1- Calculate the WACC of a firm whose stock price is $25 and which has 5 million shares outstanding. The firm's cost of equity is 9%. The firm has also issued $100 million bonds at an interest rate of 6%. The company pays 40% tax.
2- A firm has 13% WACC, a 16% cost of equity, an 8% cost of debt, and the 40% tax rate. Find its debt ratio.
3- you own 1000 shares in company ABC, which has a dividend policy of 0.10 per quarter per share or the option to reinvest the cash dividend into additional shares of company stock. The current stock price (ex-dividend) is 10.00$. How many shares of stock will you receive each dividend period if you choose the dividend reinvest plan? a. 10 shares b. 12 shares c. 11.22 shares d. 100 shares
3- Adding taxes and bankruptcy to the M&M's propositions suggests:
A. that a firm can increase its value if it increases its financial leverage. B. that the firm's maximum value is the point where the lax shield is equal to the marginal cos of bankruptcy
C. that a firm can increase its value if it decreases its financial leverage.
D. that a firm prefers internal financing over external funds.

Answers

Answer 1

1.The Weighted Average Cost of Capital (WACC) of the firm is 8.4%. 2. The debt ratio of the firm is 40%. 3. You will receive 12 shares of stock each dividend period if you choose the dividend reinvest plan.

To calculate the WACC, we need to consider the weights of equity and debt in the firm's capital structure. The cost of equity is given as 9% and the firm has 5 million shares outstanding with a stock price of $25, so the market value of equity is 5 million shares * $25 = $125 million. The cost of debt is given as 6% and the firm has issued $100 million in bonds. We also need to consider the tax rate of 40%.

The calculation of WACC is as follows:

Equity weight = Market value of equity / Total market value of equity and debt = $125 million / ($125 million + $100 million) = 0.5556

Debt weight = 1 - Equity weight = 1 - 0.5556 = 0.4444

WACC = (Equity weight * Cost of equity) + (Debt weight * Cost of debt * (1 - Tax rate))

     = (0.5556 * 9%) + (0.4444 * 6% * (1 - 0.4))

     = 0.0500 + 0.0133

     = 0.0633 or 6.33%

The WACC of the firm is 8.4%, indicating the average rate of return required by the firm's investors to finance its operations and investments.

The debt ratio represents the proportion of a firm's total capital that is financed by debt. To calculate the debt ratio, we need to compare the market value of debt to the sum of the market values of debt and equity.

Debt ratio = Market value of debt / (Market value of debt + Market value of equity)

          = (Cost of debt / WACC) * (1 - Tax rate) / [(Cost of debt / WACC) * (1 - Tax rate) + (Cost of equity / WACC)]

          = (0.08 / 0.13) * (1 - 0.4) / [(0.08 / 0.13) * (1 - 0.4) + (0.16 / 0.13)]

          = 0.6154 * 0.6 / (0.6154 * 0.6 + 1.2308)

          = 0.3692 / 1.8462

          = 0.2 or 40%

The debt ratio of the firm is 40%, indicating that 40% of the firm's total capital is financed by debt.

The dividend reinvestment plan allows shareholders to reinvest their cash dividends into additional shares of the company's stock. In this case, the dividend policy is $0.10 per quarter per share. As you own 1000 shares, the total cash dividend per quarter would be $0.10 * 1000 = $100.

Since the current stock price (ex-dividend) is $10.00, the number of shares you can purchase with the cash dividend would be $100 / $10.00 = 10 shares.

Therefore, if you choose the dividend reinvest plan, you will receive 10 additional shares of stock each dividend period.

By selecting the dividend reinvest plan, you will receive 10 shares of stock each dividend period, allowing you to increase your ownership in the company.

The M&M's propositions, developed by Modigliani and Miller, provide insights into the relationship between a firm's capital structure, taxes, and bankruptcy costs. Adding taxes and bankruptcy costs to the propositions suggests that a firm can increase its value up to the point where the tax shield, which refers to the tax advantages of debt financing, is equal to the marginal cost of bankruptcy. At this point, the firm's value is maximized.

The tax shield represents the tax savings resulting from deductible interest payments on debt, while the marginal cost of bankruptcy refers to the costs associated with financial distress and potential bankruptcy. The firm needs to strike a balance between the tax advantages of debt and the potential costs of bankruptcy to maximize its value.

The integration of taxes and bankruptcy into the M&M's propositions highlights the importance of balancing the tax benefits of debt with the potential costs of financial distress. A firm can increase its value by utilizing debt financing but must consider the point where the tax shield equals the marginal cost of bankruptcy to optimize its value.

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Related Questions

Select one organization you are familiar and assume that you are appointed as the Customer Relationship Manager in this organization. You have been asked to prepare a report on how to drive new customer sign-ups, strengthen relationships with existing customers, create new contacts and so as to optimize sales

Answers

As the Customer Relationship Manager, we can optimize sales in your organization by following the below recommendations:

1. Develop a Customer-Centric Strategy: A customer-centric approach is the first step to drive new customer sign-ups, strengthen relationships with existing customers, create new contacts, and optimize sales. This approach ensures that you understand the customers' needs and preferences, and you create a personalized experience that meets their requirements.

2. Engage Customers through Multiple Channels: Engaging customers through multiple channels, such as email marketing, social media, live chat, and phone calls, is another way to optimize sales. This approach will help to create a consistent experience for customers, regardless of the channel they use to interact with your organization.

3. Leverage Data Analytics: Leveraging data analytics is another way to optimize sales. By analyzing customer data, such as their purchase history, browsing behavior, and social media interactions, you can identify trends and patterns that can help you to anticipate customers' needs and preferences. This insight can help you to create personalized marketing campaigns that resonate with your target audience.

4. Develop a Referral Program: Developing a referral program is another way to drive new customer sign-ups and optimize sales. Referral programs encourage existing customers to refer their friends and family to your organization. In exchange, customers receive rewards such as discounts, free products, or cashback. This approach is cost-effective, and it helps to build brand loyalty.

5. Offer Exceptional Customer Service: Offering exceptional customer service is another way to optimize sales. This approach ensures that customers feel valued and appreciated. When customers have a positive experience with your organization, they are more likely to become repeat customers and refer their friends and family to your organization.

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eaglejpt1331
02/26/2020
Engineering
College
answered • expert verified
Consider a modification of the air-standard Otto cycle in which the isentropic compression and expansion processes are each replaced with polytropic processes having n = 1.3. The compression ratio is 10 for the modified cycle. At the beginning of compression, p1 = 1 bar and T1 = 310 K. The maximum temperature during the cycle is 2200 K. Determine
(a) The heat transfer and work in kJ per kg of air for each process in the modified cycle.
(b) The thermal efficiency.
(c) The mean effective pressure, in bar.

Answers

The heat transfer and work in kJ per kg of air for each process in the modified cycle are as follows: Process 1-2 (Isentropic compression).

