The consumers after making a purchase they evaluate the purchase Option(A) is correct. The law essentially involves an idea of the consumer corresponding to consumer security regulations, and the meaning of consumer is frequently confined to living people (not partnerships or organizations) and rejects business clients.
Who is a Consumer?A Consumer is an individual or a gathering who plans to request, or uses bought merchandise, items, or administrations essentially for individual, social, family, family and comparative requirements, who isn't straightforwardly connected with pioneering or business exercises.
In an economy, a consumer purchases labor and products fundamentally for utilization and not so much for resale or for business purposes. Consumers pay some measure of cash (or same) for labor and products then consume.
In that capacity, consumers assume an essential part in the monetary arrangement of an entrepreneur framework and structure a key piece of any economy. Without consumer interest, makers would need one of the vital inspirations to deliver: to offer to consumers. The consumer likewise shapes one finish of the chain of circulation.
Therefore Option(A) is correct.
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QUESTION 8 of 10: The function of a financial planner is:
Oa) To share in the profit/loss of your investments
b) To convince you to purchase large-cap stocks
c) To design your personal budget plan
Od) To help you define and reach your financial goals
The function of a financial planner is to help individuals or organizations define and reach their financial goals through a variety of services, including budget planning. So, correct option is D.
Unlike an investment advisor who is primarily focused on managing investments, a financial planner takes a more holistic approach to a client's financial well-being. They work closely with clients to understand their current financial situation, identify their goals and objectives, and develop a personalized financial plan to achieve those goals.
Financial planners do not share in the profit or loss of their clients' investments, nor do they aim to convince their clients to purchase specific stocks. Instead, they provide unbiased advice and recommendations based on their clients' individual needs and objectives.
Ultimately, the goal of a financial planner is to help clients achieve financial security and success by providing expert guidance, ongoing support, and customized solutions to meet their unique financial needs.
So, correct option is D.
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Based on the connecting letter report, salaries of which college majors are significantly different?
A. Social science and special education.
B. Science and music.
C. Language and music.
D. Social science and music.
Barry Mary
126 114
110 118
138 114
142 111
146 129
136 119
94 97
103 104
140 127
152 133
108 103
97 108
Answer:
C. Language and Music.
Explanation:
The letter report has listed salaries of various employees in different departments. The college majors have different salaries who teach different subjects. The salary for social science staff is higher than the language teaching staff. The most significantly different salaries are for language and music college majors.
The salaries that are significantly different from the given report are C. Language and music.
Salaries of the various subjects. Language college major appear to pay the least amount of salary. Music college major is one of the highest paying.For this reason, the difference between the salaries of music majors and language majors is the most significant.
In conclusion, option C is correct.
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PLZ PLZ HELP HELP HELP YALL ITS IMPORTANT ASAP
Answer:
1144.95$
Explanation:
375.40 was given every week so multiply by 3 and I got 1126.20.. now annually is the key work and annually means per month so I divide 22500 by 12 and got 18.75. last, I added 18.75 a d 1126.95 and got 1144.95!! Hoped explained well!!
Which of the following would the human resource manager be likely to handle? The multiple choice answers are in the picture
Answer:
B. A dispute between two managers about an employee's responsibilities.
Explanation:
A human resource manager performs a range of functions, some of which may even overlap or cover some functions specially meant for some departments in a company. However, functions just as staffing, recruitment and refining of job rules and responsibilities are solely effectively carried out by a human resource manager.
Therefore, given the above scenarios, a human resource manager would most likely be able to handle "a dispute between two managers about an employee's responsibilities." This is because the human resource manager is more knowledgeable as to what and what is actual required of every employee's role and responsibilities in an organization or company.
Answer:
Answer A is correct
Explanation:
If Emmett wants to pay off his student loan by making monthly payments
for 10 years, what type of repayment plan is best for him?
Standard repayment plan
O Extended repayment plan
O Income-driven repayment plan
O Graduated repayment plan
-Submit
Answer:
income driven
Explanation:
if he wants to make monthly payments, income driven is the best option because he would get paid monthly for what ever job, and then pay a percentage of that towards his student loan
Hello please help! I need a 3 paragraph response!
Why are some companies more successful in their global expansion than others? What factors should a manager consider when expanding globally?
There are some companies are the successful as compare to the other companies are:
Recognition.Market share.Better services.There was the expanding on the globally to consider the better brand and the loyalty.
