Answer:
The correct answer is 8.23%.
Explanation:
According to the scenario, the computation can be done as:
WACC of debt = Respective costs of debt× Respective weight of debt
= (0.4 × 5)
= 2
WACC of preferred = Respective costs of preferred × Respective weight of preferred
= (0.15 × 7)
= 1.05
WACC of common equity = Respective costs of common equity × Respective weight of retained earning
= (0.45 × 11.5)
= 5.175
So, Total WACC = WACC of debt + WACC of preferred + WACC of common equity
= 2 + 1.05 + 5.175
= 8.225 or 8.23 (approx.)
Answer
The answer and procedures of the exercise are attached inthe following images.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
7.6 percent
Explanation:
Vaughn should offer 7.6 percent on its commercial paper.
This is calculated by adding the 0.2 credit risk premium to 0.1 percent liquidity premium + 0.3 percent tax adjustment + 7 percent annualized t bills rate.
= 0.1 + 0.2 + 0.3 + 7
= 7.6
Based on this Vaughn would offer 7.6 percent on its commercial paper.
Well, if people are discriminated against and feel they are not equal to some other classes in their own society, they obviously will not be happy which will have an impact on their jobs and careers. If they are not happy, they will not give their full potential at their jobs, which will ultimately lead to less and less income for the company.
That's what I think, at least. :)
Answer:
Cappuccino machines should be produced in Atlanta and coffee makers in Fort Worth. The Fort Worth facility would need to operate 100 hours per week and the Atlanta facility would need to operate 140 hours per week.
Total costs associated to operating the facilities = ($2,400 x 100) + ($600 x 140) = $324,000
Explanation:
Since there is not constraint regarding the total number of labor hours that each plant can operate, then we must choose the plant that operates at the lower cost. The only restriction is total time = 7 days x 24 hours = 168 hours per week:
production costs Atlanta:
coffee maker = $600 / 160 = $3.75 per unit
cappuccino machine = $600 / 200 = $3 per unit
production costs Fort Worth:
coffee maker = $2,400 / 800 = $3 per unit
cappuccino machine = $2,400 / 200 = $6 per unit
Cappuccino machines should be produced in Atlanta and coffee makers in Fort Worth. The Fort Worth facility would need to operate 100 hours per week and the Atlanta facility would need to operate 140 hours per week.
