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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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:
how can we manage tour from Heathrow Airport to London?
Answer:
Heathrow Airport, originally called London Airport until 1966 and now known as London Heathrow, is a major international airport in London, England. With Gatwick, City, Luton, Stansted and Southend, it is one of six international airports serving the London region.
Explanation:
hope it's help
Jessica purchased a home on January 1, 2021, for $500,000 by making a down payment of $200,000 and financing the remaining $300,000 with a loan, secured by the residence, at 6 percent. During 2021 and 2022, Jessica made interest-only payments on this loan of $18,000 (each year). On July 1, 2021, when her home was worth $500,000, Jessica borrowed an additional $125,000 secured by the home at an interest rate of 8 percent. During 2021, she made interest-only payments on the second loan in the amount of $5,000. During 2022, she made interest-only payments on the second loan in the amount of $10,000. What is the maximum amount of the $28,000 interest expense Jessica paid during 2022 that she may deduct as an itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard
Since Jessica used the proceeds of the second loan to improve her acquired home, the two debts are counted as acquisition indebtedness, and she can deduct $28,000 as an itemized deduction for mortgage interest expense.
Data and Calculations:
Home Purchase on January 1, 2021 = $500,000
Down payment made $200,000
Mortgage financing obtained = $300,000
Mortgage interest rate = 6%
Interest-only payments in 2021 and 2022 = $18,000 ($300,000 x 6%) each
Additional mortgage on July 1, 2021 = $125,000
Interest rate for the second mortgage = 8%
Interest-only payment in 2021 = $5,000 ($125,000 x 8% x 6/12)
Interest-only payment in 2022 = $10,000 ($125,000 x 8%)
Total interest-only payment in 2022 = $28,000 ($18,000 +$10,000)
Question Options:
a. $0
b. $10,000
c. $26,353
d. $26,000
e. $28,000
Thus, the maximum amount that Jessica may deduct as an itemized deduction is $28,000.
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The ability to take initiative in the workplace is called
A. adaptability
B. communication
C. leadership
D. problem solving
The ability to take initiative in the workplace is called leadership.
Thus, the correct option is C.
What do you mean by Leadership?The capacity to influence and direct followers or other members of an organization is referred to as leadership.
Competent, skilled, secure, and caring leaders excel in their positions. These leaders are honest and authentic in their behaviors and words, and they make time for everyone. They publicly communicate to their staff that they value people.
They are crucial traits to possess because a competent leader can inspire his or her team to work together toward a common objective by bringing out the best qualities in each person.
In order to prevent delays, a skilled leader keeps the group engaged and on task. A productive and happy work atmosphere is fostered by leaders who are transparent and honest.
Transparency with team members is essential for an effective leader, making it one of their essential traits. Many people, including team members and coworkers, look up to an effective leader.
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#SPJ2
Over the last three years, Christmas tree prices have increased from an average of $35 per tree to over $75 per tree. How would a Christmas tree farm and the overall industry respond to the price change under the following circumstances
The Christmas tree farm would respond by:
In the short run, producers are going to earn profits and also increase their supply of the product.This is what usually happens whenever there is an increase in the prices of goods in the supply side of the market.
As the prices would go up, the producers would want to take advantage of the increases to make as much gain as they can from the market.
This is only short term profit. Therefore the supply is going to be inelastic. The demand is only going to available for a short while.
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Describe marketing tactics that the credit industry uses to trick people into getting into debt.
Considering the credit industry analysis, the marketing tactics that the credit industry uses to trick people into getting into debt include offering lower introductory APR rates.
Other marketing tactics that the credit industry uses to trick people into getting into debt include the following:
Appealing to people's social conscience Incentives and rewardsEncouraging youth cultureUsing celebrity personality as ambassadorCreating points that don’t provide strong merchandise choicePromoting the desire to spend money on your family.Hence, in this case, it is concluded that there are various ways in which the credit industry tricks people into debts.
