The cost of capital is the average rate of return that a firm must earn on its investments in order to maintain its current stock price. In this case, the firm's capital structure consists of 60% external equity and 40% bonds. The firm's cost of capital is approximately 7.46%.
To calculate the cost of equity, we can use the dividend growth model. The dividend per share is $4, and the growth rate is 8%. Therefore, the cost of equity can be calculated as:
Cost of Equity = Dividend / Stock Price + Growth Rate
= $4 / $54 + 8%
= 0.0741 or 7.41%
To calculate the cost of debt, we can use the pre-tax cost of the bond. The pre-tax cost of the bond is 11.4%. Considering the firm's tax rate of 34%, the after-tax cost of debt can be calculated as:
After-tax Cost of Debt = Pre-tax Cost of Debt * (1 - Tax Rate)
= 11.4% * (1 - 34%)
= 7.524% or 0.07524
Next, we can calculate the weighted average cost of capital (WACC) using the formula:
WACC = (Equity Percentage * Cost of Equity) + (Debt Percentage * After-tax Cost of Debt)
= (60% * 7.41%) + (40% * 7.524%)
= 4.446% + 3.0096%
= 7.4556% or 0.074556
Therefore, the firm's cost of capital is approximately 7.46%.
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What is one of the most important components of the production
process?
A
new technology
B goods and services
I
C human resources
D
inputs and outputs
Answer:
C. human resources because every business needs someone to supervise.
.............
You can best show a business your interest in their job position through:
A.)social media
b.) an application
c.) a resume
d.) a cover letter
Answer:
d.) a cover letter
Explanation:
The best way to show a company/business your interest in the job position is through the cover letter. This is a letter that goes in front of your resume when applying for a job and is where the applicant usually explains who they are and why they want the job. This cover letter is the first thing that the employer will see and should tell them why you want the job and why you are the best choice for that job in order to convince them into interviewing or hiring you.
evaluate how competition could lead to a price war creating a level of 0 profits, which may create the need to develop an exit strategy from the market.
Competition among businesses can often lead to a price war, where companies try to undercut each other in pricing to gain a larger share of the market.
This strategy may result in zero profits for all companies involved, as the price becomes the deciding factor for customers rather than quality or innovation. If this situation arises, businesses may need to develop an exit strategy from the market to protect themselves from further losses.
This could involve exiting the industry altogether, finding niche markets to serve, or merging with other companies to gain a competitive advantage. Without a solid exit strategy, businesses may find themselves trapped in a cycle of price wars and continuous losses.
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Describe five features of economic resources
Answer:
5 Features of economic resources
Features of economic resources include:
Scarcity. They are found in small quantities compared to the many uses into which they have to be put and hence not sufficient to satisfy all human wants.
Monetary Value. ...
Uneven distribution. ...
Combinability. ...
Usefulness. ...
Transferability.
Explanation:
Private: Easily excluded and subtractive. Common pool: Difficult to excluded and subtractive. Toll: Easily excluded and jointly consumption. Public: Difficult to exclude and jointly consumed.
How many trade schools are there for Avionics Technicians?
Answer:
Hi...
Explanation:
A project has estimated sales of 14,500 units, ±3 percent. The expected variable cost per unit is $12, and the expected fixed costs are $44,000. The fixed and variable cost estimates are considered accurate within a range of ±5 percent. The sales price is estimated at $27 a unit, ±1 percent. What is the contribution margin for a sensitivity analysis if the fixed cost is $30,000?
Multiple Choice
$15
$17
$14
$16
$13
The contribution margin for a sensitivity analysis if the fixed cost is $30,000 is $11.97 (approx)
Therefore, the correct option is:$12
Given: Estimated sales of 14,500 units, ±3%
Expected variable cost per unit = $12
Expected fixed costs = $44,000Sales price = $27 a unit, ±1%
Contribution Margin = Sales price - Variable cost
Variable cost per unit = $12
Hence, the variable cost for 14,500 units can be calculated as follows:
Variable cost for 14,500 units = 14,500 × $12= $174,000
Now, we need to calculate the total revenue from 14,500 units when the sales price is $27 a unit.
