Answer:
Ke = D1/Po(1-F) + g
Ke = $0.65/17(1-0.1) + 0.06
Ke = 0.0425 + 0.06
ke = 0.1025 = 10.25%
WACC = Ke(E/V) + Kd(D/V)(1-T)
WACC = 10.25(55/100) + 7.75(45/100)(1-0.4)
WACC = 5.6375 + 2.0925
WACC = 7.73%
Explanation:
In this case, there is need to calculate cost of equity in the light of floatation cost using the above formula. Thus, we will now calculate WACC by considering cost of equity and the proportion of equity in the capital structure plus after-tax cost of debt and the proportion of debt in the capital structure.
The best way to handle that is to <span>Make a list of all of the questions that the borrower has at the end of the signing then have them contact the borrower for answers.
Doing this will make them able to prepare the answers beforehand and distinguish between which information they are allowed to give and which one to held.</span>
Answer:
The amount of cash Carmen’s Dress Delivery expects to collect from accounts receivable during January is $299,000
Explanation:
The computation of the cash collection is shown below:
= Sales × remaining percentage + opening balance of accounts receivable - ending balance of accounts receivable
= $400,000 × 0.70 + $60,000 - $41,000
= $280,000 + $60,000 - $41,000
= $299,000
The remaining percentage equal to
= Percentage - drop percentage
= 100% - 30%
= 70%
I would say this could be a kind of statute of limitations whereby the potential for illness would only figure into the decision in the case of Alice and her present and past medical condition and not extend to her family propensities.