What is companies?Companies are legal entities that are legally registered in accordance with the Company Act. The companies are the main motive of the earning the profit. The companies are the making the profit to run the business.
According to some companies are the successful because it was the smart work, recognition, market share, and the innovation. The focuses on the global market are the better brand and the loyalty are the more susses of the companies.
As a result, the significance of the companies are the aforementioned.
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Mac Book Air is selling for $1,799 now. Apple's financing plan dictates an annual percentage rate (APR) of 18.25% with equal monthly payment for 68 months. The first monthly payment is due immediately. How much are consumers required to pay each month for one Mac Book Air under this plan
The consumers are required to pay $334.11 each month for one Mac Book Air under Apple's financing plan.
The consumers are individuals or households who purchase and use goods and services to satisfy their needs and wants. They are the end-users of products and services offered by businesses and organizations.
In the context of economics, consumers are an essential part of the demand side of the market, driving the production and distribution of goods and services.
To determine the monthly payment required under Apple's financing plan, we can use the formula for the equal monthly payment of a loan
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You are considering switching your Internet and cable providers and DIRECTV is advertising an introductory rate of $30 a month for a two-year contract the introductory rate goes away after six months and the rate will raise to $75 a month after that in aaddition to switch now you will be entered into a drawing for a chance to be an extra in the companies next hilarious commercial you pay $50 a month with your current provider and there's no contract should you switch?
Answer:
DIRECTV:
($30)(6) + ($75)(18) = $1530
Current:
($50)(24) + $1200
Do not switch providers.
Explanation:
You should not switch providers because, in the long run, you will be paying less money with your current provider than with DIRECTV. Emotionally, you may want to purchase DIRECTV's contract because of the drawing; however, there is a low probability that you would actually be chosen, so it is not worth the increase in payments.
Evaluate whether all of the following are considered to be investment (I) in calculating GDP.
a. The purchase of a new automobile for private, non-business use
b. The purchase of a new house
c. The purchase of corporate bonds
Answer:
only the purchase of a new house would be considered investment spending of the three options
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Consumption spending includes spending by households on goods and services. Consumption spending includes :
spending on durables - e.g. laptop
spending on nondurables - e.g. clothes, food
spending on services - e.g. payment of hospital bill
the purchase of a textbook by a student is an example of consumption spending on durable goods
Investment - It includes purchases of goods and services made by businesses in the production of goods and services
Government spending - It includes government consumption expenditure and gross investment. The purchase of a new limousine for the president is an example of consumption expenditure
The purchase of a new automobile for private, non-business use is an example of consumption spending on durables
The purchase of a new house is an example of investment spending
The purchase of corporate bonds is not included in the calculation of GDP
Which of the following incentives 1/15, net 30, 2/10 net 60 or 1/10 net 90, if any of these, is not likely to be a significant incentive to the customer to pay promptly? Explain your answer. Refer to the information provided in Chapter 7 of your text for clarification on what these incentives mean.
The incentive that would encourage customers to pay promptly is 2/10 net 60.
Which incentive would be best ?The meaning of the incentive of 2/10 net 60 is that the customer will get a 2 % discount if they pay in 10 days and if they don't then they will have to pay back what they owe in full, in 60 days.
This incentive will be the most significant in convincing customers to pay promptly because a payment in 10 days would reduce what they have to pay in total.
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Suppose that the demand and suppig equations of a consumer are given by: dd 150-sop Qu = 60+40p A, Show graphically and co-pute the consumer surplus? B. show graphically and compute the change in consumer-surpius Lohen the price changes to 2 ?
The change in CS when the price increases from $30 to $32 are $22.
Suppose that the demand and supply equations of a consumer are given by:Qd = 150 - 5P and Qs = 60 + 4P, respectively.
Graphical representation of consumer surplus and change in consumer surplus us consider the graph of the given demand and supply equations below: Graph of the given demand and supply equationsWe can observe from the graph above that the equilibrium price is $20 and the equilibrium quantity is 70.
The consumer surplus (CS) can be calculated as the difference between the maximum price that the consumer is willing to pay and the actual price paid.
Suppose that the consumer purchases 40 units of the commodity at a price of $30 per unit.
