Rollins Corporation is estimating its WACC. It's current and target capital structure is 20
percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12
percent coupon rate, paid semiannually, a current maturity of 20 years, and sell for $1,040. The
firm could sell, at par, $100 preferred stock which pays a $12.00 annual preferred dividend.
Rollins' common stock beta is 1.2, and the risk-free rate is 10 percent. Rollins is a constant-
growth firm which just paid a dividend of $2.00. Its stock sells for $27.00 per share, and has a
growth rate of 3 percent. The floatation cost is 5% for debt, 10% for preferred stock, and 25%
for common stock. The firm's marginal tax rate is 40 percent.
Question 1 (worth 15 out of 100 possible points for the quiz)
Part a. Calculate the cost of existing debt.
Part b. Calculate the cost of new debt.

Answers

Answer 1

Answer:

i dont get it, all words are distinguish

Explanation:


Related Questions

Merchandise that is priced significantly lower than what customers expect to pay is likely to remain unsold.
a) True
b) False

Answers

B it’s false bc everyone would buy it

Suppose you started a new all-equity financed company that is expected to generate an ROE of 15% indefinitely. The current book value per share equals $30. The required return on the stock equals 12% and you expect to grow at a constant rate of 5% forever. What is the value of the stock of the startup company

Answers

Answer:

The value of the stock at start-up = $67.5

Explanation:

According to the dividend valuation model , the current price of a stock is the present value of the expected future dividends discounted at the required rate of return  

This principle can be applied as follows:  

The value of stock today is the present value of the future return discounted at the required rate of return

The return can be computed as the ROE × Book value of share

Return = 15%× 30 =4.5

Price of stock today = D× (1+g)/r-g

D= current return, g- growth rate, r-required rate of return

DATA: D= 4.5, g= 5%, r= 12%

PV  = 4.5× (1.05)/(0.12-0.05)

= 67.5

The value of the stock at start-up = $67.5

Which types of charitable giving have you heard of? Check all that apply.
volunteering at a soup kitchen
donating clothes to a charity
donating canned food to a charity
volunteering at a hospital
donating toys to a charity
volunteering at an animal shelter

Answers

Answer:

volunteering at a soup kitchen

volunteering at a hospital

volunteering at an animal shelter

Explanation:

The correct options are given below.

volunteering at a soup kitchenvolunteering at a hospitalvolunteering at an animal shelter

What Is Charitable Giving?

Charitable Giving can be defined as an act of giving money, time, or some goods to unlucky or inopportune people, directly or through a worthy cause like a charitable trust.

What are the Disadvantages of Charitable Giving?

The reasons most people give for objecting to conditional charity gifts are:

It interferes with the autonomy of the recipient.It's unethical to interfere in the self-determination of sovereign states.The conditions may be contrary to human rights.The conditions may be politically manipulative.

Learn more about charitable giving ​here https://brainly.com/question/21376202

#SPJ2

difference between transport business and drink business​

Answers

Answer:

a transport business uses (preferably semi's) any vehicles to transport one item from one place to another. a drink business is a place/product ( drinks (soft or alcoholic) and you sell them to make a profit

transport business is both cheaper and easy to set up and run.

Rare earth metals are used in the production of many of the personal electronic devices you use every day. Suppose there is an unexpected decrease in the price of rare earth metals. a. The decrease in price of rare earth metals will lead to negative cost-push inflation. demand-pull inflation. an increase in expected inflation. negative demand-pull inflation. b. Illustrate the effect of the decrease in the price of rare earth metals by making the appropriate adjustments to the Phillips curve.

Answers

Answer:

a. negative cost-push inflation

b. Phillips Curve will shift right

Explanation:

a. Cost push inflation occurs when the costs of inputs such as wages and material costs increases. This leads to an increase in prices because producers will have to increase prices to make a profit.

In this scenario, material prices dropped instead of increasing. A negative cost-push inflation will therefore happen.

b. This will lead to a shift right in the Phillips curve to reflect that inflation has fallen. It will increase the output gap between Potential and Actual GDP because a lower inflation means more unemployment which means the economy is shrinking.

The black dot will shift right to (0, -2)

Which section of a business plan gives details about a business's core products and services?
The
section of a business plan talks about a business's core products and services, and their features and benefits
to the consumers.

