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.
Learn more: https://brainly.com/question/25650869
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
Read more on https://brainly.com/question/25760702?referrer=searchResults
On November 1, 2019, Davis Company issued $30,000, six-year, 7% bonds for $29,340. The bonds were dated November 1, 2019, and interest is payable each on May 1 and November 1. Davis uses the straight-line method of amortization. How much is the book value of the bonds after the November 1, 2020 interest payment was recorded using the straight-line method of amortization
Answer:
29,700 dollars is your answer
Explanation:
Explain the concept of interest
Answer:
Interest is the monetary charge for the privilege of borrowing money, typically expressed as an annual percentage rate (APR). Interest is the amount of money a lender or financial institution receives for lending out money.
Universal Bank pays 7% interest, compounded annually, on time deposits. Regional Bank pays 6% interest, compounded quarterly. Based on effective interest rates, in which bank would you prefer to deposit your money?
Firms that use Groupon to communicate their products are actively engaged in Multiple Choice viral marketing. advertising. product placement. infomercials. personal selling.
The term that describes what the Firms engage in by using Groupon to communicate their products is Advertising.
Advertising can be regarded as attempt to influence the buying behavior of customers as well as clients. It involves using means such as radio, television or internet to communicate about ones product to the consumer.
Therefore, advertising is correct term.
Learn more at:
brainly.com/question/25488988
have no control over the price they charge for their product.
O Price takers
O Price searchers
O Price makers
O Price manipulators
Answer:
○ price makers.
Explanation:
they are the ones who make the price so they have no control over the price
An ______is a being, such as a person or company.
Type the correct answer in the box. Spell all words correctly.
At which stage of advertising is the customer motivated to take action?
The customer is motivated to take action at the stage of ………advertising.
Answer:
motivated to take action at the product purchase stage of advertising.
Explanation:
The customer is motivated to take action at the stage of growth or early maturity advertising.
What is advertising?
The term “advertising” refers to the part of the promotion in the market. Advertising informs the consumer about the product and services available. These are the primary goals for attracting the target audience. There are the based on the marketing promotion. The advertising is the target audience.
The customer is motivated to take action during the "growth or early maturity" stage of advertising. Persuasive advertising is a type of communication that encourages customers to take action. During the expansion stage, pricing and product or service quality should be maintained, and more features and support services may be offered.
As a result, the customer is motivated to take action at the stage of growth or early maturity advertising.
Learn more about on advertising, here:
https://brainly.com/question/3163475
#SPJ2
3 advantages of etools it for digital marketing
Answer:
10 Advantages Of Digital Marketing Over Traditional Marketing
Low cost: Marketing and advertising cost is one of the biggest financial burdens that businesses have to bear. ...
Huge return on investment: ...
Easy to measure: ...
Easy to adjust: ...
Brand development: ...
Easy to share: ...
Precise targeting: ...
Global:
The following information relates to the acquisition of the assets of Quine Corporation by Armstrong Inc. for Year 5. Fair value of Quine GW, January 1, Year 5 60,000 Fair value of Quine GW, December 31, Year 5 55,000 When the assets were originally purchased by Armstrong on January 1, Year 1, the goodwill of the Quine business was determined to be $100,000 and would last 10 years. During Year 5, Armstrong also spent $36,000 to enhance the brand image of Quine's products and it is expected that the enhancement will have to be done again in four years. What is the amount of expense to be shown on the income statement of Armstrong Inc.
The amount of expense that Armstrong Inc. must show on its income statement is $24,000.
This amount represents the Amortization of the Brand Image Enhancement ($9,000), the Impairment Loss in the Fair Value of the acquired assets ($5,000), and the Goodwill Impairment ($10,000).
Data and Calculations:
Fair value of Quine Corporation on January 1, Year 5 = $60,000
Fair value of Quine Corporation on December 31, Year 5 = $55,000
Goodwill (acquired) on January 1, Year 1 = $100,000
Duration of Goodwill = 10 years
Cost of Brand Image Enhancement in Year 5 = $36,000
Estimated useful life of Brand Image = 4 years
Annual amortization of Brand Image = $9,000 ($36,000/4)
Impairment Loss of Fair Value of Assets = $5,000 ($60,000 - $55,000)
Goodwill Impairment = $10,000 ($100,000/10)
Total expenses = $24,000 ($9,000 + $5,000 + $10,000)
Thus, $24,000 expense will be shown on Armstrong, Inc.'s Income Statement in Year 5.
Learn more: https://brainly.com/question/4805305
Assume that the following data describes the condition of the banking system
Answer:
what's the data?,so I can answer the question.
