Ganado's Cost of Capital. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.70 %, the company's credit risk premium is 4.10%, the domestic beta is estimated at 1.13, the international beta is estimated at 0.96, and the company's capital structure is now 65% debt. The expected rate of return on the market portfolio held by a well-diversified domestic investor is 9.10% and the expected return on a larger globally integrated equity market portfolio is 8.20 %. The before-tax cost of debt estimated by observing the current yield on Ganado's outstanding bonds combined with bank debt is 8.10% and the company's effective tax rate is 35%. For both the domestic CAPM and ICAPM, calculate the following: a. Ganado's cost of equity b. Ganado's after-tax cost of debt
Answers
Answer:
a. Ganado's cost of equity for the domestic CAPM is 9.802% and ICAPM is 8.02%
b. Ganado's after-tax cost of debt for the domestic CAPM is 5.265% and ICAPM is 5.265%
Explanation:
a. In order to calculate for both, the domestic CAPM and ICAPM Ganado's cost of equity we would have to make the following calculation:
for the domestic CAPM
cost of equity=risk free+domestic beat(domestic market rate-risk free rate)
cost of equity=3.70%+1.13(9.10%-3.70%)
cost of equity=3.70%+6.102%
cost of equity=9.802%
for ICAPM
cost of equity=risk free+international beat(international market rate-risk free rate)
cost of equity=3.70%+0.96(8.20%-3.70%)
cost of equity=3.70%+4.32%
cost of equity=8.02%
b. In order to calculate for both, the domestic CAPM and ICAPM Ganado's after-tax cost of debt we would have to make the following calculation:
for the domestic CAPM
after-tax cost of debt=8.10%(1-35%)
after-tax cost of debt=5.265%
for ICAPM
after-tax cost of debt=8.10%(1-35%)
after-tax cost of debt=5.265%
Related Questions
the amount of accelarated death benefits that will be paid to an insured
Answers
Answer:
hope this will help you
Explanation:
Accelarated death benefits can be as high as 95% of the death benefits. Typically the insurance company sets a maximum benefit account based on life expectancy and , the policyholder make the final decision of how much a finanical advance they require. Accelarated death benefits are not taxed
The owner of Kat Motel wants to develop a time standard for the task of cleaning a cat cage. In a preliminary study, she observed one of her workers perform this task six times, with the following results:
Observation
1
2
3
4
5
6
52
Time (seconds)
27
30
54
69.8
98
What is the standard time for this task if the employee performance rating is 5.9% percent, and an allowance of 10.8 percent of job time is used?
seconds
Answers
Given: 1 2 3 4 6 Observation Time 5 93 99 87 90 81 90. Observed Time = Average of 6 samples -> ( 99+87 + 90 + 81 + 93 + 90 )/6 = 90. This observed time is at 50% faster rate. Hence Normal Time would be 90*3/2 = 135 seconds.
Standard Time : The standard time for a job can be obtained by multiplying the normal time by an appropriate allowance factor. Hence Standard Time = 135*1.1 = 148.5 ~ 150 seconds.
The synchronisation of clocks inside an area of geography to a single time standard, instead of a local mean time standard, is known as standard time. In general, standard time agrees with local mean time at a few meridian that passes through the area, usually near the centre. Standard time was established in the nineteenth century to help with weather forecasting as well as train travel. Geographical regions became time zones when they were applied globally in the twentieth century.
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Neil Andrews is the marketing manager for the National Basketball Association. Neil analyzes and tracks his marketing campaigns to determine the best success rate per project for increasing ticket sales. Neil uses an internal KPI to track his marketing campaign success. Which of the following would be an internal KPI Neil would use to track his marketing campaigns?
A. Marketing campaign market share eBook
B. Marketing campaign percentage of fans purchasing Sports Ilustrated magazine
C. Marketing campaign advertiser revenue sales
D. Marketing campaign ROI
Answers
Answer:
Option D
Explanation:
Neil Andrews, communications coordinator for that National Basketball Association. Neil evaluates and monitors its marketing strategies to assess the optimal rate of performance for a campaign to boost ticket prices. The ROI marketing campaign will be an internal KPI Neil used to track its marketing techniques.
Apps that are permitted to be installed on the company network, such as IM software and company computer equipment used mostly for personal purposes on online communities, are two fields that should be handled by organizational security administrators.