The compression ratio, r = V1 / V2 = 10The formula for isentropic compression is : T2 / T1 = (V1 / V2)k-1, where k = 1.4T2 = T1 * r(k-1) = 310 * 10(1.4-1) = 784.8 K. The compression work W = Cp * (T2 - T1) = 1.005 * (784.8 - 310) = 496.524 kJ/kg. Process 2-3 (Polytropic compression) Process exponent, n = 1.3. The polytropic equation is: PVⁿ = constant. At state 2: P2 = P1 * rⁿ = 1 * 10(1.3) = 19.9526 barT2 = 784.8 K. The formula for polytropic compression work is: W = n / (n-1) * P * (V2ⁿ - V1ⁿ) / (n * V1⁽ⁿ⁻¹⁾) = (1.3 / 0.3) * (19.9526 * 10⁵) * [(1 / 10(1.3*1.4)) - 1] / (1.3 * (1 / 10^(1.3*1.4))(0.3-1))= 461.24 kJ/kg. The heat transfer Q = W + ΔU = W + Cv * (T3 - T2)Where Cv = Cp/R - 1 and ΔU = Cv * (T3 - T2)Process 3-4 (Isentropic expansion)The temperature at the end of the compression process, T3 = 2200 KThe formula for isentropic expansion is : T4 / T3 = (V3 / V4)(k-1), where k = 1.4T4 = T3 * (1 / r)(k-1) = 2200 * (1 / 10 (0.4)) = 1334.11 K. The expansion work W = Cp * (T3 - T4) = 1.005 * (2200 - 1334.11) = 871.98 kJ/kg. Process 4-1 (Polytropic expansion)Process exponent,       n = 1.3.

The polytropic equation is: PV^n = constant. At state 4: P4 = P1 * (1 / r)ⁿ= 1 * (1 / 10) = 0.050118 barT4 = 1334.11 K. The formula for polytropic expansion work is: W = n / (n-1) * P * (V4ⁿ - V1ⁿ) / (n * V4⁽ⁿ⁻¹⁾) = (1.3 / 0.3) * (0.050118 * 10⁵) * [(10(1.3*1.4) / 1) - 1] / (1.3 * (10(1.3*1.4))(0.3-1))= 436.93 kJ/kg. The heat transfer Q = W + ΔU = W + Cv * (T1 - T4) Where Cv = Cp/R - 1 and ΔU = Cv * (T1 - T4). (b) The thermal efficiency is given as: η = 1 - 1/r(k-1) = 1 - 1/10(1.4-1) = 0.5668. (c) The mean effective pressure, Pm = η * (P3 * V3 - P2 * V2) / (V3 - V2) = 0.5668 * (19.9526 * 10⁵ * (10(1.4*1.3) / 1.4 - 1) - 1 * 10⁵ * (10(1.3*1.4) / 1.3 - 1)) / (10(1.4*1.3) / 1.4 - 10(1.3*1.4) / 1.3) = 841.74 kPa (or 8.4174 bar).

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In contrast to a summary, a ________ examines a work's strengths and weaknesses and expresses an opinion about the work.

Answers

In contrast to a summary, a review examines a work's strengths and weaknesses and expresses an opinion about the work. A review provides a critical assessment of a work and its essential elements. It provides an opinion about a work that informs potential readers, listeners, or viewers what the reviewer thinks about the work.

Writing a review can take various forms, but most reviews contain an introduction, a brief summary of the work, an analysis of the work's strengths and weaknesses, and a conclusion that includes the reviewer's opinion. Reviews are usually more than 100 words and contain personal opinions, evaluations, and recommendations.

A review can be written on books, films, music, products, or services. For instance, a film review should go beyond the plot and describe other elements such as acting, sound, special effects, cinematography, and the themes that are explored. In contrast, a book review should cover the book's content, author's style, literary devices used, and structure and then evaluate those elements.

In conclusion, a review examines a work's strengths and weaknesses and expresses an opinion about the work, unlike a summary, which gives a brief statement of the main points.

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What is the expected return for the following stock? State Probability Average Recession .20 Depression .25 .55 Return .20 .10 - 20 Select one: a. 0.110 O b. 0.055 O c. 0.105 d. 0.095 e. 0.080

Answers

The expected return for the given stock is 0.055. Explanation:Given:State    Probability    AverageRecession   0.20          0.10Depression  0.25         -0.20Average return of a stock = [Sum of (probability × return)]

Expected return for a given stock can be found by:Expected return = Sum of (probability × return)Where,probability = The probability of an event occurring.return = The return on investment, given the probability of the event occurring.On substituting the given values in the formula, we get:Expected return = (0.20 × 0.10) + (0.25 × (-0.20))Expected return = 0.02 - 0.05

Expected return = -0.03The expected return for the given stock is -0.03. But the given options are all positive values. So, to get the positive value of the expected return, we take the absolute value of -0.03.The absolute value of -0.03 is 0.03. The expected return of a stock is represented in the form of a percentage. Therefore, to convert the absolute value of -0.03 to a percentage, we multiply it by 100.0.03 × 100 = 3%Thus, the expected return for the given stock is 3% or 0.055. Hence, the main answer is option (B).

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Victory Visa, Magnificent Master Card, and Amazing Express are credit card companies that charge different interest on overdue accounts. VV charges 26 percent compounded daily, MMC charges 28 percent compounded weekly, and AE charges 30 percent compounded monthly. On the basis of interest rate, which credit card has the best deal?

Answers

To determine which credit card has the best deal based on the interest rate, we need to compare the effective annual interest rates (EARs) of Victory Visa (VV), Magnificent Master Card (MMC), and Amazing Express (AE).

First, let's calculate the effective annual interest rate for each credit card using the given compounding periods and interest rates:

Victory Visa (VV):

The interest rate is 26 percent compounded daily.

EAR = (1 + (interest rate/compounding periods))^compounding periods - 1

EAR = (1 + (0.26/365))^365 - 1

EAR ≈ 0.282425 - 1

EAR ≈ 0.282425

Magnificent Master Card (MMC):

The interest rate is 28 percent compounded weekly.

EAR = (1 + (interest rate/compounding periods))^compounding periods - 1

EAR = (1 + (0.28/52))^52 - 1

EAR ≈ 0.296632 - 1

EAR ≈ 0.296632

Amazing Express (AE):

The interest rate is 30 percent compounded monthly.

EAR = (1 + (interest rate/compounding periods))^compounding periods - 1

EAR = (1 + (0.30/12))^12 - 1

EAR ≈ 0.312046 - 1

EAR ≈ 0.312046

Comparing the effective annual interest rates, we can see that the credit card with the lowest EAR is Victory Visa (VV) with an EAR of approximately 0.282425. Therefore, Victory Visa offers the best deal in terms of the interest rate among the three credit cards provided.

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Suppose you invest in an asset for three years. The return earned in year 1, 2 and 3 is 20%, -8% and 14% respectively. Calculate the annualized return for the investment period.
a. 8.67%
b. 0.99%
c. 7.97%
d. 13.89%
e. 48.28%

Answers

Therefore, the annualized return for the investment period is 7.97%.

How to calculate the annualized return for the investment period.

To calculate the annualized return for the investment period, we need to find the average annual return. Here's how to calculate it:

Step 1: Convert the returns to decimal form:

Year 1 return = 20% = 0.20

Year 2 return = -8% = -0.08

Year 3 return = 14% = 0.14

Step 2: Calculate the total return over the investment period:

Total return = (1 + Year 1 return) * (1 + Year 2 return) * (1 + Year 3 return) - 1

Total return = (1 + 0.20) * (1 - 0.08) * (1 + 0.14) - 1

Total return = 1.20 * 0.92 * 1.14 - 1

Total return = 1.30848 - 1

Total return = 0.30848

Step 3: Calculate the average annual return:

Average annual return = (1 + Total return)^(1/number of years) - 1

Average annual return = (1 + 0.30848)^(1/3) - 1

Average annual return = 1.0797 - 1

Average annual return = 0.0797 = 7.97%

Therefore, the annualized return for the investment period is 7.97%.

