master onion corporation has a target capital structure of 30 percent common stock, 4 percent preferred stock, and 66 percent debt. its cost of equity is 18 percent, the cost of preferred stock is 6.5 percent, and the pre-tax cost of debt is 8.5 percent. what is the firm's wacc given a tax rate of 21 percent?
Answers
The firm's WACC is 6.7% for such a specified tax rate of 21%, according to the stated statement.
What does "debt" mean?Debt may be defined as the sum that the borrower owes the lender. A debt is an amount of money that has been borrowed for a set time period and must be repaid, plus interest. The borrower's creditworthiness affects both the debt's size and its acceptance.
Briefing:Given,
Ke = Cost of equity (18%)
Kp = Cost of preferred Stock (4%)
Kd = Pre Tax Cost of debt (8.5%)
Wk = weight of equity (30%)
Wp = weight of preferred Stock (4%)
Wd = weight of debt (66%)
t = Tax rate (21%)
WACC = (Cost of equity*weight of equity) + (Cost of preferred Stock * weight of preferred Stock) + (Pre Tax Cost of debt*(1-Tax rate)*weight of debt)
WACC = (0.18*0.30) + (0.04 * 0.04) + (0.085*(1-0.21)*0.66)
WACC = (0.18*0.30) + (0.04 * 0.04) + (0.06*0.79*0.25)
WACC = 0.054 + 0.0016 + 0.01185
WACC = 0.06745
WACC = 0.067
WACC = 6.7%
Therefore, with a specific tax rate of 21%, the company's WACC is 6.7%.
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Related Questions
Vehicle manufacturers and mechanics suggest that an oil change is done at least ... A. every two months or 2,000 miles. B. every three months or 3,000 miles. C. every six months of 6,000 miles. Vehicle manufacturers and mechanics suggest that an oil change is done at least ... A. every two months or 2,000 miles . B. every three months or 3,000 miles . C. every six months of 6,000 miles .
Answers
Vehicle manufacturers and mechanics suggest that an oil change is done at least B. B. every three months or 3,000 miles.
What is Car Maintenance?This refers to the care that is given to a car or vehicle that contains an engine so it can continue to perform optimally.
Hence, we can see that based on the recommendations of mechanics and vehicle manufacturers, they believe that an oil change is necessary every 3 months or 3k miles.
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The pre-approved amount of money that a bank is willing to lend a credit card holder is the credit __________. A. Balance B. Rating C. History D. Limit
Answers
Answer:
Limit
Explanation:
Answer:
D. Limit
Explanation:
Type the correct answer in the box. Spell all words correctly.
Ideally, what should more than one member of the family contribute to for a better financial position?
A family can have more than one person contributing to the household _______
for a better financial position.
Answers
A family can have more than one person contributing to the household income for a better financial position.
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♥️ \(\large{\underline{\textcolor{red}{\mathcal{SUMIT\:\:ROY\:\:(:\:\:}}}}\)
a local theater company sells 1,250 season ticket packages at a price of $280 per package. the first show in the 10-show season starts this week. (a) the sale of the season tickets before the first show. (b) the revenue from fulfilling the performance obligation by putting on the first show.
Answers
(a) The sale of the season tickets before the first show generated $350,000 in revenue. (b) The revenue from fulfilling the performance obligation by putting on the first show is $35,000.
(a) The sale of the season tickets before the first show:
The local theater company sells 1,250 season ticket packages at a price of $280 per package. To calculate the total sales revenue from the season ticket packages, we need to multiply the number of packages sold by the price per package.
Total sales revenue = Number of packages sold × Price per package
Total sales revenue = 1,250 × $280
Total sales revenue = $350,000
So, the sale of the season tickets before the first show generated $350,000 in revenue.
(b) The revenue from fulfilling the performance obligation by putting on the first show:
Since there are 10 shows in the season, we need to divide the total sales revenue by the number of shows to find the revenue generated from each show.
Revenue per show = Total sales revenue / Number of shows
Revenue per show = $350,000 / 10
Revenue per show = $35,000
Therefore, the revenue from fulfilling the performance obligation by putting on the first show is $35,000.
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Third-party logistics companies sell logistics solutions and physical products. true or false
Answers
False. Third-party logistics companies (3PLs) do not sell physical products. They provide logistics solutions, such as warehousing, transportation, and order fulfillment.
3PLs can help business to improve their supply chain efficiency and reduce costs.
