Answer:
See explaination
Explanation:
cost of debt, after-tax = (4.3% + 1.2%)*(1 - 26%) = 4.07%
cost of equity = 4.3% + 1.3*4% = 9.5%
market capitalization = 286130000 * 182 = 52075660000
total value of equity outstanding = market capitalization = 52075660000
Debt portion = 11532000000 / (11532000000 + 52075660000) = 0.18
Equity portion = 1 - 0.18 = 0.82
weighted average cost of capital = 0.18*4.07% + 0.82*9.5% = 8.52%
Answer:
C. Separating Management from Ownership
Explanation:
What is Agency
The agency refers to contractural, quasi-contractual and non-contractual fiduciary relationships which represents two to three parties. The first is a person called the agent, the second is the principal and the final is a third party. Agency authorizes an agent to act on behalf of the principal and create binding relatinships with a third party.
Agency Conflict
Agency conflict represents a conflict of interest which is unavoidable in an agency relationship where one party is to act in the best interest of the other party. Specifically, in the business or corporate settings, the agency conflict arises when there is a conflict of interest between an organisation's management and the owners of the organisation.
The challenge is that management who is the agent is expected at all times to make decisions that will constantly maximize the wealth of the owners and at times, these decisions would conflict with management's ability to maximize its own wealth
Therefore, once the management of an organisation is separated from ownership especially in a Management/ shareholders relationship, an agency conflict could arise.
Answer:
current price of the stock P = $55.084
Explanation:
given data
dividend D1 = $3.25 per share
Dividend growth rate g = 5.1 % = 0.051
Required rate of return r = 11 % = 0.11
solution
We can find the price of the company stock today by using Gordon's Growth Model that is
current price of the stock P = 
..................1
here D1 is dividend and r is rate of return and g is growth rate
so here value in equation 1 we get
current price of the stock P = 
current price of the stock P = $55.084
Answer:
manufacturing organization
Explanation:
This is an example of a manufacturing organization. This is an organization that focuses on gathering all of the necessary ingredients, which are then placed in a specific process to which combines them to make a unique product. This product is then sold to other companies or individual customers to generate profit for the company. This is exactly what Black Diamond does in order to produce outdoor equipment.
Answer and Explanation:
Before settling on a choice about lessening the inflation rate in a nation, one must realize that expansion causes an expansion in costs in all sections of economy. Additionally, the swelling rate is significant. Higher inflation rate implies there is much more cash available and the other way around. Joblessness rate in the nation is significant too. Higher joblessness rate implies lower pay rates and the other way around. As per organic market law it implies that there are
A great deal of potential workers available and low interest for them. Hence, they will be offered lower pay rates. From given definitions we can deduct what is the connection among expansion and joblessness rate and will the decline of inflation rate result with positive or negative impact on the joblessness. It is imperative to realize that higher joblessness rate accompanies low expansion rate. For lower joblessness rate, higher swelling rate must be endured.
