If the debt-equity ratio is revised from 0.54 to 0.65, the cost of equity will be 11.95%.
Data and Calculations:
Debt-equity ratio = 0.54
Weight of equity = 0.46 (1 - 0.54)
Cost of equity = 15.7%
Pretax cost of debt = 6.8%
Tax rate = 22%
Post-tax cost of debt = 5.3% (6.8% (1 - 22%)
Revised debt-equity ratio = 0.65
Revised weight of equity = 0.35 (1 - 0.65)
Thus, if the cost of equity is 15.7% when equity ratio is 0.46, then the cost of equity will be 11.95% (15.7%/0.46 x 0.35) when the equity ratio revises to 0.35.
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The cost of equity would 16.43% if the debt equity is revised to 0.65
Solution
The debt equity ratio = 0.54
To get the cost of the debt post tax:
= 6.8%*(1-0.22)
= 0.068*0.78
= 0.05304
= 5.304%
Next we are to get the WACC
[tex]WACC= 15.7percent*\frac{1}{1+0.54} *5.304percent*\frac{0.54}{1+0.54}[/tex]
WACC = 0.157*0.6494+0.05304*0.3506
= 0.1205
= 12.05%
Since the Debt equity ratio is revised to 0.65 and WACC stays the same
We would have
[tex]12.05percent = Ke*\frac{1}{1+0.65} +5.304percent*\frac{0.65}{1+0.65}[/tex]
0.1205 = Ke*0.606+0.05304*0.3939
0.1205 = 0.606Ke + 0.02089
We collect like terms
0.1205-0.02089 = 0.606Ke
0.09961 = 0.606Ke
Ke = 0.1643
= 16.43 percent
The cost of equity would 16.43% if the debt equity is revised to 0.65
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Mega Corp. has departments for marketing, sales, finance, customer service, human resources, and production. Mega Corp. is organized by
Because the corporation has department for marketing, sales, finance, customer service, human resources, production, then, we can conclude that Mega Corp. is organized by Functional Structure.
The Functional Structure is the type of organizational structure where employees are grouped according to their specialized roles or tasks.
The functional structure is most used type of organizational structures in the modern world.
Therefore, in conclusion, because the corporation has department for marketing, sales, finance, customer service, human resources, production, then, we can conclude that Mega Corp. is organized by Functional Structure.
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Identify THREE factors you would take into account when scheduling an appointment for an executive who is travelling to Madrid next month.
1. The budget
2. The traveler's flight preferences
3. If the executive's passport is valid and will not be expiring in the near future.
Which items are on both the balance sheet and the statement of owner's equity?
Question 17 options:
Capital
Additional owner's investments
Net loss
Owner's withdrawals
Answer:
Additional Owners Investment
Explanation:
You can find some clues, the word "additional" and the word "owner's."
Hope it helps.
In the context of balance sheets, accounts receivable is an example of
Answer:
In the context of balance sheets, accounts receivable is an example of current liabilities immovable assets, current assets depreciated liabilities
Explanation:
Hope It helps And Please Mark Me As BrainliestAnswer:
In the context of balance sheets, accounts receivable is an example of current liabilities immovable assets current assets depreciated liabilities
Explanation:
How can big data can use to achieve banking
Answer:
Track customer spending patterns.
Segment customers based on their profiles.
Implement risk management processes.
Personalize product offerings.
Incorporate retention strategies.
Collect, analyze, and respond to customer feedback.
Explanation:
Big data solutions in banking allow companies to collect, make sense of and share branch (as well as individual employee) performance metrics across departments in real time. This means better visibility into the day-to-day operations and an elevated ability to proactively solve any issues.
In property and casualty insurance the combined ratio is equal to ______________________ divided by total premiums written. the sum of the loss ratio plus loss adjustment expenses
The formula for deriving the combined ratio is {(Sum of the loss ratio + General expenses + broker's commissions) / Total premiums written].
In insurance, the combined ratio is used to measure the profitability of an insurance company in terms of its daily underwriting business.
The formula for deriving the combined ratio is {(Sum of the loss ratio + General expenses + broker's commissions) / Total premiums written]In conclusion, the combined ratio helps to evaluate the insurance company's profitability and financial health through measurement of its day-to-day performance.
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Beautinator Cosmetics borrowed $152,300 from a bank for three years. If the quoted rate (APR) is 11.75 percent, and the compounding is daily, what is the effective annual rate (EAR)
The effective annual interest rate (EAR) is the rate of interest that shows the actual rate that is owed on a loan. The effective annual interest rate reflects the impacts of compounding.
