Fin/571
ysncb1970
Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 94 percent as high if the price is raised 16 percent. Chip’s variable cost per bottle is $10, and the total fixed cash cost for the year is $100,000. Depreciation and amortization charges are $20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm’s FCF for the year? (Round answers to nearest whole dollar, e.g. 5,275.)
| |||
Your answer is incorrect. Try again. | |
Capital Co. has a capital structure, based on current market values, that consists of 43 percent debt, 12 percent preferred stock, and 45 percent common stock. If the returns required by investors are 11 percent, 12 percent, and 18 percent for the debt, preferred stock, and common stock, respectively, what is Capital’s after-tax WACC? Assume that the firm’s marginal tax rate is 40 percent. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)
After tax WACC | = | [removed] | % |
- 10 years ago
- 5
Answer(2)
Purchase the answer to view it
NOT RATED
Purchase the answer to view it
NOT RATED
- 5_chips_home_brew_whiskey.docx
Bids(0)
other Questions(10)
- need by tonight!
- I need a 15 page business plan plagiarism free within the next 10days
- what are the characteristics of IIS
- 1-2 page case study - blame for a major accident
- Part 2 infor for accounting Wk4
- Could anyone explain to me f(x)
- R-Bar Calculations
- A novel esponse essya, about the book The dark is rising with will stantion, it must be typed and double...
- whats a good method thats fast to tell how much 7 times anything is???
- HS History Amer Spanis War