Answer and Explanation:
The computation is shown below:
Debt = D ÷ (E + D)
= 0.8 ÷ (1 + 0.8)
= 0.4444
Now
Weight of equity = 1 - Debt
= 1 - 0.4444
= 0.5556
As per Dividend discount model
Price = Dividend in 1 year ÷ (cost of equity - growth rate)
40 = $2 ÷ (Cost of equity - 0.06)
Cost of equity = 11%
Cost of debt
K = N
Let us assume the par value be $1,000
Bond Price =∑ [(Annual Coupon) ÷ (1 + YTM)^k] + Par value ÷ (1 + YTM)^N
k=1
K =25
$804 =∑ [(7 × $1000 ÷ 100)/(1 + YTM ÷ 100)^k] + $1000 ÷ (1 + YTM ÷ 100)^25
k=1
YTM = 9
After tax cost of debt = cost of debt × (1 - tax rate)
= 9 × (1 - 0.21)
= 7.11
WACC = after tax cost of debt × W(D) + cost of equity ×W(E)
= 7.11 × 0.4444 + 11 × 0.5556
= 9.27%
As we can see that the WACC is lower than the return so it should be undertake the expansion
Harley-Davidson is building brand personality by reinforcing the perception that his brand is masculine, rugged, and individualistic.
<h3>What is Brand personality?</h3>
Brand personality is a characteristics attributed to a brand name to which the consumer can relate.
It is an effective brand increases which empowers one's company to build connections with its target audience.
Hence, Harley-Davidson is building brand personality by reinforcing the perception that the brand is masculine, rugged, and individualistic.
Learn more about Brand personality here: brainly.com/question/14558525
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Answer:
3 is the correct answer, financial managers are in charge of all of the companies finances
Explanation:
Answer:
Explanation:
Before passing the journal entry, first, we have to compute the total supplies consumed. The formula to compute the total supplies consumed is shown below:
= Beginning balance of supplies + Purchase of supplies - ending balance if supplies
= $450+ $3,400 - $900
= $2,950
Now the journal entry would be
Supplies expense A/c Dr $2,950
To Supplies A/c $2,950
(Being supplies consumed recorded)