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All of the following are costs (fees) associated with checking accounts except
A.) Monthly Service Charges
B.) Overdraft fees
C.) ATM Card transactions fees
D.) Direct Deposit
QUESTION 10 of 10: You have been promoted to buyer for a mall-based fashion retailer. With your promotion, you will earn an additional
$4,000 per year. If you previously earned $58,000, what is the percentage increase in your salary?
6.9% or 14.5%
Explanation:
I did the math
I belive 6.9% is the correct answer tho
Sarjit and Rhonda have both recently completed graduate level training in liberal arts programs. Although they studied in different fields, they are similar to each other in human capital value in the labor market. According to ________, this similarity defines Sarjit and Rhonda as belonging to the same economic class.
Economic classes refer to the position of people on the earning ladder. For Sarjit and Rhonda, the theory that classifies them into the same economic class is that of;
Karl MarxAccording to Karl Marx, there are two economic classes, namely, the bourgeoisie and the proletariat. The bourgeoisie are the rich and working-class members of society while the proletariats are the workers.
Given this classification, Sarjit and Rhonda belong to the same economic class of workers.
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A firm has the following sales figures: Year 2011: $2.1 million. Year 2012: $2.3 million. Year 2013 $2.5 million. Year 2014 $2.2 million. Year 2015 $3.1 million. Using the naive approach, determine the forecast for next year's sales. A. $3.2 million. B. $3.1 million. C. $3.4 million. D. $2.5 million
Answer:
3.1 million
Explanation:
naive approach assumes that your projected data point is just your most recent one
because we have 3.1 million last year we assume that it's going to be that this year
Compare your results to the industry ratios and describe what NMC should do to improve its position in the market.
Answer:
sorry need points ok.
Explanation:
sorry talaga ha
pero wag kayong magalit
ayaw kasukowag kang magalitnever angryWhich of the following is NOT a duty imposed on partners?
a.
- Disclosure of full information.
b.
- To account for benefits received.
c.
- Good faith.
d.
- Fidelity (where the partner enters a partnership in another, unrelated, industry).
Answer:
to account for benefits received
What might Sony and the U.S. government done differently to discourage future such attacks on other U.S. organizations
There are different things Sony and the U.S. government might do differently to discourage future attacks on other U.S. organizations. Some of the things to do include "carrying out situational awareness of the networks."
Other things they might need to do includes the following:
Training and educating their personnel.Sony and U.S. government need to cooperate on cyber security.Identify and share cyber information relating to threats and attacks among companies and international organizations.There should be legislation to safeguard the stakeholders involved in protecting cyberspace from violating privacy and civil liberties when conducting their work.Hence, in this case, it is concluded that there are various credible means Sony and the U.S. government might discourage future attacks.
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When a manager speaks to an employee, the employee pays the most attention to: Nonverbal communication Verbal communication
In American business culture, when a manager is speaking to an employee, the employee should pay more attention to Nonverbal communication.
When an employee is talking to a manager:
The manager will not give complete instructions The manager will expect the employee to take some sort of leadThe only way the employee will be able to know these things is by paying attention to the nonverbal communication cues of the manager.
In conclusion, employees pay more attention to nonverbal communication.
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how does Quickbooks online use smart learning?
Answer:
Quick Books Online uses smart learning in its reconciliation tool to help find any rogue transactions by recognizing if transactions have been excluded erroneously from bank feeds. Because bank feeds includes all transactions of bank account. What 2 reasons might mean a transaction needs to be excluded in bank feeds?
Explanation:
Quickbooks online use smart learning by : Recognizing if transactions have been excluded erroneously from bank feeds.
Quickbooks is an accounting software that assist businesses manage their income and expenses. The software also keep track of the financial health of the business.
The possibility of recognizing if transactions have been excluded erroneously from bank feeds is evident in usage of quickbooks online.
The software help to track customer profitability from the consolidated data of customers and suppliers in a detailed way, which allows for greater analysis and decision-making.