SEE ATTACHMENTS
Lancer, Inc. (a U.S.-based company), establishes a subsidiary in Croatia on January 1, 2019. The following account balances for the year ending December 31, 2020, are stated in kuna (K), the local currency:
Sales K 200,000
Inventory (bought on 3/1/20) 100,000
Equipment (bought on 1/1/19) 60,000
Rent expense 12,000
Dividends (declared on 10/1/20) 22,000
Notes receivable (to be collected in 2023) 36,000
Accumulated depreciation—equipment 18,000
Salary payable 5,000
Depreciation expense 6,000
The following U.S.$ per kuna exchange rates are applicable:
January 1, 2019 $0.19
Average for 2019 0.20
January 1, 2020 0.24
March 1, 2020 0.25
October 1, 2020 0.27
December 31, 2020 0.28
Average for 2020 0.26
Lancer is preparing account balances to produce consolidated financial statements.
Assuming that the kuna is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements?
Assuming that the U.S. dollar is the functional currency, what exchange rate would be used to report each of these accounts in U.S. dollar consolidated financial statements?
(For all requirements, round your answers to 2 decimal places.)
The question is about what currency rates will be used if
Assuming Kuna is the functional currency preparing accounts in US$
Sales $769,230.77
Inventory $400,000
Equipment $315,789.47
Rent Expense $46,153.85
Dividends $81,481.48
Notes Receivable $138,461.54
Accumulated Depreciation - Equipment $69,230.77
Salary Payable $19,230.77
Depreciation Expense $23,076.72
If US$ is the functional currency, preparing accounts in Kuna
Sales K 200,000
Inventory K 100,000
Equipment K 60,000
Rent Expense K 12,000
Dividends K 22,000
Notes Receivable K 36,000
Accumulated Depreciation - Equipment K 18,000
Salary Payable K 5,000
Depreciation Expense K 6,000
Learn more at https://brainly.com/question/20060432
Answer:
a. Sales 0.26
Inventory 0.28 (12/31/20 rate)
Equipment 0.28 (12/31/20 rate)
Rent Exp 0.26
Dividends 0.27 (declared date 10/1/20)
Notes Receivable 0.28 (12/31/20 rate)
Acc. Depreciation-equipment 0.28 (12/31/20 rate)
salary payable 0.28 (12/31/20 rate)
Depreciation exp. 0.26
b. Sales 0.26
Inventory 0.25
Equipment 0.19
Rent Exp 0.26
Dividends 0.27
Notes Receivable 0.28
Acc. Depreciation-equipment 0.19
salary payable 0.28
Depreciation exp. 0.19
Explanation:
a. We utilized the weighted average exchange rate for 2020 bec. each revenue and expense would have been recognized evenly throughout the year. Inventory, Equipment, Notes Receivable, Acc. Depreciation & Salaries payable are translated at the exchange rate in effect at the date of accounting recognition 12/31/2020. Dividends is the only acct. translated to when date of declaration.
b. All rates are the same except Inventory, Equipment, Acc. Depreciation & Depreciation Exp, they are translated at the exchange rate during purchase.
hi yabbo daboo gama juice
Answer:
don't even know what u really saying
Make a list of information areas that the individuals who join foreign employment should know or understand.
Answer:
Country can get lots of foreign currency as the remittance which can be used to establish industries in the country. Such industries provide job opportunities in the country. People who went overseas to work can learn different skills and technologies which can be beneficial for the development of our own country. Foreign employment reduces the unemployment problem of a country. It may help to develop international relations with other countries because the country has to do labour contract with other countries and embassies has to be established there.
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.
Read related link on:
https://brainly.com/question/25483521
Which statement is true about a homeowner's exemption? It must be filed every year . Certain homeowners may qualify for a $10,000 exemption . Once filed, it remains until terminated . None of the above .
Answer:
Certain homeowners may qualify for a $10,000 exemption
In a homeowner's exemption, certain homeowners may qualify for a $10,000 exemption. The correct option is b.
What is California's homeowner's exemption?The California Revenue and Taxation Code provide homeowners with a $7,000 reduction in the taxable value of a qualifying owner-occupied residence for purposes of computing the annual property tax assessment. With an approximate 1% property tax rate, the exemption provides roughly $70 in annual property tax savings.
The home must have been the principal residence of the owner as of January 1 of that tax year to qualify for the homeowners’ exemption. The new owner will automatically receive an exemption claim form in the mail and there is no cost to file. To receive 100% of the exemption ($7,000), an owner must file by February 15. If the form is filed after February 15 but before December 10, an owner will receive 80% of the exemption ($5,600) for that year. Once granted, the homeowners’ exemption remains in effect until the title to the property changes.
Or if the owner no longer occupies the house as their principal place of residence.
