the cost of capital for a firm with a 60/40 debt/equity split, 2.23% cost of debt, 15% cost of equity, and a 35% tax rate would be

Answers

Answer 1

the cost of capital for a firm with a 60/40 debt/equity split, 2.23% cost of debt, 15% cost of equity, and a 35% tax rate would be 6.86%

What is cost of debt?

The cost of debt may be represented as either the before-tax cost of debt, which is the amount owed by the company before taxes, or the after-tax cost of debt.

What is cost of capital?

The cost of capital, which includes both debt and equity prices, is used to assess a company's new projects. It is the lowest rate of return that investors anticipate in exchange for lending money to businesses, establishing a standard that new projects must achieve.

Given

Weight of debt = 60% or 0.60

Weight of equality = 40% or 0.40

Cost of Debt= 2.23%

Cost of equity= 15%

Tax rate = 35% or 0.35

Cost of capital= [ Cost of equality× weight of equality] + [ cost of debt× weight of debt× (1 -tax rate)]

= [ 15% × 0.40] + [2.23% × 0.60 × (1 - 0.35)]

= 6% + [ 1.338% × 0.65]

=6% + 0.8697%

= 6.86%

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Related Questions

I want to be a Architect or vet does anyone know what i should choose for GCSE's.

Answers

Answer:

for me I want you to choose vet because I love animals

Explanation:

But follow your heart it's your choice choose wisely

It really doesn’t matter what you choose for GCSEs but if your school offers triple science I would opt for that. If you’re good at art you could also pick that but alevel options are more important.

If this market were highly competitive instead of a duopoly, the market price would be ________ and the quantity of movie tickets purchased would be ________

Answers

Answer:1/2 is 0

Explanation:

Technology has made it possible for software to replace that
previously would have been paid to collect and interpret information for upper
management.
O A. mid-level employees
B. entry-level workers
C. HR directors
D. executive officers

Answers

Answer: mid level employees

Explanation:

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,700 of direct materials and used $3,200 of direct labor. The job was not finished by the end of September, but needed an additional $2,200 of direct materials in October and additional direct labor of $5,700 to finish the job. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October

Answers

Answer:

$19,300

Explanation:

Calculation to determine the amount of job costs added to Work in Process Inventory during October

Using this formula

October Job costs=Raw material+Direct labour+Overhead

Let plug in the formula

October Job costs=$2,200+$5,700+($5,700*2)

October Job costs=$2,200+$5,700+$11,400

October Job costs=$19,300

Therefore the amount of job costs added to Work in Process Inventory during October is $19,300

Depreciation is recorded on the income statement as _____.
A. a revenue that reduces net income
B. an expense that reduces net income
C. a revenue that increases net income
D. an expense that increases net income

Answers

It should be noted that depreciation is recorded on the income statement as a revenue that reduces net income.

What is depreciation?

Depreciation  can be regarded as  the diminution in the utility as well as the value that is been associated to an  asset.

These fixed assets could be;

buildings furnitureoffice equipmentmachinery

Therefore, option A is correct because depreciation is recorded on the income statement.

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Answer: Depreciation is an expense that decreases net income.

Explanation: Depreciation is an expense — that’s the whole point of it, it’s taking out your cost for a large expense that you use for multiple years over the lifetime of that asset, rather than all in one year. So it’s always an expense.

Any expense decreases your net income.

QED.

During 2018, Leucothea Co. became involved in a legal dispute with a supplier. At December 31, 2018, Leucothea’s legal advisor believed that an unfavorable outcome was probable. A reasonable estimate of resulting monetary damages is $100,000 but could be as much as $200,000. Leucothea has legal liability insurance coverage that limits their loss to $80,000. After the 2018 financial statements were issued, Leucothea agreed to settle the case for $125,000. What amount of accrued liability should Leucothea have reported in its December 31, 2018 balance sheet?

Answers

Answer:

$80,000

Explanation:

Prudence allows that liabilities should not be understated and assets should not be overstated .

As the case is probable to result to a liability by the lawyers assessment , this means that it is more likely to happen and liability should be recognized . However , there is an insurance that limits the liability to the tune of $80,000 regardless of the agreement made towards the settlement.

The sum of $80,00 should be recognized as the liability in the statement of financial position

Post-Assessment
Question 2 of 5
Why is buying a car considered "bad debt"?
It decreases in value over time
It increases your net worth as it build equity
It gives you transportation to and from your job
It is worth more than any other investment
Submit
Continue
E

Answers

The reason why buying a car considered "bad debt"is that It decreases in value over time. option A

What is  bad debt?

The term bad debt can be described as the amount of money that a creditor must write off as a result of a default on the part of the debtor in a case whereby the creditor has a bad debt on the books,  then things turn to uncollectible and is recorded as a charge-off.

