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Alexxx [7]
2 years ago
14

Mullineaux Corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt

. Its cost of equity is 12.9 percent, the cost of preferred stock is 5.9 percent, and the cost of debt is 7.6 percent. The relevant tax rate is 40 percent. What is Mullineaux�s WACC?
Business
1 answer:
nlexa [21]2 years ago
8 0

Answer:

10.02%

Explanation:

The computation of the WACC is shown below. The formula of WACC is shown below:

= (Weightage of debt × cost of debt)  + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of  common stock) × (cost of common stock)

= 27% × 7.6% × (1 - 0.40) + 9% × 5.9% + 64% × 12.9%

= 2.052% × (1 - 0.40) + 0.531% + 8.256%

= 10.02%

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The 3 areas the Client Needs Assessment tool focuses on to help gather the information needed to select the right QuickBooks Online subscription for a client include <u>Who is the client?</u>

The other areas the tool focuses on to help gather information needed include the following:

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Learn more here: brainly.com/question/13136031

8 0
1 year ago
Cindy's current year adjusted gross income (AGI) is $300,000 and her current year total tax liability is $60,000. Her immediate
Crazy boy [7]

Answer:

The answer is $44,000

Explanation:

Solution

Given that

Now

Present/current year AGI = $300000

Present /current year tax liability = $60000

Prior year AGI = $200000

Prior year tax liability = $40000

Thus

As per Tax rule or applying the Tax rule

If Adjusted gross income(AGI) of prior year is below $250000 then the minimum required tax payment in the current year in order to avoid interest penalty is lower of

(1) 90% of present /current year tax (liability) or

(2) 110% of prior year tax liability

So

Because the prior year AGI is $200000 which is lower than $250000, in order to avoid interest penalty, the minimum required payment amount of tax liability in current/present year is lower of

(1) 90% of current year tax liability of $60000

Then

$60000 *90% = $54000

Or

(2)110% of prior year tax liability of $40000

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Hence, minimum required total tax payment amount for the current year is $44,000

5 0
2 years ago
The pdca cycle is a powerful approach for problem solving as it provides the foundation for teams to
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The pdca cycle is a powerful approach for problem solving as it provides the foundation for teams to figure out ways to change and implement new ideas within their group setting and project or business. The PDCA stands for plan-do-check-act. In the planning stage your team will plan by determining what the problem is and what ways to fix it. In the do stage, your team will act on the ways you can solve the problem. In the check stage you are looking to check your work and see what worked and what needs to be changed. The final stage is the act stage which if you find solutions that work, implement them moving forward.


4 0
2 years ago
Starling Company purchased machinery at the beginning of Year 1 at a cost of $86,100. The machinery has an estimated life of fiv
Alja [10]

Answer:  $10,906

Explanation:

Given that,

Purchased machinery at the beginning of Year 1 = $86,100

machinery has an estimated life of five years,

Estimated residual value = $4,305

Accumulated depreciation = $49,077 at the end of Year 2

Year 3 Depreciation expense:

= \frac{Cost\ of\ machinery - Estimated\ residual\ value - Accumulated\ depreciation}{3}

= \frac{86,100 - 4,305 - 49,077}{3}

= $10,906

5 0
2 years ago
In the weeks leading up to an election the media are filled with campaign ads, some of which are emotionally charged and some of
Mrrafil [7]
<span>Unreliable. Campaigners don't necessarily show their true colors during campaigns. They like to put on a show to get attention. They also make claims that seem like they care about the good of the nation, but that could actually hurt the economy or the country as a whole. But they could also be in favor of policies that are good for the country/economy, but could anger people because those policies appear to hurt a group/groups of people.</span>
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2 years ago
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