Thus, from the above we can conclude that the correct option is D.
Which of these situations are more likely to happen in a GOOD economy?
A. Phyllis' Coffee, a new business, isn't able to innovate their
coffee making process because money is tight.
B. Carlos was able to finish a design bootcamp and
interview at many companies until he finds the job he likes
best.
C. Laila is settling for a job that she doesn't want but she
needs the money and there aren't any other options.
D. Thrills Park delays building the new roller coaster until
they can get a bank loan.
Answers
Answer:
I think
B. Carlos was able to finish a design bootcamp and
interview at many companies until he finds the job he likes
best.
what is the yearly salary or hourly wage of a librarian?
Answers
Answer:
$61,920, or $29.77
Explanation:
Answer:
The average hourly rate for Librarian ranges from $27 to $38 with the average hourly pay of $32.
Explanation:
The average salary for a Librarian is $58515 per year in United States.
Salaries start from $34630 and go up to $93050.
What is the effect of just-in-time inventory strategies? A. They increase business efficiency by reducing inventory costs. B. They outsource manufacturing jobs to underdeveloped nations. C. They eliminate the need for tasks such as welding and assembling. D. They expand businesses with the use of worldwide telecommunication.
Answers
The answer is A
Explanation:
In which situation would a saving account be the best investment to earn interest?
Answers
The situation that a saving account be the best investment to earn interest are:
Short-term goalsEmergency fundRisk aversion, etc.What is a saving account?For short-term financial goals and quick access to funds, choose a savings account - safe, liquid, and earns interest. An emergency fund is a safety net for unexpected expenses. Store it in a savings account for easy access and interest.
Choose a savings account for conservative investing. Insured by the government, providing extra protection." Saving for short-term expenses: If you have a specific expense coming up, like a vacation or a down payment, save accordingly.
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Swifty Corporation had income from continuing operations of $ 10,826,400 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $ 190,800. Prior to disposal, the division operated at a loss of $ 320,500 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Swifty had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Swifty beginning with income from continuing operations. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Answers
The partial income statement is :
Net income $10,315,100
Earnings per share $1.03
Preparation of a partial income statement for Swifty
Swifty Corporation Income Statement (Partial)
For the Year Ended 2020
Income from continuing operations $10,826,400
Discontinued operations:
Loss from operation of discontinued division (net of tax) $ 320,500
Loss from disposal of discontinued division (net of tax) $ 190,800 $511,300
Net income $10,315,100
($10,826,400-$511,300)
Earnings per share:
Income from continuing operations 1.08
($10,826,400/10,000,000)
Discontinued operations -0.05
($-511,300/10,000,000)
Net income 1.03
($10,315,100/10,000,000)
Inconclusion The partial income statement is :
Net income $10,315,100
Earnings per share $1.03
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The identity thief's information on your credit report wouldn't impact your ability to
get certain types of jobs.
True
False
Answers
Can someone help me answer these questions for business class?
Answers
Answer:
A
Explanation:
The total product offer
How do these three rules apply to your life? Explain them in your words and try to think about how they relate to your financial situation. (Hint: Think about how you earn money and how you spend money, also imagine that you have been offered a credit card with a starting line of credit at $1000)
Rule 1 - Don't have debt rise faster than income, because the debt burden will eventually crush you
Rule 2 - Don't have income rise faster than productivity, because you will eventually become uncompetitive
Rule 3 - Do all that you can to raise your productivity, because in the long run that's what matters most
Answers
The three rules below will help individuals achieve financial stability and security, which is critical for living a happy and stress-free life. They can learn new skills, enroll in courses, read books, and so on to increase their productivity levels.
Rule 1: Don't have debt rise faster than income, because the debt burden will eventually crush you.To avoid falling into a debt trap, one should prioritize their spending. It's always a good idea to live within one's means and avoid spending more than they earn.Rule 2: Don't have income rise faster than productivity, because you will eventually become uncompetitive.It's a good idea to focus on increasing productivity to achieve long-term financial stability. One must avoid situations where they are not productive but are earning more money, as this can make them uncompetitive in the long run.Rule 3: Do all that you can to raise your productivity, because in the long run that's what matters most.Productivity is the most critical factor in achieving financial stability. Increasing productivity can lead to higher earnings, which can help you reach your financial goals faster.Individuals must always make efforts to improve their productivity. It's always a good idea to live within one's means, avoid unnecessary debt, increase productivity, and invest in oneself. In conclusion, the above three rules can be beneficial to anyone looking to achieve financial stability.
