Smith and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. The firm's current after-tax cost of debt is 6 percent, and it can sell as much debt as it wishes at this rate. The firm's cost of preferred stock is 11 percent and its cost of retained earnings is 14 percent. The firm expects to generate $15,000 in retained earnings this year. Compute the weighted average cost of capital (WACC) break point associated with issuing new common stock

Answers

Answer 1

Answer: $30,000

Explanation:

The weighted average cost of capital (WACC) break point that is associated with the issuing of the new common stock will be:

= Earnings retain / Percent of common equity in capital structure

= $15000 / 50%

= $15000/0.5

= $30,000


Related Questions

pleaseeeeeeee helpppppppp Which of the following media representatives would most likely meet with a celebrity fashion designer to preview her Fall collection in July?

the art director of an online fashion magazine
the advertising chief of a celebrity gossip magazine
the editor-in-chief of an international fashion magazine
the author of a fashion blog

Answers

I feel like the answer may be the art director of an online fashion magazine but I could be wrong ><

Green Landscaping is completing work for a contract client that is billed when work is completed. At the year-end, Green had completed $250 of landscaping services that were unbilled and unrecorded. The entry to record this adjustment will include which of the following entries: (Check all that apply). Multiple select question. a debit to unearned service fees a credit to unearned service fees a debit to service fees earned a credit to accounts receivable a credit to service fees earned a debit to accounts receivable

Answers

Answer:

a debit to accounts receivable

a credit to service fees earned

Explanation:

Based on the information given we were told that $250 of landscaping services which were unbilled and unrecorded was completed at year end which means that The appropiate journal entry to record this adjustment will include which of the following entries:

a debit to accounts receivable

a credit to service fees earned

you purchased one hundred shares of AT&T stock. The company pays 20 cents per share to each share holder (That’s you!) at the end of this quarter. This money is called

Answers

Answer:

Dividends

Explanation:

I GIVE BRAINLIEST! ASAP!!!!

What actions can the government and central bank take to ensure the economy stays regulated?

Answers

Answer:

The government can influence interest rates, print money, and setting bank reserve requirements are all tools central banks use to control the money supply. Other tactics central banks use include open market operations and quantitative easing, which involve selling or buying up government bonds

consideran que las costumbres y tradiciones deben mantenerse ala nueva generación​

Answers

Answer:

Efectivamente, considero que las costumbres y tradiciones deben mantenerse en las nuevas generaciones, pues forman parte de la idiosincrasia y la identidad de un pueblo, sociedad o nación. De esta manera, a través del mantenimiento de estas costumbres y tradiciones, las nuevas generaciones seguirán sintiendo una especial pertenencia a su patria, y mantendrán un vínculo que los ligará con esta y con sus compatriotas, puesto que las costumbres y tradiciones son parte esencial de la identidad de una nación.

________ are programs where the government provides a tax deduction for spending on health insurance and other benefits by both employers and employees.

Answers

Answer:

Tax expenditures

Explanation:

Tax expenditures refer to the special kind of the provision like exclusion, deductions, credit, rate of the tax that would give the benefit for the particualr activities or the taxpayer group.

It is a program where the government give the tax deduction with respect to the amount spend on the health insurance and the other benefits

state one advantage and one disadvantage of parallel cables​

Answers

Answer:

Advantages: We know that the voltage remains constant in the parallel connection. Therefore, each component in the circuit gets the same amount of voltage.

Disadvantage: To construct the parallel connection, we need lots of wires.

Please mark as brainliest if answer is right

Have a great day, be safe and healthy  

Thank u  

XD  

Franklin transferred 952 photos from his phone in 17 minutes. At what rate does his phone transfer photos?

Answers

Answer:

56 photos per minute

Explanation:

952 divided by 17 is 56

FIVE SIX SEVEN EIGHT________.

Answers

Answer:

I demand a chocolate shake? mm chocolate shakeeeee

Explanation:

Answer:

9

Explanation:

Obviously

When lifting, you should use what part of your body to do most of the lifting?

Answers

Thighs, upper arms, and shoulders. Most are legs.

Answer:

You should use your legs to do most of the lifting

Explanation:

Your legs are many times stronger than your back muscles. Let your strength work in your favor. Again, lower yourself to the ground by bending your knees, not your back.

a description about agriculture

Answers

Answer:

The art and science of cultivating the land, growing crops, and raising livestock is known as agriculture. It entails the processing of plant and animal products for human consumption as well as their delivery to markets. These goods, as well as the agricultural practices employed, may differ from one region to the next.

Explanation:

Hope this helps!

Please mark me as Brainlineast.

