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agasfer [191]
3 years ago
12

Tobang Company is in the process of setting its target capital structure. The CFO believes the optimal debt ratio is somewhere b

etween 20 and 50 percent, and her staff has compiled the following projections for EPS and the stock price at various debt levels:
Debt Ratio Projected EPS Projected Stock Price
20% $3.20 $35.00
30% $3.45 $36.50
40% $3.75 $36.25
50% $3.50 $36.00
a. Assuming that the firm uses only debt and common equity, what is Tobang's optimal capital structure?
b. At what debt-to-capital ratio is the company's WACC minimized?
Business
1 answer:
Alex787 [66]3 years ago
3 0

Answer:

The Ideal Capital structure is approximately 20% of Debt and 50% of Equity. Thus, Optimal Capital Structure of Tobang Company is 40:60.

At 40% debt ratio the company’s Weighted Average Cost of Capital (WACC) is minimized.

Explanation:

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LenaWriter [7]

Answer:

WHO guidelines

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A WHO guideline is defined broadly as any information product developed by WHO that contains recommendations for clinical practice or public health policy. Recommendations are statements designed to help end-users make informed decisions on whether, when and how to undertake specific actions such as clinical interventions, diagnostic tests or public health measures, with the aim of achieving the best possible individual or collective health outcomes.

The Guidelines Review Committee ensure that WHO guidelines are of a high methodological quality and are developed through a transparent, evidence-based decision-making process. Guidelines are subject to a rigorous quality assurance process that helps to ensure that each and every published guideline is trustworthy, impactful and meets the highest international standards.

Explanation:

WHO guidelines

The development of global guidelines ensuring the appropriate use of evidence represents one of the core functions of WHO.

A WHO guideline is defined broadly as any information product developed by WHO that contains recommendations for clinical practice or public health policy. Recommendations are statements designed to help end-users make informed decisions on whether, when and how to undertake specific actions such as clinical interventions, diagnostic tests or public health measures, with the aim of achieving the best possible individual or collective health outcomes.

The Guidelines Review Committee ensure that WHO guidelines are of a high methodological quality and are developed through a transparent, evidence-based decision-making process. Guidelines are subject to a rigorous quality assurance process that helps to ensure that each and every published guideline is trustworthy, impactful and meets the highest international standards.

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2 years ago
Administrative and political decision-making procedures and intuition have been associated with high performance in unstable env
irina [24]

It is true that the administrative and political decision making procedures and intuition have been associated with high performance in unstable environment where decision must be rapidly taken.

<u>Explanation:</u>

In the cases of unstable environment in the businesses, certain decisions need to be take in a quick manner which might result in the changing in the business procedures. This has a direct effect on the stabilizing the environment of the business.

These decisions might be administrative in nature where the best alternative for the business procedure will be selected or political in nature where policies are changed to stabilize the environment.

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Weiss Lenscorp, a maker of camera lenses, provides a 3-year warranty against defects on all of its products. In fulfilling its w
GuDViN [60]

Answer:

warranty liablity account ending balance:  3,510,000

Explanation:

In total, we expect a warranty expense for 6% for each sale distributed among three years.

For the 32,000,000 million sales for 2019 we expect:

32,000,000 x 6% = 1,920,000 warranty expense.

                                   warranty liaiblity

                                   debit       credit

beginning                                3,370,000

expenditures          1,780,000

warranty expense  <u>                 1,920,000</u>

balance                                    3,510,000

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3 0
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Suppose demand is given by q = 80 - 0.5p. what is the price elasticity of demand when p = 40?
Rasek [7]
<span>I believe the answer to this question is: the price elasticity of demand is 60. q = 80 - 0.5(40) is the equation I used. Half of 40 is 20, and 80 minus 20 is 60.</span>
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