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A portfolio consists of three index funds: an equity index, a bond index, and an international index. The portfolio manager changes the weights periodically according to forecasts for each sector. This is an example of __________.
Answers
Answer: IM pretty sure it is False
Explanation:
Following a systematic plan for the preparation of an e-mail, memo, letter, or oral presentation will make the composition process easier and will help you create more effective business messages. The writing process for business messages includes prewriting, drafting, and revising. Which of the following are steps involved in the prewriting phase of the writing process? Check all that apply. Analyzing Drafting Anticipating Researching Adapting Editing
Answers
Answer: Analyzing
Anticipating
Adapting
Explanation:
The writing process for business messages includes prewriting, drafting, and revising. We should note that the steps involved in the prewriting phase of the writing process:
• Analyzing
• Anticipating
• Adapting
The drafting phase is made up of:
• Researching
• Organizing
• Drafting
The revising phase include:
• Editing
• Proofreading
• Evaluating
what is an an intrinsic reward?
Answers
How does a Quorum in works
Answers
Answer:
In the context of governance and decision-making, a quorum refers to the minimum number of members required to be present for a meeting to be considered valid and to conduct business.
The specific rules for quorum requirements can vary depending on the organization, but generally, the quorum is established by the organization's bylaws or governing documents.
Once the quorum is established, the meeting can proceed with the discussion and voting on agenda items. If the quorum is not met, then no official business can be conducted.
For example, let's say a local government has 10 council members, and their bylaws require that at least 6 members must be present for a quorum. If only 5 members show up to a meeting, then no official business can be conducted, and the meeting would need to be rescheduled for another time when the quorum can be met.
Explanation:
A style guide, such as an MLA manual, will assist you in:
a
Correctly using grammar and punctuation
b
Helping you check your spelling
c
Formatting your references correctly
d
None of these are correct uses for style guide
Answers
Answer:
d
Explanation:
A style guide, such as an MLA manual, will assist you in "None of these are correct uses for style guide". The correct option is D.
A style guide like an MLA manual, serves multiple functions beyond grammar, punctuation, spelling or formatting references. It provides a structured framework for consistency in various communication aspects.
It guides writers in maintaining a uniform tone, style, and formatting across documents, ensuring clarity and professionalism.
The guidelines for layout, headings, citations, and visual elements, a style guide supports effective communication, fosters credibility, and aligns written materials with a specific purpose or brand identity.
Therefore, the correct option is D.
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Work ethics are a naturally inherited quality.
Is this statement true or false?
true
false
Answers
Two real estate companies, Century 21 and RE/MAX, compete with one another in a local market. The manager of the Century 21 office would like to advertise that homes listed with RE/MAX average more than 10 days on the market when compared to homes listed with his company. The following data shows the sample size and average number of days on the market
for the two companies along with the population standard deviations.
Sample mean
Sample size
Population standard deviation
Century 21
122 davs
36
32 davs
REMMAX
144 davs
30
35 davs If Population 1 is defined as RE/MAX and Population 2 is defined as Century 21, and using a =
0.10, the critical value for this hypothesis test would be
A) 1.28
B) 1.645
C) 1.96
D) 2.33
Answers
For this hypothesis test, the critical value would be 1.28.
Early types of hypothesis testing were utilised in the 1700s, while the practise gained popularity in the early 20th century. In order to analyze the human sex ratio at birth, Pierre-Simon Laplace (1770s) is credited with using the method initially, followed by John Arbuthnot (1710).
While Jerzy Neyman and Egon Pearson (the father of Karl Pearson) invented the hypothesis test, Ronald Fisher ("null hypothesis," "analysis of variance," "significance test"), William Sealy Gosset ("Student's t-distribution"), and Karl Pearson ("p-value," "Pearson's chi-squared test," and "significance test") are largely credited with the invention of modern significance testing.
Initially a Bayesian in statistics (Zabell 1992), Ronald Fisher soon became weary of the subjectivity involved and set out to create a more "objective" approach to inductive reasoning.