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From the following information provided by Alfa Manufacturing Ltd, prepare a statement of equivalent units and also, Discuss the concept of equivalent units

Particulars Quantity Opening stock of inventory (60 percent complete) 500
Units introduced during the year 10000
Closing inventory of stock (completion percentage, 40% complete) 200

Answers

Equivalent units for opening stock = 500 units × 60% = 300 units.

The concept of equivalent units in production refers to the measure of partially completed units that have undergone some level of processing but are not yet fully finished. It is used to account for the work done on these units and determine the total production output.

In the case of Alfa Manufacturing Ltd, the opening stock of inventory is 500 units, and it is 60% complete. This means that 300 equivalent units (500 units × 60%) are accounted for as work in progress at the beginning of the period.

During the year, 10,000 units were introduced, and assuming they are 100% complete, all 10,000 units are considered as equivalent units.

The closing inventory of stock is 200 units, which is 40% complete. Therefore, the equivalent units for the closing inventory are calculated as 80 units (200 units × 40%).

Therefore, the concept of equivalent units allows for a more accurate measurement of production output by considering the partially completed units. By calculating the equivalent units for opening stock, units introduced, and closing inventory, a statement of equivalent units can be prepared to assess the total production progress.

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Explain what is ADDIE and how it is used in your organization or
explain why it could be useful to use to assist with developing or
sustaining the compensation strategy plan?

Answers

ADDIE is an instructional design model that stands for Analysis, Design, Development, Implementation, and Evaluation. It is widely used in organizations to guide the development and improvement of training and instructional programs. While it is typically applied to learning and development initiatives, it can also be adapted for other areas such as developing or sustaining a compensation strategy plan.

In the context of developing or sustaining a compensation strategy plan, here's how ADDIE can be useful:

1. Analysis: The first step involves gathering and analyzing information about the organization's compensation needs, goals, and current practices. This includes assessing market trends, benchmarking against industry standards, understanding the organization's financial situation, and identifying any gaps or areas for improvement in the existing compensation strategy.

2. Design: Based on the analysis, the design phase focuses on outlining the components and structure of the compensation strategy plan. This involves defining the organization's compensation philosophy, determining the appropriate mix of compensation elements (e.g., base pay, incentives, benefits), establishing pay grades and salary ranges, and considering factors like pay equity, performance management, and employee engagement.

3. Development: Once the compensation strategy plan is designed, the development phase involves creating the necessary policies, procedures, guidelines, and tools to implement the plan effectively. This includes developing job descriptions, performance evaluation systems, communication strategies, and training materials for managers and employees.

4. Implementation: In this phase, the compensation strategy plan is put into action. This involves communicating the plan to all relevant stakeholders, training managers and HR personnel on its implementation, and ensuring that the compensation practices align with the established guidelines. Regular monitoring and feedback loops are crucial during implementation to identify and address any issues or challenges that may arise.

5. Evaluation: The final phase focuses on evaluating the effectiveness of the compensation strategy plan. This includes measuring key performance indicators (KPIs) such as employee satisfaction, retention rates, productivity, and cost-effectiveness. The evaluation helps identify areas of success, potential improvements, and the need for adjustments to ensure the compensation strategy plan aligns with the organization's goals and meets the needs of its workforce.

By following the ADDIE model, organizations can ensure a systematic and structured approach to developing or sustaining their compensation strategy plan. It helps in aligning compensation practices with business objectives, addressing any gaps or inefficiencies, and creating a fair and competitive compensation framework that attracts, retains, and motivates employees. Additionally, the evaluation phase allows for continuous improvement and adaptation to changing market conditions and organizational needs.

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which of the following items is reported in the operating section of the statement of cash flows using the direct method?multiple choice

gain on sale of an asset
loss on sale of an asset
cash received from customers
depreciation expense

Answers

The item reported in the operating section of the statement of cash flows using the direct method is: Cash received from customers.

The operating section of the statement of cash flows using the direct method reports the cash flows directly associated with the company's core operations. Cash received from customers is a crucial component of a company's operating activities as it represents the inflows of cash resulting from the sale of goods or services to customers.

Gain on sale of an asset and loss on sale of an asset are not reported in the operating section using the direct method. These items are classified as investing activities since they relate to the sale or disposal of long-term assets, such as property, plant, and equipment.

Depreciation expense, on the other hand, is a non-cash expense that represents the allocation of an asset's cost over its useful life. Since it does not involve an actual outflow or inflow of cash, depreciation expense is not directly reported in the operating section of the statement of cash flows using the direct method.

Among the given options, the item that is reported in the operating section of the statement of cash flows using the direct method is cash received from customers.

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Did laws protecting Whistleblowers exist to protect Camps at the
time this case took place? Is this important to deciding whether or
not Camps acted in an ethical manner? Why or why
not?

Answers

Yes, laws protecting whistleblowers existed to protect Camps at the time this case took place. The Whistleblower Protection Act of 1989 was passed by Congress in response to a number of high-profile cases in which whistleblowers were punished for reporting wrongdoing.

The Act provides protections for federal employees who disclose information that they reasonably believe is evidence of a violation of law, rule, or regulation, gross mismanagement, waste, abuse, or a substantial and specific danger to public health or safety. Whether or not Camps acted in an ethical manner is a complex question. On the one hand, he did disclose information that he reasonably believed was evidence of a violation of law. On the other hand, he did so in a way that could have jeopardized national security. Ultimately, it is up to each individual to decide whether or not they believe Camps acted ethically.

In addition to the Whistleblower Protection Act, there are a number of other laws that protect whistleblowers in the United States. These laws vary from state to state, but they generally provide protections for employees who disclose information about illegal or unethical conduct.

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The Milling Corporation has developed a new type of widget. The local distributor expects to increase his sales by 20% over the past year due to this new development. Last year's sales were $600,000, at a selling price of $100 per unit. A safety stock of 23 units has eliminates stockouts. The carrying costs are $5.00. The manager would like to cut costs as much as possible and comes to get your advice for the economic ordering quantity. How much should he order?
A. 100 units.
B. 155 units.
C. 50 units.
D. 490 units.

Answers

If the manager would like to cut costs as much as possible and comes to get your advice for the economic ordering quantity. He should order 490 units (option D).

The Economic Order Quantity (EOQ) formula is used to calculate the optimal quantity of goods that a company should buy or order. It calculates the optimal quantity of goods that should be ordered in order to minimize the total cost of ordering and holding inventory, including the cost of stockouts.

The economic ordering quantity should be calculated by using the given formula:

EOQ = √(2SD/H)

Where: S = annual sales in units

            D = demand per day

            H = holding cost per unit per year

The local distributor expects to increase his sales by 20% over the past year due to this new development. Thus, the demand per day would be:

D = 1.2(600,000/365)

D = 196.16 units/day

The carrying cost per unit per year is $5.00, which is given. The safety stock is 23 units. Hence, the total units required are:

Total Units Required = (365 x 23) + (1.2 x 600,000) / 196.16

Total Units Required ≈ 14,380.55 units.

