answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dexar
23 hours ago
6

Feldspar Inc. is considering the capital structure for a new division. Management has been given the following cost information:

Business
1 answer:
Mariulka [3.4K]23 hours ago
8 0

Response:

Select option 4

Clarification:

This question involves calculating the WACC as shown below:

= Weight of debt × debt cost × (1 - tax rate) + (Weight of common stock) × (cost of common stock)

For Option 1:

= (0.3 × 10%) × (1 - 40%) + (0.7 × 12.5%)

= 1.8% + 8.75%

= 10.55%

For Option 2:

= (0.4 × 10.5%) × (1 - 40%) + (0.6 × 13%)

= 2.52% + 7.8%

= 10.32%

For Option 3:

= (0.5 × 11%) × (1 - 40%) + (0.5 × 13.5%)

= 3.3% + 6.75%

= 10.05%

For Option 4:

= (0.6 × 11.7%) × (1 - 40%) + (0.4 × 14.2%)

= 4.212% + 5.68%

= 9.89%

For Option 5:

= (0.7 × 13%) × (1 - 40%) + (0.3 × 15.5%)

= 5.46% + 4.65%

= 10.11%

Consequently, management should opt for option 4 as it yields the most favorable debt asset ratio

The equity weight is defined as

= 1 - debt weight

You might be interested in
Alysha Johnson is a manager who communicates effectively, successfully motivates and leads her workers, and allows them leeway i
Nady [3254]
సంకల్పనాత్మక విధానాలు.
8 0
22 days ago
How can inequality or discrimination hurt an economy's ability to maximize its human capital?
arsen [3236]
If individuals face discrimination and perceive themselves as unequal to other groups within their society, it is clear they will experience unhappiness, which can adversely affect their professional lives. Unhappiness can result in reduced effort and potential at work, ultimately leading to diminished profits for the company.
That's my perspective, anyway.:)
3 0
8 days ago
Read 2 more answers
Mr. Algazi provides the information his client has requested through a voice message.
Nady [3254]

Answer:Hello! I'm working through this question for you!

Explanation:

6 0
13 days ago
Competitive advantage refers to:
stepan [3267]

Answer:

d. pertains to a firm's distinctive methods for creating additional value.

Explanation:

Competitive advantage refers to the edge a company has over its rivals. This can be achieved through various means such as providing value products, optimal quality, and excellent services that may entice customers away from competitors to their advantage.

The goal is to generate added value for the company's offerings, utilizing innovative concepts to attract customers and enhance satisfaction, ultimately leading to the fulfillment of corporate objectives.

7 0
21 day ago
I sell pants that have $5 in variable costs (direct materials and labor). I have $100,000 in fixed costs, and I expect to sell 1
Free_Kalibri [3484]

Answer:

Markup(%) = 216.67%

Explanation:

Markup indicates the profit earned expressed as a percentage of the cost.

Markup = Profit / cost × 100

The cost consists of direct material costs, direct labor costs, and fixed costs.

Cost per unit = 5 + (100,000/10,000)

                     = 15 per unit.

The total cost for a pair is = 2 × 15 = 30.

<pthe profit="" for="" each="" pair="95">$65

Markup(%) =  $65 / 30 × 100 = 216.67%

</pthe>
8 0
1 month ago
Read 2 more answers
Other questions:
  • A local radio station gives away concert tickets at random times everyday to reward listeners. What schedule of reinforcement ar
    5·2 answers
  • What was the weighted average interest rate Colgate faced on its short-term borrowings in 2013? Enter with 1 decimal place and w
    6·1 answer
  • Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly
    7·2 answers
  • Which of the following people is considered to be in the labor force? Select all that apply: Gina is a stay-at-home mom and volu
    12·1 answer
  • When diseconomies of scale occur, Multiple Choice marginal cost intersects average total cost. the long-run average total cost c
    10·2 answers
  • The following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $115
    12·1 answer
  • A set of sweater prices are normally distributed with a mean of 585858 dollars and a standard deviation of 555 dollars.What prop
    10·1 answer
  • Tanner Entertainment is a popular video game manufacturer. It has recently launched a special line of adventure video games, bas
    12·1 answer
  • On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, r
    12·1 answer
  • A major liquor store finds that it sells an average of 100 bottles a week of regular 750 ml bottles of Jameson Irish Whiskey. As
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!