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Pronghorn Corporation shipped $20,800 of merchandise on consignment to Gooch Company. Pronghorn paid freight costs of $2,200. Gooch Company paid $550 for local advertising, which is reimbursable from Pronghorn. By year-end, 57% of the merchandise had been sold for $22,300. Gooch notified Pronghorn, retained a 10% commission, and remitted the cash due to Pronghorn.Prepare Pronghorn's entry when the cash is received. (Round answers to 0 decimal places, e.g. 1,525. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Answers
Answer:
Date Account Title Debit Credit
Year end Cash $19,520
Advertising expenses $550
Commission expenses $2,230
Revenue from Consignment $22,300
Cost of Goods sold $13,110
Inventory on Consignment $13,110
Cash received by Pronghorn:
= Cash - Advertising - Commission
= 22,300 - 550 - (10% * 22,300)
= 22,300 - 550 - 2,230
= $19,520
Cost of Goods sold:
= 57% * (Value of goods + Shipping)
= 57% * (20,800 + 2,200)
= $13,110
True or False:
A target market is the group of people lease likely to buy your product.
Answers
True
Explanation:
A target market is a group of people Or organisations for which an organisation designed, implements, and maintains a Marketing mix indeed to meet the needs of that group, resulting in mutually satisfying exchanges.
Jamal runs a successful small business in the United States and has decided to expand internationally. When Jamal
attempted to obtain the necessary government permit in a developing country, he most likely learned that
Multiple Choice
The news media expert a kickback so Jamal won’t receive any bad publicity.
It’s easier to open a business without a permit
The uniform commercial code has streamlined the permit process
Corrupt public officials expect him to pay bribe money to get the permit.
Answers
Answer:
It’s easier to open a business without a permit
Explanation:
it just is. until somebody finds out. it is more difficult to get a bussiness permit than not
While Jamal attempt to get a govt license in a developing country then he comes to know that it is easy to set up a business even without a license.
Option B is the correct answer.
What is a license?A license is a record or a document that signifies permission to an individual to do something.
Small businesses are the entities set up in the small-scale economy of a country. The business can be set up by Jamal very easily in the developing nation as it requires no license in the beginning but can require them for further growth in the business.
Therefore, the explanation provided in Part B is something that is being learned by Jamal while trying to get a license.
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14) You are in a virtual one-on-one meeting. How should you conduct yourself in this kind of meeting?
A) Dress casually to make the one-on-one conversation feel more casual.
B) Maximize the amount of time you spend looking directly at the camera
C) focus your gaze on yourself so the other person does not feel uncomfortable
Answers
Answer:
The answer is B) Maximize the amount of time you spend looking directly at the camera.
Explanation:
Looking directly at the camera is important because it simulates eye contact and helps to build trust and connection. It also shows that you are paying attention and engaged in the conversation, while avoiding the impression of being distracted or disinterested.
Life insurance immediately creates an estate upon the death of an insured. Which of the following
policies is characterized by a guaranteed minimum death benefit?
Answers
The type of policy that is characterized by a guaranteed minimum death benefit is known as a whole life insurance policy.
A whole life insurance policy is a permanent life insurance policy that offers lifelong protection to the insured and pays out a death benefit to the beneficiaries upon the death of the insured.
One of the key features of a whole life insurance policy is the guaranteed minimum death benefit, which means that the death benefit will never be less than a certain amount, regardless of how the policy performs. This provides a sense of security to the insured and their beneficiaries, knowing that there will always be a minimum amount of money that will be paid out.
In addition to the guaranteed minimum death benefit, whole life insurance policies also offer a cash value component. As premiums are paid, a portion of the premium is set aside in a cash value account that grows tax-deferred over time. This cash value can be accessed by the policyholder during their lifetime through policy loans or withdrawals.
Overall, a whole life insurance policy is a great option for those who are looking for lifelong protection and a guaranteed minimum death benefit. It offers peace of mind to the insured and their beneficiaries, knowing that there will always be a minimum amount of money paid out upon the death of the insured.
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Answer: variable life
Explanation: the variable nature a variable whole life insurance is its death benefit. however, if investment performance is poor, the death benefit will not go lower than the policy's guaranteed minimum.
What is globalization?