It should be noted that a case can be regarded as bad debt because the value of the asset you receive from the loan depreciates quickly however in some cases  interest charges increase how the amount that is been paid for the vehicle.  and in thius case cost is higher compare to what it would be if you'd purchased the car outright with cash.

Hence, option A is correct.

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Aptitudes might take years of training.


True

False

Answers

Answer:

true

Explanation:

Answer:

The correct answer is False

Explanation:

Got it right on the quiz.

If you observe a co-worker, customer, or stranger in your workplace exhibiting any of the warning signs of workplace violence, who should you talk to?.

Answers

If you observe a co-worker, customer, or stranger in your workplace exhibiting any of the warning signs of workplace violence you should first report your concern to your supervisor, or human resources department.

What is workplace violence?

Workplace violence is any act of, or threat of, physical violence, harassment, intimidation, or other threatening disruptive behavior that takes place at the workplace. Threats, slander, and physical and verbal abuse are all included, as well as murder. Customers, clients, visitors, and staff all may be impacted. The third-leading cause of fatal workplace injuries in the United States is now acts of violence and other injuries. In 2019, there were 5,333 fatal workplace injuries in the United States, and 761 of those injuries were caused intentionally by another person, according to the Bureau of Labor Statistics Census of Fatal Occupational Injuries (CFOI). Employers and employees across the country are very concerned about workplace violence, regardless of how it presents.

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Answer: Your co-worker is late to work one or two days each week.

Explanation:  

the best hope for th efututre global economy and environmental policy depends upon

Answers

The best hope for the future global economy and environmental policy depends upon international cooperation, sustainable development, and technological innovation.

By working together, nations can create policies that balance economic growth with environmental protection.

Embracing sustainable development ensures that resources are used efficiently, reducing waste and preserving ecosystems. Technological innovations, such as renewable energy and clean manufacturing, can reduce greenhouse gas emissions and minimize environmental damage.

By prioritizing these aspects, the global community can achieve a thriving economy while safeguarding the planet for future generations.

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APR, a rate advertised by ___ is typically ___ than APY

A) lenders; higher
B) borrowers; higher
C) borrowers; lower
D) lenders; lower

answer: D

Answers

D is the answer look at this

APR, a rate advertised by lenders is typically lower than APY. The correct answer is D.

What is APR?

APR is an acronym for annual percentage rate, it is considered as a cost of borrowing money which is calculated on a percentage that any individual pay each year on their loan.  It does not only include the rate of interest but also the fees you must pay to obtain the loan.

APY is an acronym for annual percentage yield, which is considered the actual rate of return on the investment after considering the effect of investment returns.

APR is a rate advertised by lenders that is typically lower than APY as the cost of overall borrowing is lower, and the accounts of APR are also lower. If the difference between APR and APY is higher, the frequency with which interest compounds also increases.

Therefore, option D lenders and lower is the appropriate answer.

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Which is not an aspect of America's Free-Market Economy?

Lack of Incentive
Competition
Voluntary Exchange
Profit Motive

Answers

Answer:

Lack of Incentive

Explanation:

A free-market economy is controlled by the forces of demand and supply. The government or the central authority does not interfere with the economic activities in the country. The exchange of goods and services is on the basis of a willing seller and willing buyer.

Characteristics of a free-market are

Private ownership of property, including the factors of production.Freedom of choice: Entrepreneurs are free to start and run a business of their choice. Buyers are free to buy products and services of their preferences.Profit motivation:  Self-gain or profits is the main incentive for engaging in tradeCompetition: They are many sellers and a variety of products for consumers to select.Limited government participation.

The process of analyzing the tasks necessary for the production of a product or service is called ______.

Answers

The correct answer is work flow design.

To offer team members and stakeholders a high-level overview of each activity involved in a certain process, workflow design entails mapping out all activities and processes in a visual manner.

How does one develop a workflow design?

Step 1- How to Create an online workflow:

Step  2- Decide on your resources.

Step 3- Make a list of the tasks that must be completed.

Step 4- Determine who is in charge of each task and assign duties.

Step 5- Make a workflow diagram to see the procedure in action.

Step 6- Try out the process you designed.

Step 7- Introduce the new workflow to your staff.

Step 8- Launch the updated workflow.

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What are the factors of production questions answers?

Answers

The factors of production are resources that are the building blocks of the economy; they are what people use to produce goods and services.

What is goods and services?An economic system's output is goods and services. Services are tasks carried out for the benefit of the recipients, whereas goods are tangible items sold to customers. Automobiles, home goods, and clothing are a few examples of goods. Legal counsel, housekeeping, and consulting services are a few examples of services. A business's output can fall somewhere in the middle of these two ideas. A landscaping business might, for instance, sell a homeowner a tree (a good) and also mow the lawn (a service).Not just consumers, but also businesses, receive goods and services.Items that are typically tangible are referred to as goods. Examples include pens, real books, salt, apples, and hats. Services are tasks performed by others, such as contractors, suppliers, and architects.