Learn more about exemption, here:
https://brainly.com/question/28875581
#SPJ2
Hope Springs makes the bottles of water, puts them into storage, and fills orders as they come in from inventory. This is an example of which supply-chain strategy
The type of supply-chain strategy uses by Hope Spring to fills orders as they come in from inventory is called the pull supply-chain strategy.
The pull supply strategy is a manufacturing strategy that is influenced by consumer's demand because the demand are used to decide the level of procurement, production and distribution of product.
This strategy is very effective to prevent against wastage or over-production since the level of demand for the product determine the level of producing such product.
Therefore, in conclusion, the example of this is known as Pull supply-chain strategy.
Learn more about this here
brainly.com/question/17830486
Colbert Inc. acquired 100% of Stewart Manufacturing on January 2, 2020. During 2020, Colbert sold Stewart $640,000 of goods, which had cost $450,000. Stewart still owned 18% of the goods at the end of the year. In 2021, Colbert sold goods with a cost of $820,000 to Stewart for $1,000,000, and Stewart still owned 15% of the goods at year-end. For 2021, the cost of goods sold totaled $5,800,000 for Colbert, and $1,300,000 for Stewart. What was consolidated cost of goods sold for 2021
Based on the information given the consolidated cost of goods sold for 2021 is $6,092,800.
First step is to calculate 2021 Intra-Entity Gross Profit
2021 Intra-Entity Gross Profit= ($1,000,000 − $820,000) ×15%
2021 Intra-Entity Gross Profit= $180,000 × 15%
2021 Intra-Entity Gross Profit= $27,000
Second step is to calculate 2020 Intra-Entity Gross Profit
2020 Intra-Entity Gross Profit= ($640,000 − $450,000) ×18%
2020 Intra-Entity Gross Profit=$190,000 ×18%
2020 Intra-Entity Gross Profit = $34,200
Third step is to calculate consolidated cost of goods sold for 2021 using this formula
Consolidated COGS = Parent's COGS + Subsidiary's COGS− Total COGS in Intra-Entity Transfer − Intra-Entity Gross Profit Deferred from 2020 + Intra-Entity Gross Profit Deferred from 2021
Let plug in the formula
Consolidated COGS =$5,800,000+ $1,300,000- $1,000,000-$34,200 +$27,000
Consolidated COGS = $6,092,800
Inconclusion the consolidated cost of goods sold for 2021 is $6,092,800.
Learn more here: https://brainly.com/question/14775785
Malcolm (37) is a U.S citizen
Answer: good for him
Explanation:
what is meant by operational management?
If there is a planned order release of 120 units in week 5 and the lead time is 2 weeks, 120 will show up in week 7 under ________.
Considering the situation described above, the 120 units will appear in week 7 under "Scheduled Receipts."
This is because Scheduled Receipts are type receipts in supply management that document the order of items expected to be received in a given date or assigned due period.
Unlike planned order receipts, that document order that is yet to be released, Scheduled Receipts document order that has been released.
And given that the lead time is 2 weeks, and the record is in week 7, while we are in week 5 thus, it is expected that the order must have been received by then. Therefore the 120 units would be under Scheduled receipts.
Hence, in this case, it is concluded that the correct answer is "Scheduled receipt."
Learn more here: https://brainly.com/question/14243347
You are part of a small team that develops your company’s products. Your team is facing competition on the market and time and cost pressures internally. In order to manage these circumstances and encourage innovation, you’ve built a team culture that encourages rapidly testing and iterating upon new ideas. One of your colleagues, however, has struggled with wanting to find the perfect solution before taking action. This caused delays, impacting team performance, and frustration for many team members as they felt held back. Yet, nobody said anything to him. You want to provide him with considered feedback to help him get comfortable with experimentation and risk taking. What will you say to him? How will you give the feedback to highlight his behaviors and encourage a change? Make sure your feedback focuses on the positive: the outcome or impact your colleague will have if he changes his behavior – this will motivate and encourage him!
Answer:
Here.
Explanation:
I would say things like there's a problem with this, lets get together and fix it or this is perfect! Or this is good but we might have some adjustments to make. I would pay attention to every little detail to make this product a success!
The best approach to reach out to the affected worker would beto:
Ask him why he has a problem with finding solutions and taking actionSuggest workable solutions which you and members of the team have used successfullyExplain to him that his indecision is impacting the team work.All these are important when giving considered feedback to the worker so that he knows how his poor performance is affecting members of his team.
Furthermore, by giving him workable solutions he would be forced to implement them and if this still does not work, it would be justified if he is replaced with a more capable worker.
Read more about feedback here:
https://brainly.com/question/25308934
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.
A company wants to cultivate brand ambassadors for their new product so that others will follow their trail. They should go after:
A company that wants to cultivate brand ambassadors for its new product so that others will follow in its wake should go after celebrities and digital influencers who use social media to generate publicity and engagement for a product.