Answers

Answer:

an executive summary is compelling which reveals the company's mission statement, along with a short description of its products and services. its also good to briefly explain why you're starting your company and include details about your experience in the industry that you're entering

What is the difference between demand and supply curve? ​

Answers

A demand curve shows the relationship between quantity demanded and price in a given market on a graph. ... A supply schedule is a table that shows the quantity supplied at different prices in the market. A supply curve shows the relationship between quantity supplied and price on a graph.

\AllCity, Inc., is financed 40% with debt, 8% with preferred stock, and 52% with common stock. Its cost of debt is 5.7%, its preferred stock pays an annual dividend of $2.49 and is priced at $30. It has an equity beta of 1.15. Assume the risk-free rate is 1.7%, the market risk premium is 7.3% andAllCity's tax rate is 35%. What is its after-tax WACC? [Note: Assume that the firm will always be able to utilize its full interest tax shield.]

Answers

Answer:

WACC = 6.38%

Explanation:

Cost of equity = 1.7% + (1.15 x 5.6%) = 8.14%

Weight of equity = 52%

After tax cost of debt = 5.7% x (1 - 35%) = 3.705%

Weight of debt = 40%

Cost of preferred stock = $2.49 / $30 = 8.3%

Weight of preferred stock = 8%

WACC = (8.14% x 0.52) + (3.705% x 0.4) + (8.3% x 0.08) = 6.3788% ≈ 6.38%

Indicate the missing amount for each letter (a) through (i). Case A Case B Case C Direct materials used $ (a) $72,720 $131,700 Direct labor 59,280 90,560 (g) Manufacturing overhead 49,120 82,680 105,500 Total manufacturing costs 199,600 (d) 255,700 Work in process 1/1/20 (b) 17,110 (h) Total cost of work in process 226,310 (e) 339,900 Work in process 12/31/20 (c) 13,240 71,550 Cost of goods manufactured 188,400 (f)

Answers

Answer:

                                                         Case A         Case B             Case C

Direct materials used                     $ 91,200       $72,720           $131,700

Direct labor                                        59,280         90,560             18,500

Manufacturing overhead                   49,120         82,680            105,500

Total manufacturing costs               199,600       245,960          255,700

Work in process 1/1/20                       26,710         17,110             84,200

Total cost of work in process          226,310        263,070        339,900

Work in process 12/31/20                   37,910        13,240              71,550

Cost of goods manufactured           188,400      249,830         268,350

Explanation:

Given:

                                                        Case A          Case B           Case C

Direct materials used                           $ (a)         $72,720          $131,700

Direct labor                                         59,280       90,560                (g)

Manufacturing overhead                    49,120       82,680            105,500

Total manufacturing costs               199,600             (d)              255,700

Work in process 1/1/20                           (b)             17,110                  (h)

Total cost of work in process          226,310            (e)              339,900

Work in process 12/31/20                       (c)            13,240              71,550

Cost of goods manufactured           188,400              (f)                    (i)

Therefore, we have:

Case A

a. Direct materials used = Total manufacturing costs - Direct labor - Manufacturing overhead = 199,600 - 59,280 - 49,120 = 91,200

b. Work in process 1/1/20 = Total cost of work in process - Total manufacturing costs = 226,310 - 199,600 = 26,710

c. Work in process 12/31/20 = Total cost of work in process - Cost of goods manufactured = 226,310 - 188,400 = 37,910

Case B

d. Total manufacturing costs = Direct materials used + Direct labor + Manufacturing overhead = 72,720 + 90,560 + 82,680 = 245,960

e. Total cost of work in process = Total manufacturing costs + Work in process 1/1/20 = 245,960 + 17,110 = 263,070

f. Cost of goods manufactured = Total cost of work in process - Work in process 12/31/20 = 263,070 - 13,240 = 249,830

Case C

g. Direct labor = Total manufacturing costs - Direct materials used - Manufacturing overhead = 255,700 - 131,700 - 105,500 = 18,500

h. Work in process 1/1/20 = Total cost of work in process - Total manufacturing costs = 339,900 - 255,700 = 84,200

i. Cost of goods manufactured = Total cost of work in process - Work in process 12/31/20 = 339,900 - 71,550 = 268,350