Using the given range, sales price will be as follows:
Upper Limit = $27 + 1% of $27 = $27 + $0.27 = $27.27
Lower Limit = $27 - 1% of $27 = $27 - $0.27 = $26.73Now, expected revenue for 14,500 units can be calculated as follows:
Expected revenue for 14,500 units = 14,500 × $27= $391,500
Expected revenue when the sales price is at its upper limit:
Expected revenue = 14,500 × $27.27= $395,415.00
Expected revenue when the sales price is at its lower limit:
Expected revenue = 14,500 × $26.73= $387,885.00
Thus, we know that the contribution margin is calculated as:
Contribution Margin = Sales price - Variable cost= $27 - $12= $15
Now, we need to calculate the contribution margin when fixed costs are $30,000.
Using the given range, fixed costs will be as follows:
Upper Limit = $44,000 + 5% of $44,000 = $44,000 + $2,200
= $46,200
Lower Limit = $44,000 - 5% of $44,000 = $44,000 - $2,200
= $41,800
Using expected revenue:$391,500 - $174,000 - $44,000 = $173,500
Contribution Margin = $173,500/14,500= $11.97Using revenue at the upper limit:$395,415.00 - $174,000 - $46,200 = $175,215.00
Contribution Margin = $175,215.00/14,500= $12.08Using revenue at the lower limit:$387,885.00 - $174,000 - $41,800 = $171,085.00
Contribution Margin = $171,085.00/14,500= $11.80
Hence, the contribution margin for a sensitivity analysis if the fixed cost is $30,000 is $11.97 (approx)
Therefore, the correct option is:$12
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if davidson has 7,000 units on hand at december 31, the cost of ending inventory under the average-cost method is
The cost of ending inventory under the average-cost method is $75,250.
The average cost method is a method used to determine the cost of inventory in which the cost of goods sold is determined by determining the weighted average of the cost of inventory.
Average cost method = total cost of inventory bought / total units bought
(5,000 x $8) + (15,000 x 10) + (20,000 x 12) = $430,000
Total units bought = 5000 + 15,000 + 20,000 = 40,000
Price of inventory = $430,000 / 40,000 = $10.75
Cost of ending inventory = $10.75 x 7000 = $75,250.
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Type in a sentence using the word Financial planning wrong
Helena is looking for an advisor who can help guide her as she invests. She also wants to reduce transaction and trading costs. Her goal is to achieve a 8% return in one year so that she can buy a house. Which advisor is the most appropriate for her?.
Mr. Jones, who has positive client reviews and charges moderate fees is the most appropriate for Helena.
What are the duties and responsibilities of a financial advisor?A financial advisor's job is to inform clients about the goods and services available to them so they can make the most of their available finances and accomplish significant financial goals. As a result, financial advisors must be able to comprehend, assess, and offer solid financial advice based on a variety of financial indicators.
A financial advisor, also known as a financial consultant, is in charge of offering wise counsel to organizations and individuals regarding their financial planning and investments. They must visit with clients to learn about their needs and get financial statements. They must then use the financial data and relevant laws to create financial strategies that will increase profits or lower debt.
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The complete question is:
Helena is looking for an advisor who can help guide her as she invests. She also wants to reduce transaction and trading costs. Her goal is to achieve a 8% return in one year so that she can buy a house. Which advisor is the most appropriate for her?
A)Mr. Khan, who doesn’t have any client reviews and charges low fees
B)Ms. Brown, who has average client reviews and charges high fees
C)Ms. Williams, who has mixed client reviews and charges low fees
D)Mr. Jones, who has positive client reviews and charges moderate fees
E)Mr. Moore, who has mixed client reviews and charges moderate fees
True or false: Studying business does NOT offerlany benefits for those who decide to work for a government agency or a nonprofit organization
The following question is : false
The given statement stating that "the study of business would not help in knowing about the advantages of Non-profit organizations or government agencies" would be considered:
b). False
'Non-profit Organizations' are characterized as the 'type of business organizations or set up that does not work with the aim of profit but for social welfare. Similarly, the sole motive of a government agency is also 'social welfare.' However, the workings of both the kinds of organizations(business and NPOs) are similar like the recruitment of staff or volunteers, ensuring productivity, putting the revenue back to the firm for progression of its operations, etc. Both of them have a goal of leaving the maximum impact on the people. Thus, the given statement is false as studying about business would give a very clear idea about the various processes of an organization.Learn more about 'Non-Profit Organization' here:
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YO CAN YALL SEND HELP MY BRAIN ISNT WORKING TODAY
Which of the following statements are true of hacking? Check all of the boxes that apply.
