The required return on the stock of Moe's Pizza is 10.4 percent and aftertax required return on the company's debt is 3.28 percent. The company's market value capital structure consists of 65 percent equity. The company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus 1.5 percent. The tax rate is 35 percent. What is the required return for the new project

Answers

Answer 1

Answer:

WACC - new project = 6.408% rounded off to 6.41%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure can consist of one or more of the following components namely debt, preferred stock and common equity. The WACC is calculated as follows,

WACC = wD * rD * (1 - tax rate)  +  wP * rP  +  wE * rE

Where,

w represents the weight of each component r represents the cost of each componentD, P and E represents debt, preferred stock and common equityrD * (1 - tax rate) is the after tax cost of debt

We first need to calculate the WACC of the company and then adjust it for the new project.

WACC = 35% * 3.28%  +  65% * 10.4%

WACC = 7.908%

As the new project is less risky and has an adjustment factor of -1.5%, the required rate of return for the new project will be,

WACC - new project = 7.908%  -  1.5%  

WACC - new project = 6.408% rounded off to 6.41%


Related Questions

Nathen’s home office

Answers

Answer:

Today, the Chinese own Armour and the famous Smithfield hams, together with the most quintessential American brand of all: Nathan's Famous hot dogs, with its iconic annual eating contest. ... It remains the largest total acquisition of a U.S. company by the Chinese.

Explanation:

Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Compute the division's return on investment:

Answers

Answer:

17.30%

Explanation:

The computation of the return on investment is shown below

But before that the net income is

Sales $5,375,000  

Less: COGS -$3,225,000  

Less: Operating Expenses -$1,147,000  

Net Income $1,003,000

Now    

Return on Investment is

= Net Income × 100 ÷  Average Assets

= $1,003,000 × 100 ÷ $5,800,000  

= 17.30%

Bubba Golf, a manufacturer of golf clubs, can sell 3 drivers at $500 each. To sell 4
drivers, Bubba Golf must lower the price to $460 each. The marginal revenue of the
fourth club is
O $20.
O $60.
O $420.
O $520.

Answers

Based on the revenue of the other clubs and the new price, the marginal revenue for the 4th club is $420.

What is the marginal revenue for the fourth club?

Marginal revenue refers to the amount that a company makes when it sells an extra unit of a good or service.

The extra unit sold here will be the 4th club but because the selling price dropped, the marginal revenue will be lower than the selling price. The closest option to this is $420.

In conclusion, option C is correct.

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Chucky is always the one who is trying to ensure everyone gets along. He is always encouraging others to do their best. He is performing a ________ role.


production

maintenance

task

relational

social

Answers

Answer:

Chucky is always making sure he has his buddy the knlfe with him aswell.

maintenance.

Explanation:

is it worth being in the national honors society? , if so why?

Answers

I got invited to join national honors society but I decided not to do it because you're kinda expected to do a lot. It sounds stressful to constantly have to keep your grades high and fulfill the other requirements they set for you. It sounds hard to manage on top of everything else you may have going on in your life.

However, to some it may be worth it because it sets a great image for you especially if you plan on going to college. By keeping your grades high all year long you'll get benefits to college and are more likely to get accepted in wherever you want to go. It's up to you to decide if it's worth it or not.

5.24 The United States Golf Association requires that the weight of a golf ball must not exceed 1.62 oz.The association periodically checks golf balls sold in the United States by sampling specific brands stocked by pro shops....

5.24 The United States Golf Association requires that the weight of a golf ball must not exceed 1.62

Answers

The probability that none of the randomly selected golf balls exceed 1.62 oz in weight will be 0.7857.

How to calculate probability?

It should be noted that probability simply means the likelihood of the occurence of an event.

From the table given, the probability that none of the randomly selected golf balls exceed 1.62 oz in weight will be 0.7857.

The probability that at least one of the randomly selected golf balls exceed 1.62oz will be:

= 1 - 0.7857

= 0.2143

The probability of x is being greater than or equal to 3 will be 0.9999.

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In 2020, Cullumber Company reported net income of $585000. It declared and paid preferred stock dividends of $111000 and common stock dividends of $54000. During 2020, Cullumber had a weighted average of 300000 common shares outstanding. Compute Cullumber's 2020 earnings per share.

