Upton Umbrellas has a cost of equity of 11.4 percent, the YTM on the company's bonds is 6 percent, and the tax rate is 35 percent. The company's bonds sell for 102.9 percent of par. The debt has a book value of $402,000 and total assets have a book value of $950,000. If the market-to-book ratio is 2.68 times, what is the company's WACC? 9.36% 8.27% 8.17% 5.55% 9.75%
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Business, 22.06.2019 07:20
Richardson hired j.c. flood company, a plumbing contractor, to correct a stoppage in the sewer line of her house. the plumbing company's 'snake' device, used to clear the line leading to the main sewer, became caught in the underground line. to release it, the company excavated a portion of the sewer line in richardson's backyard. in the process, the company discovered numerous leaks in a rusty, defective water pipe that ran parallel with the sewer line. to meet public regulations, the water pipe, of a type no longer approved for such service, had to be replaced either then or later, when the yard would have to be excavated again. the plumbing company proceeded to repair the water pipe. though richardson inspected the company's work daily and did not express any objection to the extra work involved in replacing the water pipe, she refused to pay any part of the total bill after the company completed the entire operation. j.c. flood company then sued richardson for the costs of labor and material it had furnished. (c) for what, if anything, should richardson be liable? explain."
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Business, 22.06.2019 08:50
Dyed-denim corporation is seeking to lower the costs of value creation and achieve a low-cost position. as a result, it plans to move its manufacturing plant from the u.s. to thailand, which based on company research, is the optimal location for production. this strategic move will most likely allow the company to realize
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Business, 22.06.2019 15:40
As sales exceed the break‑even point, a high contribution‑margin percentage (a) increases profits faster than does a low contribution-margin percentage (b) increases profits at the same rate as a low contribution-margin percentage (c) decreases profits at the same rate as a low contribution-margin percentage (d) increases profits slower than does a low contribution-margin percentage
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Business, 23.06.2019 21:30
Goals are broad accomplishments that an organization wants to achieve within a certain time frame-in most companies, this is about
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Upton Umbrellas has a cost of equity of 11.4 percent, the YTM on the company's bonds is 6 percent, a...
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