Answer:
The WACC is 10.93%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital stricture may be formed of the following components namely debt, preferred stock and common stock. The WACC assigns the weights to each of these components based on the finance provided by each of the above components as a proportion of total capital structure or total assets.
The WACC is calculated by taking the market value of each component. The formula for WACC is 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 component
- D, P and E represents debt, preferred stock and Common stock respectively.
- We take after tax cost of debt. So we multiply rD with (1-tax rate)
Debt = 377000 * 106.5% = $401505
Preferred stock = 6850 * 90.50 = $619925
Common stock = 27500 * 70 = $1925000
Total assets = 401505 + 619925 + 1925000 = $2946430
WACC = 401505/2946430 * 7.81% * (1-0.35) + 619925/2946430 * 6.9% +
1925000/2946430 * 13.45%
WACC = 0.1093 or 10.93%
Answer:
c. Argument of evaluation
Explanation:
Eduardo will be making a decision on "whether the use of drone technology is a positive or negative development in the history of American military action." This is a judgement call. And he will be determining whether or not drone usage is good or bad. So this is purely an argument of evaluation. The argument is not of fact or definition or a policy argument, but one in which he will establish his opinion on the issue of the use of drone technology in the military.
Be honest and forthright is not exist as one among the key points of principled negotiation.
Explanation:
The activity of Be honest and forthright maybe act as a common methodology of human behaviour. Such human behavior cannot be related and linked with business terminology. As the motive of all traders is filled with a focus on profit, not on service point. It is purely based on values and ethical reactions. The corporate culture does not deal with emotions and feelings. It can deal only with the principles and well structured organizational behavior.
Human Resource management trains the executives to handle the critical situation in a diplomatic manner. It can help to take good and effective decisions amidst such controversial opinions of all employees. But they cannot seek help with the moral qualities of Honest and forthright to solve the problems. We can odd them out from the list of principled negotiations.
Answer:
1. Wages of assembly line workers _____Variable ____________
2. President's salary ______Fixed___________
3. Plant utilities _______Mixed__________
4. Sales force commissions _____Variable____________
5. Shipping costs ______Variable___________
6. Factory rent ________Fixed_________
7. Research and development expenses _____* Fixed____________
8. Property taxes _______Fixed__________
9. Advertising _______Fixed__________
10. Supplies used in production _____Variable____________
* If you consider output as number of units sold the R&D is a fixed cost.