Presented below are certain account balances of Swifty Products Co. Rent revenue $6,980 Sales discounts $8,170 Interest expense 13,320 Selling expenses 99,730 Beginning retained earnings 114,520 Sales revenue 405,100 Ending retained earnings 134,450 Income tax expense 27,776 Dividend revenue 71,430 Cost of goods sold 166,455 Sales returns and allowances 12,730 Administrative expenses 88,620 Allocation to noncontrolling interest 17,320 From the foregoing, compute the following: (a) total net revenue, (b) net income, (c) income attributable to controlling stockholders, if Swifty has allocation to noncontrolling interest of $17,320. (a) Total net revenue $enter total net revenue in dollars (b) Net income $enter net income in dollars (c) Income attributable to controlling stockholders $enter income attributable to controlling stockholders in dollars

Answers

Answer and Explanation:

The computation is shown below:

a

Sales revenue $405,100

Add: Rent revenue $6,980

Add: Dividend revenue $71,430

Less: Sales returns and allowances $(12730)

Less: Sales discounts $(8170)

a  

Sales revenue 405100

Add: Rent revenue 6980

Add: Dividend revenue 71430

Less: Sales returns and allowances (12730)

Less: Sales discounts (8170)

Total net revenue $462,610

b  

Total net revenue $462,610

Less: Expenses  

Interest expense $13,320

Selling expenses $99,730

Income tax expense $27,776

Cost of goods sold $166,455

Administrative expenses $88,620

Total Expenses $395,901

Net income $66,709

c  

Net income $66,709

Less: Allocation to noncontrolling interest $17,320

Income attributable to controlling stockholders $49,389

_____________ is when your company makes an effort to actively control and shape your brand image with your target market.
A.
Market penetration
B.
Market segmenting
C.
Data mining
D.
Market positioning

Answers

The answer to the question is C

Answer:  

D. (Market positioning)

Explanation:

The definition is pretty much in the question itself! hope this helps

Purdum Farms borrowed $14 million by signing a five-year note on December 31, 2017. Repayments of the principal are payable annually in installments of $2.8 million each. Purdum Farms makes the first payment on December 31, 2018 and then prepares its balance sheet. What amount will be reported as current and long-term liabilities, respectively, in connection with the note at December 31, 2018, after the first payment is made

Answers

Answer and Explanation:

The amount that should be reported as the current liabilities and long term liabilities is shown below:

The borrowed amount is $14 million

And, the installments is of $2.8 million each

He makes the first payment and then made the balance sheet

So, the current liability amount is $2.8 million

And, the long term liability amount is ($2.8 × 3 years) $8.4 million

So the same would be considered and relevant too

An accountant's ability to audit a company's records is an example of what type of skills?

Answers

Answer:

technical skills

An accountant's ability to audit a company's records is an example of what type of skills? technical skills. Camille Graham is a manager who works well with people and makes them feel excited about their work.

Explanation:

Hope it helps! Correct me if I am wrong!

I'm sure about my answer!

If you dont mind can you please mark me as brainlest?

Its ok if you don't want to!

But i hopefully it helps you!

Which of the following statements about cash versus accrual accounting is most correct? A. In cash accounting, an event is recognized when a cash transaction occurs. B. In accrual accounting, an event is recognized when a cash transaction occurs. C. Most large healthcare organizations use cash accounting because it presents a better picture of the economic status of the organization. D. Most small healthcare organizations use accrual accounting because it closely matches statements required for income tax purposes. E. In cash accounting, an event is recognized when the obligation for a cash transaction is created.

Answers

Answer:

In cash accounting, an event is recognized when a cash transaction occurs

Explanation:

Account

This is simply a place to summarize all of the transactions that influence or affect one particular asset, liability, equity, revenue, expense, gain, or loss item.Cash are said to be asset.

Cash Accounting (COST)

This usually show (recognize) revenues and expenses when cash is physically paid or received even if or when transaction do happens. That is it will record only those transactions that affect cash ( only when someone gives or receives cash). It is very common in smaller business and can be a little inaccurate.

Accrual Accounting on the other hand, record revenue when sale is made and not when cash received. It also records expense when they arise and not when they are paid. It links revenues to when they were earned, while expenses when they are incurred. It is very common in bigger business and said to be more accurate indication of performance.

In the Assembly Department of Concord Company, budgeted and actual manufacturing overhead costs for the month of April 2020 were as follows. Budget Actual Indirect materials $15,700 $15,100 Indirect labor 21,900 22,500 Utilities 10,100 10,900 Supervision 5,900 5,900 All costs are controllable by the department manager. Prepare a responsibility report for April for the cost center.