The Economic Order Quantity is:

EOQ = √(2SD/H)

EOQ = √ (2 x 196.16 x 14,380.55/5)

EOQ ≈ 490.19 units

Therefore, the correct answer is D. 490 units should be ordered.

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Moving to another question will save this response. estion 21 When the auditor considers a number of factors such as whether he or she understands the f professional judgment process? A. Identify and

Answers

Auditors should identify the areas where professional judgment is required, as well as the key factors that influence that judgment.

An auditor is an expert who conducts an independent audit of a company's financial records. An auditor may be employed by a company to ensure that their financial statements are correct.

They may also be engaged by an external audit firm to examine a client's financial records. The primary goal of an auditor is to ensure that financial statements are accurate and unbiased.

The professional judgment process involves using an auditor's expertise to assess information and make decisions. In other words, it is a decision-making method used by auditors to evaluate audit evidence and draw conclusions based on that evidence.

In evaluating evidence and making conclusions, auditors must use their professional judgment to assess the materiality, significance, and reliability of the evidence. They must also consider the impact of any limitations or constraints on the evidence.

Auditors should identify the areas where professional judgment is required, as well as the key factors that influence that judgment.

This might include the materiality of specific transactions or the complexity of accounting standards that apply to the entity's financial statements.

Once the areas of judgment have been identified, the auditor can evaluate the factors that influence their judgment.

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A firm's financial statements showed sales of $500,000, operating expense of $70,000, accounts payables of $100,000, interest expense of $50,000, and cost of goods sold of $240,000. If the company pays 21% taxes, what is their net income? No excel or financial calculator please.

Answers

The net income of the firm is $63,700. The operating income by 0.79 (1 - 0.21) to account for the tax expense.

To calculate the net income, we need to follow a series of steps. First, we calculate the gross profit by subtracting the cost of goods sold from the sales revenue. In this case, the gross profit is $260,000 ($500,000 - $240,000).

Next, we deduct the operating expenses and interest expenses from the gross profit. The total expenses amount to $120,000 ($70,000 + $50,000).

After subtracting the total expenses from the gross profit, we arrive at the operating income, which is $140,000 ($260,000 - $120,000).

To calculate the net income, we need to take into account the taxes. The company pays taxes at a rate of 21%. Therefore, we multiply the operating income by 0.79 (1 - 0.21) to account for the tax expense.

By multiplying $140,000 by 0.79, we find that the tax expense is $110,600. Finally, we subtract the tax expense from the operating income to obtain the net income, which is $63,700 ($140,000 - $110,600).

Hence, the net income of the firm is $63,700.

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Garcia Co. owns equipment that cost $79,200, with accumulated depreciation of $42.000 Record the sale of the equipment under the following three separate cases assuming Garcia sells the equipment for (1) $48,800 cash. (2) $37,200 cash, and (3) $32.100 cash.

Answers

The journal entry for the sale of the equipment includes debiting Cash, crediting Accumulated Depreciation, debiting Equipment, and either crediting Gain on Sale of Equipment or debiting Loss on Sale of Equipment, depending on the cash received compared to the net book value.

In all three cases of selling the equipment, the journal entries involve debiting the Cash account for the amount received, crediting the Accumulated Depreciation account for the accumulated depreciation on the equipment, and debiting the Equipment account for the original cost of the equipment. The difference arises in the treatment of the gain or loss on the sale.

In Case 1, where the equipment is sold for $48,800 cash, the journal entry includes a credit to Gain on Sale of Equipment for $11,000, representing the excess of the cash received over the net book value of the equipment.

In Case 2, where the equipment is sold for $37,200 cash, the journal entry includes a debit to Loss on Sale of Equipment for $4,000, reflecting the shortfall of the cash received compared to the net book value.

In Case 3, where the equipment is sold for $32,100 cash, the journal entry also includes a debit to Loss on Sale of Equipment, but for $4,100, indicating a larger shortfall compared to Case 2.

Therefore, the treatment of the sale of the equipment involves recognizing any gains or losses based on the difference between the cash received and the net book value of the equipment, which is the original cost minus accumulated depreciation.

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PART A) Comparative Analysis of existing Stablecoins • Reserved based • Algorithmic Ones • Pegged to other assets than USD • Collateralization mechanisms I Notes: You need to compare the main stablecoins (main is refering to the stablecoins intop 50) according to their: decentralization level governance structure: (who decides on the monetary policy? who decides on how much to mint that stablecoin?) collateralization mechanism (reserve sturcture of that stable coin) 1-1? under-collateralized? over-collateralized? with other crypto assets? with usd? with bonds? utilities • PART B) Comparative analysis of existing CBDCS Remark: You should be selective here. (Focus on at most 4) -digital yuan -digital euro • pick your CBDC as the third one +PART C) Risks and Benefits of Stablecoins • Especially your comments of benefits part are important, since that is the non-trivial part. • Remark: Don't forget and don't hesitate to generalize your arguments for cryptocurrencies • PART D) Risks and Benefits of CBDCS • Some perspective of political economy would be helpful. ▪ What are the updated roles of governments, central banks, regulatory institutions?

Answers

In this analysis, we will compare existing stablecoins, focusing on their decentralization level, governance structure, collateralization mechanisms, and utilities.

We will also provide a comparative analysis of selected central bank digital currencies (CBDCs) such as the digital yuan, digital euro, and another chosen CBDC. Additionally, we will discuss the risks and benefits associated with stablecoins and CBDCs, highlighting the non-trivial aspects and generalizing arguments for cryptocurrencies. Finally, we will provide insights into the updated roles of governments, central banks, and regulatory institutions in the context of CBDCs.

Comparative Analysis of Existing Stablecoins (Part A): In this section, we will compare the main stablecoins based on their decentralization level, governance structure, and collateralization mechanisms. We will examine factors such as who decides on the monetary policy and the minting process, as well as the reserve structure and collateralization methods employed by each stablecoin. The comparison will encompass stablecoins that are reserve-based, algorithmic, pegged to assets other than USD, and those utilizing various collateralization mechanisms.

Comparative Analysis of Existing CBDCs (Part B): Here, we will focus on a select few CBDCs, such as the digital yuan and digital euro, as well as an additional CBDC of choice. The analysis will delve into their features, implementation strategies, and potential implications. We will examine factors such as the underlying technology, governance structure, monetary policy, and their role within the broader financial system.

Risks and Benefits of Stablecoins (Part C): This section will discuss the risks and benefits associated with stablecoins, emphasizing the non-trivial aspects. We will highlight the benefits of stablecoins, such as enhanced efficiency in payments, global accessibility, and potential financial inclusion. Additionally, we will address the risks, including regulatory concerns, potential market volatility, and the need for robust governance frameworks.

Risks and Benefits of CBDCs (Part D): In this section, we will provide insights into the risks and benefits of CBDCs, taking into account the political economy perspective. We will discuss the evolving roles of governments, central banks, and regulatory institutions in the context of CBDC implementation. This will involve considering the potential benefits of CBDCs, such as improved monetary policy transmission, financial stability, and increased financial inclusion. We will also address the associated risks, including privacy concerns, cybersecurity risks, and the need for effective regulation and oversight.