EAR = (1 + periodic interest rate)^m - 1
Periodic interest rate = APR /m
11.75 / 365 = 0.032192%
m = number of compounding = 365
EAR = (1 + 0.000322)^365 - 1 = 0.1247 = 12.47%
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Dean, supervisor at NeonColors Inc., has a conflict with his colleague, Nathan, because they could not agree on the design of a product. As what type of conflict can this be best categorized
As what type of conflict can this be best categorized is interpersonal conflict.
Interpersonal conflict can be defined as a conflicts or disagreement that occur between two or more people.
Based on the given scenario this type of conflict is an interpersonal conflict at workplace as it involve two people which is Nathan and his supervisor due to lack of agreement.
To resolve this conflict the best option is for Nathan and his supervisor to resolve their difference so as to increase their productivity at work.
Inconclusion this type of conflict can this be best categorized is interpersonal conflict.
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A growing trend for regulating natural monoplies is the use of incentive regulation. A) Describe how incentive regulation works to improve efficiency in the market. B) Describe how the company can benefit from incentive regulation. C) Discuss common problems that might exist with incentive regulation.
The government is known to regulate monopolies through Price capping where they reduce price increases.
A. How incentive regulation works to improve efficiency in the market;
Incentive regulation is uses via regulatory tools, price setting regimes along with some self incentives. The efficiency improvement by incentive regulation is done through controllable costs, benchmarking and the setting of performance targets associated with both rewards and penalties.
Incentive regulation is the known way of conducting price level regulation. It also improves efficiency as it hinders or mitigate revenue erosion as it measures both inputs and outputs.
B. How the company can benefit from incentive regulation.
The benefits of the company is that it makes a lot of opportunities available for maximizing earnings via internal efficiency methods such as reduction in both capital and operating expenditures.
C. The common problems that might exist with incentive regulation.
Incentives regulation often brings about a number of challenges, such as;
Holding or maintaining incentives for cost reduction and still adjusting prices to underlying costs. Prices need to be set so that the regulated firm benefits from cost reduction.It makes sure that firms have a good amount of assurance of cost-recovery, while limiting the length for “gold-plating as a result of set out or guaranteed returns on investment. In this way, organizations will only invest if sunk costs can be gotten back via retained cost savings. It makes sure that operators do not jump on quality.Learn more from
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Which of the following is most likely to happen if a borrower fails to make
payments on time?
A. The borrower's credit score will decrease.
B. The lender will charge a lower interest rate.
C. The lender will increase the credit limit.
D. The borrower's creditworthiness will improve.
A. The borrower's credit score will decrease.
Answer:
A. The borrower's credit score will decrease.
Explanation:
The general message of the full disclosure principle is that: a. information is symmetric. b. information is costly to fake. c. producers should offer lifetime warranties for low quality products. d. the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one.
Based on financial and accounting principles, the general message of the full disclosure principle is that "the lack of evidence that something resides in a favored category will often suggest that it belongs to a less favored one."
This is because the full disclosure principle state that all information should be documented in a company or individual financial statements which are believed to affect a reader's knowledge of that specific financial statement.
This ensures that every party that needs to access the financial statements under concern should fully understand them without missing any form of information.
Otherwise, any missing link or information will be ruled in favor of the less favored party in a legal situation.
Hence, in this case, it is concluded that the correct answer is option D.
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a price setter stresses the ________ side of the pricing problem and the price is set by looking at ________.
Answer:
Cost side. second blank is the production and marketing.
As a company moves a customer through the purchasing process, the percentage of prospects changes. Which stage of the AIDA process has the smallest percentage of prospects associated with it
Considering the situation described above, the stage of the AIDA process that has the smallest percentage of prospects associated with it, "the action stage."
AIDA is a model that is used in marketing to evaluate the process in which consumers go through before making a purchase decision.
The AIDA model is an acronym for Attention, Interest, Desire, and Action.
Of all the different stages in the AIDA, the Action Stage is considered to have the smallest percentage of prospects.
This is because prospective consumers might go through the other stages without actually taking action, which is a purchase.
Hence, in this case, it is concluded that the correct answer is "The action stage."
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Answer:
the correct answer is "The action stage."
Explanation:
Most people do not select a place of residence based on: A. lifestyle B. needs C. values. D.attitudes E. credit score
It is generally uncommon for people to decide a place of residence based on E. credit score
When people look for places to stay, they think about their:
Lifestyle and what house it suits that Their needs from a place Their values and whether the place would support them Attitudes towards what kind of place they should livePeople only think about the credit score when it comes to paying the rent of the place or being able to buy it. It is generally not a factor when selecting a place of residence initially.
In conclusion, most people do not select residence based on credit score.
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why it is so difficult to compare unemployment rates in the United States with unemployment rates in poorer countries?
