Calculate the WACC by summing the weighted costs of each type of capital.
- WACC = 1.88% + 1.26% + 3.62% = 6.76%
To calculate the weighted average cost of capital (WACC), we need to determine the after-tax component costs for each type of capital and their respective weights in the capital structure.
Calculate the after-tax component cost for each type of capital.
- Bonds: 8.23% * (1 - 0.40) = 4.94%
- Preferred Stock: 12.40% * (1 - 0.40) = 7.44%
- Common Stock: 13.40% * (1 - 0.40) = 8.04%
Calculate the weighted cost of each type of capital.
- Bonds: 38% * 4.94% = 1.88%
- Preferred Stock: 17% * 7.44% = 1.26%
- Common Stock: To be calculated
Calculate the weighted cost of common stock.
- Common Stock: 45% * 8.04% = 3.62%.
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Required information
[The following information applies to the questions displayed below.]
On December 1, Jasmin Ernst organized Ernst Consulting. On December 3, the owner contributed $83,390 in assets to launch the business. On December 31, the company’s records show the following items and amounts.
Cash $ 13,210 Cash withdrawals by owner $ 1,460
Accounts receivable 13,320 Consulting revenue 13,320
Office supplies 2,720 Rent expense 2,950
Land 45,910 Salaries expense 6,290
Office equipment 17,350 Telephone expense 830
Accounts payable 7,970 Miscellaneous expenses 640
Owner investments 83,390
Using the above information prepare a December income statement for the business.
Based on the information given the December statement of cash flows for Ernst Consulting is $2,610.
Income statement:ERNST CONSULTING Income Statement For Month Ended October 31
REVENUES
Consulting fees earned $13,320
Total revenues $13,320
EXPENSES
Rent expense $2,950
Salaries expense $6,290
Telephone expense $830
Miscellaneous expenses $640
Total expenses $10,710
($2,950+$6,290+$830+$640)
Net income $2,610
($13,320-$10,710)
Inconclusion the December statement of cash flows for Ernst Consulting is $2,610.
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If the government cuts taxes by 10 billion dollars and cuts spending by the same amount, RGDP will
decrease by $10 billion.
increase by $10 billion.
remain the same.
increase by some amount less than $10 billion.
decrease by some amount less than $10 billion.
If the government cuts taxes by 10 billion dollars and cuts spending by the same amount, RGDP will: C. remain the same.
What will happen to RGDP?RGDP will remain the same because the two actions, tax cuts and spending cuts, cancel each other out in terms of their effect on the overall economy. While the tax cuts may stimulate consumption and investment, the reduction in government spending may have a contractionary effect on the economy.
The net effect on RGDP would be zero, assuming all else remains equal. However, in reality, the impact on the economy could be more complex and depend on various factors such as the overall state of the economy, the specific sectors affected by the spending cuts, and the way the tax cuts are distributed among different income groups.
Therefore the correct option is C.
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Builtrite bonds have the following: 5 ½% coupon, 16 years until maturity, $1000 par and are currently selling at $962. If you want to make an 6% return, what would you be willing to pay for the bond?
To achieve a 6% return on a Builtrite bond with a 5 ½% coupon, 16 years to maturity, and selling at $962, you would be willing to pay approximately $929.92 for the bond, considering its present value calculation.
To find the exact value you would be willing to pay for the bond, you can use the formula for present value of a bond
PV = C * (1 - (1 + r)⁻ⁿ) / r + F / (1 + r)ⁿ
Where
PV = Present value (what you are willing to pay)
C = Coupon payment per period (5 ½% of $1000 = $55)
r = Required rate of return (6% or 0.06)
n = Number of periods until maturity (16)
F = Face value or par value ($1000)
Plugging in the values, we can calculate the present value (PV)
PV = $55 * (1 - (1 + 0.06)⁻¹⁶) / 0.06 + $1000 / (1 + 0.06)¹⁶
PV ≈ $929.92
Therefore, you would be willing to pay approximately $929.92 for the bond in order to achieve a 6% return.
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A stock has an expected return of 14.9 percent, the risk-free rate is 5.85 percent, and the market risk premium is 7.6 percent. What must the beta of this stock be
Provide a 4 sentence response:
How did Olaudah Equiano describe the conditions for slaves on "the Middle Passage"? Does Equiano's account sound credible? Why? Give reasons for your answer.
Using footnotes and the Turabian citation style (see the Module Discussions Guideline), please remember to at least cite at least one source from materials assigned in this Module in your paragraph.
Olaudah Equiano described the conditions for slaves on the Middle Passage as extremely inhumane, with overcrowding, poor sanitation, and a lack of adequate food and water^1^.