Answers

Answer: $1.58

Explanation:

Earnings per share is the amount of a company's earnings that is available to the common shareholders.

Formula is;

Earnings per share = (Net Income - Preferred dividends) / Weighted average common share outstanding

= (585,000 - 111,000) / 300,000

= $1.58

What is the difference between a 3.5 fold and an 8 fold essay?

Answers

A 3.5 fold essay consists of an introduction, three body paragraphs, and a conclusion, while an 8 fold essay expands on the 3.5 fold structure by adding more detail and nuance to each paragraph.

The terms "3.5 fold" and "8 fold" essay refer to different methods of organizing the structure of an essay. A 3.5 fold essay consists of an introduction, three body paragraphs, and a conclusion. The three body paragraphs each have a specific purpose and follow a specific structure: the first paragraph introduces the main idea, the second paragraph supports the main idea with evidence, and the third paragraph provides a conclusion or summary.

On the other hand, an 8 fold essay expands on the 3.5 fold structure by adding more detail and nuance to each paragraph. The introduction and conclusion remain the same, but each body paragraph is broken down into smaller sections that address different aspects of the main idea. This allows for a more thorough exploration of the topic and a more complex argument.

In summary, the main difference between a 3.5 fold and an 8 fold essay is the level of detail and complexity in the organization of the body paragraphs. The 8 fold essay provides a more in-depth exploration of the topic, while the 3.5 fold essay is a simpler and more straightforward structure.

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Will Mark as Brainliest!!! +40 extra points Spending money on medical expenses is part of this expenditures approach for calculating the GDP.


a. consumer spending

b. gross exports

c. sum of all the country's businesses spending on capital

d. sum of government spending

e. gross imports

Answers

Answer A

Explanation:

Which scenario describes the highest level of productivity?

A. Producing 50 chairs using resources that cost $400
B. Producing 15 chairs using resources that cost $150
C. Producing 5 chairs using resources that cost $100
D. Producing 100 chairs using resources that cost $200

Answers

The scenario that describes the highest level of productivity is option D. Producing 5 chairs using resources that cost $100. Calculating the highest productivity:

For A. The cost should be $400 for 50 chairs so per chair should be = $400 ÷ 50 = 8. For B. The cost should be $150 for 15 chairs so per chair should be = $150 ÷ 15 = 10. For C. The cost should be $100 for 5 chairs so per chair should be = $100 ÷ 5 = 20. and For D. The cost should be $200 for 100 chairs so per chair should be = $200 ÷ 100 = 2

What is productivity?

Productivity is the efficiency of production of goods or services expressed by some measure. Measurements of productivity are often expressed as a ratio of an aggregate output to a single input or an aggregate input used in a production process, i.e. output per unit of input, typically over a specific period of time.

Therefore, the correct answer is option D.

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A firm has developed a new kind of knitting needle and they want to know if experienced knitters will see it as an improvement. The firm
should hire a(n).
O standardized marketing firm
O syndicated marketing firm
customized marketing firm
O internal marketing firm

Answers

Answer:

1. This football match is ……..we have ever played.

Carlisle Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 557, which was recently completed. Direct materials used cost $6,300. There were 180 direct labour hours worked on this job at a direct labour wage rate of $20 per hour. There were 75 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used. What is the total manufacturing cost of Job 557? Select one: OA. $6,555 OB. $2,400 OC. $3,600 OD. $12,300​

Answers

The total direct labor cost is 180 direct labor hours * $20 per hour = $3,600. The total overhead cost is 75 machine hours * $32 per machine hour = $2,400. So the total manufacturing cost of Job 557 is $6,300 (direct materials) + $3,600 (direct labor) + $2,400 (overhead) = $12,300.

What is an overhead?

Overhead refers to the indirect costs associated with manufacturing a product or providing a service. These expenses are indirect because they cannot be clearly connected to a single unit of goods or service. Overhead expenditures include rent, utilities, insurance, property taxes, and general administrative expenses such as salary for non-production workers. Overhead expenditures are often unrelated to the manufacturing process yet are required for the firm to function. To correctly establish the cost of a product, overhead expenditures must be allocated to the product on some basis, such as machine hours or direct labour hours. This allocation is frequently handled using a predefined overhead rate, which is then utilized to allocate overhead to each task or unit of output.

