Answer:
New Long term debt = $8000
Explanation:
The computation of the net new long term debt is given below:
Sales $750000
Less: Expenses:
COGS -$540,000
Selling expenses -$85,000
Depreciation -$190,000
Interest- $65,000
Total Expenses -$880,000
Net Loss -$130,000
Add: Non- cash expense ie. Depreciation +$190,000
Net Cash flow $60,000
Less: Cash Dividend declared -$68,000
New Long term debt = $8000
Answer and Explanation:
The computation is shown below:
1, The cost of debt before tax is
Given that
NPER = 10%
PMT - $1,000 × 7% = $70
PV = $886
FV = $1,000
The formula is given below:
= RATE(NPER;PMT;-PV;FV;TYPE)
After applying the above formula, the before tax cost of debt is 8.76%
2. The after tax cost of debt is
= 8.76% × (1 - 0.30)
= 6.13%
3. The total equity is
= $20 per share × 2million shares
= $40 million
4. The cost of equity is
= Risk free rate of return + Beta × (Market rate of return - risk free rate)
= 4% + 1.2 × (9% - 4%)
= 10%
5. The weight of debt is
= ($886 × 20 ÷ $1,000 ) ÷ (886 × 20 ÷ $1,000 + $40)
= 30.70%
6. The WACC is
= Weight of debt × after tax cost of debt + weight of equity × cost of equity
= 30.70% × 6.13% + (1 - 0.3070) × 10%
= 8.81%
Vertical marketing systems are professionally managed and centrally coordinated marketing channels that are designed to achieve channel savings and maximize marketing impact.
<h3 /><h3>How do vertical marketing systems work?</h3>
The distribution channel system is organized and structured, where there is the integration and collaboration of wholesalers and retailers to increase the quality and speed with which the product reaches the end customer.
Therefore, this is a strategy implemented to generate value for the consumer, competitiveness and market positioning.
Find out more about Vertical marketing systems here:
brainly.com/question/6641095
Answer:
Throughout the clarification section below the overview according to the situation given is summarized.
Explanation:
- Those who understand the argument that it would be very crucial for healthcare institutions to find an appropriate equilibrium regarding cost savings in terms of treatment versus the outcome of education, although medical professionals could only be able to continue giving help regarding health so many of the community fairly if they can accomplish the goal of economic feasibility alone.
- Cost productivity, as well as the level of the product, have such a negative correlation with something which means that the expenditure would naturally decrease with either the improvement in the standard of treatment, consequently allowing the industry premium and yet at the same moment successful in performance.
However, in the forthcoming development, insurance reveals greater interest about what kinds of expenditures or improvements are somewhat more successful in improving and encouraging the level of efficiency of healthcare organizations or what kinds of interventions as well as expenditures resulting throughout the bottom of the distribution or diversion.