He emphasized the physical and emotional suffering experienced by the enslaved Africans^2^. Equiano's account is considered credible, as he was a former slave who personally experienced the Middle Passage and later became a prominent abolitionist^3^. His firsthand experiences and detailed descriptions of the conditions lend credibility to his account, making it a valuable primary source for understanding the horrors of the transatlantic slave trade^4^.
^1^ Equiano, Olaudah. The Interesting Narrative of the Life of Olaudah Equiano, or Gustavus Vassa, the African. London, 1789, p. 56-57.
^2^ Ibid.
^3^ Carretta, Vincent. Equiano, the African: Biography of a Self-Made Man. University of Georgia Press, 2005, p. 9.
^4^ Lovejoy, Paul E. "The Impact of the Atlantic Slave Trade on Africa: A Review of the Literature." The Journal of African History 30, no. 3 (1989): 365-394.
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Banksy is most associated with which city?
Bristol
Banksy's work grew out of the Bristol underground scene, which involved collaborations between artists and musicians. Banksy says that he was inspired by 3D, a graffiti artist and founding member of the musical group Massive Attack.
For Infinity Lions Carwash, the arrival rate is 8 / hour and the service rate is 12 / hour. The arrival and service distributions are not known so we can't use the M/M/1 formulas. If the average waiting time in the line is 20 minutes, then what is the length of the line expected?
We can say that the length of the line expected is 1.33 cars.
Given that the arrival rate is 8/hour and the service rate is 12/hour. The average waiting time in the line is 20 minutes.It can be observed that both the arrival and service distribution are not known so we cannot use the M/M/1 formulas.
We can use the Little's Law formula to find the length of the line expected, that is:L = λ * WHere L is the expected length of the line, λ is the arrival rate, and W is the average waiting time.To find the value of L we need to convert the arrival rate from hour to minutes and convert the average waiting time to hours.
L = λ * W60 * (8/60) * (1/3) = 1.33 cars.As we have got the value of L we can say that the length of the line expected is 1.33 cars.
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One of the assumptions underlying the production possibilities curve for any given economy is that: A. The state of technology B. Movement from outside the frontier to a point on the curveC. Movement from a point inside the frontier to a point on the curve.D.. A change in the slope of the curve
The assumption underlying the production possibilities curve for any given economy is that the state of technology is constant.
This means that the economy's ability to produce goods and services is limited by the resources available and the current level of technology. Any change in technology would shift the production possibilities curve outward, allowing the economy to produce more goods and services than before.
The production possibilities curve (PPC) is a graphical representation of the various combinations of two goods that an economy can produce given its resources and technology. The PPC assumes that the state of technology is constant, meaning that the economy is not able to produce more goods and services without a technological improvement. Any movement along the PPC represents a trade-off between producing more of one good and less of the other.
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Which of the following choices incur speculative risk?
a.stocks
b.fire insurance on a house
c.options
d.life insurance
e.high interest savings account
Answer: correct option is A.
Explanation: A speculative risk can be defined as risk that is taken willingly either it results in profit or loss and the stocks involve in probability of gain and loss making it a speculative risk.
Stocks incur speculative risk. Therefore option A is correct.
What are Stocks?A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.
Common stock and preferred stock are the two primary categories of stocks.
Owners of common stock are entitled to dividends and the right to vote at shareholder meetings.
Common stockholders often do not have voting rights, while preferred stockholders typically get dividend payments ahead of time and are given preference over common investors in the event of a firm bankruptcy and asset liquidation.
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in periods of rising prices, the inventory method which results in the inventory value on the balance sheet that is closest to current cost is the
In periods of rising prices, the inventory method which results in the inventory value on the balance sheet that is closest to current cost is the FIFO method.
A period of rising prices is known as an inflationary period. In an inflationary period, the prices of goods and services increase.
There are three inventory methods:
FIFO method: The first in, first out (FIFO) method assumes that the inventories purchases first are sold first and ending inventory is made up of the goods bought last. LIFO method: The last-in, first-out (LIFO) method assumes that the latest purchased inventories are the first to be sold and ending inventory consists of goods purchased first. The average cost method: this method makes use of the weighted average cost to determine the value of goods sold and ending inventory.The balance sheet records ending inventory. In periods of rising prices, the FIFO method would result in inventory value closest to the current cost in the balance sheet.