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QL
Question Type: Multi-Select
Which type of documents, available in iQMS™ Wiki, define the
Various lifecycle models covering the phases, associated activities, their relationships and relevant work products?

Answers

The correct answer are Process Model Documents and Software Development Lifecycle (SDLC) Model Documents

Which of the aforementioned is offered by iQMS?

IQMS offers comprehensive ERP and MES software for the automotive, medical, aerospace and military, assembly, food and beverage, packaging, plastics, stamping and metals, and process-specific industries, with a focus on midmarket, repetitive, batch-process, and discrete manufacturing.

What is the purpose of iQMS Wiki?

To assist you in completing your project, the iQMSTM contains policies, processes, practises, and enablers. Understanding iQMSTM is hence essential in TCS. The QMS Wiki is the organisational process repository for all processes, tools, and practises.

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Question:

Which types of documents, available in iQMS™ Wiki, define the various lifecycle models covering the phases, associated activities, their relationships, and relevant work products?

A. Process Model Documents

B. Software Development Lifecycle (SDLC) Model Documents

C. Risk Assessment Reports

D. Employee Performance Evaluations

Please select all that apply.

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:

1. What is the materials quantity variance for March?

2. If Preble had purchased 171,000 pounds of materials at $7.20 per pound and used 155,000 pounds in production, what would be the materials quantity variance for March?

3. What is the labor rate variance for March?

4. What is the labor efficiency variance for March?

5. What is the labor spending variance for March?

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production

Answers

Labor efficiency variance = (Actual hour * Standard rate) - (Standard hour * Standard rate).

Labor efficiency variance = $404,600 F

What is Labor efficiency variance?

By "efficiency of labor," we mean a worker's ability to produce more or better work, or both, over the course of a given amount of time.

1) Labor efficiency variance = (68,000 * $17) - ((30,600 * 3) * $17)

Labor efficiency variance = $1,156,000 - (91,800 * $17)

Labor efficiency variance = $404,600 F

2) Variance in direct labor worked divided by variance in labor efficiency

Variance in labor costs is $404,600 - $68,000.

Variance in labor costs = $336,600 F

3) Planned unit sold minus variable overhead equals variable manufacturing overhead cost.

Manufacturing variable overhead cost = 24,000 * $21

$504,000 is the variable manufacturing overhead cost.

4) Planned unit sold minus variable overhead equals variable manufacturing overhead cost.

Cost of variable overhead in production = 30,600 * $21

$642,600 is the variable manufacturing overhead cost.

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Domain and Range Digital Escape! puzzle 3

Answers

A function/graph/relation's domain and range are defined as follows:

Domain: a collection of input values.Range: a collection of output values.

What are a function's domain and range?

The domain of a function is the set that contains all of the function/relation's potential input values; hence, it is made up of x values.

The range of a function is the set that contains all of the function/relation's potential output values; hence, it is made up of y values.

Because the problem is incomplete, the notions of domain and range are given and then applied to derive the domain and range.

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Full Question:

Although part of your question is missing, you might be referring to this full question:


Please define the terms

domain and range.

Joaquin purchased a $135,000 crane for a construction business. The crane was sold for $105,000 after taking $75,600 of depreciation. Assume Joaquin is in the 35% tax rate bracket Required:
a. On what form would the gain or loss originally be reported?
b. What is the amount of gain or loss on the sale?
c. What amount of the gain or loss is subject to ordinary tax rates?

Joaquin purchased a $135,000 crane for a construction business. The crane was sold for $105,000 after

Answers

On IRS Form 4797, which is used to report the sale of commercial property, the gain or loss from the sale of the crane would be disclosed.

What is the purpose of the 4797 form?