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According to Gallos, organizations are messy and complex, and leaders are expected to bring order from the chaos. Multi-framed thinking and skills in reframing, are essential components of a comprehensive yet manageable leadership strategy. But effective leadership involves this paradox: a competent leader must be ___ and ___ for optimal performance.
Select one: A. intelligent; experienced B. a specialist; a generalist C. a leader, a manager D. near-sighted; far-sighted E. masculine; feminine

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In Joan Gallos' perspective on leadership in "Making Sense of Organizations," she emphasizes the importance of multi-framed thinking and reframing skills for effective leadership in complex and messy organizational contexts. Gallos highlights a paradox where a competent leader must possess two seemingly contrasting qualities for optimal performance.

Gallos suggests that effective leadership requires individuals to be both a leader and a manager. This means that leaders must possess the ability to set a vision, inspire others, and provide direction (leadership), while also having the skills to plan, organize, and control resources to achieve goals (management). This dual role acknowledges the need for leaders to balance strategic thinking and execution, enabling them to navigate complexities, bring order to chaos, and drive organizational success. By embracing both leadership and management aspects, leaders can effectively address the challenges posed by messy and complex organizations.

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A. Relate THREE (3) factors against self-insurance.

B. Examine the retrospective insurance plan and identify TWO (2) problems associated with it.

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A. Relate THREE (3) factors against self-insurance.Main answer: Self-insurance is a financial risk management technique in which the firm decides not to purchase insurance and instead retains the responsibility for covering the risk. It is used in businesses, health care, and other industries to save money and provide flexibility.

Self-insurance may not provide complete protection, it is costly, and it is unpredictable, making it less desirable for businesses.B. Examine the retrospective insurance plan and identify TWO (2) problems associated with it.Main answer: Retrospective rating insurance plans are a type of insurance policy that enables the insurer to adjust the insurance rate based on the policyholder's losses. These policies are suitable for companies with significant exposures to loss because they offer a more accurate estimate of the firm's insurance costs. However, retrospective rating plans have some disadvantages that companies should consider before enrolling in them. Here are two problems associated with retrospective rating insurance plans:1.

Unpredictable Costs: Retrospective rating insurance plans can result in unpredictable costs. The final insurance rate is determined by the insurer's calculation of the policyholder's losses, which can vary widely and be difficult to predict.2. Risk of Underpayment: Retrospective rating insurance plans can result in underpayment of claims. In retrospective rating plans, the insurer pays for the losses only after the policy period has ended. If the policyholder has a high loss during the coverage period, they may have to pay more out of pocket before the insurer reimburses them.Explanation: Retrospective rating insurance plans can result in unpredictable costs and risk of underpayment of claims. Companies should consider these risks before enrolling in a retrospective rating plan.

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On February 15, Jewel Company buys 7,400 shares of Marcelo Corporation at $28.57 per share. The stock is classified as a stock investment with insignificant influence. This is the company’s first and only stock investment. On March 15, Marcelo Corporation declares a dividend of $1.19 per share payable to stockholders of record on April 15. Jewel Company received the dividend on April 15 and ultimately sells half of the Marcelo Corporation stock on November 17 of the current year for $29.34 per share. The fair value of the remaining 3,700 shares is $29.54 per share. The amount that Jewel Company should report in the asset section of its year-end December 31 balance sheet for its investment in Marcelo Corporation is:

Answers

Jewel Company should report the investment in Marcelo Corporation at its fair value, which is $109,138 ($29.54 x 3,700 shares), in the asset section of its year-end December 31 balance sheet.

Jewel Company purchased 7,400 shares of Marcelo Corporation at $28.57 per share, which initially represents the cost of the investment. However, since the stock is classified as a stock investment with insignificant influence, it is measured at fair value. On November 17, Jewel Company sells half of its Marcelo Corporation stock, which is 3,700 shares, at $29.34 per share. The fair value of the remaining 3,700 shares is stated as $29.54 per share.

To determine the amount to report in the asset section of its year-end balance sheet, Jewel Company should consider the fair value of the investment. The fair value of the remaining 3,700 shares is $109,138 ($29.54 x 3,700 shares). This is the value that should be reported as the investment in Marcelo Corporation in the balance sheet. By reporting the investment at fair value, Jewel Company provides users of the financial statements with the most relevant and up-to-date information regarding the value of its investment in Marcelo Corporation.

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which is not a source of a security threat?

CUSTOMER SERVEY

UNTRAINED EMPLOYEE

NATION STATE ACTOR

HACKTIVIST

Answers

Answer:

UNTRAINED EMPLOYEE IS NOT A SOURCE OF SECURITY THREAT.

Explanation:

Untrained employees can in some cases cause poor productivity.

The current yield for a bond O is stated on the bond certificate. O Is determined by dividing the dollar amount of annual interest by its current market price O is not a factor when evaluating a bond investment? Takes into account the relationship among a bond's maturity value, the time to maturity, the current price, and the dollar amount of interest A(n) O Serial bond O Registered bond Bearer bond O Zero-coupon bond is a bond of a single issue that has multiple maturity dates.

Answers

The correct statement for the current yield for a bond is B. Is determined by dividing the dollar amount of annual interest by its current market price.

Serial bonds, registered bonds, bearer bonds, and zero-coupon bonds do not describe the current yield.

Divide the annual interest payment in dollars by the bond's current market value to get the current yield.

In relation to the bond's current market price, it shows the annual interest income the bond generates. It provides a gauge of the yield on the bond based on its current market value and is stated as a percentage.

A bond with a yearly interest payment of $80 and a market price of $1,000, for instance, would have an 8% current yield (80 divided by $1,000).

The following alternative choices are incorrect: -

The bond certificate does not include the current yield. It is determined using the market price and properties of the bond.

The current yield is a crucial consideration when assessing a bond investment since it sheds light on the bond's capacity to provide income in relation to its price.

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Develop an action plan for improving your own change management
capabilities .

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To develop an action plan for improving my own change management capabilities, I will follow these steps: Identify my current change management strengths and weaknesses.

I will start by evaluating my current skills and knowledge in change management, and identifying areas where I excel and areas where I need improvement.

Conduct a gap analysis: I will compare my current skills and knowledge with those required for effective change management, and identify any gaps that need to be filled.

Set specific, measurable, and achievable goals: I will set specific, measurable, and achievable goals for improving my change management capabilities, such as completing a certain number of training courses or developing a specific skill.

Develop an education and training plan: I will identify the education and training resources that will help me achieve my goals, such as attending workshops, taking online courses, or reading books on change management.

Develop a communication plan: I will develop a communication plan to ensure that my team and stakeholders are aware of my goals and the steps I am taking to achieve them.

Develop a support network: I will identify key stakeholders who can provide support and guidance, such as mentors or coaches, and develop a plan for staying in touch and receiving feedback.

Monitor and evaluate progress: I will regularly monitor and evaluate my progress towards my goals, and make adjustments to my plan as needed.

Overall, my action plan will focus on building my knowledge and skills in change management through education and training, developing a communication plan to ensure that my goals and progress are well understood, and building a support network to provide guidance and feedback. By following this plan, I will be better equipped to manage change effectively and achieve my goals in this area.  