Phyllis graduated with a degree in chemistry and started her career as a laboratory scientist with Dow Chemical. While at Dow, she met a sales representative from PPG Industries who suggested she might enjoy an opportunity to work directly with customers and assist them by answering product questions, making recommendations about new products and serving as an assistant to the field sales team. Phyllis applied for the position and is now working at PPG. She enjoys the opportunity to use her technical skills to assist customers and doesn't mind being on the phone or answering e-mails from customers. What type of sales channel is Phyllis working in

Answers

Answer: Inside selling

Explanation:

Based on the information given in the question, the sales channel that Phyllis is working in is the inside selling.

inside selling refers to the act of selling goods to the customers through phone or online rather than meeting the customers in person. Inside sales makes use of the phone, internet and emails to reach out to the customers.

Whats your favorite Song guys

Answers

gravity ft. tyler the creator

Memories by Maroon 5. I love this song.

state any five occupation in public service sector and explain at one​

Answers

Answer: Some occupation in government organizations are Mental health therapist, substance abuse counselor, financial case worker, developmental disabilities specialist, public health nurse.

Explanation:

There so many occupation in government organizations, which all work together for the functionality of the society, here are a few;

- Mental health therapist.

- Substance abuse counselor.

- Financial case worker.

- Developmental disabilities specialist.

- Public health nurse.

Public health nurses are nurses who work in government owned hospitals,carrying out their basic roles, and ensuring they do it well treating all patient with fairness and equality.

1. Describe the features available through online banking.
2. Discuss the advantages of doing your banking online,
3. Discuss the disadvantages of doing your banking online.
4. What is identity theft and how does it connect to online banking?
5. What measures can you employ to make your online banking safe and efficient?
6. What types of services do you see in the future for online banking?
7. Describe the purpose of the Electronic Funds Transfer Act.
8. How can banks be competitive in the features offered through online banking?

Answers

Answer:

wait can i ask somebody to help you

Explanation:

Choose the answer that best fits each statement below.
1. As you begin your budgeting process, a good place to start is to prepare a
a. Budget variance
b. Budget estimate
C. Budget plan
d. Budget contribution

Answers

Answer:

i thingk its

c.budget plan

Answer:

the Answer is c.budget plan

A bookstore costs $90 a day to keep open, and spends $12 for each book it sells. The store charges $18 for each book it sells. If n represents the number of books sold, which equation represents the cost function for this bookstore?
O A. C = 90n + 15
O B. C = 12n + 90
O C. C = 18n + 90
O D. C = 90n + 12​

Answers

Answer:

The correct answer is B just got it right on ape

Explanation:

PLEASE HELP, I WILL MARK BRAINLIEST!!! define/describe the following terms. note what the advantages and disadvantages of each are (from a worker's perspective). here are the following terms: contracting, consulting, entrepreneurship

please no links, this is due tommorow!!!​

Answers

The advantages of entrepreneurship include the ability to shape one's own business, control of one's own working habits, and significant stock in the venture. Disadvantages include a lack of guarantee of success and the heightened responsibility of owning a business. Higher take-home pay.
Tax relief on business expenses.
Greater opportunity for tax planning.
Total control of your business and name.
One company for all your business interests.
Limited liability and protection of personal assets.

consequences of migration on the receiving country​

Answers

Answer:

Economic growth

 Migration boosts the working-age population.  Migrants arrive with skills and contribute to human capital development of receiving countries. Migrants also contribute to technological progress. Understanding these impacts is important if our societies are to usefully debate the role of migration.

One of the determinants of employees' willingness to exert effort is the degree to which they value the rewards offered by the organization.

Answers

Answer:

True.

Explanation:

An employee can be defined as an individual who is employed by an employer of labor to perform specific tasks, duties or functions in an organization.

Basically, an employee is saddled with the responsibility of providing specific services to the organization or company where he is currently employed while being paid a certain amount of money hourly, daily, weekly, or monthly depending on the contractual agreement between the two parties (employer and employee).

Hence, while an employer may be the owner of a business firm or company, an employee is a subordinate employed to provide unwavering services to the employer while also, being professional and diligent at all times.

An equality norm refers to a reward system in which the employer or human resource manager decide to compensate or pay the entire workforce the same amount of money without discrimination or favoritism.

Basically, it's paid regardless of individual productivity levels, in order to promote the ability to work effectively in groups.

However, one of the determinants of employees' willingness to exert effort is the degree to which they value the rewards offered by the organization. These rewards usually includes salary, overtime, transportation (car), house, pension, healthcare, allowances, etc.

Hence, the willingness of an employee to put in his best at his place of work by exerting more effort, is largely dependent on the reward system designed and being implemented in the organization.

For example, an employee who's given an official car with a driver, apartment, healthcare and work bonus is more inclined to perform excellently and loyal to his employer.