To report a property sale or exchange, use Form 4797. conversion of capital assets and property without authorization. getting rid of non-capital assets.

a. The gain or loss on the sale of the crane would be reported using IRS Form 4797, which is used to report the sale of commercial property.

b. To determine the gain or loss on the sale, we must subtract the crane's adjusted basis from the sale price. The initial cost less cumulative depreciation is the adjusted basis. Hence, the appropriate basis in this case would be:

Adjusted basis = $135,000 - $75,600 = $59,400

Gain or loss = Sale price - Adjusted basis

Gain or loss = $105,000 - $59,400 = $45,600

Because the sale price was less than the initial investment, there is a loss of $45,600.

c. The kind of loss, such as capital or ordinary, determines whether a gain or loss is subject to ordinary tax rates. Just $3,000 of this loss can be applied to ordinary income for the taxable year in question because it is a capital loss. Any remaining loss may be carried forward to succeeding years and applied to reduce ordinary income or capital gains up to $3,000 annually.

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I’m doing Economics but I’m not sure of this question.

Im doing Economics but Im not sure of this question.

Answers

A terminology which is given to consumers who were willing to pay for a higher price, but don't have to because the equilibrium price has been set lower is: C. consumer surplus.

What is price?

Price can be defined as an amount of money which is primarily set by the seller of a good (product), and it must be paid by a buyer (consumer) to the seller, so as to enable the acquisition of this good (product).

What is consumer surplus?

Consumer surplus can be defined as an economic measure of the difference between the willingness of consumers to pay for a good (product) at higher price and the equilibrium price or actual price paid by the consumers.

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Complete Question:

What is the term given to consumers who were willing to pay for a higher price, but don't have to because the equilibrium price has been set lower?

A. Market failure.

B. Quantity excess.

C. Consumer surplus.

D. Consumer drop.

What are the major classes of securities sold by the Firm? Explain your answer with example. (Word Limit- 300 to 500 words)

How do firms make initial public offerings and what are the costs of such offerings? (Word Limit- 300 to 500 words)

Answers

The major classes of securities sold by firms are:

Stocks (Equity Securities)Bonds (Debt Securities)DerivativesMutual FundsExchange-Traded Funds (ETFs)Real Estate Investment Trusts (REITs)

What is a Firm?

Generally, A company is a kind of commercial organization that operates for the purpose of making a profit by selling products or providing services to customers.

It may take the form of a single proprietorship, partnership, corporation, or cooperative, and its size may vary from that of a local mom-and-pop shop to that of a major global conglomerate.

It is common practice to refer to any business company that is involved in commercial activity as a "firm."

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write down the process going for foregin employment in Nepal​

Answers

Answer:

The reasons behind the migration are almost same in Nepal as other parts of the world. Existing poverty, limited employment opportunities, deteriorating agricultural productivity, armed 8 Page 9 conflict are some of the reasons about the motives behind international labour migration.

Explanation:

n
What is etiquette?
A. The amount of work an employee completes in a specific amount of time
B. A person's feelings and outlook about something
C. A collection of standards that define proper social behavior in a specific community
D The end result of an employee's work behavior

Answers

Answer: c

         

Explanation:

Etiquette refers to guidelines which control the way a responsible individual should behave in the society.

Answer:

its c

Explanation:

Accountability is the basic concept of delegation discuss?

Answers

Answer:

Delegation of Accountability

Explanation:

Unlike authority and responsibility, accountability cannot be delegated. Rather, it is inherent in the bestowment of responsibility itself. Anyone who sets out to accomplish a task and take on a job in a company becomes accountable for the outcome of their efforts.

During 2018 Carlton network, inc. which designs network servers, earned revenues of $720 million

Answers

Under accrual​ accounting, the amount of revenue that  Farrison Network  should report is $720 million.

Revenue reported

Based on the information given the amount of revenue that should be reported for the year is ​$720 million.

The reason why  the amount of $720 million which is the revenue amount that Farrison earned was reported was simply because the principle of revenue states that regardless of when cash was collected  revenue amount should be recorded or reported when it has been earned.

Inconclusion under accrual​ accounting, the amount of revenue that Farrison Network  should report is $720 million.

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What is the term for the type of market test that involves selecting an area of the country as a representative sample of the nation's demographics to try out a new product?

Answers

Test marketing is the term for the type of market test that involves selecting an area of the country as a representative sample of the nation's demographics to try out a new product.

What is the name of market research in science?

A product or marketing campaign is made restrictedly accessible to test markets before being made widely available to measure consumer response. It's crucial to keep in mind that consumers of the product or target audience for the marketing initiative could unintentionally act as test subjects.