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What is characteristic of an organization in which salespeople do most or all of their own marketing?

independent
small size
nonprofit
private

Answers

Answer:

private

Explanation:

people are doing private marketing to earn money for themselves

Products can be returned for various reasons, such as product recalls, product damage, lack of demand, and customer dissatisfaction. This process is called______. Group of answer choices Reverse Auction Reverse Logistics Pull Forward Pull System

Answers

Answer:

Returned goods

Explanation:

The returned goods process is the process in which the goods are returned due to several reasons i.e damaged of the product, demand lacking, the customer is not satisfied with the product as the company does not meet the customer demand to the level of their expectation

Therefore this process we called returned goods

And this is the answer but the same is not presented in the given options

Suppose the market price of chicken wings in a university town recently increased. Economics students studying at the university are discussing potential causes of the price increase. One group of students theorize that the price increased because several wing joints in the area have recently gone out of business. Others claim the increase in the price of chicken wings is because of a recent decrease in the price of beer.

Everyone agrees that the decrease in the price of beer was caused by a recent decrease in the price of hops, which are not generally used in making chicken wings.

The first group of students claim the increase in the price of chicken wings can be attributed to the fact that several wing joints in the area have recently gone out of business.

Answers

This may explain the price increase, as the decreased competition in the economics market could lead to an increase in price.

What is economics market?

Economics market is an environment where buyers and sellers interact in order to exchange goods and services for money. It is the basis for the study of economics, which is the study of the production, distribution, and consumption of goods and services. Markets can be divided into different types depending on the nature of the product or service being exchanged. The two primary types of markets are the perfect competition market and the imperfect competition market. Perfect competition markets are those in which all buyers and sellers are equal and have access to the same information.

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if a trader buy and sell identical or essentially similar instruments at different price in different market, which type will the trader most likely be?

Answers

Arbitrageurs are the right response to the query. Buying and selling the same product in different marketplaces while taking advantage of price differences is known as an arbitrage.

In other words, we can argue that a person is an arbitrageur if they acquire the same item from a low price market and sell it in a high price market. As an illustration, suppose a pair of Nike shoes costs $100 in market X and $200 in market Y. The arbitrageur will pay $100 to purchase this shoe from Market X and $200 to sell the same shoe in Market Y. He makes money from this trade as a result. And this procedure is called arbitrage, and a person who engages in it is called an arbitrageur.

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A company in Maine sends lobsters to France What is Maine doing? Select three options​

Answers

Answer:

Following are the answer to this question:

Explanation:

Some information is missing in the question. So, the correct choices can be described as follows:

i) practicing international trade

ii) exporting products

iii) participating in globalization

Maine has been globally traded because its, company transfers it's own goods at international frontiers when a client gives lobster with France in Maine.  It exports products as its goods are manufactured in one nation, in this scenario the USA, is one other country, France in this case.Finally, it participates in the process of globalization because the company operates internationally by selling its products.

Answer:

B. practicing international trade

C. exporting products

D. participating in globalization

a value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period.

Answers

The amount that represents the interest paid by borrowers or earned by lenders is expressed as an annual percentage, which is computed as a percentage of the amount borrowed or invested over a 12-month period.

What is the Annual Percentage?

An annual percentage rate, or APR, is a figure that expresses the entire cost of borrowing money as a proportion of the loan's principle.

An accurate picture of how much it costs to borrow money is intended to be provided by the APR on a loan or credit card.

An annual percentage, calculated as a percentage of the amount borrowed or invested over a 12-month period, is a figure that represents the interest paid by borrowers or earned by lenders.

The annual percentage rate of charge is referred to as APRC.

It displays the annual cost of a secured loan or mortgage over the course of its lifetime as a percentage.

Therefore, the amount that represents the interest paid by borrowers or earned by lenders is expressed as an annual percentage, which is computed as a percentage of the amount borrowed or invested over a 12-month period.

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Job satisfaction can only be measured by a person’s income. Please select the best answer from the choices provided T F

Answers

Answer:

F

Explanation:

Answer:

f

Explanation:

i got the question right

If your marketing budget is $5,000 and you have spent 27% of it, what is the amount you have left to spend?

Answers

Answer:

3650

Explanation:

3650  is the amount you have left to spend from the budget of $5,000.

What is a budget?

A budget is an estimate of income and expenses for a given future period of time that is often created and reviewed on a regular basis. Any organization that wishes to waste cash, including corporations and organizations, as well as individuals and households of any economic level, can create a budget.

