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Calculating WACC. What is Mullineaux's WACC?

Mullineaux Corporation has a target capital structure of 55% common stock and 45% debt. Its cost of equity is 16%, and the cost of debt is 9%. The relevant tax rate is 35%. What is Mullineaux's WACC?

Economic thinker help

I need a brief biography of JP Morgan's life and times. I also need to discuss the contributions to economic thinking made by him, and also demonstrate how that person's life and times influenced his or her contributions.

Net Profits and Average Payment Period

1) What would be the average payment period if accounts payable is $20,000, cost of goods sold is $200,000 , and sales are $500,000. 2) How would I find the net profit, if margin earnings before interest and taxes is $20,000 net income is $10,000 , sales are $50, 000 and total assets are $100,000.

Consumer Behavior and Rational Choice

In the following diagram, we show one of John's indifference curves and her budget line. *Diagram Attached A. If the price of good X is $100, what is her income? B. what is the equation for her buedget line? C. What is the slope of the budget line? D. What is the price of good Y? E. What is her marginal rate of substit

Intertemporal budget restraints planning

- The budget constraint facing an individual planning his or her consumption over two periods is an intertemporal one in which the present value of consumption expenditures must equal the present value of incomes in the two periods: C0 + C1/(1 + r) = Y0 + Y1/(1 + r) where Y and C represent income and consumption respectively a

Budgeted fixed overheads

Use the following information: Actual Machine Hours 16400 Budgeted Machine Hours 15200 Toatl overhead recovery rate $22 Variable overhead recovery rate $14 Spending Variance $5,000 Required (Showing works): Calculate the budgeted fixed overheads The actual overhead incurred The actual overhead applied The cap

NPV & Profitability - Western Tool Company

John Piderit, the general manager of the Western Tool Company, is considering introducing some new tools to the company's product line. The top management of the firm has identified three types of tools (referred to as projects A, B, and C). The various divisions of the firm have provided the data given in the following table on

Pro Forma Income Statement - Silver Company

Pro-Forma Income Statement Silver Company has asked you to prepare a pro-forma income statement for the coming year. The following information is available: Expected sales revenue . . $1,240,000 Manufacturing costs: Variable cost of goods sold . 625,000 Fixed overhead . . . . . . . .125,000 Selling expenses: Variable exp

Education is an example of a positive externality: acquiring more education benefits the individual student and having a more highly educated work force is good for the economy as a whole

Education is an example of a positive externality: acquiring more education benefits the individual student and having a more highly educated work force is good for the economy as a whole. The accompanying table illustrates the marginal benefit to Sian per year of education and the marginal cost per year of education. Each year

Country of Marxland - Income Tax and Social Insurance System

The country of Marxland has the following income tax and social insurance system. Each citizen's income is taxed at an average tax rate of 100%. A social insurance system then provides transfers to each citizen such that each citizen's after-tax income is exactly equal. That is, each citizen gets (through a government transfer p

Business Theft

You are faced with the last days of a computer conversion and you are receiving calls that people have paid their bills, yet were not being credited for their payments. You later find no copies of receipts, yet patients set you copies of theirs. You know there was theft. How do you address it? How do you prove it? There were

Honda and GM are competing to sell a fleet of 25 cars to Hertz

Honda and GM are competing to sell a fleet of 25 cars to Hertz. Hertz fully depreciates all of its rental cars over five years using the straight-line method. The firm expects the fleet of 25 cars to generate $100,000 per year in earnings before taxes and depreciation for five years. Hertz is an all-equity firm in the 34-perc

Cost of Capital

2) Your firm has an opportunity to make an investment of $50,000. Its cost of capital (interest rate) is 12 percent. It expects after-tax cash flows (including the tax shield from depreciation) for the next 5 years to be as follows: Year 1 10,000 Year 2 2

Net Present Value: Financial Appraisal of Long-Term Projects

The net present value of a project is calculated as follows: a. the future value of all cash inflows minus the present value of all outflows. b. the sum of all cash inflows minus the sum of all cash outflows. c. the present value of all cash inflows minus the present value of all cash outflows. d. non

The term "capital budgeting" refers to decisions

The term "capital budgeting" refers to decisions a. which are made in the short run. b. which concern the spreading of expenditures over a period lasting less than one year. c. where expenditures and receipts for a particular undertaking will continue over a relatively long period of time. d. where a

Operating Cash Flow - Eisenhower Communications

Eisenhower Communications is trying to estimate the first-year operating cash flow (at T=1) for a proposed project. The financial staff has collected the following information: Sales revenues $10 million Operating costs (excluding depreciation) 7 million Depreciation 2 million Interest expense 2 million

Capital budgeting criteria

A mining company is considering a new project. It has received a permit, so the mine would be legal, but it would cause significant harm to a nearby river, The firm could spend an additional $10 million at year 0 to mitigate the environmental problem, but it would not be required to do so. Developing the mine (without mitigation

Calculating Firm's Weighted Average Cost of Capital

A firm plans to maintain its optimal capital structure of 30% debt, 20% preferred stock, and 50% common stock far into the future. The required return on each component is: debt 10%, preferred stock 11%, and common stock 18%. Assuming a 40% marginal tax rate, what is the firm's weighted average cost of capital? a) 10% b) 12%

Indifference Curve Analysis

Please see the attached question, any help will be greatly appreciated. Question: Jim Range has to choose between buying more soda or more pasta for the week. He has a fixed income and he knows the prices of both products. Using indifference curves and budget constraint lines, illustrate the amount of soda and pasta that Jim

Broomfield Company

Please see the attachment. Explain your answer briefly and clearly, showing any necessary calculations. Your answer should be in an Excel file. 2. Broomfield Company budgeted $6,000,000 of manufacturing overhead for the current year, and 50,000 hours of direct labor (cost of $60/hour). Production of Product X (100,

Microeconomics - Two supermarket chains plan to merge.

1.) Two supermarket chains plan to merge. An adviser has argued that the merger will bring no cost reduction because the marginal costs of both firms are similar. Is this reasoning correct? 2.) 90% of a firm's energy costs of £1m are fixed but not sunk. The variable cost of energy is £2 per unit and it is currently using 10

Project A and Project B

I need help with the following problems using the cash flow information for Project A and B. File also attached. Use the following project cash flow information for questions 23 through 27. Project A Project B Initial Investment 100,000 100,000 Year 1 40,000 10,000 Year 2 40,000 10,000 Year 3 40,000 75,000 Year 4