Business, 05.05.2020 08:05 leilei2003

You were hired as a consultant to the ABC Company. You are given the following details about its capital: $7 billion of bank loan outstanding at an effective interest rate of 6.5%, $2 billion of preferred stock with a yield of 6%, and common stock with a market value of $11 billion. Based on your calculation, the shareholder’s required rate of return is 11.25%. ABC’s tax rate is 40%. What is its WACC

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 04:30, awdadaddda

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.

Answers: 3

continue

Business, 22.06.2019 12:10, montgomerykarloxc24x

The cost of the beginning work in process inventory was comprised of $3,000 of direct materials, $10,000 of direct labor, and $10,000 of factory overhead. costs incurred during the period were comprised of $15,000 of direct materials costs, and $100,000 of conversion costs. the equivalent units of production (eup) for the period were 9,000 for direct materials and 6,000 for conversion. the costs per eup were:

Answers: 3

continue

Business, 22.06.2019 15:40, kaitlynmorgan43

The cost of direct labor used in production is recorded as a? a. credit to work-in-process inventory account. b. credit to wages payable. c. credit to manufacturing overhead account. d. credit to wages expense.

Answers: 2

continue

Business, 22.06.2019 16:30, sammuelanderson1371

Which of the following has the largest impact on opportunity cost

Answers: 3

continue

You know the right answer?

You were hired as a consultant to the ABC Company. You are given the following details about its cap...