2:

Buy 1 share: $120; Write 2 calls: -$40; Total: ($120 - $40) $80

Check for oresent value of the portfolio:

Present value $= \frac{80}{1 + 0.10} = 72.73$

Value = exercise price - value of option

$72.73 = $100 - 2C

Find call option, C

$C = \frac{100 - 72.73}{2} = 13.64$

Call option's value = $13.64

8 0

3 years ago