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Assuming that Brandt entered into a forward contract to sell 10 million South Korean won on December 1, 2020, as a fair value hedge of a foreign currency receivable, what is the net impact on its net income in 2020 resulting from a fluctuation in the value of the won
The net impact on its net income in 2020 resulting from a fluctuation in the value of the won is : $250 decrease in net income.
First step is to calculate the Discount on forward contract
Discount on forward contract=[($0.0035 − $0.0034) × 10 million
Discount on forward contract=$0.0001 × 10 million
Discount on forward contract= $1,000
Second step is to amortized the Discount on forward contract
Amortization of discount on forward contract=$1,000 / 4 months
Amortization of discount on forward contract=$250 per month
Based on the above calculation foreign exchange loss of the amount of $250 will be recognized on December 31, 2020.
Therefore the net impact on its net income in 2020 resulting from a fluctuation in the value of the won is a decrease of $250.
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can someone solve this case?
TIA
Answer:
a
Explanation:
Brainliest if you answer help
Answer:
probably 2...............
Please pick one of your favorite or least favorite brands and go to its website. Please evaluate the website according to 7 C's: context, content, community, customization, communication, connection, and commerce. Please summarize whether you consider the website effective/ineffective and what recommendations you would make to the brand in improving the website.
why is decsion necessary
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:
I’m the speech “I have a dream” by Martin luther king jr. did he Use of verbal signposts to create coherence?
Answer:
yes
Explanation:
he did to attract customers
Contingent liabilities are only recognized if they arise from past events. Group startsTrue or False
The question which asks if contingent liabilities are only recognized if they arise from past events is:
FalseAccording to the given question, we are asked to see that we need to find out if contingent liabilities are only recognized if they arise from past events or whether there are other factors involved.
As a result of this, we can see that contingent liabilities has to do with a liability which can occur later in the future and which the finance can be adequately estimated or calculated, such as a potential lawsuit which could lead to an out of court settlement.
Therefore, the correct answer is False
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One of the major methods of problem solving used by economists is:
a. intuition
b. custom
c. holistic approach
d. the marginal approach
In a simple answer, look at the study of economics, supply/demand, efficient pricing, lowering costs, etc. Now, take those into real world situations and APPLY the to solve the problems that every business has. The problem anyone dealing with economics, government, businesses, institutions have. Apply the economic theories, you will find that life in an office and the classroom can have different problems. Companies tend to be good at the very big stuff; raw materials, manufacturing, sales. Even there they can make improvements. But they spend a lot on transportation, communications, human resources. These things can be improved upon. Apply what you learned to real life problems and solve them.
Which of the following statements is TRUE?
O The interest rate on your savings account will remain the same as long as you keep the account open.
O You can choose the interest rate on your savings account, but only once per year. O The interest rate on your savings account will vary over time and be set by the bank.
O The interest rate on your savings account will vary over time and be set by the government.
Answer:
Third one....The interest rate on your savings account will vary over time and be set by the government
Earn interest at a norminal rate.
How can a bank help Millennial and Gen Z consumers plan to start a family?
A bank can help Millennial and Gen Z consumers to plan to start a family by:
Giving out mortgage loans to themAccording to the given question, we are asked to show the role a bank can play in helping Millennials and Gen Z generations to start their own family.
As a result of this, we can see that Millennials are people who are considered to be within the age bracket of 25-40, while Gen Z are people who are considered to have been born during the social media and internet age and are usually between the ages of 24 and below.
With this in mind, Millennials have likely started up their own family and the Gen Z are likely just coming out of college. Hence, a bank can help both generations to start up their family by giving them mortgage loans and other financial benefits.
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Solo wants to store her tax returns, her will, and her budget in a location where she can quickly retrieve these records for review and revision.
What is the MOST logical thing for Solo to do with these records?
ОА
Place them in a paid storage facility.
ОВ.
Don't store them; they should be shredded.
Ос.
Save them to a computer file.
OD
Store them in a safe deposit box.
Answer:
Save them to a computer file.
Explanation:
Just took the test, and this is the answer.
What is known as assets?
what are the source of law ?
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.