Answer:
The WACC is 8.66%
Explanation:
The WACC or weighted average cost of capital is the cost to firm of its capital structure which can have 3 components namely debt, preferred stock and common stock. We take the weighted average of these components and their respective costs to calculate WACC. Furthermore, we take the after tax cost of debt for WACC calculation and that is why we multiply the cost of debt by (1-tax rate).
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
WACC = 0.33 * 0.065 * (1-0.28) + 0.08 * 0.06 + 0.59 * 0.1125
WACC = 0.086619 or 8.86619% rounded off to 8.66%
Answer:
$129.35
Explanation:
Here is the full question :
What is the present value of an annuity of $27 received at the beginning of each year for the next six years? The first payment will be received today, and the discount rate is 10%
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 5 = $27
I = 10%
PV = $129.35
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Last question, answer is 24K, before last, answer is 0.
Answer:
A.
Jan 1 balance 72,350
Add year 1 purchases $22,100
Total $94,450
Deduct the closing balance $69,400
Difference = sold equipment at Net Book Value = $25,050
Add accumulated depreciation to date = $22,000
Cost of equipment sold = $47,050.
B.
Cash flow from investing activities.
Cash received from sale of equipment (the Net book value + Gain in sales) = $30,050
Cash invested in purchase of new equipment -$22,100
Net cash flow from investing activities $7,950
Answer: I would reject his demand for bribe straight away and i will recommend senior management to protect business ethics at all cost.
Explanation: first of all i would not accept the demand of bribe from the official and would try to report this corruption to the concerned authorities.I would try to pressure the authorities to take strict actions against the official and to make the process to be fair and honest in every way.
I as a representative of my company would recommend senior management to take hands off from the project until appropriate actions are taken by the authority as getting into unethical actions might result in problems in future .
