Flintstone Mining Inc has a weighted average cost of capital of 12%. Flintstone has 40% debt in its capital structure (debt-to-equity is 0.67 ) and the yield on Flintstone bonds is 6%. The corporate tax rate is 40%
What is the cost of equity for Flintstone?
A) 12.6%
B) 14.6%
C) 15.6%
D) 16.6%
E) 17.6%
E
You might also like to view...
In a manufacturing environment, direct labor costs initially flow
A) into the Materials Inventory account. B) into the Cost of Goods Sold account. C) into the Work in Process Inventory account. D) into the Finished Goods Inventory account.
What basis of accounting is used by government funds?
a. Modified accrual b. Accrual c. Cash d. Semi accrual
The following is an account for a production department, showing its costs for one month:Work in Process InventoryBeginning Balance5,400Completed and transferred out49,410Direct materials21,600 Direct labor16,200 Overhead10,800 Ending Balance4,590 Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $41,850, what was the cost of completing the units in the beginning Work in Process inventory?
A. $7,560. B. $12,150. C. $54,000. D. $37,260. E. $2,160.
What kind of report condenses the primary ideas from a book, report, article, website, meeting, or convention?
A) Progress report B) Justification/recommendation report C) Summary D) Analytical report