Answer:
Quigley's WACC = 7.53%
Explanation:
The after-tax cost of debt = 0.07 * (1-tax rate)
The after-tax cost of debt = 0.07 * (1 -0.4)
The after-tax cost of debt = 0.07 * 0.6
The after-tax cost of debt = 0.042
The after-tax cost of debt = 4.2%
WACC = Respective costs*Respective weight
40% debt, 10% preferred, and 50% common equity
WACC = (4.2*0.4) + (0.1*6) + (0.5*10.5)
WACC = 1.68 + 0.6 + 5.25
WACC = 7.53%
Answer:
D. Whether to pay office workers a wage or a salary
Explanation:
The HR compensation functions entail rewarding employees for work done. Employee compensation includes monetary payments such as salaries, wages, overtime, profit sharing, allowances, or bonuses.
Non -monetary compensation includes benefits such as housings, paid car, insurance coverage, and stock ownership.
In consultation with the other managers, the HR managers determine the level and combination of compensation for every employee. HR has to decide whether to employ office workers on a part-time or full-time basis. Equally, HR determines whether to pay the office workers either a salary or wages.
Answer:
b. 12%.
Explanation:
The computation of the return on investment is given below:
return on investment is
= net income ÷ avergae total assets
= ($30,000 ÷ $250,000)
= 12%
Hence, the return on investment is 12%
Therefore the option b is correct
And, the same should be considered and relevant
Given the scenario described herein, one good solution for the business to invest in a new product when it is short on cash is <u>B. Liquidate some inventory to increase cash flow.</u>
<h3>What is Cash?</h3>
In accounting, cash includes bills, coins, bank balances, money orders, and checks. Cash is the first item in most balance sheets, especially if the company is reporting liquidity. Cash happens to be the most liquid of all assets. Cash also includes cash equivalents, which are assets readily converted into cash.
Thus, the company does not need to raise prices, fire employees, or cut wages to raise cash. It can liquidate some inventory at lower prices if necessary.
Learn more about meeting cash requirements at brainly.com/question/735261
Answer:
b. Buy new car because EUAC of challenger is $4,904 and EUAC defender is $5,111.
Explanation:
If the used car is kept its current worth is $7,500. The maintenance for next two years will be $1,800 and $2,000. The total maintenance expense for next two years will be 3,800. The net book value for car after two years will be $7,500 - 3,800 = 3,700.
The car can then be sold for $3,000. There will be net loss of $700 value of the car. The new car cost $22,000 but all maintenance cost is saved. The best option then is to buy new car.