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The following information comes from the accounting records for Chelsea, Inc., for May:
Direct materials inventory, May 1 $17,000
Direct materials inventory, May 31 15,200
Work-in-process inventory, May 1 9,500
Work-in-process inventory, May 31 5,300
Finished goods inventory, May 1 54,500
Finished goods inventory, May 31 72,100
Direct materials purchased during May 83,800
Direct labor costs, May 59,300
Manufacturing overhead, May 79,700
Required:
a. Compute the total prime costs for the month of May.
b. Compute the total conversion costs for the month of May.
c. Compute the total manufacturing costs for the month of May.
d. Compute the cost of goods manufactured for the month of May.
e. Compute the cost of goods sold for the month of May.
a. The total prime costs for the month of May can be calculated by adding the direct materials purchased during the month and the direct labor costs for the month. Thus, total prime costs for May are $83,800 + $59,300 = $143,100.
b. The total conversion costs for the month of May can be calculated by adding the direct labor costs for the month and the manufacturing overhead for the month. Thus, total conversion costs for May are $59,300 + $79,700 = $139,000.
c. The total manufacturing costs for the month of May can be calculated by adding the total direct materials used during the month to the total conversion costs for the month. To calculate the total direct materials used, we can subtract the direct materials inventory at the end of May from the sum of the direct materials inventory at the beginning of May and the direct materials purchased during May. Thus, total direct materials used for May are $17,000 + $83,800 - $15,200 = $85,600. Therefore, the total manufacturing costs for May are $85,600 + $139,000 = $224,600.
d. The cost of goods manufactured for the month of May can be calculated by adding the beginning work-in-process inventory for May to the total manufacturing costs for May and then subtracting the ending work-in-process inventory for May. Thus, cost of goods manufactured for May are $9,500 + $224,600 - $5,300 = $228,800.
e. The cost of goods sold for the month of May can be calculated by adding the beginning finished goods inventory for May to the cost of goods manufactured for May and then subtracting the ending finished goods inventory for May. Thus, cost of goods sold for May are $54,500 + $228,800 - $72,100 = $211,200.
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which region specializes in diamonds ; one way to measure economic growth is by using gdp, which stands for .; which is the best example of outsourcing?; the middle east is best associated with which internationally traded product?; which is the best example of a country that is dependent on other countries?; why does the u.s. import oil brainly
1 Botswana
2 offshore nearshore onshore
3 i don't know
4 I don't know
5 Due to the distribution of the refining sector in the United States, concentrated on the American coasts of the Gulf of Mexico, it is indeed more profitable to import specific products on the west coast of the country than on the East coast with more limited refining capacities
and sorry
If someone needs to withdraw $500/year for the next 10 years for household maintenance, how much should he put in now? Assume 5% interest rates.
The person would need to invest $4,024.69 now to be able to withdraw $500 per year for the next 10 years for household maintenance, assuming a 5% interest rate.
To calculate the present value of the required withdrawals, we can use the formula for the present value of an annuity:
PV = PMT x (1 - (1 + r)^-n) / r
where PV is the present value, PMT is the payment amount, r is the interest rate per period, and n is the number of periods.
In this case, PMT = $500, r = 5%, and n = 10 years.
Plugging these values into the formula, we get:
PV = $500 x (1 - (1 + 0.05)^-10) / 0.05
PV = $4,024.69
Therefore, the person would need to invest $4,024.69 now to be able to withdraw $500 per year for the next 10 years for household maintenance, assuming a 5% interest rate.
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if the actual price level is 165, but people had been expecting it to be 160, then
If the actual price level is 165, but people had been expecting it to be 160, then the actual price level has exceeded expectations. This difference could lead to economic consequences such as increased inflation, as the higher price level indicates that goods and services are generally more expensive than anticipated. Consumers and businesses may need to adjust their financial plans and strategies accordingly in response to the unexpected increase in the price level.
If the actual price level is 165, but people had been expecting it to be 160, it means that there has been a deviation from what was expected. This deviation could have different causes, such as changes in market conditions, unexpected events, or inaccurate forecasting. The difference between the actual price level and the expected price level is significant, as it can impact the behavior of buyers and sellers, the profitability of businesses, and the overall economic performance. If people were expecting a price level of 160, but the actual price is 165, this could result in lower demand, higher costs for businesses, and reduced economic activity. It is important to monitor these discrepancies and adjust strategies accordingly.
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1. Smart technologies may cause consumers to forfeit their privacy rights in legal proceedings. True False
2. As we incorporate more and more technology into myriad aspects of daily life , so too are we presented with a whole new set of legal questions that must be answered. True False
Smart technologies may cause consumers to forfeit their privacy rights in legal proceedings. True Smart technologies such as the Internet of Things (IoT), big data analytics, and artificial intelligence are increasingly penetrating almost every aspect of our lives.
