Answer:
The company's WACC is <u>9.71%</u>.
Explanation:
Note: See the attached excel file for the computation of company's Weighted Average Cost of Capital (WACC).
The weighted average cost of capital (WACC) can be described as the rate that is expected to be paid on average by a company to all holders of its securities to finance the assets of the company.
The following formula are used in the excel file to compute the WACC of the company.
Cost of debt = Type this function that is used in the excel sheet “=Rate(Number of years * 2,((Coupon rate/2)*Par value),-Selling price),Par value)*2*(1 - Tax rate)”. That is, type “=RATE(27*2,((6.5%/2)*1000),-1080,1000)*2*(1-21%)” in the excel file and press enter. This gives 4.83420280657156%
Note: Make sure you note all the commas and signs in the cost of debt function.
Cost of Common stock/equity using CAMP = Risk-free rate + (Beta * Market risk premium) = 5.4% + (1.18 * 6%) = 12.48%
Cost of preferred stock = (Par value * Dividend rate) / Current price = ($100 * 4.3%) / 88 = 0.0488636363636364’ or 4.88636363636364%
The correct answer is A. An direct discrimination scheme
Explanation:
Direct discrimination exists if certain individuals or groups are treated differently from most people, this includes favorable treatment such as benefits as well as unfavorable or negative treatments. Moreover, direct discrimination schemes differ from indirect discrimination schemes because these are supported by law, rules, etc. that directly define the difference in treatment and the groups or people affected by these.
The case presented is an example of an indirect discrimination scheme because the discounts to locals show a difference in treatment. Also, this difference is explicit because it is stated it only applies to locals, and this discrimination is supported by the policies or rules of the amusement park.
Answer:
The correct option is B,$198,000
Explanation:
The balance in allowance for uncollectible accounts was standing at $18,000 and it was decided to write-off $16,000 off the this existing balance,which implies that the balance left in the allowance for uncollectible account to set off against accounts receivable is $2,000($18,000-$16,000).
Invariably,the net realizable value of accounts receivable is $198,000($200,000- $2,000).
The correct option hence is B, $198,000
Answer:
4
Explanation:
Given:
A company employs two office assistants for every nine architects and
ratio is given = 2:9
Question asked:
How many new office assistants will it need to hire as it plans to hire eighteen new architects = ?
Solution:
Let ratio of new office assistants = 
Ratio of two office assistants for every nine architects = 2:9
By using formula of ratio and proportion:
Ratio of two office assistants for every nine architects : : ratio of new office assistants for eighteen new architects,
2 : 9 : : : 18
By cross multiplication,
Dividing both side by 9,
Thus, 4 new office assistants will it need to hire.