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Question 1 (20 points) Assume the credit terms offered to your firm by your suppliers are 6/10 net 80. Calculate EAR. Question 2 (30 points) The firm ABC purchased goods from its suplier on terms of 7/20, net 60.
a) What is EAR of the trade credit? b) What is EAR if firm did payment on day 80? (assuming no extra penalty for case b) Question 3 (30 points) Which of the following one-year $1000 bank loans offers the lowest effective annual rate? a. A loan with an APR of 6%, compounded monthly b. A loan with an APR of 6%, compounded annually, that also has a compensating balance requirement of 10% (on which no interest is paid) c. A loan with an APR of 6%, compounded annually, that has a 1% loan origination fee

Answers

1 The EAR of 6/10 net 80 credit terms is 13.44%.

2 a) The EAR of the trade credit is 16.87%.

b) The EAR if firm did payment on day 80 is 20.00%.

3. The loan with an APR of 6%, compounded monthly offers the lowest effective annual rate.

Here are the calculations for each answer:

Question 1

The EAR of a credit term is calculated using the following formula:

EAR = [tex](1 + i)^n - 1[/tex]

where:

i is the annual interest rate

n is the number of compounding periods per year

In this case, the annual interest rate is 6% and the number of compounding periods per year is 12. So, the EAR is calculated as follows:

EAR = (1 + 0.06)^12 - 1 = 13.44%

Question 2

a) The EAR of a trade credit is calculated using the following formula:

EAR = [tex](1 + i)^n - 1 + f[/tex]

where:

i is the annual interest rate

n is the number of compounding periods per year

f is the finance charge as a percentage of the principal

In this case, the annual interest rate is 6%, the number of compounding periods per year is 12, and the finance charge is 7%. So, the EAR is calculated as follows:

EAR = (1 + 0.06)^12 - 1 + 0.07 = 16.87%

b) The EAR, if firm did payment on day 80, is calculated using the following formula:

EAR = (1 + i)^n - 1 + f + p

where:

i is the annual interest rate

n is the number of compounding periods per year

f is the finance charge as a percentage of the principal

p is the penalty as a percentage of the principal

In this case, the annual interest rate is 6%, the number of compounding periods per year is 12, the finance charge is 7%, and the penalty is 0%.

So, the EAR is calculated as follows:

EAR = (1 + 0.06)^12 - 1 + 0.07 + 0 = 20.00%

Question 3

The loan with an APR of 6%, compounded monthly offers the lowest effective annual rate because it has the lowest compounding frequency.

The remaining two loans will accumulate greater interest throughout the year due to their increased frequency of compounding.

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So if we have a tobin's q greater than 1 (vs. less than one), should the firm use retained earnings to do share buyback or just pay out dividends? Show the reasoning when to give out dividends or when to do share buyback, depending on tobin's q.

Answers

The Tobin's q is a widely used measure of the market value of a firm relative to its replacement cost. The Q theory predicts that an increase in the value of Q results in a corresponding increase in investment. A firm with a Tobin's Q above 1 is interpreted as having good investment opportunities.

A Tobin's Q below 1 implies that the firm's market value is less than its replacement cost. It implies that the firm is not in a good position to invest. Firms can use their retained earnings in two ways: paying out dividends and buying back shares. The decision between these two choices is based on the firm's growth prospects and the market conditions. If the firm's Tobin's Q is above 1, it is considered a good investment opportunity. In this case, it is better to use the retained earnings to buy back shares rather than pay out dividends. When the company buys back shares, it reduces the number of shares outstanding, and the earnings per share increase. Consequently, it leads to an increase in the market price of the share, which benefits the shareholders. On the other hand, if the firm's Tobin's Q is below 1, it implies that the firm is not in a good position to invest. In this case, it is better to use the retained earnings to pay out dividends instead of buying back shares. The reason is that the market price of the share will not benefit from the share buyback. Moreover, paying out dividends will attract more investors who will benefit from the dividend payout. In conclusion, a firm with a Tobin's Q above 1 should use retained earnings to buy back shares. A firm with a Tobin's Q below 1 should use the retained earnings to pay out dividends.

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Provide your answers and show your work. 2. XYZ Co has 15,000 shares of common stocks. The stock has a standard deviation of return of 9.39%. A stock market index has a standard deviation of return of 6.84%. The correlation coefficient between stock return and stock stock index return is 0.93. The stock is expected to pay dividend of $3 in one year and $3 in two years. Its expected price in two years is $60. The risk- free rate is 3%. The stock market index has an expected return of 12% a. Estimate the beta of the stock. Does the stock have a greater risk than the stock market index? Explain b. Use the security market line to determine the required rate of return of the stock. Determine the per share value of the stock.

Answers

a. The beta of the stock is 1.27. Yes, the stock has greater risk than the stock market index.

b. The required rate of return of the stock is 12.81%. The per share value of the stock is $42.22.

a. Calculation of the beta of the stock:

Beta = Correlation (ρ) x (σ Stock / σ Market Index)

Beta = 0.93 x (9.39% / 6.84%)

Beta = 1.27

Thus, the beta of the stock is 1.27.

Yes, the stock has greater risk than the stock market index.

In finance, beta is a measure of a security's risk. A beta of 1 indicates that the security has the same risk as the market as a whole. Stocks with a beta of less than 1 have less risk than the market, while stocks with a beta of greater than 1 have more risk than the market.

b. Calculation of the required rate of return of the stock:

r = Rf + β (Rm - Rf)

r = 3% + 1.27 (12% - 3%)

r = 12.81%

Thus, the required rate of return of the stock is 12.81%.

Calculation of the per share value of the stock:

V₀ = (D₁ / (1 + r)) + (D₂ / (1 + r)²) + (P / (1 + r)²)

V₀ = ($3 / (1 + 0.1281)) + ($3 / (1 + 0.1281)²) + ($60 / (1 + 0.1281)²)

V₀ = $2.32 + $1.78 + $38.12

V₀ = $42.22

Therefore, the per share value of the stock is $42.22.

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QUESTION 15
Calculate the following investments payback period if it has an initial cost of 4200 and generates a return of 2300, 1200, 2000 and 5200.
O a. 2.35 years
O b. 2.74 year
O c. 2.54 years
O d. 4 years

Answers

The payback period for the investment is 2.28 years. The initial cost is $4200 and the cash inflows are $2300, $1200, $2000, and $5200.

The payback period is the amount of time it takes to recover the initial cost of an investment. To calculate the payback period, we need to add up the cash inflows until they equal the initial cost.

In this case, the initial cost is $4200 and the cash inflows are $2300, $1200, $2000, and $5200. We start by subtracting the first cash inflow from the initial cost:

$4200 - $2300 = $1900

We then subtract the second cash inflow from the remaining balance:

$1900 - $1200 = $700

Next, we subtract the third cash inflow:

$700 - $2000 = -$1300

At this point, we have not yet recovered the initial cost, so we need to consider the fourth cash inflow. Adding it to the remaining balance gives us:

-$1300 + $5200 = $3900

Since this amount is greater than the initial cost, we have recovered the full amount within the first three years. To get a more precise estimate of the payback period, we can take the fractional part of the last year:

$3900/$5200 = 0.75

So the payback period is 3 - 0.75 = 2.25 years. Therefore, option (b) 2.74 years is not correct.

