Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ALTINBAS UNIVERSITES 10. SCC Inc. has the following financial information Sources of Finance Cost Long-term debt $4,500,000 Common equity $8,000,000 $12,500,000 8% 12% The

image text in transcribed

ALTINBAS UNIVERSITES 10. SCC Inc. has the following financial information Sources of Finance Cost Long-term debt $4,500,000 Common equity $8,000,000 $12,500,000 8% 12% The company's tax rate is 40%. What is SCC Inc's weighted average cost of capital rounded to the nearest tenth of a percent? (10p) a) 21.4% b) 23.5% c) 24.2% c) 24,96% 25.6% 11. Dec 2021: The capital of Juhi Ltd. is as follows Preference dividend Number of Equity shares Profit After Tax P/E ratio $50,000 $8,000 $250,000 6 times What will be the market price of the stock? (20p) (A) 5 165 (0)5150 (C) $ 180 (D) 5 196 12. Revenue from operations $960.000; Gross Profit Ratio 25%, Opening inventory $100 000, Closing Inventory $60.000 Inventory Turnover Ratio will be. a) 10 Times b) 9 Times Times (10) 12,5 Times ) 15 Times 13. Mila Lighting Company makes decorative lamps. The firm's income statenent is as follows Mila Lighting Company Sales (8,000 fans at $251 $200,000 Less Variable Cost (8,000 lamps 5153 130,000 Contribution Margin $80,000 Less Fixed Costs $4,000 EBIT $26,000 Lessi interest Charges 10,000 EDT $16.000 Less: Taxes (20) $13.200 NET INCOME $12.800 Compute a Degree of operating leverage. (OOL) b. Degree of financial leverage. (DFL) Breakeven point in units (BEP) (250) coupon payment/Current price CAPM: Ry B(R-R) WACC WACC = wak

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools for Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

7th edition

978-1118334331, 1118334337, 978-1119036449, 1119036445, 978-1119036432

More Books

Students also viewed these Accounting questions

Question

Explain the human life value concept

Answered: 1 week ago