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sasho [114]
2 years ago
12

Citee Corp. has no debt but can borrow at 6.7 percent. The firm’s WACC is currently 9.5 percent, and the tax rate is 24 percent.

a. What is the company’s cost of equity? b. If the firm converts to 30 percent debt, what will its cost of equity be? c. If the firm converts to 60 percent debt, what will its cost of equity be? d-1. If the firm converts to 30 percent debt, what is the company’s WACC? d-2. If the firm converts to 60 percent debt, what is the company’s WACC?
Business
1 answer:
Reil [10]2 years ago
4 0
Similar question. Just go through and solve it.

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Cooper Company has an average demand of 50 units per day. Lead time from the supplier averages 20 days. The combined standard de
Mashutka [201]

Answer:

The annual inventory carrying cost of the safety stock = $594

Explanation:

Given that:

The average daily demand (d) = 50 units / day

The lead time (LT) = 20 days

The combined standard deviation of demand lead time = 20 units.

The item cost  = $75

The inventory carrying cost = 24% of the item cost

i.e. (24/100) × 75 = $18 of the item cost

Let assume that the management of the company wants to offer a service level of 95%.

Then the z-value that relates to 95% confidence interval level = 1.65

So; the safety stock relating to the 95% service level = z \times \sigma_{dlT}

= 1.65 × 20

= 33 units

Now:

The annual inventory carrying cost of the safety stock = Safety stock × Inventory carrying cost.

= 33 × $18

= $594

5 0
2 years ago
Based on the balance
stich3 [128]

Answer:

im confused what is ur question?

Explanation:

3 0
3 years ago
Donaldson's purchased some property for $1.2 million, paid 25 percent down in cash, and financed the balance for 12 years at 7.2
Leya [2.2K]

Answer:

$9,352.27

Explanation:

25% of 1.2million

25/100×$1,200,000

=$900,000

Monthly mortgage Payment (p)=r(PV)/{1-(1+r)^-n}

Present value (PV)=$900,000

r=7.2%/12

=7.2/100÷12

=0.072/12

r=0.006

n= 144(12 years×12months)

P=r(PV)/{1-(1+r)^-n}

=0.006×$900,000/{1-

(1+0.006)^-144

=$5,400/{1 - (1.006)^-144}

=$5400/{1 - 0.4226}

=$5,400/0.5774

=$9,352.27

6 0
3 years ago
An increase in the price of a resource would cause
evablogger [386]

Answer:

it would cause more people to go hungry and cold and die because it would be harder to afford all of those things if they were more expensive.

hope that helps

8 0
3 years ago
Statement on Standards for Tax Services No. 1 establishes as a basic principle of providing tax services that the CPA:
Aleksandr-060686 [28]

Answer:

c. Must have a good faith belief that the tax return position has a realistic possibility of success if challenged by the IRS

Explanation:

Statement on Standards for Tax Services No. 1 establishes as a basic principle of providing tax services that the CPA

we know that

Giving assessment administrations is on the standard premise that it has a decent confidence conviction that the government form position can be supported whenever tested

therefore

option c is correct

c. Must have a good faith belief that the tax return position has a realistic possibility of success if challenged by the IRS

7 0
3 years ago
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