Rounding to two decimal places gives us a final answer of approximately 2.28 years.

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Which of the following is not a process commonly considered in making products or delivering services? A. continuous B. batch C. repetitive D. job shop E. subcontracting

Answers

The process that is not commonly considered in making products or delivering services is subcontracting. There are various types of production processes and each process has its own advantages and disadvantages that must be considered before selection.

These processes are widely used for manufacturing various products or services.The different types of production processes commonly considered in making products or delivering services are continuous, batch, repetitive, and job shop. Let's take a look at each of these processes:Continuous process: Continuous processes are those in which raw materials are continuously fed into the process, and the finished product is continuously produced. This process is widely used in the manufacturing of chemicals, petroleum, and pharmaceuticals.Batch process: The batch process is a type of production process in which the production is done in batches. In this process, a certain quantity of raw material is used to produce a certain quantity of finished goods.Repetitive process: Repetitive processes are those in which a single or few products are produced repeatedly. This process is commonly used in automobile manufacturing.Job shop process: Job shop processes are those in which products are manufactured on order. This process is commonly used in the production of custom-made products.Subcontracting is not a production process, but it is a practice where a company hires another company to perform certain tasks or services on their behalf. Subcontracting can be used to outsource certain tasks or services that are not core competencies of the company. Therefore, the answer is E. Subcontracting.

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Identify the strengths that Tesla has accumulated within the
organisation. Analyse their application of their strengths in
building their brand and company.

Answers

Strengths of Tesla:

1. Technological Innovation: Tesla's strength lies in its technological innovation, particularly in electric vehicle (EV) technology and energy storage solutions. They have developed advanced battery technology, high-performance electric drivetrains, and autonomous driving features, positioning themselves as leaders in the EV market.

2. Strong Brand Image: Tesla has successfully built a strong brand image associated with innovation, sustainability, and luxury. They have positioned themselves as a pioneer in the electric vehicle industry and have garnered a loyal customer base and a strong following among environmental enthusiasts and tech enthusiasts alike.

3. Vertical Integration: Tesla's vertical integration strategy, which involves controlling various stages of the value chain, gives them a competitive advantage. They manufacture their own batteries, electric drivetrains, and software, allowing them to have better control over quality, costs, and technological advancements.

4. Supercharger Network: Tesla has invested in a network of Supercharger stations globally, providing convenient and fast charging infrastructure for Tesla owners. This network gives Tesla an advantage over competitors by addressing the concern of EV range anxiety and making long-distance travel more feasible.

Application of Strengths:

Tesla has effectively leveraged these strengths to build their brand and company:

1. Product Differentiation: Tesla's technological innovation and focus on sustainability have allowed them to differentiate themselves in the market. Their electric vehicles offer superior performance, longer ranges, and innovative features such as over-the-air software updates and autonomous driving capabilities. This has helped them create a unique value proposition and attract a dedicated customer base.

2. Branding and Marketing: Tesla has successfully positioned itself as a premium brand in the EV market. Their marketing efforts emphasize sustainability, cutting-edge technology, and a luxurious experience. By showcasing the performance and environmental benefits of their vehicles, Tesla has created a compelling brand narrative that resonates with consumers.

3. Market Expansion: Tesla's strengths in technology and vertical integration have enabled them to expand their product offerings and enter new markets. They have expanded beyond passenger vehicles and introduced energy storage solutions like the Powerwall and Powerpack. This diversification strategy has allowed them to capitalize on emerging opportunities in renewable energy and grid storage.

4. Customer Experience: Tesla's Supercharger network has enhanced the customer experience by addressing concerns about EV charging infrastructure. The availability of convenient and fast charging stations has increased the appeal of Tesla vehicles and reduced barriers to adoption. This network also promotes brand loyalty and customer satisfaction.

Overall, Tesla's strengths in technological innovation, strong brand image, vertical integration, and charging infrastructure have been instrumental in building their brand and company. These strengths have enabled them to differentiate themselves, expand their market presence, and provide a unique customer experience in the electric vehicle industry.

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In a case where duress is used against you and you are forced to commit a crime,

because it belongs to the person committing the Duress,... :

You do not have your own Actus Reus

You do not have your own Mens Rea

You have neither your own Actus Reus nor Mens Rea

Answers

In a situation where duress is used against you and you are forced to commit a crime. The key concept is that you lack both your own Actus Reus (the guilty act) and Mens Rea (the guilty mind) required to establish criminal responsibility.

Actus Reus refers to the physical act of committing a crime. In this scenario, since you are being compelled under duress, you are not freely and voluntarily engaging in the criminal act. Therefore, you do not have your own Actus Reus.

Mens Rea, on the other hand, refers to the mental state or intention to commit a crime. When forced under duress, you lack the necessary intent or guilty mind required to be held criminally responsible. The element of intent is negated because you are acting under the threat of harm or other coercive means.

In summary, if you can prove that you were forced to commit a crime under duress, it would generally be a valid defense that you lacked both your own Actus Reus and Mens Rea.

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Company has no debt. It has $40 million in common stock outstanding and $10 million in preferred stock. Its corporate tax rate is 30%. Its common stockholders expect a return of 17%. Its preferred stockholders expect a return of 12%. What is Company's weighted average cost of capital?
A. 16%
B. 11.92%
C. 15.28%
D. 17%
E. None of the above

Answers

The Company's weighted average cost of capital is 16%. The correct answer is option A.

To calculate the weighted average cost of capital (WACC), we need to consider the proportions of each source of financing (common stock and preferred stock) and the respective costs associated with each.

Step 1: Calculate the cost of common stock (equity):

Cost of Common Stock = Expected Return on Common Stock

In this case, the expected return on common stock is 17%.

Step 2: Calculate the cost of preferred stock (equity):

Cost of Preferred Stock = Expected Return on Preferred Stock

In this case, the expected return on preferred stock is 12%.

Step 3: Calculate the weights of each source of financing:

Weight of Common Stock = Market Value of Common Stock / Total Market Value

Weight of Preferred Stock = Market Value of Preferred Stock / Total Market Value

In this case, we don't have the market values for the common stock and preferred stock, so we can't calculate the weights directly. However, we can assume that the market value of common stock is $40 million and the market value of preferred stock is $10 million. Therefore:

Weight of Common Stock = $40 million / ($40 million + $10 million) = 0.8 (or 80%)

Weight of Preferred Stock = $10 million / ($40 million + $10 million) = 0.2 (or 20%)

Step 4: Calculate the WACC:

WACC = (Weight of Common Stock × Cost of Common Stock) + (Weight of Preferred Stock × Cost of Preferred Stock)

WACC = (0.8 × 17%) + (0.2 × 12%)

WACC = 0.136 + 0.024

WACC = 0.16 or 16%

Therefore, the Company's weighted average cost of capital is 16%. The correct answer is option A.

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Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Whispering Company. The following information relates to this agreement.

1. The term of the non-cancelable lease is 3 years with no renewal option. The equipment has an estimated economic life of 5 years.

2. The fair value of the asset at January 1, 2020, is $71,000.

3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $12,000, none of which is guaranteed.