Answers

Answer: See explanation

Explanation:

The responsibility report for April for the cost center is analysed below:

CONCORD COMPANY

Manufacturing Overhead Cost Responsibility Report For the Month Ended April 30, 2020

Controllable Cost Budget Actual.

Difference

Indirect materials $15,700 $15,100 $600 Favorable

Indirect labor 21,900 22,500 600 Unfavorable

Utilities 10,100 10,900 800 Unfavorable

Supervision 5,900 5,900 0

Fatuma invests a total of $22,000 in two accounts. The first account earned a rate of return of 15% (after a year). However, the second account suffered a 7% loss in the same time period. At the end of one year, the total amount of money gained was $110.00. How much was invested into each account

Answers

Answer:

$7,500 was invested in the account that gained 15%, while $14,500 was invested in the account that lost 7%.

Explanation:

Given that Fatuma invests a total of $ 22,000 in two accounts, and the first account earned a rate of return of 15% after a year while the second account suffered a 7% loss in the same time period, and at the end of one year the total amount of money gained was $ 110.00, to determine how much was invested into each account, the following calculation must be performed:

11,000 x 0.15 - 11,000 x 0.07 = 880

5,000 x 0.15 - 17,000 x 0.07 = -440

8,000 x 0.15 - 14,000 x 0.07 = 220

7,000 x 0.15 - 15,000 x 0.07 = 0

7,500 x 0.15 - 14,500 x 0.07 = 110

Therefore, $ 7,500 was invested in the account that gained 15%, while $ 14,500 was invested in the account that lost 7%.

On April 30, 2019, Macy Products purchased machinery for $132,000. The useful life of this machinery is estimated at 5 years, with a $32,000 residual value. The company uses the double-declining-balance method. Depreciation expense for the fiscal year ending on December 31, 2020 will be:

Answers

Answer:

$38,720

Explanation:

Depreciation Expense = 2 x SLDP X BVSLDP

where,

SLDP = 100 ÷ number of useful life

          = 100 ÷ 5

          = 20 %

2019

Annual Depreciation Expense = 2 x 20 % x $132,000

                                                    = $52,800

But, depreciation expired for only 8 months from April 30, 2019 to December 31, 2019 during the year, therefore

Depreciation Expense = $52,800 x 8/12 = $35,200

2020

Annual Depreciation Expense = 2 x 20 % x ($132,000 - $35,200)

                                                    = $38,720

Conclusion :

Depreciation expense for the fiscal year ending on December 31, 2020 will be $38,720

Which statement describes the word “iterative”?

Answers

Answer:

D.

Explanation:

The word 'iterative' is derived from the Latin word 'iterare', which means 'to repeat.'

Iterative is a term used to define a process of repetition to attain the desired outcome. It is a repetitive process performed to improve or do better than before.

The statement that correctly defines the term 'iterative' is option D. The statement talks about working in cycles (repetition) to get a desired result of (refined product).

Therefore, option D is correct.

Seattle Health Plans currently uses zero-debt financing. Its operating profit is $6 million, and it pays taxes at a 23 percent rate. It has $10 million in assets and, because it is all-equity financed, $10 million in equity. Suppose the firm is considering replacing 59 percent of its equity financing with debt financing that bears an interest rate of 9 percent. What impact would the new capital structure have on the firm's ROE (return on equity)

Answers

Answer: ROE increases by 56.5% to 102.7%

Explanation:

ROE before capital structure change:

= Net income / Equity

= (Operating income * ( 1 - tax)) / Equity

= (6,000,000 * (1 - 23%)) / 10,000,000

= 46.2%

With new capital structure:

Debt financing = 59% * 10,000,000

= $5,900,000

Interest = 9% * 5,900,000

= $531,000

Net income = (Operating profit - interest) * ( 1 - tax)

= (6,000,000 - 531,000) * ( 1 - 23%)

= $‭4,211,130‬

Return on Equity = ‭4,211,130‬ / ( 10,000,000 - 5,900,000)

= 102.7%

Difference:

= 102.7 - 46.2

= 56.5%

In order to sell a product at a profit, the product must be priced higher than the total cost to build the unit, plus period expenses and overhead. At the end of last year, Chester had their product Cake aimed at the Low End segment. Cake's production cost (labor + materials) last year was $14.07 ($5.89 unit labor cost and $8.18 unit material cost). Exclude possible inventory carrying costs. Assume period expenses and overhead total 50% of their production cost. What is the minimum price the product could have been sold for in the American region to cover the unit cost, period expenses, and overhead?