Answers
Answer:
the process by which businesses or other organizations develop international influence or start operating on an international scale.
in other words
the process where businesses or organizations begin spreading internationally
Explanation:
) What is the probability that the web site has between 3 million and 4 million visitors in a single day? If needed, round your answer to four decimal digits
Answers
Answer:
4.44 million visitors per day and a standard deviation of 740,000 visitors per day.
Explanation:
Because people uses the internet every single day
What is market segmentation in marketing with example?
Answers
Market segmentation, in marketing, is the division of a broad target market into more focused groups based on shared characteristics, tendencies, requirements, or preferences.
Market segmentation in marketing with example.In marketing, market segmentation refers to the process of breaking up a large target market into more narrowly defined segments based on shared traits, tendencies, needs, or preferences. Identification of various market segments is necessary in order to target them with specialized marketing techniques and messages.
Think about a business that sells athletic shoes. They choose to use market segmentation to find particular segments with varied wants and preferences when it comes to athletic shoes rather of targeting the full market of potential clients.
The corporation can effectively target these niche markets with goods and advertising messages that speak to their particular needs and preferences by using market segmentation. Their chances of succeeding in the market are eventually increased by being able to customize their product offers, pricing, promotional techniques, and distribution networks to each segment.
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A small business company is considering updating the current production line. There are two plans. For plan A, the fixed cost will be $40,000 and the variable cost will be $27 per unit after the update. For plan B, the fixed costs will be $54,000 and the variable cost will be $26 per unit after the update. Please answer the following questions: (a) Suppose the selling price is $35, what is the break-even volume for each plan
Answers
Answer:
Results are below.
Explanation:
Giving the following information:
Plan A:
Fixed costs= $40,000
Unitary varaible cost= $27
Plan B:
Fixed costs= $54,000
Unitary varaible cost= $26
Selling price per unit= $35
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Plan A:
Break-even point in units= 40,000 / (35 - 27)
Break-even point in units= 5,000
Plan B:
Break-even point in units= 54,000 / (35 - 26)
Break-even point in units= 6,000
The following graph shows the consumer price index (CPI) for a fictional country from 1980 to 1990. Consumer Price Index (CPI) 60 1980 1982 1984 1986 1988 1990 During which of these time periods was there a period of inflation?
A. 1986 to 1988
B. 1988 to 1990
C. 1982 to 1984
D. 1980 to 1982
The answer is C
Answers
Answer:
C. 1982 to 1984 is correct answer
which of the following is an accurate list of items that must be separately stated on form 1065, u.s. return of partnership income, schedule k-1?
Answers
Form 1065 is the U.S. Return of Partnership Income, which is used by partnerships to report their income, deductions, gains, losses, and other information to the IRS. Schedule K-1 is an important part of Form 1065 that reports each partner's share of the partnership's income, deductions, and other items.
There are several items that must be separately stated on Schedule K-1, including: Income and deductions that are required to be separately stated for tax purposes, such as tax-exempt income, portfolio income, and section 179 expense deductions .Foreign transactions, including foreign taxes paid or accrued, and foreign source income. Alternative minimum tax (AMT) items, including adjustments and preferences that must be separately stated for AMT purposes. Charitable contributions and other deductions that are limited by the partner's income or other factors. Other items that the partnership is required to separately state for tax purposes, such as depletion and intangible drilling costs. It is important for partnerships to accurately report all items that must be separately stated on Schedule K-1 to ensure compliance with IRS regulations and avoid potential penalties or other consequences.
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A taxpayer will need to file Schedule A, Itemized Deductions, to deduct which of the following?
Answers
A taxpayer will need to file Schedule A, Itemized deductions to deduct medical and dental expenses, taxes, interests, gifts to charity, casualty and theft losses, job expenses and certain miscellaneous expenses.
What are itemized deductions?Itemized deductions include amounts that we have paid for state and local income or sales taxes, real estate taxes, personal property taxes, mortgage interest and disaster losses. It can also include gifts to charity and part of the amount we paid for medical and dental expenses.
By itemizing on Schedule A we can benefit if we can't use the standard deduction or the amount we can claim is limited, we had large unreimbursed medical expenses and made contributions to qualified charities etc.
It is better to take the itemized deduction if it is greater than the standard deduction.
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