George walks in and wants to send multiple back to back transactions to the
same person after asking some "Know Your Customer" questions, you find
out the receiver sells homeopathic remedies directly to customers. They're
dirt cheap! The receiver was very thorough with the instructions for sending
the payment information, so George feels confident.
Are there any Red Flags? If so, please select all that apply:

Answers

Answer: The Sender and Receiver don't know each other

Sending money for what sounds like a too good to be true

The purpose of transaction for online goods is questionable

Explanation:

The statement "The sender & receiver don't know each other, money send for sounds like very good to be true dealing, and the motive of the transactions with respect to the online goods is considered to be questionable" is considered to be the red flag.

The sender i.e. Geroge who not even know the receiver that sells the homeopathy remedies online so this could raise a few issues but it is not to be considered very serious for red-flagged:

Since e-commerce arises each and every time that lies between non-known parties online.

This is due to the dirt chape that could make it suspicious also they don't know each other so this should be considered red-flagged.

The instructions with regard to the payment do not represent any signal of reliability and truthfulness so might me the receiver is trustworthy and genuine.In the case when the homeopathy remedies do not have the licensing and permissions so it would become questionable.

No one could suggest the specific brand of homeopathy as it becomes nonprofessional and non-appropriate, so the last option is not be considered.

Therefore we can conclude that The statement "The sender & receiver don't know each other, money send for sounds like very good to be true dealing, and the motive of the transactions with respect to the online goods is considered to be questionable" is considered to be the red flag.

Learn more about homeopathy here: brainly.com/question/7460064

Kiran's family took a road trip to Niagara Falls. Kiran slept through the last 62% of the trip. If the total length of the trip was 1000 miles, how many miles had they travelled when Kiran fell asleep?

Answers

Answer: 380

Explanation:

So we know that 62% of the trip she was asleep. Basically we need to subtract 100- 62 and get 38. 38% she was awake. Therefore once we get that we covert it into a decimal

It would be .38 we multiply by the total miles (1000) and your answer will be 380. :)

Benefits of having a strong brand image

Answers

Answer:

benefits of building and maintaining a strong brand are endless: customer recognition, word-of-mouth marketing, customer loyalty, enhanced credibility, and ease of purchase, to name a few. Your brand is one of your company's most valuable assets.

Gidgits Galore's chimney stacks emit significant amounts of smoke into the air, and residents have complained about the poor air quality since the factory began operating. The EPA and state Attorney General can bring suit against Gidgits Galore for spowing fumes into the air False or True

Answers

Answer:

Could be True or False.

Explanation:

True if Gidgits is breaking any EPA/State regulations. False if they are in complete compliance with the law.

The market value of​ Fords' equity, preferred stock and debt are $ 6 ​billion, $ 2 ​billion, and $ 12 ​billion, respectively. Ford has a beta of 1.8​, the market risk premium is 8​%, and the​ risk-free rate of interest is 4​%. ​ Ford's preferred stock pays a dividend of $ 2.50 each year and trades at a price of $ 25 per share. ​ Ford's debt trades with a yield to maturity of 10​%. What is​ Ford's weighted average cost of capital if its tax rate is 40​%?

Answers

Answer:

10.12 %

Explanation:

Weighted Average Cost of Capital (WACC) is the cost of permanent sources of capital pooled together. It shows the risk of the business and is used to evaluate projects.

WACC = Cost of equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock

Remember to use the After tax cost of debt :

After tax cost of debt = Interest x (1 - tax rate)

                                    = 10​% x ( 1 - 0.40)

                                    = 6.00 %

Cost of equity :

Cost of equity = Return from Risk free security + Beta x Risk Premium

                        = 4.00 % + 1.8 x 8.00%

                        = 18.40 %

Cost of Preference Stock :

Cost of Preference Stock  = Dividend / Market return x 100

                                            = $2.50 / $ 25 x 100

                                            = 10%

therefore,

WACC = 18.40 % x 30 % + 6.00 % x 60 % + 10.00% x 10%

           = 10.12 %

thus,

Ford's weighted average cost of capital is 10.12 %

Jamie is building a house on her lot. She invites Earnie of Earnie's Excavation to bid on the excavation job. Earnie observes that the lot next to Jamie's is also under excavation and the soil in that lot is normal and not excessively rocky. Based on the assumption that the soil in Jamie's lot will be similar, he and Jamie agree that the excavation will cost $3,000. When Earnie starts digging, he learns there is solid rock under Jamie's lot. Earnie says it will cost an extra $2,500 for the excavation work. Jamie agrees just to get the job done but later refuses to pay a dime more than $3,000. If Earnie sues, the most likely result would be

Answers

Answer: Earnie wins, as the modification was due to unforeseen difficulties

Explanation:

Based on the information given in the question, since Earnie wasn't aware of the fact that the soil was rocky and later got to know after the work has commenced, if Earnie sues, Earnie will win because the modification that is made is due to unforeseen difficulties.