Answers

Answer:

Chester Cakes

The minimum price the product could have been sold for in the American region to cover the unit cost, period expenses, and overhead is:

= $21.11.

Explanation:

a) Data and Calculations:

Production cost:

Labor per unit =            $5.89

Materials per unit            8.18

Total production cost $14.07

50% Overhead               7.04

Minimum price =          $21.11

b) The minimum price for a unit of the cake includes the total variable production cost and the determined 50% overhead on the production cost to cover period expenses and other overhead costs.

How the experience affects buyer behavior.​

Answers

Answer:

because it does

Explanation:

A

Answer:

Situational influences are temporary conditions that affect how buyers behave. They include physical factors such as a store's buying locations, layout, music, lighting, and even smells. Companies try to make the physical factors in which consumers shop as favorable as possible.

Explanation:

The higher prices charged by monopolists: Group of answer choices are like a private tax that redistributes income from consumers to monopoly sellers. are socially optimal because they better reflect how much society values the good relative to the resources used to produce it. have no effect on the distribution of income. return to consumers through the public goods provided by monopolies.

Answers

Answer:

are like a private tax that redistributes income from consumers to monopoly sellers.

Explanation:

A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. This ultimately implies that, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.

For example, a public power company is an example of a monopoly because they serve as the only source of power utility provider to the general public in a society.

The higher prices charged by monopolists are like a private tax that redistributes income from consumers to monopoly sellers because the consumers are left with no choice than to patronize these monopolists for essential goods and services since they are the only seller.

For a cheese-lover, Burger King's Mac n' Cheetos are what type of product? (1pt)

Answers

Answer:

specialty product

Explanation:

For a cheese-lover, this product would be considered a specialty product. This is because they will actively seek out this product specifically because they love the ingredient/flavor of the product. For someone that loves cheese, products that are cheese flavored or contain cheese will be prioritized above all of the other products that do not contain cheese. This ultimately classifies the product as a specialty product because it is being sought after, even with other options around.

Flash ECard Manufacturing manufactures software parts for the computer software systems that produce ecards. The Flash II part is currently manufactured in the Computer Department. The Data Department also produces the part and the plant has excess capacity to produce the Flash II part. The current market price of the Flash II part is​ $700. The managerial accountant reported the following manufacturing costs and variable expense​ data: Flash ECard Manufacturing Manufacturing Costs and Variable Expense Report Flash Component Direct materials ​$810 Direct labor ​$160 Variable manufacturing overhead ​$140 Fixed manufacturing overhead​ (current production​ level) ​$185 Variable selling expenses​ (only incurred on sales to outside​ consumers) ​$136 If the highest acceptable transfer price is​ $700 in the​ market, what is the lowest acceptable inhouse price the Data Department should receive to produce the part inhouse at the Computer​ Department? "810"

Answers

Answer:

the  lowest acceptable inhouse price the Data Department is $1,110

Explanation:

The computation of the lowest acceptable inhouse price the Data Department is shown below:

= Direct materials + direct labor + Variable manufacturing overhead

= $810 + $160 + $140

= $1,110

Hence, the  lowest acceptable inhouse price the Data Department is $1,110

The above formula should be applied for determining the lowest acceptable inhouse price is as follows:

Discovering the process of distribution of commonly used items is quite interesting and opens eyes to several new processes and careers! Your group will be in charge of dissecting the process of distribution related to any of the following items:

*Televisions

*Milk in Cartons

*Laundry Detergent

*Refrigerators

*Lumber

*Pineapples

*Video Games

*Watches

*Coffee

*Shoes

*Football Helmets

*Pencils



Narrow your research by selecting a brand or company that manufactures or distributes one of the products listed above. For example, not all shoes come from the same country, manufacturer, distributor, or are distributed alike. Select a brand of shoes you are familiar with and begin the search. The goal is to trace the process from production to consumer.

Answers

Answer and Explanation:

The distribution of laundry detergent can happen in two ways. The first way, occurs with a distribution of the factory direct to the retailers of a country. These retailers, receive the detergents, store large inventories and send them to smaller stores, within a given region. This type of distribution has a lower economic cost, which causes the detergent to be sold at lower prices.

The second form of distribution occurs with the use of intermediaries between factories and retailers. These intermediaries are the wholesalers, they receive the product from the factories forming large stocks, which will be distributed to retailers, who in turn, will distribute the product to stores. This process makes the product more expensive, making the price higher.

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