The CS can be calculated as follows: Maximum price that the consumer is willing to pay is calculated as the difference between the intercept of the demand curve on the vertical axis and the price for the quantity demanded of 40 units as follows: Maximum price = $150 - 5(40) = $-50
This is because the maximum price that the consumer is willing to pay cannot be negative, hence, we conclude that the consumer surplus for a price of $30 is zero.
If the price increases to $32, the consumer will reduce the quantity demanded to 38. The change in consumer surplus is calculated as the difference between the initial and new CS as follows: Initial CS = 0New CS = (150 - 5(38)) - (32)(38) = $22
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Real World Application
Purchasing Math
Production Costs and Profit Assume you are a gift store manager and you are completing the
merchandise plan entries for the month of December. Last year's December sales totaled $112,000. You
are projecting a 3 percent increase in sales for this year. During the month of December, you usually
maintain a 3:1 stock-to-sales ratio. Last year's reductions were $7,000. This year you hope to reduce
that amount by 5 percent. Assume an end-of-the-month (EOM) stock figure for December of $250,000.
Directions Follow these steps to determine how profit changes when the production cost varies.
Then answer the questions below.
A cost that fluctuates in relation to production or sales volume is referred to as a variable cost.
What is the process of determining the cost of a production?An expense needs to be directly related to the company's ability to make money in order to be considered a production cost. You may calculate the entire cost of a product by adding the expenses of direct materials, labour, and manufacturing overhead.The difference in costs is calculated by deducting production expenses from the subsequent output run from production costs incurred during the initial output run.Every stage has a purpose and goals, and it is crucial that each goal be achieved before moving on to the next. The five steps are distribution, development, pre-production, production, and post-production.set prices. No matter how many goods or services a business produces, Variable, fixed costs (also known as overhead or indirect costs) remain the same.To learn more about variable refer to:
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How important are structure and culture compared to the other primary internal considerations for a strategic plan?
Structure and culture are among the primary internal considerations for a strategic plan. The importance of structure and culture cannot be undermined, as they both play an important role in the success of a company's strategic plan. Although there are other factors that may contribute to the success of a strategic plan, structure and culture are vital. They can be used to leverage the strengths of an organization to achieve its goals.
Structure refers to how an organization is organized and the interrelationships between different departments. A company's structure determines how information flows within the organization, and how employees interact with one another.
An effective structure enables employees to work together efficiently, leading to a higher level of productivity.
Culture refers to the set of values, beliefs, and attitudes that guide the behavior of an organization's members. A positive culture promotes employee engagement, which is essential for achieving an organization's goals.
A company's culture can influence how it deals with problems, how employees communicate with each other, and how they make decisions, among other things.
In conclusion, structure and culture are essential components of an organization's strategic plan.
By investing in a positive culture and a well-defined structure, companies can increase employee engagement, productivity, and ultimately, achieve their goals.
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The point where total expenses equals total income
Answer:
Break Point
Explanation:
EDGE 2021 :D !
Question Content Area
Journalize the entries to record the following selected transactions:
a. Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the goods sold was $510.
b. Paid $436 to the state sales tax department for taxes collected.
If an amount box does not require an entry, leave it blank.
a.
- Select -
- Select -
blank
- Select -
- Select -
- Select -
- Select -
b.
When the final sale in the supply chain is made, the retailer is responsible for collecting sales tax. The required journalized entries for the selected transactions involving sales tax are attached below.
The state levies a consumption tax, the so-called sales tax, on the purchase of goods and services. A standard sales tax is collected at the point of sale, collected at the store and remitted to the government.
Depending on the regulations in that country, a business may be responsible for sales taxes in that jurisdiction if it has a presence there, which can be a physical site, an employee, or an associate. The calculation of sales tax for (a) is:
Sales Tax Payable = Amount of sales× Sales Tax
= $900 × 7%
= $63
Therefore, all the selected transactions are explained with the help of the journal entries.
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Your question is incomplete, but most probably the full question was,
Question Content Area
Journalize the entries to record the following selected transactions:
a. Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the goods sold was $510.
b. Paid $436 to the state sales tax department for taxes collected.
If an amount box does not require an entry, leave it blank.
a.
- Select -
- Select -
blank
- Select -
- Select -
- Select -
- Select -
b.
- Select -
- Select -
blank
Entrepreneurs generally think differently about resources than do employee-managers in which of the following ways?
Managers want larger budgets; entrepreneurs work to do more with less.