What are some sales forecasting test marketing techniques?

Test-marketing analysis is regarded by many businesses as the most accurate way to predict future sales. It entails introducing a good or service to a certain target market or demography depending on your market segmentation. Organizations can then see how the product is received by customers and how it sells.

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define private equity funds.​

Answers

Answer:

keeping it private and not letting anyone find. out about it or keepin it from people

yep what he said atop.

Text written for advertising and marketing campaigns is referred to as o content. context O copy o collateral​

Answers

Answer:

always be it and never fail

Explanation:

Please answer the questions in the photo

Please answer the questions in the photo

Answers

2. The types of businesses that market their goods are businesses that would want to reach a larger consumer base for their products

The businesses that market goods

Various types of businesses market goods and services. These businesses can be classified based on the nature of the products or services they offer, the target market they serve, or the way they sell their goods and services.

One way to classify businesses is by the products or services they offer, such as:

Consumer goods: These are products meant for personal or household use, such as clothing, electronics, or food. Examples of businesses that market consumer goods include Walmart, Best Buy, and McDonald's.

Business-to-business (B2B) goods: These are products or services that companies sell to other businesses. Examples include raw materials, office supplies, and consulting services. Businesses that market B2B goods include Staples, Accenture, and Grainger.

Services: These are non-tangible offerings, such as healthcare, education, or banking. Examples of businesses that market services include hospitals, universities, and Bank of America.

Another way to classify businesses is by the way they sell their goods or services, such as:

Brick-and-mortar: These are businesses with a physical location where customers can come to buy products or services. Examples include Target, Starbucks, and Home Depot.

E-commerce: These are businesses that sell products or services through the internet, such as Amazon, eBay, and Etsy.

Direct sales: These are businesses that sell products or services directly to consumers, often through home-based sales parties or personal consultations. Examples include Avon, Mary Kay, and Tupperware.

3. If you're interested in starting a retail business, here are some types of retailers and their pros and cons to consider:

Brick-and-mortar store: This is a traditional retail store with a physical location. Pros include the ability to offer a personalized shopping experience, the opportunity to connect with the local community, and the ability to display products for customers to see and touch. Cons include the high overhead costs of renting or owning a storefront, the need to hire and manage employees, and the risk of losing business to online competitors.

E-commerce store: This is a retail business that operates exclusively online. Pros include the ability to reach a wider customer base, the convenience of shopping from home, and the lower overhead costs of not needing a physical storefront. Cons include the need to invest in website design and development, the difficulty of standing out among competitors, and the challenges of managing shipping and returns.

Pop-up store: This is a temporary retail location that can be set up in various places, such as a mall or a street corner. Pros include the ability to test the market and experiment with different locations, the flexibility of not being tied to a long-term lease, and the opportunity to create buzz and excitement around the brand. Cons include the need to constantly move and set up shop, the challenges of finding a suitable location, and the risk of not generating enough revenue during the limited time period.

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Computers used to produce magazine articles is it land or capital

Answers

Answer:

captial

Explanation:

Land means things like natural resources, labor is the manual work force that either makes capital products or turns natural resources into a useable product to work, and capital is anything made that is used to make something else.

When computers are used to produce magazine articles the main factor of production is capital.

To an economist, capital often refers to liquid assets. In other words, it is cash on hand that may be used on either daily requirements or long-term initiatives.

Capital refers to the funds or resources utilized to launch a firm. Capital is a resource that might be money or anything in kind that is used to buy more raw materials and inputs. It is a critical component since every firm needs some initial money.

Therefore, the main factor of production is capital.

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This is an incomplete question, the complete question is:

What is the factor of production when computers are used to produce magazine articles?

Calcula el interés simple de un capital de $24,000 invertido durante 5 años al 8% anual

Answers

Answer:

End Balance:   $33,600.00

Total Interest:   $9,600.00

Explanation:

Calculation steps:

Total Interest = $24000 × 8% × 5

= $9,600.00

End Balance = $24000 + $9,600.00

= $33,600.00

cube root of 9 rational or irrational​

Answers

Rational
Please vote me as brainliest’n

7. Dividend is paid only on ... a. Bonds b. Debentures C. Shares d. Loans​

Answers

Dividend is paid only on Shares
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