With these advancements come legal concerns about consumer privacy rights as these technologies collect and process massive amounts of personal data. Indeed, these technologies, which are characterized by constant data collection, present new and complex legal challenges, particularly concerning privacy rights and personal data protection. As we incorporate more and more technology into myriad aspects of daily life, so too are we presented with a whole new set of legal questions that must be answered.
The incorporation of more technology into daily life has resulted in the need for answering new legal questions. Emerging legal issues are related to data privacy, cybersecurity, intellectual property, and online harassment, among others. Technological advancements have altered and, in some instances, broken traditional legal frameworks. Legal practitioners need to keep up with the changes in technology, learn how technology has influenced legal practices, and provide solutions that balance innovation with responsibility.
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Define the term unemployment and explain the relationship between unemployment and crime
Answer:
The term unemployment refers to a situation where a person actively searches for employment but is unable to find work.
an illegal act for which someone can be punished by the government. especially : a gross violation of law. : a grave offense especially against morality
Explanation:
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Changes in interest rates, holding other factors constant, cause a shift in Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a. neither the investment demand curve nor the aggregate demand curve. b the investment demand curve, but not the aggregate demand curve. с the aggregate demand curve, but not the investment demand curve. d the investment demand curve and the aggregate demand curve.
Changes in interest rates have an impact on both the investment demand curve and the aggregate demand curve. As interest rates increase, the cost of borrowing money increases, leading to a decrease in the level of investment demand. This means that businesses and individuals are less likely to invest in new projects or purchases, which leads to a leftward shift in the investment demand curve.
At the same time, higher interest rates lead to an increase in the cost of consumer borrowing, such as mortgages and loans. This reduces the level of consumption spending, which is a component of aggregate demand. As a result, the aggregate demand curve shifts leftward, indicating a decrease in the overall demand for goods and services in the economy.
Therefore, changes in interest rates have a significant impact on both the investment demand curve and the aggregate demand curve, as they affect the cost of borrowing money and the level of investment and consumption spending in the economy.
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The product of 59,736 and 600 is
A) 29,868,000
B) 34,761,600
C) 35,625,600
D) 35,841,600
Answer:
D) 35,841,600Explanation:
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Choose a real or made up example of a company, and describe at least three fixed costs the company has. (1-3 sentences. 1.5 points)
Answer:
Dominos also has many fixed costs. Some examples include rent, ovens, and refrigerators.
Explanation:
The fixed cost remains the fixed it never be changed.
Fixed cost;It is the cost that should be the same whether the production level increased or not. If we take an example of dominos, so here the fixed cost could be in form of rent, ovens, refrigerators. It is the part of the organization expense.learn more about the fixed cost here: https://brainly.com/question/2339078
Prepaid expenses require what type of adjusting entry? Question options: Matched Accumulated Accrued Deferral
Answer:
deferral
Explanation:
Adjusting entries are when changes are made to already recorded journal entries.
Categories of adjusting entries :
accrued revenuesaccrued expensesunearned revenuesprepaid expensesdepreciation.Prepaid expenses are payments made for services yet to be delivered.
For example, paying for a year's worth of subscription on your streaming service
Prepaid expenses is an example of deferred payment, so the adjustment should be a deferral
Merv is a bulldozer operator. He was hired by Carla to fill in a swampland on her property and they signed a contract for him to do it on March 1st. On February 28th, Merv is informed by a city official that the swampland Carla wanted filled in is protected wetlands and it would violate environmental law to do the job. If Merv then calls Carla telling her the deal is off and Carla threatens to sue for breach of contract, what result
If Merv calls Carla telling her the deal is off and Carla threatens to sue for breach of contract, the result is:
The contrails void, Carla losesWhat is a Contract?This refers to the legally binding agreement between two or more people about a particular request or work.
With this in mind, we can see that because Merv is hired by Carla to fill a swampland and he is later informed that the land is in protected wetlands, this makes the contract void and Carla loses because it is not of the doing of Merv.
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what concept does the balance sheet really explain, based on the information contained in it?
The concept that is been explained by balance sheet as regards the information in it is that it provide the summary of all of the firm business assets.
Balance sheets can be regarded as business tools that gives all the rates of return for investors as well as evaluation of a firms capital structure. It can be explained as financial statement which gives that snapshot of what is been owed and owned by a company, also the total funds that the shareholders invested.
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help me please
A _____ is when the government may provide money to banks that are having troubke in order to help them recover.
A. rescue
B. bail-out
C. takeover
D. investment
Answer:
The correct answer is B. Bail-out.