How do entrepreneurs approach resources differently from employee-managers?Entrepreneurs have a distinct mindset when it comes to resources compared to employee-managers. While managers often seek larger budgets to accomplish their goals, entrepreneurs tend to focus on doing more with less.
This difference in perspective stems from the inherent nature of entrepreneurship which involves taking calculated risks and maximizing efficiency in resource allocation.
Entrepreneurs understand that resources, such as capital, time, and manpower, are limited and valuable. They recognize that acquiring substantial budgets may not always be feasible, especially in the early stages of a venture.
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PLEASE HELP ASAP 10 min left
Answer: B.
Explanation:
What is the function of the evaporator?
Answer:
The evaporation of water is a physical process by which water changes from a liquid state to a gaseous state or water vapor. This process takes place on the surface of the water from a certain temperature and until the space is saturated with steam.
Draw a graph with Goods Per Day on the vertical axis and Leisure Hours Per Day increasing from left to right on the horizontal axis. Show that a person who works can work fewer hours and increase utility when the wage rate increases.
The person's financial limitation would be represented by a curve that sloped from left to right, showing that the more free time someone has, the fewer things they can afford, and vice versa.
What does a graph with a market supply curve's vertical axis mean?In economics, the supply curve is a graphical depiction of the relationship between the price of a good and the amount of it that a seller is willing and able to supply.
What products have vertical supply curves as examples?A vertical supply curve demonstrates that the supply of a certain commodity is fixed and unaffected by price. Helium, for instance, has a limited supply, hence the market will determine its price rather than increasing supply.
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Company Q incurred manufacturing costs for the year as follows:
Direct materials Sh 10/unit
Direct labour sh 7/unit
Manufacturing overheads:
Variable sh 3/unit
Fixed Sh 7,500
Variable selling and administrative expenses sh 2,000
Fixed selling and administrative expenses sh 4,000
The company produced 1,500 units (the normal level of production) and sold 1,000 units at Sh 45 per unit. Assume that the production manager is paid a 15 per cent bonus based on the company’s net income.
Required:
(a) Prepare an income statement under absorption costing
Based on the manufacturing costs incurred by Company Q and the absorption costing method, the income statement would be:
Company Q
Income Statement
Revenue (1,000 x 45) 45,000
Cost of goods sold:
Direct materials 10,000
Direct labor 7,000
Variable Manufacturing overhead 3,000
Fixed manufacturing overhead 5,000 (25,000)
Gross Margin 20,000
Variable Selling and admin expenses 2,000
Fixed Selling and admin expenses 4,000
Total Selling and admin expenses (6,000)
Net Income 14,000
What are the variable and fixed costs?Direct materials:
= 1,000 x 10
= Sh 10,000
Direct labor:
= 1,000 x 7
= Sh 7,000
Variable manufacturing overhead:
= 1,000 x 3
= Sh3,000
Fixed manufacturing overhead:
= 1,000 x (7,500 / 1,500)
= Sh 5,000
Cost of goods sold:
= 10,000 + 7,000 + 3,000 + 5,000
= Sh 25,000
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M/J Business Keyboarding Guided Notes Module 1
Module 1: Keyboarding Basics
1.1 The Basics
Vocabulary Terms
touch typing
muscle memory
ergonomics
repetitive strain injuries (RSI)
carpal tunnel syndrome
Guided Questions
How can you arrange your workstation to
apply proper ergonomics?
When typing, what are the characteristics of
correct ergonomics and proper typing
posture?
How do correct ergonomic habits contribute
to proper keyboarding and prevent injury
when typing?
What are some strategies you should follow
to prevent RSI?
When working on a laptop or on a tablet,
how can you apply proper ergonomics?
What do you need to know about the
QWERTY keyboard to learn how to type?
Where are these keys located on the
keyboard and what is the purpose of each?
Home Row / Home Keys, Spacebar, Shift,
Enter, Tab, Backspace, Caps Lock
How should you position your fingers on the
home row?
Why is using the home row important to
typing mastery?
How do the buttons and special keys help
you navigate the Typing Tool?
M/J Business Keyboarding Guided Notes Module 1
1.02 Home Row F and J
Vocabulary Terms
workstation
ergonomics
home row keys
typing technique
Guided Questions
Where should you position your fingers to
before you start typing?
How can you find the F and J keys without
looking at the keyboard?
Which finger do you use to type the F key?
The J key? The space bar?
