ABC Corporation has the following capital structure and costs. Further assume that ABC ‘s income is taxed at 25%. How much is the weighted average cost of capital of ABC?

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A: The situation can divide one's attention. The level of attention divided is determined by the tasks ...

Q: jPhone, Inc., has an equity multiplier of 1.35, total asset turnover of 1.63, and a profit margin of...

A: Equity Multiplier = 1.35 Total Asset Turnover = 1.63 Profit Margin = 7%

Q: ABC has an authorized capital of P1,000, P100 par, 8% cumulative preference share and 100,000, P10 p...

A: Given: Cumulative preference shares 50000 Ordinary shares 90000 Additional paid in capital 90...

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A: Present Value  The present value is the value of cash flow stream or the fixed lump sum amount at ti...

Q: 5. A certain machine has an initial cost of P 50,000 and a book value of P 15,811.39 after five year...

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Q: Current market price of ABC stock = $77 ABC stock price after 30 days = $80 ABC stock price after 45...

A: Current stock price is $77 Exercise price of european put option is $82 Stock price after 30 days is...

Q: A company makes two products A and B, using a CNC milling machine which is classified as a single re...

A: Working Note #1 Computation of effective capacity: Unit load of the mix= Product mix of product A * ...

Q: You are to pay a bill in Meralco every month for 5 years. The accumulated amount of the payment you ...

A: Annuities are financial contracts that provide a stable cash flow, typically to retirees. The accumu...

Q: KYY Inc. has the following data on its 2020 financial statement Total sales 2,000,000 360,000 1,500,...

A: Return on investment can be calculated in two ways, one is using amounts of what is received divided...

Q: Suppose you have the following inputs: TSX/S&P Return = 20 - MSCI -World Index Return =18 Variance o...

A: Return on a two assets portfolio With weight of asset 1 (W1), weight of asset 2(W2), return on asset...

Q: F G H Monthly Monthly Еxcess Excess return for Market Stock 1 Returns 0.09 0.03 -0.07 0.01 0.02 0.02...

A: Risk and return are two main components of investment. Beta a measure which shows the degree of risk...

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A: Formula Future value = PV*(1+(i/c))n*c Where PV = Present value i.e. RM1,000 i = Interest rate i.e. ...

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A: Simple interest is when we get the same interest in every period because the interest is withdrawn a...

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A: Annuity is a series of equal instalments at equal intervals of time. The present value of an annuity...

Q: Suppose you were to receive a perpetual annual payment (perpetuity) of €640 per year. In the followi...

A: Present Value: It represents the present worth of the future cash flow stream and is computed by di...

Q: Solve the following cases using the Gordon Growth Model of determining the cost of funds. (No Time P...

A: Solution:- Cost of preference shares means how much the company is incurring cost while paying divid...

Q: A Forward Rate Agreement contains an agreed interest rate of 5.75% on a 6-month loan. If settled at ...

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A: Net Present Value(NPV) is amongst one of the modern techniques of capital budgeting which considers ...

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A: Given: Particulars Amount Loan $32,000 Years 7 Loan balance $59,000

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Q: Consider a home mortgage of $125,000 at a fixed APR of 12% for 30 years. a. Calculate the monthly pa...

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv], [type]...

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Q: The following were gathered for estimating the cost of equity of KKK Corporation: Return on Treasury...

A: Here, Return on Treasury Bond (Rf) is 4% Return on Market (Rm) is 10% Beta is 1.2

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Q: On June 1, 2018, Vaughn Company and Bramble Company merged to form Sunland Inc. A total of 808,000 s...

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Q: ce shares P100 par, 10% cumulative - 2,000,000 Ordinary shares, P50 par- 5,000,000 ABC reporte...

A: In the given case, we only consider the preferred dividend for current year because dividend is alre...

Q: Current market price of ABC stock is $77 ABC Stock price after 30 days =$80 ABC Stock price after 45...

A: Put option: This option holder will have right to sell a stock, but it is not an obligation to sell ...

Q: INFO ON STOCK Years 4 Beta 2.89 Divadends QUESTIONS D1 4.89 D2 4.76 REQUIRED RETURN ON EQUITY Foreca...

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Q: . What is the inventory turnover? (Do not round intermediate calculations and round your answer to 2...

A: Inventory Turnover: Inventory turnover refers to the number of times a firm is able to replace its ...

Q: Sheet 5 Use Sheet 5 to complete the following Date GOOG Return NFLX Return Market Return Risk-Free...

A: Numbers that describe the data:  Numbers that describe the data are typically single numbers like av...

Q: The table shows some Price Real price beef prices (1982-1984 cents per (cents per pound) and the CPI...

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Q: You currently have $50,000 in a bank account that pays interest at 6% p.a. compounding  monthly. You...

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A: Present value is defined as the current value of the future stream of funds or cash flows at the par...

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Q: chine could be purchased for £800,000; it would be used for 3 years and then sold for £580,000. It w...

A: The depreciation of machine have tax advantages and tax on the depreciation reduces the impact of th...

Q: During years 2 and 3 combined, the account earned $10 compound interest. How much was in simple inte...

A: Compound interest earned = $10Compound Interest formula: P×[(1+R100)T-1]Simple Interest formula:PRT1...

Q: A client approaches you with the news that she plans to retire on a ranch worth R3 000 000. She plan...

A: Future Value = R3,000,000. Time Period = 20 Years Interest Rate = 12%

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A: A credit score is a metric which shows the ability of a person or an organisation to repay its debt ...

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Q: ($70) $90 $?] $350 ($67) $0 $240 ($12) $44 ($4) ($87) $0 Net Income Charges in Working Capital FCFO ...

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Q: Rain company whose tax rate is 40% has a total asset of P500,000,000 and earnings before interest an...

A: Interest Payment is calculated on the debt part out of the total funds of the company. Net Income is...

Q: Calculate the future growth rate for Solarpower's earnings. . If the investor's required rate of ret...

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