-It is the practice of cutting network cables to damage a network infrastructure.
-It is the practice of finding weaknesses in a computer or computer network.
-It is always illegal.
-It is sometimes practiced by network security professionals.
Answer:
B and D
Explanation:
The statements true of hacking are
It is the practice of finding weaknesses in a computer or computer network.It is sometimes practiced by network security professionals.What is hacking?Computer hackers who are motivated by monetary gain engage in illegal conduct when they attempt to attack digital equipment like computers. This is known as hacking.
They start experimenting with different applications while they look for online instruction. Due to their inexperience and potential for initial perception as little more than an internet troll or beginner.
As opposed to building security systems, breaching them involves greater knowledge and skill. Hackers cannot be neatly grouped together according to any absolute standards in order to gain confidential information.
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True/False. Sport management researchers are interested in questions relating to marketing, finance, communication, human resources, and policy.
Questions pertaining to marketing, finances, communication, human resources, and policy are of interest to sport management researchers. This statement is True.
Sport management research is the act of locating and analyzing particular phenomena or problems that are peculiar to the field of sport management. Any topic, such as organizational behavior and theory, ethics, sponsorship and sales, governance, facility, and event management, or economics and finance, maybe the focus of the study.
Sports researchers can learn more about sports management through study, which also helps them better comprehend the various potential occurrences in the sector. The knowledge they obtain will help them in their efforts to enhance the organization.
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Which of these is a way to grow
a business without sacrificing
equity?
A. take out a loan
B. review the budget
C. seek investors
Who is accountable for estimating the effort to complete the Product Backlog items? The Development Team. As a collective, they have a complete view of the work needed to transform Product Backlog items into Increments of product. The Development Team is responsible for all estimates.
The Development Team is accountable for estimating the effort to complete the Product Backlog items. It is their responsibility to provide an estimate for each Product Backlog item.
As a collective, they have a complete view of the work needed to transform Product Backlog items into Increments of the product. It is because they have to work together to identify the effort required to complete the task. They understand the scope of work, and their estimates are usually the most accurate.
The Development Team is responsible for all estimates. The Scrum Team usually employs story points as a measure for estimating the effort to complete a Product Backlog item. Story points provide an estimate of the level of effort required to complete a task relative to other tasks. They do not measure time but rather complexity and effort. By measuring the level of effort required to complete tasks, the Development Team can determine the velocity at which they can complete the work.
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What does an invasion biologist study?
help me
Answer:
Invasion biology deals with invasive species. If an “invasive” species is defined as a species that spreads to the detriment of economic interests and public health, however, invasion biology could not be easily distinguished from pest management and public health sciences.
Explanation:
Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $18, 195 at 10% for 2 years. Use ordinary interest as needed. Calculate the simple interest note proceeds. Simple interest note proceeds $ Calculate the simple discount note proceeds. Simple discount note proceeds $
a. The proceeds for the simple interest note would be $21,834.
b. The proceeds for the simple discount note would be $14,556.
a. To calculate the proceeds for both the simple interest note and the simple discount note, we need to use the appropriate formulas.
Simple Interest Note Proceeds:
The formula to calculate the proceeds for a simple interest note is:
Proceeds = Principal + (Principal × Rate × Time)
Principal (P) = $18,195
Rate (R) = 10% (convert it to decimal form by dividing by 100: 10/100 = 0.10)
Time (T) = 2 years
Substituting the values into the formula:
Proceeds = $18,195 + ($18,195 × 0.10 × 2)
Proceeds = $18,195 + ($3,639)
Calculating the result:
Proceeds = $21,834
Therefore, the proceeds for the simple interest note would be $21,834.
b. Simple Discount Note Proceeds:
The formula to calculate the proceeds for a simple discount note is:
Proceeds = Principal - (Principal × Rate × Time)
Given the same values:
Principal (P) = $18,195
Rate (R) = 10% (convert it to decimal form by dividing by 100: 10/100 = 0.10)
Time (T) = 2 years
Substituting the values into the formula:
Proceeds = $18,195 - ($18,195 × 0.10 × 2)
Proceeds = $18,195 - ($3,639)
Calculating the result:
Proceeds = $14,556
Therefore, the proceeds for the simple discount note would be $14,556.
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for each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense. (round your final answers to the nearest whole dollar.)
The main answer is to calculate the cash payment, straight-line discount amortization, and bond interest expense for each semiannual period, rounding the final results to the nearest whole dollar.