1.03 Input, Output, Storage, and Memory
Vocabulary Terms
Central Processing Unit (CPU)
peripherals
input device
output device
USB (Universal Serial Bus) connector
memory
storage memory
random access memory (RAM)
read-only memory (ROM)
storage devices
Guided Questions
What is the purpose of each of these
computer peripherals? What are examples
of each?
o an input device
o an output device
Which peripherals can be both and input
and output devices?
How do input and output devices connect to
a computer?
What is the purpose of different types of
computer memory? What are examples of
each?
What is the purpose different storage
devices? What are examples of each?
What is “the cloud?”
1.04 – 1.06: Home Row D and K / Home Row S and L / Home Row A and ;
M/J Business Keyboarding Guided Notes Module 1
Vocabulary Terms
home row
workstation
ergonomics
typing technique
Guided Questions
Where should you position your fingers to
before you start typing?
Which finger do you use to type each of
these keys?
D K S L
A ; Space Bar
1.07 Computer Maintenance
Vocabulary Terms
Guided Questions
Why is it important to properly care for your
computer and electronic devices?
What are some things you should DO and
should NOT DO to properly care for your
computer (hardware and software)?
Why are software updates important?
Why is it important to clean your computer
and workspace regularly?
How should you clean each of these
computer parts? Why?
o keyboard
o mouse or trackpad
o screen or monitor
1.08 Home Row G, H, Enter
Vocabulary Terms
reach keys
home row
workstation
ergonomics
typing technique
Guided Questions
Which keys are the reach keys?
Where should you position your fingers to
before you start typing?
Which finger do you use to type these keys?
G H ENTER
Space Bar
M/J Business Keyboarding Guided Notes Module 1
1.09 Home Row Review
Vocabulary Terms
Guided Questions
What are the different parts/components of
a computer system and why are they
important?
Why are storage devices (USB flash drives,
external hard drives, and cloud storage)
helpful?
Why is it helpful to know the parts of a
computer system and how to care for it?
What are some proper computer
ergonomics practices to type pain free and
avoid injury?
What do you remember about which fingers
to use when typing the home row keys?
Left Hand
Fingers Keys Keys Right Hand
Fingers
pinky finger pinky finger
ring finger ring finger
middle finger middle finger
index finger index finger
thumb thumb
Answer: thanks
Explanation:
reflection about simulation in second day and third day
Simulation is the process of imitating the operations of a real-world system or process over time. It is usually used to analyze the behavior of complex systems and can provide useful insight into how the system will behave under different circumstances.
The second and third days of the simulation were quite interesting. During this time, we were able to put into practice some of the concepts we had learned during the previous days of the simulation. We were able to work as a team and coordinate our efforts to achieve the desired outcome.
One of the things I noticed during this time was how important communication is when working in a team. It is vital to be able to communicate effectively with other team members to ensure that everyone is on the same page and that the project is progressing smoothly.
We were able to learn from our mistakes and adjust our strategies accordingly. This was a valuable experience as it helped us to develop our problem-solving skills and taught us how to be adaptable and flexible in the face of changing circumstances.
Overall, I found the second and third days of the simulation to be a great learning experience. It provided us with an opportunity to put into practice the skills and concepts we had learned during the first day of the simulation. We were able to work collaboratively as a team and learn from each other's strengths and weaknesses. I believe that the simulation has helped me to become a better problem solver and a more effective team player.
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if i asked a question and two people had to split the points. and i gave the question 60 points. how many points would each person get
Answer:
30 points
Explanation:
If the question is worth 60 points, split between 2 people, it's 30.
The operating budget provides a roadmap for financial plans for a short-term, future period. What is a typical “future period” for an operating budget?
An operating budget is a financial statement that outlines the organization's expenditures and revenues for a specific period.
The operating budget is typically for a fiscal year, which is usually twelve months. The future period for an operating budget is usually a fiscal year or less than a year. The operating budget is critical because it establishes guidelines for financial activities and operations in an organization. It provides a roadmap for financial plans for a short-term, future period, which typically begins on January 1st and ends on December 31st.
An organization creates an operating budget to aid in the allocation of resources and expenditures to achieve its objectives for a given period. A typical operating budget is for a fiscal year. A fiscal year is the period when an organization prepares its financial statements. It is usually 12 months, but it may be shorter or longer depending on the organization. An operating budget typically covers one fiscal year; however, it may be longer or shorter based on the organization's preferences.