The total budget that was assigned for marketing  was $5000

The amount that was spent from the budget was 27%

The amount that was left from the budget = 100 - 27

= 73%

The money that was left of the marketing budget will be

= 5000 * 73%

= 5000 * 73/100

=5000 * 0.73

= $3650

The amount that was left was $3650 which can be spent more, depending on the allocation of the resources. This is 73% of the total amount that was assigned.

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Prisons with specific and unique goals are called:

minimum security prisons.

contract facilities.

administrative prisons.

Answers

Prisons with specific and unique goals are called:administrative prisons. Option C

Administrative prisons are correctional facilities that have specific and unique goals. Unlike minimum security prisons or contract facilities, administrative prisons are designed to serve a particular purpose or target a specific population.

Administrative prisons can include various types of facilities, such as:

Supermax Prisons: These are high-security prisons that are specifically designed to house the most dangerous and violent offenders. They aim to maximize control and minimize the risk of escape or harm to staff and other inmates.

Juvenile Rehabilitation Centers: These facilities focus on the rehabilitation and treatment of juvenile offenders. They provide educational and counseling programs to help young offenders reintegrate into society and reduce their risk of reoffending.

Mental Health Facilities: Some prisons have specialized units or entire facilities dedicated to providing mental health treatment and support for inmates with mental illnesses. These facilities aim to address the unique needs of individuals with mental health conditions and provide appropriate care.

Drug Treatment Centers: These prisons offer comprehensive drug treatment programs to inmates struggling with substance abuse. The focus is on rehabilitation, providing counseling, therapy, and support to help individuals overcome addiction and develop the necessary skills for a drug-free life.

Women's Prisons: These facilities are specifically designed to address the unique needs and challenges faced by female offenders. They provide gender-specific programs and services to address issues such as trauma, parenting, and healthcare for women in the criminal justice system. Option C

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1. List and explain the functions of money

Answers

Answer:

Money serves several functions: a medium of exchange, a unit of account, a store of value, and a standard of deferred payment.

What risks did workers face from the factory system of production?

Answers

Answer:

Workers in the factory system faced risks such as long hours, low pay, unsafe working conditions, injuries from machinery, and health problems from pollution and lack of sanitation.

Explanation:

explain the difference between centralised and decentralised organisational structure

Answers

Centralized organizational structures rely on one individual to make decisions and provide direction for the company. ... Decentralized organizational structures often have several individuals responsible for making business decisions and running the business.



Hope it helps

if an employer refuses to promote all persons of the asian race, the company has engaged in disparate-impact discrimination. True or false?

Answers

If an employer refuses to promote all persons of the Asian race, the company has engaged in disparate-impact discrimination. The given statement is true.

Disparate impact discrimination happens when employers use a facially neutral employment policy or practice that has an adverse impact on one or more legally protected groups. In this case, an employer who refuses to promote any Asian employee to any managerial position has engaged in disparate impact discrimination. An employer may violate the provisions of Title VII of the Civil Rights Act of 1964

if the employer adopts policies, procedures, or practices that discriminate against a particular race, color, religion, sex, or national origin group. This discrimination may occur even if there was no intent to discriminate, as long as the policy or practice has a disparate impact on the group in question .In conclusion, an employer who refuses to promote all persons of the Asian race has engaged in disparate-impact discrimination. Therefore, the given statement is true.

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Research cultural business communication etiquette for a country outside of the USA, and list 5 tips for successful cultural communication and etiquette in a business setting. Include the name of your country, the 5 tips (bulleted statements) and the website URL of your research used.

Research cultural business communication etiquette for a country outside of the USA, and list 5 tips

Answers

Answer:

wow

Explanation:

according to the text, what elements must a firm coordinate to achieve maximum performance? multiple choice question. organizational architecture, strategy, and its financial systems regulatory compliance, strategy, and its environment organizational architecture, marketing mix, and its environment organizational architecture, strategy, and its environment

Answers

To attain optimal performance, a firm's organizational architecture, strategy, and environment all work together.

Organizational structures assist firms in ensuring that all of the activities required for successful operations are delegated to the appropriate individuals. They also assist staff members and executives in understanding their responsibilities within the organization, including who they report to and who they manage.

Different departments frequently collaborate on projects in startups, which frequently have a matrix organizational structure. A clear line of command and a hierarchical structure are typical in large enterprises.

Most individuals only consider organizational structure in terms of whole businesses. However, the organizational structure of teams inside a function, department, or business unit is likewise governed by the same structural principles. Restructuring and organizational structures mainly concern the allocation of resources, information flows, and decision-making authority.

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How is a compressed work week different from a traditional work week?

You work one more day in a compressed work week.
You work forty hours in a compressed work week.
You work one less day in a compressed work week.
You work less than forty hours in a compressed work week.

Answers

Answer:

A compressed work allows the employee to work for 35-40hours workweeks in less than five workdays.

35-40 hours
have a great day
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