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algol [13]
1 year ago
12

Ronnie's Comics has found that its cost of common equity capital is 15 percent and its cost of debt capital is 12 percent. The f

irm is financed with $250,000,000 of common shares (market value) and $750,000,000 of debt. What is the after-tax weighted average cost of capital for Ronnie's, if it is subject to a 35 percent marginal tax rate?
Business
1 answer:
Maksim231197 [3]1 year ago
5 0

Answer:

The after-tax weighted average cost of capital for Ronnie's Commics is 9.6%

Explanation:

WACC is calculated by the formula

= \frac{E}{E+D} * Re + \frac{D}{E+D} *Rd *(1-T)

According to the information given in the question,

E+D= $250,000,000 + $750,000,000 = $1,000,000,000

E = $250,000,000

D = $750,000,000

T = 35%

Re = 15%

Rd = 12%

Substituting the values in the formula,

= \frac{250,000,000}{1,000,000,000} * 15 + \frac{750,000,000}{1,000,000,000} *12 *(1-0.35)

= 3.75 + 5.85 = 9.6%

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Answer:

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Organizations use KPIs to analyze their success rate.

The customer perspective within the balanced score card enables organizations to target the market segments to prioritize.  Once they have done that, they focus developing strategies that maximizes customers’ utility and bring sin good profit to the organization.

Before now, Balanced Scorecard tilted towards product performance and technology innovation to be the backbones of business success. However, customer behavioral trends have gradually emphasized the necessity for understanding what customers need.

Therefore the number of repeat customers is a KPI of the customer perspective in a balanced score card.

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You’ve decided the industry is mature. That means it has reached a point of market saturation. As a new player, you’ll need to t
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Answer:

intensity of rivalry

Explanation:

You answer this question based on Porter's Five forces model. This model is used to analyze how stiff competition is in a given industry. It includes, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, intensity of rivalry and threat of substitute goods. In this case, the leaders must address the intensity of rivalry because the market is already saturated with those three big companies. Therefore,  your company must evaluate level of homogeneity of products that already exists, consumers' switching costs and brand loyalty to come up with a competitive strategy.

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What register task requires the sales associate to inspect the item before accepting it? A. Applying a discount B. Processing a
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Working:
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o reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stock dividend. The company has 800,000
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