Answer:
The unemployment rate isn't an accurate measure of joblessness simply because it doesn't consider everyone who doesn't have a job
Suppose some banks decide to increase their holdings of excess reserves relative to deposits. Ceteris paribus, this action will put _______ pressure on the money supply, and to reduce the impact of this action the Fed could _______.
The action of the bank will put decreased pressure on the money supply, and to reduce the impact of this action, the Fed could decrease the discount rate.
Basically, a decrease in discount rate will make it easy and cheaper for commercial banks to borrow money from Federal Reserve System and thus, results to increase in available credit and lending in the economy
Therefore, if the commercial banks decide to increase their holdings of excess reserves supposed to be remitted to Feds, then, this will put decreased pressure on the money supply, and the Fed would act by decreasing the discount rate.
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The short-run aggregate supply curve will decrease if:
Hi there!
The short-run aggregate supply curve can shift left (decrease) as a result of:
Increases in Input or Commodity Costs:
- Ex 1: If nominal wages increase, businesses will have to pay workers greater amounts of money, meaning that employing workers is more expensive.
- Ex 2: If the price of commodities go up (such as steel, oil, etc.), businesses will have to pay more to produce goods, decreasing supply.
Increase in government regulations:
- Ex 1: If government regulations are increased for limiting fossil fuel usage, many industries will experience a decrease in productivity, shifting the supply curve left.
Increase in business taxes:
- Ex 1: If the government increases taxes on businesses, businesses will have to divert money that could have been spent on materials, labor, etc. and pay government taxes. This results in a decrease in aggregate supply.
There are many other reasons for the SRAS curve to shift, but these are some of the main ones.
supposing mr john started business with 1,000,000 report financial 70,000 machineries 50,000 goods 500,000 rentage 200,000 what is the capital of the business? supposing Mr John took away 100,000 for his personal use it is called what? according to business entity capital is called what? according to business entity concept what are the assets of the company
ANSWER:
An accounting transaction is a business activity or event that causes a measurable change in the accounting equation. An exchange of cash for merchandise is a transaction. Merely placing an order for goods is not a recordable transaction because no exchange has taken place. In the coming sections, you will learn more about the different kinds of financial statements accountants generate for businesses.
In the previous section we described specific types of accounts that business activities fall into, namely:
Assets (what it owns)
Liabilities (what it owes to others)
Equity (the difference between assets and liabilities or what it owes to the owners)
These are the building blocks of the basic accounting equation. The accounting equation is:
ASSETS = LIABILITIES + EQUITY
For Example:
A sole proprietorship business owes $12,000 and you, the owner personally invested $100,000 of your own cash into the business. The assets owned by the business will then be calculated as:
$12,000 (what it owes) + $100,000 (what you invested) = $112,000 (what the company has in assets)
why are there so many creapy online kids make your own answer to the question
Answer:
Because they are objective-less
Explanation:
They just try to be creepy for no reason other than a passtime. Well it's their thing, I really don't understand their negative attitude.
Answer:
I feel like these people on brainly are just the cyberbullier's who just be super rude to hurt someone's emotions.
Explanation:
I also know those bots on brainly. You must know them, they literally just past a bitly link in there, and wow, like what the heck, who won't know that that is a total VIRUS! So yeah, good thing there is someone called "Katie" on brainly who clears those answers. But the problem is that, other people can't answer that question anymore.
Thanks, hope this helped you.
Types of report writing.
Answer:
here are three examples
Explanation:
1. formal or informational reports
2. short or long reports
3.proposal reports
You manage the worksheet shown below and it contains information for the company's 1500 employees,
You are asked to provide a list of all of the employees who are full time and make more than $45,000 per
year. What is the best way to create the list?
Answer:
3
Explanation:
You manage the worksheet shown below and it contains information for the company's 1500 employees. You are asked to provide a list of all of the employees who are full time and make more than $45,000 per year.
The best way for you to create the list of those who make more than $45000 a year and are full time is by using the filter option.
The filter option would be used to highlight the people that are in full employment. After this you have to use the sort to check the compensation column in order to establish those that make more than 45000.
The filter in a spreadsheet helps to put data in a particular category then arrange them based on the criteria that you selected.
The sorting method helps to arrange data based on ascending order or descending order.
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Which of the following activities would waste the most time?
a. Rich tries to multitask writing a report and reading a memo, and has to re-write the report and
re-read the memo, which takes an hour.
b. During a departmental meeting, Barry and Scott make small talk for twenty minutes while the
other six meeting members sit and listen.
c. Greg asks Tony a question about work and then talks to him for ten minutes about who will
win the game tonight.
d. Barbara composes an e-mail during her thirty minute train ride to work.