It's a marketing technique called celebrity endorsement, which is a strategy to reach a larger number of people through a certain celebrity's fan audience.
This is an advantageous strategy capable of increasing the brand equity, generating greater identification, engagement and influence over a product and service.
Therefore, it is necessary for the company to use celebrity endorsements by choosing ambassadors who have a profile aligned with the target audience and brand values.
In this way, influence marketing has the potential to generate trust and admiration in the consumer, thus increasing your advertising, positioning and profitability.
Learn more here:
https://brainly.com/question/19735018
What is a labor market?
Question 6 options:
the availability and demand for jobs in a certain area
a place where people can go to learn about jobs
an online stock exchange that tracks jobs
a career cluster dealing with manual jobs
Answer:
the availability and demand for jobs in a certain area
A labor market is simply the:
A. Availability and demand for jobs in a certain area.
Based on the given question, we can see that we need to show the correct answer to the question which asked for the definition and explanation of what a labor market is.With this in mind, we can see that a labor market has to do with how available the demand for jobs are in a certain area and the man power that is needed to fill such vacancies.
Therefore, the correct answer is option A
Read more about labor market here:
https://brainly.com/question/3113084
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
Choose all that apply.
Select all strategies for correcting credit problems.
Find credit counseling services.
Take a cash advance from one credit card to pay the minimum payment on another credit card.
Continue to use credit responsibly and wait.
Ask your credit card company to waive fees or lower your interest rate.
Get help from a finance company.
Transfer credit card balances to a card or loan with lower interest rates.
Sell something of value.
Answer:
find credit counseling services,
Ask your credit card company to waive fees or lower your interest rate.
Get help from a finance company.
Culture clashes frequently happen when ________ within an organization interpret rules differently based on their levels within the organization
Based on sociological research study, culture clashes frequently happen when subcultures within an organization interpret rules differently based on their levels within the organization.
This is because subculture is a term that is used to describe a group of individuals within a large group, usually within an organization, who share the same characters such as problems and experience that is peculiar to them.
Culture clashes occur when this group of people with similar identity or functions interpret rules or objectives differently based on their statuses within the organization.
Hence, in this case, it is concluded that the correct answer is "Subculture."
Learn more here: https://brainly.com/question/14834768
When Mexico suffered from capital flight in 1994, Mexico's net capital outflow a. and net exports decreased. b. and net exports increased. c. increased while net exports decreased. d. decreased while net exports increase
Answer:
B. and net exports increased
Explanation:
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.
A country needs to build new power plants to meet the increasing demand for electric power. One possibility is to build coal-fired power plants, which cost $1300 per kW to construct and have an efficiency of 38 percent. Another possibility is to build clean-burning Integrated Gasification Combined Cycle (IGCC) plants where the coal is subjected to heat and pressure to gasify it while removing sulfur and particulate matter from it. The gaseous coal is then burned in a gas turbine, and part of the waste heat from the exhaust gases is recovered to generate steam for the steam turbine. The construction of IGCC plants costs about $1500 per kW, but their efficiency is about 48 percent. The average heating value of the coal is about 28,000,000 kJ per ton (that is, 28,000,000 kJ of heat is released when 1 ton of coal is burned). If the IGCC plant is to recover its cost difference from fuel savings in five years, determine what the price of coal should be in $ per ton. Consider the power generation capacity to be 150,000 MW
The price of coal is 64.69 $ per ton.
From the question, the differences in their masses can be seen when you find the total energy spent, their given efficiencies, and their heating value, as described in the equation below:
m =mcoal - mIGGC
Note that, the total amount of energy (Etot) equals the given simple payback period (E. SPP)
= Etot ÷ qHV ((1÷ηcoal) - (1÷ηIGCC))
= E. SPP ÷ qHV ((1÷ηcoal) - (1÷ηIGCC))
The amount of money saved using the IGCC is:
ΔM = (MIGCC - Mcoal) E
So to determine what the unit price of coal should be, we must consider the money saved, and the mass difference
Munit = ΔM ÷ Δm
(MIGCC - Mcoal) E ÷ ((E. SPP ÷ qHV) (1÷ηcoal) - (1÷ηIGCC))
= qHV (MIGCC - Mcoal) ÷ spp ((1÷ηcoal) - (1÷ηIGCC))
The price of coal in $ per ton should be:
= 28 Х 10^6 (1500 - 1300) ÷ ( 5(1 ÷ 0.38) - (1 ÷ 0.48) x (365 x 24 x 60 x 60))
= 28,000 000 X 200 ÷ (5( 2.632 - 2.083) (31,536 000))
= 64.69 $ per ton
In a summary, the answer is 64.69 $ per ton.
Learn more here:
https://brainly.com/question/17237405