How to compute bond expenses?
This question seeks an explanation of how to calculate various financial components for each semiannual period of a bond. The components to be computed are (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense. The cash payment refers to the actual amount of money paid out during each semiannual period. The straight-line discount amortization is the allocation of the bond's discount over its remaining life in equal increments. Finally, the bond interest expense represents the interest cost associated with the bond for each semiannual period. The answer should provide a step-by-step guide to calculating these values and round them to the nearest whole dollar.
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What economic concept does this graph BEST illustrate?
A) Scarcity
B) Productivity
C) Law of Demand
D) Law of Supply
Answer: Law of Demand
Explanation:
Law of Demand illustrate the best . According to the rule of demand, which is a cornerstone of economics, customers will demand fewer units of a good at a higher price.
What is law of demand ?One of the most fundamental ideas in economics is the law of demand. It explains how market economies distribute resources and set the prices of goods and services that we see in daily transactions by combining the law of supply.
According to the law of demand, the quantity bought varies inversely with price. In other words, the quantity demanded decreases as the price increases. Because of declining marginal utility, this happens. In other words, consumers utilize the initial units of an economic good they buy to fulfill their most pressing requirements first, and then they use each additional unit to fulfill progressively lower-valued goals.
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If the U.S. imports $500 billion worth of goods and services from China and sells $200 billion worth of goods and services, then the U.S. is running a
If the U.S. imports $500 billion from China and sells $200 billion worth of goods and services, then the U.S. is running a trade deficit.
What is a trade deficit?The trade deficit arises when the net exports are negative instead of positive.
A trade deficit describes the balance of trade, which is the difference between the monetary value of the United State's exports and imports over a certain period.
Thus, if the U.S. imports $500 billion from China and sells $200 billion worth of goods and services, then the U.S. is running a trade deficit.
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Each of the following is a feature of internal control except an extensive marketing plan. separation of duties. recording of all transactions. bonding of employees.
With the exception of a (A) comprehensive marketing strategy, each of the following is an aspect of internal control in the circumstance at hand.
What is internal control?Internal control is a procedure for ensuring that an organization's objectives in operational effectiveness and efficiency, accurate financial reporting, and compliance with laws, rules, and policies are met, according to the definitions of accounting and auditing.
Internal control is a comprehensive notion that encompasses all aspects of risk management for a company.
It is a method for managing, tracking, and evaluating an organization's resources.
It is crucial to the organization's efforts to identify and stop fraud as well as to safeguard its material (such as equipment and property) and intangible (such as human capital) resources (e.g., reputation or intellectual property such as trademarks).
Internal control objectives at the organizational level have to do with the accuracy of financial reporting, timely feedback on the accomplishment of operational or strategic goals, and adherence to legal requirements.
Therefore, with the exception of a (A) comprehensive marketing strategy, each of the following is an aspect of internal control in the circumstance at hand.
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Complete question:
Each of the following is a feature of internal control except an ____.
a. extensive marketing plan.
b. separation of duties.
c. recording of all transactions.
d. bonding of employees.
Which statement is true regarding the use of the Logon Hours option under a user's account?a. Logon hours can be set for specific days of the month, as well as holidaysb. The Logon Hours forces a user to log off during "Logon denied" periodsc. Logon Hours can't be changed during weekendsd. The Logon Hours can't be used to disconnect a user that has already logged in
The correct statement regarding the use of the Logon Hours option under a user's account is: b. The Logon Hours forces a user to log off during "Logon denied" periods. This feature allows administrators to control when a user is allowed to log in and helps ensure security by restricting access during certain times.
The true statement regarding the use of the Logon Hours option under a user's account is that it allows an administrator to specify the times of day when a user is allowed to log on to the network, but it does not apply to specific days of the month or holidays. If a user attempts to log on outside of their specified Logon Hours, they will receive a "Logon denied" message and will be unable to access the network.
a. Logon hours can be set for specific days of the month, as well as holidays
b. The Logon Hours forces a user to log off during "Logon denied" periods
c. Logon Hours can't be changed during weekends
d. The Logon Hours can't be used to disconnect a user that has already logged
However, this does not necessarily force the user to log off if they are already logged on. An administrator can modify a user's Logon Hours at any time, including weekends, and can manually disconnect a user if necessary.
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Which quality is a requirement In order for a destination to become a tourism destination area (TDA)?