Here are some of the services that 3PLs offer:
* Warehousing: 3PLs can provide warehouse space for businesses to store their products. 3PLs can also handle the picking, packing, and shipping of products. * Transportation: 3PLs can arrange for the transportation of products from the manufacturer to the customer. 3PLs can use a variety of transportation methods, such as trucks, trains, and airplanes.
* Order fulfillment: 3PLs can handle the order fulfillment process for businesses. This includes receiving orders, picking and packing products, and shipping products to customers.
3PLs can be a valuable asset for businesses that are looking to improve their supply chain efficiency and reduce costs. 3PLs have the expertise and experience to manage the logistics process effectively. This can free up businesses to focus on their core competencies.
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3 Prepare an income statement for Jones Co. for the year ending December 31, 2018, using the following data.
Cash 8,000
Miscellaneous Expense 100
Wages Expense 150
Rent Expense 200
Fees Earned 11,000
Office Expense 200
Accounts Payable 3,000
Answers
The net income for Jones Co in 2018 equals $18,350.
What is income statement?The financial statement shows a company's revenues, expenses and profitability over a period of time. Its computes the revenue from selling products or services and expenses to generate the revenue and manage your business.
The income statement for the year ending December 31, 2018 is prepared as follows:
Income Statement
Revenue
Cash 8,000
Fees Earned 11,000
19,000
Expenses
Miscellaneous Expense 100
Wages Expense 150
Rent Expense 200
Office Expense 200 650
Net Income $18,350
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Money
Type of
Account
Description
Description
Typical
Interest Rate
Typically
Minimum
Balance
Add to
balance
regularly?
Is it FDIC
insured?
Write
checks/
pay bills
directly?
stuck for
a set
time?
Traditional
Savings
Account
Online
Savings
Account
Certificate
of Deposit
I
Money
Market
Account
Answers
Answer:
you put which place the name goes under like if u had ur own bank account
Answer:
I have that same assignment. Went looking at the answers and its not even nothing there.
Explanation:
A company makes an investment in a new product costing $574,000 and is expected to have a service life of 10 years.
If it is expect to generate the following profits:
1- $175K, 2 - $185K, 3- $125K, 4- $125K, 5- $140K 6- $220K, 7-10 $150K
and the project is evaluated at a rate of 4%,
What is the present value of the project & the annual equivalent?
A.PV AE$622,670 $56,710
B.PV AE
$639,315 $78,822
C. None of These
D. PV AE
$702, 540 $86, 617
E.PV AE
$732,540 $66, 617
Answers
The company's decision to invest in a new product for $574,000 is a significant investment. However, the expected 10-year service life of the product can provide significant returns.
The company needs to consider the product's potential revenue, the cost of production, and other expenses to determine its profitability. The calculation of E.P.V. (expected present value) and AE (annual equivalent) can help the company determine the product's financial viability.
The E.P.V. of $732,540 and AE of $66,617 show that the investment is expected to generate a positive return. The company needs to carefully monitor the product's performance and expenses to ensure that it remains profitable throughout its service life.
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The growers of Sunny Day Citrus have determined that their chief priority for choosing a transportation mode within the United States is achieving a quick transit time (lowest). However, due to low margins, low cost and the highest level reliability must also be taken into consideration. In light of these considerations, Sunny Day Citrus should use _____ to ship their oranges.
Answers
Answer:
Rail transportation
Explanation:
Considering the situation described above in the questions, Sunny Day Citrus should use RAIL TRANSPORTATION to ship their oranges.
There are basically four means of shipping goods, these include road, maritime, rail, and air shipment.
However, considering the need to achieve quick transit time, low margins, low cost, and the highest level of reliability the best means of use is RAIL TRANSPORTATION.
This is because while Air shipment is the fastest, it is the most expensive. Also, the Maritime or Ship may be the lowest in terms of cost, but since it is within the United States, it would be relatively expensive compared to rail and also is the slowest in terms of transit time.
Similarly, the road may be faster and relatively cheaper compared to air, but not as cheaper compared to the rail in a long distance.
Rail transportation offers cheaper, low margins, reliability as it is difficult to have accidents and robbery of such commodities inside the train. It is also quite faster compared to ship.
Hence, in this case, the right answer is RAIL TRANSPORTATION
If a company mistakenly counts less items during a physical inventory than actually exist, how will the error affect the cost of merchandise sold?.
Answers
The error will be declared as overstated.
What is overstated?
If an account or a figure on an account is inflated, the amount represented on the financial statement will be more than it should be.
Auditors will question the board of directors of the corporation to explain why non-current assets in the accounts were exaggerated and not represented at their recoverable amount.
Preproduction expenses for the fiscal year 2010 were inflated by almost $4 million, totaling $55.4 million.
If an account or a figure on an account is inflated, the amount represented on the financial statement will be more than it should be.
The phrase "overstated" has two meanings when used by an accountant:
1. The reported sum is inaccurate, and
2. The amount that was reported exceeds what is true or accurate.
Another account will also have an inaccurate balance in a double-entry accounting or bookkeeping system.
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If a company mistakenly counts less items during a physical inventory than actually exist, how will the error affect the cost of merchandise sold?
A company regularly purchases cleaning supplies from a vendor and orders relatively consistent amounts of the same products on each purchase from the same vendor. This is an example of a(n) ________.
Answers
The answer is straight rebuy.
A straight rebuy is when a client buys the same items in the same amount and on the same conditions from the same supplier.
It refers to a corporate purchasing situation in which the buyer reorders something without making any changes. The buying department normally handles it on a regular basis. "In" providers strive to maintain product and service quality in order to retain business. "Out" providers seek innovative methods to add value or exploit unhappiness in order to get the consumer to consider them.
Therefore, the answer is straight rebuy.
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Threadless (Strategy Highlight 5.2.) is a community-centered online apparel store that leverages user-generated content. The idea is to turn consumers into prosumers, a hybrid between producers and consumers. Members of the Threadless community do most of the work, which they consider fun: They submit T-shirt designs online, and community members vote on which designs they like best. The designs receiving the most votes are put in production, printed, and sold online. It can be said that Threadless uses the _____ technique.
Answers
Answer: Crowdsourcing Technique
Explanation:
The crowdsourcing technique is a technique that seeks information, opinions and ideas from a group of people who belong to a particular target market.
Like the name implies, it is usually done by engaging a “crowd” to source for ideas, and information for a particular project or goal.
Crowdsourcing aims to reduce cost while gaining insight into the intelligence and creativity of the target market.
Like the Threadless community, the target market may be unaware of the work they are putting in but they get the desired product at the end so they see crowdsourcing as fun and satisfying.
discuss the impact of discriminating behaviour the individual and society
Answers
Discriminating behaviour has the following impact on the individual and society:
It can lead to conflict and unrest in the society.It can lead to low self esteem and depression.What is discrimination?
Discrimination is when a person is treated unfairly and differently from other people based on age, gender, religion or race. For example, a person of colour might be denied entry into a restaurant based on her skin colour.
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At December 31,2021, Nash Company had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2022, Nash wrote off accounts totaling $11,000. One of those accounts of $1,500 was later collected. At December 31,2022 , an aging schedule indicated that the balance in Allowance for Doubtful Accounts should be $22,000. Prepare journal entries to record the 2022 transactions of Nash Company. (Credit account titles are outomatically indented when amount is entered. Do not indent manually)
Answers
To record the 2022 transactions of Nash Company, the following journal entries should be made:
1. To write off accounts totaling $11,000:
Date: December 31, 2022
Bad Debt Expense $11,000
Allowance for Doubtful Accounts $11,000
2. To reinstate the collected account of $1,500:
Date: December 31, 2022
Allowance for Doubtful Accounts $1,500
Accounts Receivable $1,500
3. To adjust the Allowance for Doubtful Accounts to the desired balance of $22,000:
Date: December 31, 2022
Bad Debt Expense $8,500
Allowance for Doubtful Accounts $8,500
Explanation:
The first journal entry records the write-off of accounts totaling $11,000. This reduces the allowance for doubtful accounts and recognizes the corresponding expense.
The second entry reinstates the collected account of $1,500, reversing the previous write-off by increasing both the allowance for doubtful accounts and accounts receivable.
Lastly, the third entry adjusts the allowance for doubtful accounts to the desired balance of $22,000. The difference of $8,500 reflects the adjustment needed to reach the target amount. The Bad Debt Expense account is increased, which reduces the company's net income. The Allowance for Doubtful Accounts is also increased to match the desired balance.
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Net Purchases + Purchases Returns and Allowances + Purchase Discounts equals:
O A. Gross Profit.
OB. Gross Purchases.
O C. Net Income.
OD. Net Loss.
Answers
Answer:
OB. Gross Purchases.
Explanation:
Gross purchases represent all the purchases a business made in a particular period. It includes returns outwards ( purchases returns), discounts and allowances received.
Net purchases are calculated by subtracting purchase returns, discounts received, and allowances from gross purchases.
Therefore, Net Purchases + Purchases Returns and Allowances + Purchase Discounts= gross purchases.
How much is it to start a buissness?
Answers
Answer:the average cot to start a business is 30,000
Explanation:
The application of scientific knowledge to the development and improvement of goods and services is generally referred to as ______. Multiple choice question. technology information production
Answers
Answer:
Technology.
Explanation:
As the definition is seen above, these qualities are directed towards technology. Technology has advanced produce and sales of goods and services a lot. It shows itself in fastening and making production easier. And also in different other forms that come as advertising, E-commerce, communication etc. Orders of certain goods are been sent thousands miles away from the producing country and are seen to be received safe and sound at the other end of the purchase country. Also adverts can be seen of a Chinese product in far away Africa through television commercials and also internet.
___ requrements are courses that build knowledge and skills in a specific field.
A. major
B. general studies
C. specialization
D. elective
Answers
D. elective requrement are courses that build knowledge and skills in a specific field
A sector is a diversified group of companies.
True or False
Answers
Explanation:
A diversified company is a type of company that has multiple unrelated businesses or products. A company may decide to diversify its activities by expanding into markets or products that are related to its current business.
For example, an auto company may diversify by adding a new car model or by expanding into a related market like trucks.
Diversified Industries covers a wide range of sub-sectors including Automotive, Transport & Logistics, Building Materials & Construction, Capital Goods, Business Services, Metals and Oil Field Services. Even the way industrial products are developed, manufactured and commercialized is changing. I would say the answer is True
When you are in the good to excellent credit score range, you are likely going to get a better interest rate.
True
False
Answers
Answer:
True
Explanation:
q9: you produce widgets. currently you produce 4 widgets at a total cost of $40. suppose you could produce one more widget (the fifth) at a marginal cost of $5. if you do produce that fifth widget, what will your average total cost be? has your average total cost increased or decreased?
Answers
$10 per widget is the average total cost.
What is marginal cost?
The marginal cost in economics is the difference between the total production costs brought on by developing or producing an additional unit. Divide the variation in manufacturing costs by the variation in quantity to determine marginal cost. Finding the point at which an organization can realize economies of scale to production & overall operations is the goal of marginal cost analysis. The producer may make money if the marginal cost of making one extra unit is less than the price per unit.
The sum of the costs incurred in producing an extra good is referred to as the "marginal cost." It can therefore be evaluated by changes in the costs associated with each additional unit. Manufacturers commonly employ the marginal cost concept from managerial accounting and economics to establish the appropriate level. A cost increase of one unit in manufacturing volume is something that manufacturers routinely think about.
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Table 1 contains information about the number of new business start-ups in four cities in the UK in 2016.
Using the information in Table 1, calculate, to 2 decimal places, the number of new start-ups in Birmingham as a percentage of the number of new start-ups in London. You are advised to show your workings.
Answers
The number of start-ups in Birningham as a percentage of the start-ups in London is 8.51%.
What are percentages?
Percentage is a measure of frequency. It is the fraction of an amount that is usually expressed as a number out of hundred. The sign used to represent percentages is %.
The number of start-ups in Birningham as a percentage of the start-ups in London = (17473 / 205320) x 100 = 8.51%
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*Hi my name starts with J so please choose the country to compare with Singapore stating with letter J*
NOTE: Please dont take answer from coursehero.
You are given a task to make a report on the electrical power generation of a country of your choice and compare it against Singapore's power generation. Each student is expected to select a different country for this assignment. The country that you select must start with the first letter of your first name (For example if your first name is Mary then you choose a country name that starts with the letter M ( for example Malaysia)).
You can obtain and review information from authoritative and reliable websites such as IEEE, IET, International Energy Agency, and Electricity Authorities of various countries.
You are encouraged to use the following sectional headings in your report.
1. Introduction
Provide a brief description of background information of the Electrical Power System of Singapore and the chosen country.
2. Electricity Generation Mix
Obtain the latest information about the Electricity Generation Mix, Installed Capacity, maximum demand, and reserve margin from a reliable source(s) and present it in the form of graphs/charts for Singapore and the chosen country. Provide analysis and description of electricity generation mix of the selected country and make a comparison between the 2 countries.
3. Renewable Energy
Obtain latest information about types of renewable energy and the contribution by renewable energy in electricity generation and present it in the form graph/chart for both countries.
What are future plans of both countries in respect of renewable energy (present it in the form graph/chart)? Provide your comments and observations.
