Answer:
so cost of capital = 9.9 %
correct option is a 9.9%
Explanation:
given data
capital structure = 40%
common equity = 60%
tax rate = 34%
pretax cost = 8.5%
pretax cost = 10%
market price = $59
Flotation costs = $3 per share
common stock dividend = $3.15
Dividends expected to grow = 7%
to find out
cost of capital if the firm uses bank loans and retained earnings
solution
cost of retained earning = 
+ growth rate ........................1
cost of retained earning = 
+ 0.07
cost of retained earning =0.1271271186
and
cost of capital will be
cost of capital = weight for debit × ( cost of debit × ( 1 - tax rate ) ) + weight for common stock × cost of common stock
cost of capital = 0.40 × ( 8.5% × ( 1 - 0.34 ) ) + 0.60 × 0.1271271186
cost of capital = 0.0987
so cost of capital = 9.9 %
correct option is a 9.9%
Complete Question:
Ben & Jerry’s Ice Cream buys keywords for a search marketing campaign such as “Ben & Jerry’s Chunky Monkey” and “Ben & Jerry’s Cherry Garcia.” What type of keywords is the firm buying?
Group of answer choices
A. Negative keywords
B. Organic keywords
C. Native keywords
D. Generic keywords
E. Branded keywords
Answer:
E. Branded keywords.
Explanation:
In this scenario, Ben & Jerry's Ice Cream buys keywords for a search marketing campaign such as "Ben & Jerry's Chunky Monkey" and "Ben & Jerry's Cherry Garcia." The type of keywords that the firm is buying is generally referred to as branded keywords.
A branded keyword can be defined as any query of a database through a search engine such as Google which includes the name of the business firm or company.
This ultimately implies that, a branded keyword is any query or search phrases that combines the name of a firm or brand and other branded terms associated with the firm such as product name, type, motto etc. Branded keywords is a strategic marketing process or approach which helps to make business firms or brands available to online customers and the target market or audience.
Answer:
The answer is: Signal will not succeed on their claims.
Explanation:
In order for acceptance of a product to be valid, the buyer must accept the products after inspection and give formal acceptance, or fail to reject the products after a reasonable time for inspection. Only after the products are accepted does the buyer lose any rights to revoke acceptance.
In this case, Turner accepted the TVs based on Signal's promise that they were in perfect condition, but after inspection, Turner can revoke that acceptance do to damages on the products.
Both companies agreed that the payment should be done upon delivery, but there was no specific payment method. Turner tried to pay with a check that Signal rejected. Signal cannot demand a cash payment because a check is a valid payment.
Answer:
Vo = <u>C1 </u> + <u>C2 + V2</u>
1 + k (1 + K)2
Vo = <u>$129,600 </u> + <u>$129,600 + $3,200,000</u>
1 + 0.14 (1 + 0.14)2
Vo = $113,684.21 + $2,562,019.08
Vo = $2,675,703.29
The correct answer is C
Explanation:
The current value of the business equals cashflow in year 1 divided by 1 + K plus the aggregate of cashflow and sales value in year 2 divided by 1 + k raised to power 2.
Answer:
The correct answer is letter "B": Sell-off.
Explanation:
A sell-off is the rapid sale of an asset typically follow by its drastic decline in its value. For example, if ABC corporation releases a bad earning report many of its shareholders may decide to sell their shares. With many sellers and few buyers, ABC stock value will sharply fall.
Kraft Foods Inc., in November 2004, published the sell of its sugar confectionery enterprises because they had discontinued operations. They planned to restructure the organization realigning and lowering the structure cost and optimizing capacity utilization.