4. The agreement requires equal annual rental payments of $20,600.52 to the lessor, beginning on January 1, 2020.

5. The lessee's incremental borrowing rate is 4%. The lessor's implicit rate is 3% and is unknown to the lessee.

6. Whispering uses the straight-line depreciation method for all equipment.

Answers

The lease is a finance lease. A lease agreement can be classified as a finance lease if it satisfies any one of the five criteria specified by the IFRS 16 standard. The five criteria are:
- Ownership of the asset transfers to the lessee at the end of the lease term.
- The lease term is for a major part of the economic life of the asset.

For the lessee, the first step in accounting for a finance lease is to recognize the lease liability and the right-of-use asset at the commencement date. The lease liability is measured as the present value of the lease payments, discounted at the lessee's incremental borrowing rate of 4%. The right-of-use asset is measured at the lease liability amount, plus any initial direct costs and any lease payments made before the commencement date.

Year 1:
Interest expense = Lease liability × Incremental borrowing rate = $57,204.54 × 4% = $2,288.18
Depreciation expense = (Cost - Residual value) ÷ Lease term
= ($71,000 - $12,000) ÷ 3 = $19,666.67
Total lease expense = Interest expense + Depreciation expense = $2,288.18 + $19,666.67 = $21,954.85
Year 2:
Interest expense = ($57,204.54 - $20,600.52) × 4% = $1,928.18
Depreciation expense = $19,666.67
Total lease expense = Interest expense + Depreciation expense = $1,928.18 + $19,666.67 = $21,594.85
Year 3:
Interest expense = ($57,204.54 - 2 × $20,600.52) × 4% = $1,568.18
Depreciation expense = $19,666.67
Total lease expense = Interest expense + Depreciation expense = $1,568.18 + $19,666.67 = $21,234.85.

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how many groups of aquatic organisms are discussed in this passage? a record of the increases and decreases in a specific account is a(n): multiple choice ledger account general ledger The probability of passing Math is 44%. 5 students are planning to take the class. Assuming independence, what is the probability that at least one will pass theclass? Please write your answer to 3 decimal places. Exercise 2. Let P = (2,1). Find a point Q such that PO is parallel to v = (2,3). How many solutions to this problem exist? Hint: Let Q=(x, y) and find equations for x and y. 5. Proof a. tan x + cos x = sin x (sec x + cot x) b. 2cos-() ~ () = cos` (/3) sin 0 c. 1 + cos 0 1-cose d. tan x + cot x = sec x csc x 2x e. sin(2tan x) = x +1 You purchased 600 shares of common stock on margin at $40 per share and sold them 6 months later at $45. Assume the margin requirement is 80%, interest on margin used is 5%, and commission paid on each transaction is 2%. What is your capital gain on this investment? The capital gain on the investment is $. (Round the final answer to two decimal places. Enter the answer without symbols (ie. if the answer is $1.35 enter 1.35 in the answer box) Assume that at the end of each year for 25 years you deposit $350 into an account earning 6% per year. How much will you have in your account at the end of the 25 year period? (Round the final answer to two decimal places. Enter the answer without symbols (ie. if the answer is $1.35 enter 1.35 in the answer box) 1. A student wants to develop 3-sigma level variable control charts for monitoring firewood length. Due to uneven shape of firewood, length of wood varies. Draw X-bar chart and R-chart. For both charts, calculate UCL, CL and LCL by using the factors provided in the table (standard deviation for process is unknown). Is the process under control? Discuss your finding.Length in inches from 4 weeks with a sample size of 3 (3 observations each time, n=3) are: Can yall help me with this one its geometry as well This test 25 po This question Sports poble Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates a production city 30 days your stor has the capability of producing 05 per day Setting up the light production costs $51 The cost of math light is 50.06. The holding costs 100 light payou a) What is the optimal size of the production nun? b) What is the average holding cost per year? S c) What is the average setup cost per year? S d) What is the total cost per year, including the cost of the lights? 5 (round your response to two decimal places) units (round your response to the nearest whole number) (round your response to two decimal places) (round your response to two decimal places Submit test Radovilsky Manufacturing Company in Hayward, Californ, makes fang igs for tys. The company has the capability of producing 95 per day Setting up the light production cos 151. The ot of each p a) What is the optimal size of the production run? units (round your response to the nearest who under b) What is the average holding cost per year?(round your response to twie decimal places (round your response to two decimal places c) What is the average setup cost per year? S d) What is the total cost per year, including the cost of the lights?(round your response to heo decimal places 35 Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates in production facity 200 has the capability of producing 95 per day. Betting up the light production costs $51. The cost of each light is $0.95 The holding onds 50 Y0 per light you a) What is the optimal size of the production run? b) What is the average holding cost per year? S c) What is the average setup cost per year? S d) What is the total cost per year, including the units (round your response to the nearest whole number (round your response to two decimal places (round your response to two decimal places) cost of the lights?(round your response to two decimal places) English: find a word with more than seven letters. If Smitty is able to earn 11% compounded semi-annually on his $750 investment, how much money will he have in 40 years? O a. $54,357 O b. $7,979 Oc. $73,825 O d. $48,751 Oe. $89,324 Use log, 2 0.402, log, 5 0.788, and log, 7 1.09 to approximate the value of the given logarithm to 3 decimal places. Assume that b>0 and b# 1. 3 35 10%b | 22 2 eople are served in a process with two resources. The first resource has a capacity of 2 people per minute. The capacity of the second resource is 1.8 people per minute. The first resource has 6 workers and the second resource has 8 workers. One additional worker is hired who is as productive as the current workers. Instruction: Round your answer to three decimal places. What is the new capacity of this process? people per minute 6. When Anna uses money to buy her breakfast, she is showing the use of money as a store of value.Answer:Reason:7. The discount rate helps to determine the amount of money banks can create.Answer:Reason:8. If the central bank carries out an open market operationand sellss government securities, the federal funds rate increases and the quantity of money decreases.Answer:Reason:9. If the central banks sells bonds in the open market, net exports will increase.Answer:Reason:10. In the short run, the central bank's actions to fight inflation shift the aggregate demand curve leftward.Answer:Reason: Make a list of ten images and associations that come to mind for each of the following items: baseball, vinyl record album, spoon, rubber band.2. Think of an everyday object of your own. What are its likely connotations? For example, a dog in a car might signal a family vehicle, but a dog also connotes loyalty, "mans best friend," and dependability. What images and associations are likely with your item? Make a list of as many as you can.3. Now use your object and list of associations to create an image for another product. Think of the likely connotations your object will have for a certain target market and how such connotations can support a brand image. For example, if your everyday object is a candle, you might choose lingerie for your product, based on a candles romantic connotations. What are rooms close to each other, perhaps across the hall called? O Adjoining rooms connecting rooms O adjacent rooms O advantage rooms is a psychotic disorder in which personal, social, and occupational functioning deteriorate as a result of unusual perceptions, odd thoughts, disturbed emotions, and motor abnormalities. What manufacturing strategy that is used when parts and components are pre-produced and waited for the final confirmation of the customer orders before the finished goods are delivered to the customers? What production operations concepts are always practiced together with this manufacturing strategy? List and discuss the different ACH trends and providers. infectious mononucleosis is a specific viral infection (with the epstein-barr virus) in which there is an increase of white blood cells.