A. should be accessible by road
B. should be in a developed country
C. should have a unique feature
D. should have a moderate climate
EXAMPLE 1: invests $500 at a simple
interest rate of 6%. How much interest will he earn in
one month? In six months? In one year?
Which of the following is an advantage of starting your own business?
Answer:
The most common reason people launch their own business is to be their own boss. Other benefits include flexibility, financial rewards, the opportunity to innovate, and a chance to impact your community. Still, there are serious risks to launching your own business, and you should carefully consider and plan before you take the leap.
Explanation:
Which sequence of HACCP principles is in the correct order?
A.
Establish critical limits for each CCP, conduct a hazard analysis, and establish corrective actions.
B.
Conduct a hazard analysis, identify CCPs, and establish critical limits for each CCP.
C.
Establish record-keeping procedures, establish corrective actions, and establish CCP monitoring requirements.
D.
Establish CCP monitoring requirements, conduct a hazard analysis, and identify CCPs.
E.
Conduct a hazard analysis, identify CCPs, and establish CCP monitoring requirements.
Answer:
B
Explanation:
Hazard analysis of critical control point (HACCP) is a process of identifying and assessing risks alongside the biological , physical and chemical hazards associated with food production .
The sequence of the first three of the seven principles are
1. Conduct hazard analysis to determine potential risks related to food protection
2. Identify the critical control point (CCP) which addresses controlling identified hazards that are mostly likely to cause injury to health
3. Establishing critical limits for each CCP , which is the highest or lowest level a biological ,physical or chemical parameter must be controlled to prevent or minimize hazards.
Answer:
B. Conduct a hazard analysis, identify CCPs, and establish critical limits for each CCP
Explanation:
21. pls help will give brainliest
Revenues less costs, taxes, and interest equal net income (NI).NI is used to compute earnings per share. Because costs can be concealed via accounting techniques or revenues can be artificially overstated, investors should carefully examine the data used to calculate NI.
How do you calculate net income in accounting?The amount earned by an individual or business after costs, allowances, and taxes is referred to as net income. Net income in company is what remains after all costs, such as salaries and wages, the cost of goods or raw materials, and taxes, have been paid. You can figure out your net income if you know your total income and total outgoings: Complete revenue minus total expenses equals net income. Most business owners must produce an income statement, one of the three primary financial statements, in order to determine their net income. The change in assets less the change in liabilities must equal net income, according to logic, as assets must equal liabilities plus equity. Since it is the final indicator of a company's performance, net income is frequently used interchangeably with profit. You must take the recorded retained earnings from the prior financial period, known as beginning retained earnings, and add dividends back in to calculate net income using retained earnings.The Net Income =
Total revenue – total expenses.
Total expenses
= $448000+$96000+$71000
=$615000
The
net income
= $721000-$615000
=$106000
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true or false? an informal leader is one who is free to act?
6) you discover an antique in your attic that you purchased at an estate sale 10 years ago for $400. you auction it on ebay and receive $8,000 for your item. what annual rate of return did you earn?
I had a 34.9% yearly rate of return.
The annual rate is what?The word interest rate rate (APR) may have come up while you were hunting for a payment gateway, mortgage, car loan, or personal loan. An annual percentage rate, or APR, is a figure that expresses the entire higher interest rate each year as a fraction of the loan's principle.
Briefing:
A = P(1 + r)^n
A is the amount the antique was auctioned = $8000
P is the amount the antique was bought = $400
r is the annual rate of return
n is the duration of the investment = 10 years
$8000 = $400(1 + r) ^10
(1 + r)^10 = $8000/$400
(1 + r)^10 = 20
1 + r = 20^0.1
1 + r = 1.349
r = 1.349 - 1
r = 0.349 × 100 = 34.9%
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what policy is a way the SEC protects investors
What can a boosted post help an advertiser achieve?
A boosted post helps an adviser to connect with the audience and gain trust.
Boosted post is a kind of post that is used on social media platforms in order to enhance the page of the platform and to attract audience to the page. Boosted post can help better communication with the audience along with the increase in a greater number of messages, calls and texts. Boosted posts help for better advertisements of the product. For example, A Chocolate brand may use Boosted posts to gain audience as well as consumers. Boosted posts helps an adviser to be discovered among people, to establish a benchmark in the market and to gain more and more customers. It's a kind of marketing strategy used for publicity purpose.
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