The future period for an operating budget is frequently updated to reflect the company's current situation and financial standing. It takes into account the actual results of the previous period and the estimated expenditures and revenues for the upcoming year to develop the operating budget for a future period.
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What did Ray Kroc feel about churches and courthouses?
He advertised, "In business for yourself, but not by yourself." His idea was founded on the simple principle of a three-legged stool, with one leg representing McDonald's franchisees, the second representing McDonald's suppliers, and the third representing McDonald's employees.
The McDonald brothers were more concerned about product quality and consumer satisfaction. Ray was more interested with making money by rapidly expanding the business. As a result, they had disputes, and their phone conversations were brief. Throughout the creation of the McDonald empire, Kroc faced numerous hurdles, including improper franchisees, high electrical costs due to ice cream, difficult debates and arguments with his partners, financial troubles, and divorce.
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With a specific focus on the e-commerce industry, research and identify the process that a company follows from the time it receives an order through the time when it delivers the merchandise. Discuss the responsibilities of each department in a typical e-commerce company. Also discuss the importance of cross-functional coordination.
The process that a company follows from the time it receives an order through the time when it delivers the merchandise is known to be Order fulfillment.
What is Order fulfillment?Order fulfillment is known to be made up of a lot of steps that a company is known to takes between getting a new order and placing a said order into the customer's hands.
Note that the practice is seen as warehousing, the picking and packing of the said product as well as shipping it and sending an email to the customer in regards to the order.
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You have been appointed as a manager at XTZ company. Your style of leading is an Autocratic style. this is a style where you take strict controls and actions over all management activities. the old culture that was present at XTZ company was very flexible due to the nature of old manager and all employees are now resisting to adjust to the new manager.Explain how are you going to solve this matter as a manager
It's important for the manager to change his leadership style in order to lead the workforce.
Who is a manager?It should be noted that a manager simply means an individual who leads a team to achieve a common goal.
In this case, it's important for the manager to change his leadership style in order to lead the workforce. This is needed to being about unity and promote growth.
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In 100 words or fewer explain:
As a financial advisor, how will you get new clients?
As a client, how would you choose a financial advisor?
A financial advisor can get new client through the qualities and skills they posses and a client can choose a financial advisor when the client is satisfied that the financial advisor is someone that is qualified to give financial advises.
Who is a financial advisor?
A financial advisor is person whose job is to advice someone on how to effectively manage their resources as well as finances so as to prevent running into debt or financial mismanagement.
A financial advisor can tend to get a new client by advertising themselves or showcasing the type of skills they possess as well as how they can effective advice and help people to manage their finances.
A client can tend to choose a reliable financial advisor by checking whether the advisor is a professional or a person that is qualified to be a financial advisor as well as a verifying if the advisor is a person that can help to advice people on how to effectively manage their finances.
Therefore the a financial advisor help to advices people on how to manage their finances as well as investment.
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I am wondering what the answer to question number 4 is thank you!
Answer:
the answer is thank you because you said it
Explanation:
DUH=)
Cream and Crimson Foods has a target capital structure of calling for 45.00 percent debt, 4.00 percent preferred stock, and 51.00 percent common equity (retained earnings plus common stock). Its before-tax cost of debt is 12.00 percent. The tax rate is 40.00%. Its cost of preferred stock is 10.41%. Its cost of common equity is 12.38%. Find the WACC for Cream and Crimson Foods
Answer:
9.9702%
Explanation:
After-tax cost of debt=12*(1-tax rate)
= 12* (1-0.4) =7.2%
WACC=Respective cost*Respective weight
=(7.2×0.45)+(10.41×0.04)+(12.38×0.51)
=9.9702%
Answer:
9.9578%
Explanation:
Solution
Given that:
Cream and Crimson foods target a structure capital of calling =5.00%
Stock preferred = 4%
Common equity = 51.00%
Before tax-cost = 12.00%
Rate of tax= 40.00%
preferred stock cost = 10.41%
Now,
After-tax cost of debt=12*(1-tax rate)
=12*(1-0.4)=7.2%
Thus,
The WACC=Respective costs*Respective weight
=(0.45*7.2)+(0.04*10.1)+(0.51*12.38)
=9.9578%
Therefore, the WACC for Cream and Crimson Food is 9.9578%