A block plan allocates space and indicates the placement of each department within the framework of a new or existing facility
Indicate whether the statement is true or false
TRUE
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Although Bangladesh is categorized in the low-income countries, the country has opportunities, particularly in the garment industry
Indicate whether the statement is true or false
What are the objectives of the unemployment insurance program established by the Social Security Act of 1935? How is this program funded?
What will be an ideal response?
Metallic Engineering, Inc., a manufacturer of fabricated aluminum products for aerospace, engineering, automotive, and custom industrial applications, is calculating its WACC. The firm’s common stock just paid a dividend of $1.5 per share and now is selling for $30. The firm’s financial staff estimates the company’s new product will generate an unusual high dividend growth rate of 17% for four years. After this period of time, the dividend growth rate will decline to 3% during a transition period of 3 years, rather than instantaneously. The firm’s debt-to-equity ratio is 3/4 and the flotation costs for new equity will be 7%. Also, the firm has a payout ratio of 60% and 20M of common shares of stock outstanding.
a) Based on the information above, determine the firm’s estimated retained earnings and the associated break-point.
b) Calculate the firm’s cost of retained earnings and the cost of new common equity. Hint: use the required rate of return kCS derived from the H-Model formula in Chapter 9 as follows:
c) If Metallic Engineering’s after-tax cost of debt is 5%, determine the WACC with retained earnings and new common equity.
If Xab = the production of product a in period b, then to indicate that the limit on production of the company's 3 products in period 2 is 400, we write:
A) X32 ? 400. B) X21 + X22 + X23 ? 400. C) X12 + X22 + X32 ? 400. D) X12 + X22 + X32 ? 400.