Explanation:
Rottino Company purchased a new machine on October 1, 2022, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for 10,000 working hours during its 5-year life. (a) Compute the depreciation expense under straight-line method for 2022. 2022 Depreciation expense
The depreciation expense under the straight-line method for 2022, assuming the machine was used for 1,500 working hours in that year is $20,700.
The depreciation expense under the straight-line method for 2022 can be calculated by using the formula:
Depreciation expense = (Cost - Salvage value) / Useful life
In this case, the cost of the machine is $150,000 and the salvage value is $12,000. The useful life of the machine is 5 years, which is equivalent to 10,000 working hours.
To calculate the depreciation expense for 2022, we need to determine the number of working hours the machine will be used in that year. Since the machine was purchased on October 1, 2022, we can assume it was used for a portion of the year. Let's assume for this example that it was used for 3 months or 1,500 working hours in 2022.
Using the formula mentioned earlier, the depreciation expense for 2022 can be calculated as follows:
Depreciation expense = ($150,000 - $12,000) / 10,000 working hours per year * 1,500 working hours in 2022
Depreciation expense = $138,000 / 10,000 working hours per year * 1,500 working hours in 2022
Depreciation expense = $20,700
Therefore, the depreciation expense under the straight-line method for 2022 is $20,700.
To summarize, the depreciation expense under the straight-line method for 2022 can be calculated by subtracting the salvage value from the cost of the machine and dividing it by the useful life. In this case, the depreciation expense for 2022 is $20,700, assuming the machine was used for 1,500 working hours in that year.
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why is Africa called plateaus of plateu?
Answer:
Africa is called the plateau continent because almost the entire continent is raised above sea level and drops sharply off at the coast.
Explanation:
sana makatulong ❤❤
Answer:
continent because almost the entire continent is raised above sea level and drops sharply off at the coast.
Explanation:
SRC Refrigeration Company manufactures and sells refrigerator display units for flowers. A salesperson for the company is calling on a large supermarket chain to try to interest them in SRC's new refrigeration unit. The salesperson has set as his sales call objective to replace all refrigeration units in the 235-store chain with SRC units. This sales call objective would be an example of a(n) ______________ call objective. Question 48 options: optimistic minimum primary crazy inspirational
Answer:
A. optimistic
Explanation:
A. optimistic
B. minimum
C. primary
D. secondary
E. basic
Minimum call objective can be regarded as basic business purpose which is a case that ones sales person needed to achieve so that the call can be successful. And the optimistic call objective can be regarded as optimistic outcome that sales person could think of in given sales.
Which example is the best demonstration of initiative?
A. You don’t complain about the heavy workload you’ve been assigned.
b. You offer to take on some extra work when a coworker is out sick.
c. You agree to stay late to finish your work because you took a long lunch.
d. You always think carefully about a bad situation before proposing a solution.
Answer:
B
Explanation:
initiative isn't something we need to do but rather want to for someone or yourself, maybe to help.
Answer:
bbbbbbbbbbb
Explanation:
Eager, a tipped employee, reported to his employer that he had received $320 in tips during March. On the next payday, April 4, he was paid his regular salary of $250. The amount of OASDI taxes to withhold from Eager’s pay is a. $19.84 b. $15.50 c. $35.34 d. $43.61 e. None of the above. 2 points
Answer:
Amount of OASDI taxes to withhold = $35.34
Explanation:
Find:
Amount received in march = $320
Amount of salary = $250
Find:
Amount of OASDI taxes to withhold .
Computation:
OASDI tax rate = 6.2%
Total amount = Amount received in march + Amount of salary
Total amount = $320 + $250
Total amount = $570
Amount of OASDI taxes to withhold = Total amount × OASDI tax rate
Amount of OASDI taxes to withhold = $570 × 6.2%
Amount of OASDI taxes to withhold = $35.34
when looking for growth opportunities through diversification analysis, the term market penetration refers to the strategy of:
The answer is selling more of one's current product in current markets, the term market penetration refers to the strategy of selling more of one's current product in current markets.
What is a market, exactly?Definition: The entire number of buyers and sellers in the area or region under consideration is the market. The region might be the entire planet, or it could be made up of several nations, states, or cities. A market's supply and demand factors determine the worth, cost, and price of the goods sold.
The significance of market definitionIn the analysis of mergers and the majority of antitrust proceedings, market definition is a crucial initial step. It does so by establishing the parameters of corporate rivalry.
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One thing that the federal government pays for with your tax dollars is O A. defense O B. food O C. cigarettes D. property
Answer:
A
Explanation: