General Talc Mines has compiled the following data regarding the marker value and cost of the specific sources of capital. Market price per share of common stock-$50. Market value of long-term debt-$980 per bond.
The weighted average cost of capital using market value weights is: ________.
A- 11.7%
B- 13.5%
C- 15.8%
D- 17.5%
E- 14.4%
Answers
Answer:
D- 17.5%
Explanation:
Hi your question was incomplete see the attached full question as an image
The Average Cost of Capital is the return that is required by providers of Long term Permanent Sources of Finance
WACC = 8% × 0.05 + 19% × 0.95
= 18 %
Related Questions
Your company, Cool Stuff Incorporated, makes air conditioners (AC) and fans. Each AC makes $25 profit per unit and each fan makes $15 profit per unit. Each AC needs 3 hours of assembly and 2 hours for painting. Each fan requires 2 hours of assembly and 1 hour of painting. Each week you have 240 hours of assembly and 140 hours of painting available. a. How many ACs and fans should you make to maximize profit
Answers
Answer:
In order to maximize our profit we make 40 AC's and 60 Fan's and the profit earned will be $1900.
Explanation:
This question is from Linear programming and will be solved using its methods.
Let
x = No of Air conditioner
y = No of fans
we need to maximize our profit
Z= 25x +15y
we have the constraints
3x+2y [tex]\leq[/tex] 240 ( For assembling AC and Fan)
2x + y [tex]\leq[/tex] 140 ( For painting AC and Fan)
x , y [tex]\geq[/tex] 0
We get an intersection at the point (40, 60)
Z = 25x + 15y
= 25*40 + 15*60
= 1000 + 900
Z= $1900
Therefore we need to make 40 AC's and 60 Fan's in order to maximize our profit. The profit from making 40 AC's and 60 Fan's will be $1900.
An oligopolist will increase production if the output effect is:_____.
a. less than the price effect.
b. equal to the price effect.
c. greater than the price effect.
d. The oligopolist never has an incentive to increase production.
Answers
Answer:
c. greater than the price effect.
Explanation:
The output effect represents higher revenue due to a larger quantity supplied, while the price effect results in lower revenue due to an decrease in price resulting from an increase in quantity supplied. As the quantity supplied increases, the equilibrium price decreases. A firm will sell more units if the output effect is higher and offsets the price effect.
What is the standard deviation of a stock that has a 10% chance of earning 18%, a 10% chance of making 11%, a 40% chance of making 5%, and a 40% chance of making 22%?
A. 7.95%.
B. 13.70%.
C. 7.78%.
D. 13.05%.
Answers
Answer:
A. 7.95%.
Explanation:
Calculate the expected rate of return for the investment as follows:
[tex]\begin{aligned}
\text { Expected rate of return } &=(\text { Probability } \times \text { Rate of return })+(\text { Probability } \times \text { Rate of return })+\\
&(\text { Probability } \times \text { Rate of retum }) \\
=&(0.40 \times 15 \%)+(0.50 \times 10 \%)+(0.10 \times-3 \%) \\
=& 0.06+0.05-0.003 \\
=& 0.107[/tex]
Calculate the standard deviation of the investment as follows:
[tex]\begin{aligned}
\text { Standard deviation }=&\left\{\begin{array}{l}
\text { Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\
\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\
\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)
\end{array}\right.[/tex]
=[tex]\sqrt{\left(0.40 \times(0.15-0.107)^{2}\right)+\left(0.50 \times(0.10-0.107)^{2}\right)+} \\
=\sqrt{0.0007396+0.0000245+0.0018769} \\
=\sqrt{0.002641} \\
=0.05139066063011[/tex]
When existing products are given superficial changes and marketed as new to maximize profits is referred to as
Answers
Answer:
planned obsolescence
Explanation:
Planned obsolescence is a marketing strategy that focuses on deliberately launching new versions of existing products that are only slightly changed, but they make the existing product obsolete. The most common example are minor changes in cars made every year that make them the new version, while major changes only occur every 5 or 6 years. Another example is using irreplaceable batteries in smartphones, tablets or notebooks. Once the batteries start to fail, you have to replace the whole product.
Marin Company's accounts receivable arising from sales to customers amounted to $131000 and $114000 at the beginning and end of the year, respectively. Income reported on the income statement for the year was $498000. Exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is
Answers
Answer:
$481,000
Explanation:
To determine the cash flows from operating activities, the net Income for the year must be adjusted by non - cash items and changes in working capital items.
Therefore, given a decrease in Accounts Receivable $17,000 ($131000 - $114000) . Then the cash flows from operating activities to be reported on the statement of cash flows is $481,000 ($498000 - $17,000) .
Jill Green has w-2 wages of $165,000. Her employer withheld medicare taxes at 1.45% of her W-2 amount. Her husband, Bill Green, has w-2 wages of $97,000. His employer withheld medicare taxes at 1.45% of his W-2 wages. They file a joint tax return.
Determine what amount, if any, is the additional high wage surtax that will be computed on their tax filing.
Answers
Answer:
Jill Green and Bill Green
The additional high wage surtax for the joint filers is
$108.
Explanation:
Medicare tax rate = 1.45%
Surtax rate = 0.9%
Jill Green's w-2 wages = $165,000
Bill Green's w-2 wages = 97,000
W-2 wages for couple = $262,000
Threshold for joint filers = 250,000
Excess w-2 wages = $12,000
Additional high wage surtax = $12,000 * 0.9% = $108
b) Jill and Bill Green, who are filing jointly, are expected to pay an additional Medicare tax of 0.9% on their W-2 income in excess of $250,000. The Additional Medicare Tax (AMT) on Wages is imposed on employees only. Employers match the regular Medicare tax of 1.45%. Medicare wages are reported on Form W-2 and are usually based on an employee's total wages for the year less certain benefit deductions, such as medical and dental insurance premiums, health savings accounts, and contributions to dependent care flexible spending arrangements.
According to the Five Forces Model,___________ are the five competitive forces that determine the level of competition and profitability in an industry.
a. rivals, buyers, suppliers, substitutes, and potential entrants
b. rivals, consumers, labor, weather, and government
c. buyers, suppliers, government, foreign competition, and weather
d. None of the above is correct.
Answers
Answer:
a. rivals, buyers, suppliers, substitutes, and potential entrants
Explanation:
Porter's Five Forces model can be regarded as the framework used in analysis of compititive environment of a company/firm. It helps to know the power of the compititive rival of the firm, the influence of products that are substitute of the product of company on the company as so on. It should be noted that According to the Five Forces Model;rivals, buyers, suppliers, substitutes, and potential entrants are the five competitive forces that determine the level of competition and profitability in an industry.
If a business has an internalization advantage, it is more likely to
a. engage in contract manufacturing
b. own a resource that gives it a competitive advantage over its rivals
c. face the liability of foreignness
d. use FDI as a market-entry strategy
Answers
Answer:
D
Explanation:
The internalization theory suggests that a firm would engage in foreign direct investment when it has an internalization advantage.
The internalization advantages include :
technical know-howgoodwillgood managementForeign direct investment can be described as when a company or an individual invests in a business located in another country.
Discretionary costs have two important features. The first feature arises from periodic decisions regarding the maximum amount to be incurred. The second feature is it has no measurable cause-and-effect relationship between output and ________.
a. resources available
b. discrete differences in sales volume
c. market costs
d. resources used
Answers
Answer:
d. resources used
Explanation:
Discretionary cost is simply a cost derived from discretionary expenses. It is the cost with which a business or household can do withoit. Discretionary expenses are usually nonessential spending in nature as it is usually wants rather than needs. , Discretionary are simply non-essential expenses. They are expenses for things we don't need e.g eating out, gifts and others.
Kellogg Co. (K) recently earned a profit of $2.22 earnings per share and has a P/E ratio of 19.35. The dividend has been growing at a 6 percent rate over the past few years. If this growth rate continues.
Required:
a. What would be the stock price in four years if the P/E ratio remained unchanged?
b. What would the price be if the P/E ratio declined to 16 in four years?
Answers
Answer and Explanation:
The computation is shown below:
The following formula should be used
= P/E ratio × EPS × (1 + growth rate)^n umber of years
a. The stock price in four years is
= $19.35 × $2.22 × (1 + .06)^4
= $54.23
b. The stock price in four years in the case when the P/E ratio fall to 16
= $16 × $2.22 × (1 + .06)^4
= $44.84
We simply applied the above formula so that the correct price could come
And, the same is to be considered
The amount of cash that remains after deducting the funds a company must commit to continue operating at its planned level is called:
Answers
Answer:
free cash flows
Explanation:
In order to calculate a company's free cash flow, we can use the following formula:
free cash flow = net income + non-cash expenses (depreciation and amortization) - increase in net working capital - capital expenditures (investing activities)
free cash flows differ from net income, but they are generally more relevant for financial analysis since cash is king an no company can survive without cash even if its profits are huge.
A plant utilizes 4 full time workers and 1 part time (half time) worker in one 8 hours shift and produces 150 parts in that shift. What is the labor productivity?
a. 3.5 parts per hour
b. 5.3 parts per hour
c. 2.17 parts per hour
d. 4.17 parts per hour
Answers
Answer: d. 4.17 parts per hour
Explanation:
There are 4 fulltime workers and 1 halftime worker working in 8 hour shifts.
= 4 workers * 8 hours
= 32 hours
Halftime worker = 8/2 = 4 hours
Total hours = 32 + 4 = 36 hours
Labor productivity = Quantity produced/Hours
= 150/36
= 4.17 parts per hours
Marketing is all of the activities used to exchange goods and services between businesses and consumers.
true
false
Answers
Answer: True
Explanation:
Thoroughly and completely explain Invention ii. Distinguish between invention as a process and invention as a result and give 2 examples of each. iii. We live on a planet with finite resources which makes continued economic growth difficult to maintain. Please explain how invention as a process and invention as a result might be impacted by a slow growth /no growth economy. iv. What can we do about this problem
Answers
With the exception of malpractice, liability for torts committed by others in a firm cannot be imposed on the shareholders of
Answers
Answer:
A Professional Corporation.
Explanation:
What are the three basic types business organizations? *
O Sole Proprietors, Non Profits and Cooperatives
O Corporations, Cooperatives and Franchise
O Sole Proprietorships, Partnership and Cooperative
O Sole Proprietorships, Partnership and Corporation
Answers
Answer:
Sole Proprietorships, Partnership and Corporation
Explanation:
Sole proprietorships businesses are the most common and simple type of business ownership. They are owned by one person. Legally, the business and the person are considered as a single entity. The owner enjoys all the profits by themselves and suffers the losses alone.
Partnerships require two or more individuals to combine their resources, time, and effort in creating a business. Partnerships are mostly started by friends or family members with similar business objectives. A partnership is easy to forms. The firm passes its income as the income of partners.
A corporation requires the preparation of some legal documents to register. A corporation is considered a distinct entity from its owners. It enjoys commercial rights to own assets, incur expenses and liabilities, sue and be sued, and pay its tax obligations. A corporation is suited for large businesses.
Metro Corporation will spend $1 million for special manufacturing equipment. Shipping and installation charges will amount to $175,000 and an initial increase in net working capital of $50,000 will be required. The equipment will replace an existing machine that has a salvage value of $85,000 and a book value of $140,000. If Metro has a current marginal tax rate of 34%, what is the amount of the initial outlay for this project
Answers
Answer: (1121300)
Explanation:
The initial outlay for the project will be:
Machinery purchase price = =-1000000-175000 = (1,175,000)
Less: Proceed from old machine =
= =85000+(140000-85000) × 34% = 103,700
Net working capital = 50,000
Initial outlay = (1121300)
The Putting Lot provides a useful service in that it provides people in the area with entertainment without them having to travel. The services it offers also provides hedonic value, as people enjoy them. Based on this information, the services offered by The Putting Lot can be described as:_____________.
a. Salutary products
b. Pleasing products
c. Desirable products
d. Deficient products
Answers
Answer:
Option C. Desirable products
Explanation:
In sustainable Marketing, it is socially and environmentally capable type of marketing that meets the present needs of consumers and businesses while also keeping/ /enhancing the ability of future generations to meet their needs.
There are 4 types of Products. They adre deficient, pleasing, salutary and desirable.
Desirable Products are simply products that provides both high, quick/ immediate satisfaction and high long run benefits to its consumption/use.Puttings service becomes desirable if it provides the needed services and satisfaction that is derived from services offered.
You want to buy a new sports coupe for $92,500, and the finance office at the dealership has quoted you an APR of 74 percent for a 60 month loan to buy the car
a. What will your monthly payments be? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
b. What is the effective annual rate on this loan? (Do not round intermediate celculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.)
a. Monthly payment
b. Effective annual rate
Answers
Answer:
a) we must first determine the effective interest rate
effective monthly interest rate = APR / 12 = 7.4% / 12 = 0.617%
monthly payment = present value x annuity factor
present value = $92,500
PV annuity factor, 0.617%, 60 periods = 50.024
monthly payment = $92,500 / 50.024 = $1,849.12
b) effective annual rate = (1 + 7.4%/12)¹² - 1 = 0.076562 = 7.66%
Use this information to answer the question. All numbers are in millions.
Population of the nation 125
Size of the labor force 75
Number of employed workers 50
Number of unemployed workers 25
What is the unemployment rate for this nation?
a. 5 percent
b. 20 percent
c. 25 percent
d. 33 percen
Answers
Answer:
25 percent
Explanation:
Priority Company, which applies overhead to production on the basis of machine hours, reported the following data for the period just ended: Actual units produced: 9,000 Actual variable overhead incurred: $54,400 Actual machine hours worked: 16,000 Standard variable overhead cost per machine hour: $3.50 If Priority estimates two hours to manufacture a completed unit, the company's variable-overhead efficiency variance is:
Answers
Answer:
Variable overhead efficiency variance= $7,000 favorable
Explanation:
Giving the following information:
Actual units produced: 9,000
Actual machine hours worked: 16,000
Standard variable overhead cost per machine hour: $3.50
Standard hours= 2 hours per unit
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Standard quantity= 2*9,000= 18,000
Variable overhead efficiency variance= (18,000 - 16,000)*3.5
Variable overhead efficiency variance= $7,000 favora
A company paid $0.58 in cash dividends per share. Its earnings per share is $4.30 and its market price per share is $28.75. Its dividend yield equals:___________a) 2.02%.b) 4.96%.c) 7.41%.d) 13.49%.e) 14.96%.
Answers
Answer:
a) 2.02%
Explanation:
Dividend yield = Cash dividend per share / Market price per share
Dividend yield = $0.58 / $28.75
Dividend yield = 0.02017
Dividend yield = 2.02%
"In terms of the exercise, what price will the client report for tax purposes in relation to the price at which the stock is sold to the buyer of the call?"
Answers
Accounting, inventory management, and shipping are part of order fulfillment and referred to as __________ operations.
A) Back-office
B) Customer-facing
C) Front-office
D) Logistics
Answers
Answer: back office
Explanation:
The back office in an organization is simply the part of the organization that is made up of the employees that deals.with administration and also tge support personnel and are typically not required to face the customers or clients like the front office employees.
Some of the back-office functions are IT services, Regulatory compliance, shipping, record maintenance, settlements, accounting, etc.
Imagine you are in the process of buying a new car. Give at least two examples of both qualitative and quantitative data that you would consider in your purchase decision. Explain and defend your choices provide several qualitative attributes and several quantitative characteristics you would consider important when purchasing a car.
Answers
Answer: Qualitative data cannot be recorded numerically at the initial stage, but can be later converted into numerical data for statistical purposes.
Quantitative data is conclusive in summary, can be recorded numerically first hand.
Explanation:
Qualitative data cannot be recorded numerically at the initial stage, but can be later converted into numerical data for statistical purposes.
Quantitative data is conclusive in summary, can be recorded numerically first hand.
Qualitative variables examples;
Colour of the car
Driver experience
Quantitative variables:
Size of the car
Horse power of the engine -
What are the differences between the five-stage model of team development and the punctuated equilibrium model?
Answers
Answer: The five stage model of a team Development include; forming, storming, norming, performing and adjourning, Punctuated Equilibrium, suggest there are no steps, just 2 phases during research.
Explanation:
The five stage model of a team Development include; forming, storming, norming, performing and adjourning.
Forming involves acquittance with the members, understand scope of the project and establish good relationships.
Storming involves members accepting they're part of the project group and resist constraint on individualism.
In norming, the group establishes how they can work together.
Performing is being functional
Adjsuting, the team prepares for high disbandment
Punctuated Equilibrium, suggest there are no steps, just 2 phases during research.
Using the dividend growth model, explain why a firm would be hesitant to reduce the growth rate of its dividends.
Answers
Answer:
If a firm decreases its sustainable growth rate (g), the price of their stock will probably decrease. I will use the following example:
P₀ = Div₁ / (Re - g)
Div₁ = $2Re = 12%g = 5%P₀ = $2 / (12% - 5%) = $28.57
if the growth rate g decreases to 2%, and the rest remains unchanged, then
P₀ = $2 / (12% - 2%) = $20
The annual maintenance cost of a monument in the state capital is estimated to be $4850. A perpetual i fund of $100,000 is set up to pay for this maintenance expenditure. Determine the interest rate this fund earns if the interest is compounded quarterly
Answers
Answer:
4.76%
Explanation:
P[(1+i/4)^4 - 1] = A
$100,000*P[(1+i/4)^4 - 1] = $4,850
[(1+i/4)^4 - 1] = $4,850/$100,000
[(1+i/4)^4 - 1] = 0.0485
(1+i/4)^4 = 0.0485 + 1
(1+i/4)^4 = 1.0485
(1+i/4) = 1.0485^(1/4)
(1+i/4) = 1.01191
i/4 = 1.01191 - 1
i/4 = 0.01191
i = 0.01191*4
i = 0.04764
i = 4.76%
is (are) defined as any method for making a choice. A decision model The implementation model Relevant costs The prediction method
Answers
Answer:
Decision model
Explanation:
Decision model is a framework that guides how decisions are made based on perception, organisation, and management considerations.
Conclusions are made from available facts and this guides the choice of action to be taken in any given scenario.
Decision model is made up of a diagrammatic representation of logical statements and the implications of each decision.
These are weighed in order to decide on a final choice or decision.
8. Calculate break-even sales (in units) when fixed cost is $216,000, unit selling price is $120, and unit variable cost is $60. a. 4,100 units b. 2,300 units c. 3,400 units d. 3,600 units
Answers
Answer: d. 3,600 units
Explanation:
Breakeven point = Fixed Costs / Contribution Margin
Contribution margin = Selling price - Variable cost
= 120 - 60
= $60
Breakeven point = 216,000/60
= 3,600 units