It should be noted that there should be a consideration for an unforeseen difficulty which comes into place after a contract has been made. Unforseen difficulties are a catalyst for further promise.

Identify a specific government organization, think tank, academic research center, or school board;
research its goals and investigate requirements for employment.

Summarize and submit your findings in a 600-word essay.

IT WOULD MEAN THE WORLD TO ME if someone wasted there time doing this one project for me! God bless u if u don’t rip me off !! ❤️

Answers

Answer:

there's no way I'm writing a 600 word essay, but CRA is a government agency. It stands for Canada Revenue Agency and they basically collect Canadian taxes. To get employed a person needs to be in the field of accounting.

Nathan is analyzing the demand for baseball bats that illuminate when they hit something. The managing director of his company has asked him
to understand the type of need that exists for such a product. What are the two types of needs that Nathan should consider?
Nathan should consider the
B and
needs that would exist for a self-illuminating baseball bat.
Reset
Next

Answers

Answer:

Isuzu trooper the intended addressee please notify the best of

what does it mean to be intelligent?

Answers

Answer:

Intelligence has been defined in many ways: the capacity for logic, understanding, self-awareness, learning, emotional knowledge, reasoning, planning, creativity, critical thinking, and problem-solving.

Answer:

It means to know certain subjects and items.

Explanation:

A(n)
strategy determines the direction the organization will take in making directional decisions.
A. business
O
B. organizational
C. operational
O
D. corporate

Answers

corporate is the correct answer
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Dawn is going scuba diving. Which situation would be modeled by a positive number?on the dive boat deckat the water lineunderwater near a reefon the ocean floor What is embedded in the phospholipid bilayer that helps in the movement of larger molecules ?A.Channel/Transport proteinsB.SaltC.WaterD.Fats The Geneva Convention established rules for __________. Memorial Day was originally established to honor:A Deceased soldiersB Living veterans Civilian volunteersD Foreign allies Please help. Determine which lines are parallel and which are perpendicular. Explain your reasoning. Convert 81 to radians. im in 10 grade what was the point in the civil war and the meaning of it 60. Calculate the mean absolute deviation of the values below, by answering each question.1, 4, 21, 4, 35, 20, 3 and 8Complete the table of values, finding the distance of each value from the mean. Michaels favorite cereal is Cinnamon Toast Crunch. His mom buys him a big box for a special treat, and he wants to figure out exactly how much cereal is in the box. The box has a volume of 384 cubic inches. The height is 12 inches and the length is 8 inches. What is the width? why do you think people believe in fake news Infant Sorrow by William Blake My mother groand! my father wept. Into the dangerous world I leapt, Helpless, naked, piping loud; Like a fiend hid in a cloud. Struggling in my fathers hands, Striving against my swaddling bands; Bound and weary, I thought best To sulk upon my mothers breast.Which stereotype is not supported in Infant Sorrow?the acceptance of ones destinythe joy of new lifea childs love for its parents Read the excerpt from The Time Traveler's Guide to Elizabethan England. In 1574 the city authorities are given powers to restrict playhouses, forcing the actors to find new premises in the suburbs. This becomes a golden opportunity for John Brayne and his brother-in-law, James Burbage, who in 1576 build a new theater, simply called The Theatre, at Shoreditch, just half a mile north of Bishopsgate. The following year a second theater, the Curtain, is built just two hundred yards away. Despite some heavy opposition from Puritan preachers and moralists, both theaters are successful. Which event happened third PLEASE ANSWERRRRRRRRRRRRRRRRRRRRRRRRRRR What type of air mass forms over Nashville TN Cancelling Dr. SuessRead the following selection from the Introduction (paragraphs 1-6)Sox Dr. Seuss books will no longer be published according to Doctor Seuss Enterprises. It is the business that preserves and protects the author's legacyThe ties being discontinued include "And to Think That I Saw it on Mulberry Street and if i Ran the ZooThe company announced on March 2 that thebooks are being withdrawn from publication. It said this was due to racist and insensitive images in the books.Which word from the paragraph helps you to understand thatinsensitiveDr. Seuss books will no longer be printed? (A) according (B) legacy (Cdiscontinued D Find the are of this compound shape below * how should the Jews people be remembered? According to the law of demand, demand for a product falls when:A. its supply risesB. its supply falls.C. its price falls.D. its price rises Savannah gave the cashier $20 to pay for 3 pairs of socks. The cashier gave her $5.03 in change. Each pair of socks cost the same amount. What is the cost in dollars and cents for each pair of socks? Once you solve the problem, circle/highlight your answer. Why are shadows shorter around noon?Make sure you give a full, detailed answer, not just one sentence.