4. Summary and Conclusions
Observations and conclusions, you can draw from this study. Your suggestions and recommendations for any improvements.
Answers
The electrical power system refers to the set of technologies, equipment, and facilities required to generate, transmit, distribute, and deliver electricity to consumers. Provide a brief description of the electrical power system in Singapore and the chosen country.
Section 2: Electricity Generation Mix Obtain the latest information about the electricity generation mix, installed capacity, maximum demand, and reserve margin from a reliable source(s) and present it in the form of graphs/charts for Singapore and the chosen country. Provide analysis and description of electricity generation mix of the selected country and make a comparison between the two countries.
In this section, you should analyze the electricity generation mix of both countries. Electricity generation mix refers to the types of energy sources used to generate electricity, such as coal, natural gas, nuclear, hydro, wind, solar, and others. Present the data in the form of graphs and charts and analyze the differences and similarities between the two countries.
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one qualifier to _____________ is that although it may settle the surface problem, it may not solve any ongoing problem.
Answers
one qualifier to mediation is that although it may settle the surface problem, it may not solve any ongoing problem.
What is mediation?Mediation can be regarded as procedure that is used by parties in solving their disputes.
Therefore, one qualifier to mediation is that although it may settle the surface problem.
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What is the main purpose of the operation bank?
Answers
Answer:
what even is a operation bank
Explanation:
hehe
If you are interviewed by more than one person, you should send a thank-you note to _____.
each person in the interview
each person you see in the building
the first person you are introduced to
the person who is obviously leading the interview
Answers
Answer:
option A is correct.
i.e.
each person in the interview.
Explanation:
Because thank-you letter provides a simple but effective way to express gratitude to all the individuals you met with.
when choosing a career, having set goals is the most important consideration.
true or false
Answers
Answer:
yes of course
Explanation:
you need to have some ides of what you wanna do if youre choosing a career
Answer:
yes
Explanation:
What is the difference between being financially dependent and being financially independent?
Answers
Answer:
Being financially dependent means that you depend on the government to help you and being independent means that you are depending on the money you make from work.
Explanation
i know a little about business hope this helps
On January 1, 2022, $16,000 is deposited into an account. Assume that the account is expected to earn interest at an annual rate (r) of 8%.
a. Calculate the amount that would accumulate on January 1, 2027, if interest is compounded annually (i.e., what is the expected future value of the $16,000 investment as of January 1, 2027)?
b. How would your answer differ if interest was instead compounded semi-annually (twice per year)? Compute the new future value.
Answers
a. To calculate the future value of the $16,000 investment compounded annually over a period of 5 years, we can use the formula for compound interest:
Future Value = Principal * (1 + Interest Rate)^n
Where:
Principal = $16,000
Interest Rate = 8% = 0.08
n = number of compounding periods = 5 years
Plugging in the values, we get:
Future Value = $16,000 * (1 + 0.08)^5
Future Value = $16,000 * (1.08)^5
Future Value = $16,000 * 1.46933
Future Value = $23,509.28
Therefore, the expected future value of the $16,000 investment as of January 1, 2027, when compounded annually, would be approximately $23,509.28.
b. If the interest is compounded semi-annually, we need to adjust the formula slightly. Since interest is compounded twice per year, the interest rate needs to be divided by 2 and the number of compounding periods is doubled.
Interest Rate (semi-annual) = 8% / 2 = 4% = 0.04
n (semi-annual) = 5 years * 2 = 10 semi-annual periods
Using the adjusted values in the formula, we have:
Future Value (semi-annual) = $16,000 * (1 + 0.04)^10
Future Value (semi-annual) = $16,000 * (1.04)^10
Future Value (semi-annual) = $16,000 * 1.488864
Future Value (semi-annual) = $23,821.82
Therefore, the expected future value of the $16,000 investment as of January 1, 2027, when compounded semi-annually, would be approximately $23,821.82.
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owner, andy pforzheimer, holds a meeting with his employees in which they discuss food costs. during this meeting, andy is performing the _____ function of his job.
Answers
Owner, andy Pforzheim, holds a meeting with his employees in which they discuss food costs. during this meeting, and is performing the controlling function of his job.
What is a meeting?
The goal of this meeting is to ensure that all parties are aware of how a project is progressing. A discussion aim is a short sentence that sums up the intended result of the gathering. Its main objective is to set individuals up with sights for them to engage jointly.
The planning, organizing, guiding and supervising of staff actions in conjunction with certain other resources in order to attain organizational goals.
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