The existence of pre-tax cost of debt and post-tax cost of debt is due to the acknoledgement of the tax benefit from issuing debt.There is no tax benefit from paying divdends,so it makes no sense talking about pre-tax,post-tax cost of equity for a firm.When you think about cash flow to equity you can only assume that the taxes owed by the company have already been paid.Now, the taxation over the income of the shareholder is a whole different issue that does not take place in this discussion,since it is not taken in consideration either in cost of equity or cost of debt.

3 0

3 years ago

Question 6

Scilla [17]

Answer:

C)refusing to work until certain demands are met.

Explanation:

The idea behind a strike is to remind the employer or owner of the company that workers are a key part of the production. Strikes are an effective form of protest because they can paralyze a factory or a firm.

Strikes are usually more effective when the workers cannot be easily replaced by the employer.

7 0

3 years ago

Problem 7-28 Nonconstant Growth (LO2) Planned Obsolescence has a product that will be in vogue for 3 years, at which point the f

LuckyWell [14K]

Answer:

Po = D1 + D2 + D3

(1 + Ke) (1 + Ke)2 (1 + Ke)3

Po = $12 + $12.50 + $28

(1 + 0.1) (1 + 0.1)2 (1 + 0.1)3

Po = $12 + $12.50 + $28

1.1 (1.1)2 (1.1)3

Po = $10.91 + $10.33 + $21.04

Po = $42.28

Explanation:

The current stock price is a function of future dividends capitalised at the cost of capital of the company of 10% for a period of 3 years.

6 0

3 years ago

Messana Corporation reported the following data for the month of August: Inventories: Beginning Ending Raw materials $36,000 $24

Wittaler [7]

Answer:

$217,000

Explanation:

Begining Purchases Ending

Raw Materials $ 36,000 $ 69,000 $ 24.000

Work in Process $ 23,000 $ 17,000 $ 6.000

Finished Goods $ 37,000 $ 55,000 -$ 18.000

Direct Lab Costs $ 94,000 $ 94,000

Manuf Overhead $ 54,000 $ 54,000

Total

Raw Materials $ 81.000

Work in Process $ 6.000

Finished Goods -$ 18.000

Direct Labor Costs $ 94.000

Manufacturing Overhead $ 54.000

Costo of Goods Manufactured $ 217.000

5 0

3 years ago

How makes emerging technology happen​

How makes emerging technology happen