Keitaro, a university administrator, needs to send an official memo to the directors of the registration, advising, and financial aid divisions, as well as their supervisors. To determine who should receive his memo, Keitaro consults the Multiple Choice organization chart. grapevine. lateral network. social media policy.
Considering the situation described above, to determine who should receive his memo, Keitaro would need to consult "Organization Charts."
This is because an Organization Chart is a pictorial representation that shows the structure of an organization.
It usually depicts those or the top ranks at the top, while the lower ranks are placed accordingly.
It also shows the relationships and positions or jobs of the ranks or individuals presented on the organization charts.
Organization charts is often referred to as organogram.
Hence, in this case, it is concluded that the correct answer is option A. "organization chart."
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On January 1, 2019, Santo Company purchased a computer system for $30,500. The system had an estimated useful life of 5 years and no salvage value. At January 1, 2021, the company revised the remaining useful life to two years. What amount of depreciation will be recorded for 2021 and 2022
The amount of depreciation for both 2021 and 2022 based on the information given is $9,150
First find the accumulated depreciation for 2019 and 2020.
= Cost of system / Useful life x 2 years
= 30,500 / 5 x 2
= $12,200
The amount left to be depreciated is therefore:
= Cost - Accumulated depreciation
= 30,500 - 12,200
= $18,300
The depreciation for the next two years will be:
= Amount to be depreciated / Useful life
= 18,300 / 2
= $9,150
In conclusion, both 2021 and 2022 will see a depreciation of $9,150.
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Credit score is used to determine your financial worth ?
Answer:
Explanation:
I live in Canada.
I have been told that my credit score is quite high. That's because I don't live beyond what I can pay for with this month's paycheck. I don't think anyone would judge my net worth by my credit score. In fact, bank loans won't think of stopping at credit rating. They (in Canada at least) would never think of giving out a loan whose repayment per month exceeded 1/3 of my paycheck.
Maybe I just have a tough bank, but I certainly agree with their policy.
Which option helps minimize costs in a project?
O A. adjusting resources
OB. indentifying resources
Oc.
eliminating resources
OD. gathering resources
Answer:
c
Explanation:
po ang tamang sagon po
How does changes in the market for new cars impact the market for second-hand cars? (9 marks)
Help me answer this
The global used cars market was valued at $828.24 billion in 2019, and is projected to reach $1,355.15 billion by 2027, registering a CAGR of 8.3% from 2020 to 2027. By vehicle type, the SUV segment was the highest revenue contributor in 2019, accounting for $338.61 billion, and is estimated to reach $533.39 billion by 2027, registering a CAGR of 7.80% during the forecast period
During the implementation stage, the Fallon creative team works with Fallon media buyers to select and schedule the media. Because Fallon Worldwide offers a number of services including research, media, copy, artwork, and production, it would be classified as a(n)
Due to the fact that Fallon Worldwide offers a number of services including research, media, copy, artwork, and production, it would be classified as a full service agency.
A full service agency simply means a fully integrated advertising and marketing agency that provides a complete set of services. Such an agency can handle all the marketing aspects of a business.
In this case, since Fallon Worldwide offers a number of services including research, media, copy, artwork, and production, then it would be classified as a full service agency.
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why it is so difficult to compare unemployment rates in the United States with unemployment rates in poorer countries?
Answer: unemployment rate depends solely on the size of labor force and every country has different labor force sizes.
Explanation: https://coursepivot.com/tutor-answers/which-of-the-following-helps-explain-why-it-is-so-difficult-to-compare-unemployment-rates-in-the-united-states-with-unemployment-rates-in-poorer-countriesselect-the-correct-answer-below/#:~:text=Cross-country%20comparisons%20of%20unemployment%20rates%20is%20difficult%20to,and%20every%20country%20has%20different%20labor%20force%20sizes.
4. Will Juan Carlos meet his $4,000 goal for every year in college with this plan? Explain your .
With this plan, Juan Carlos will not meet his goal because with this plan he can save only $2400.
Based on the information about the plan, let's calculate how much will Juan Carlos save.
Important information:
Money Juan Carlos saves per hour: $10 Number of hours per week: 20 hoursTotal of money every week: $200We also know he will work during the summer that is 12 weeks.
$200 x 12 weeks = $2400
This means the total of money he can save is $2400 and therefore he can't save $4000 by using that plan.
Note: This question is incomplete because information about the plan is missing, here is the missing information.
Juan Carlos words 20 hours/week during the summer, 0 hours/week during the school year, but saves 100% of his income.There are 40 weeks in a school year and 12 weeks of summer. Assum Juan Carlos makes $10/hrLearn more in: https://brainly.com/question/25192498