During the stage, managers fail to recognize the internal or external changes that will harm their companies.

Fama’s Llamas has a WACC of 9.7 percent. The company’s cost of equity is 12 percent, and its pretax cost of debt is 7.5 percent.

Bezzdna [24]

Answer:

0.4766

Explanation:

Given:

WACC = 9.7%

Company’s cost of equity = 12%

Pretax cost of debt = 7.5%

Tax rate = 35%

Now,

WACC

= Weight × Cost of equity + (1 - weight) × Pretax cost of debt × (1-tax rate)

or

0.097 = weight × 0.12 + ( 1 - weight ) × 0.075 × (1 - 0.35)

or

0.097 = 0.12 × weight + 0.04875 - 0.04875 × weight

or

0.04825 = 0.07125 × weight

or

weight = 0.6772

also,

weight = $\frac{\textup{Equity}}{\textup{Debt + Equity}}$

or

$\frac{\textup{1}}{\textup{weight}}$ = $\frac{\textup{Debt+equity}}{\textup{Equity}}$

or

$\frac{1}{0.6772}$ = $\frac{\textup{Debt}}{\textup{Equity}}$ + 1

or

1.4766 = $\frac{\textup{Debt}}{\textup{Equity}}$ + 1

or

$\frac{\textup{Debt}}{\textup{Equity}}$ = 0.4766

5 0

3 years ago

A food handler's duties regarding food safety include all of the following practices EXCEPT: Prevention of food contamination Pe

katen-ka-za [31]

The answer to your question is,

Periodically test food for illness causing microorganisms.

-Mabel <3

7 0

3 years ago

Read 2 more answers

alderwood company has provided the following information prior to any year-end bad debt adjustment: cash sales, $455,000 credit

nordsb [41]

If sales discounts, $57,000 allowance for doubtful accounts credit balance, $3,800 alderwood prepares an aging of accounts receivable and the result shows that 5% of accounts receivable is estimated to be uncollectible. The bad debt expense is:$13,450.

<h3>How to determine the Bad debt expenses ?</h3>

First step is find the Required Balance using this formula

Required Balance =Accounts Receivables × Percentage of Uncollectible

Let plug in the formula

Required Balance =$345,000 × 5%

Required Balance =$17,250

Now let find the bad debt expenses using this formula

Bad debt expenses = Required Balance - Existing Credit Balance

Let plug in the formula

Bad debt expenses = $17,250 - $3,800

Bad debt expenses = $13,450

Therefore we can conclude that the Bad debt expenses is the amount of $13,450.

Learn more about Bad debt expenses here: brainly.com/question/24871617

#SPJ1

6 0

1 year ago

Which careers are apart of the Finance career cluster?

elena-s [515]

Answer:

D, most likely

Explanation:

3 0

3 years ago

Read 2 more answers

When a firm sees average costs start to increase as production increases, this is known as __________.

lesya692 [45]

When a firm sees average costs start to increase as production increases, this is known as diseconomies of scale.

What Are Diseconomies of Scale?

When a corporation or business expands to the point where the costs per unit rise, this is known as a diseconomy of scale. It happens when a firm's use of economies of scale is no longer viable. According to this theory, when output increases, a firm experiences an increase in costs rather than continuing to see reducing expenses and rising output.

What causes diseconomies scale?

Diseconomies of scale can be the result of several things, including poor management and employee communication, a lack of drive, a lack of coordination, and a loss of concentration.

How do you manage diseconomies of scale?

Businesses may divide themselves into more controllable parts in an effort to alleviate scale-related inequities. A huge multinational, for instance, might be divided up into regional geographic areas, with local managers being rewarded for maximizing efficiency.

Learn more about diseconomies of scale: brainly.com/question/27960803

#SPJ4

3 0

1 year ago