Answer:
Explanation:
31% mark up based on cost
$100 * 1.31 = $131
Same mark up based on selling price
$131 - $100 = $31
Therefore, our percent mark up if selling price were the base; =$31/$131 * 100 = 23.66%
Answer:
6.57%
Explanation:
Given that,
D1 = $2.00
Dividend growth rate, g = 4.50%
Stock price, P0 = $47
Before-tax cost of debt = 6.50%
Tax rate = 40%
Target capital structure for Debt = 45%
Target capital structure for Common equity = 55%
Cost of equity:
= (D1 ÷ P0) + g
= ($2.00 ÷ $47) + 4.50%
= 4.25% + 4.50%
= 8.75%
After tax cost of dept:
= Before tax cost of dept × (1 - Tax rate)
= 6.50% × (1 - 0.40)
= 6.50% × 0.60
= 3.9%
Company’s WACC if all the equity used is from retained earnings:
= (Cost of equity × Percent of common equity) + (After tax cost of dept × Percent of debt)
= (8.75% × 55%) + (3.9% × 45%)
= 4.8125% + 1.755%
= 6.57%
Answer:
Option C is correct
Explanation:
The state court is a common law court that apply respective state laws and precedence to decide cases. State courts usually handle majority of crimes and civil case which include individual cases and small business issues.