Weighted Average Cost of Capital
This essay focuses on Weighted Average Cost of Capital. Let us take a look at the two broad types of resources
Weighted Average Cost of Capital
· This assignment is an individual assignment. Resources is a very broad term, it is basically anything that can be considered a valuable addition. Anything from air to gold is all resources. Let us take a look at the two broad types of resources
· The Assignment must be submitted only in WORD format via allocated folder on Blackboard.
· Students are advised to make their work clear and well presented. This also includes filling your information on the cover page.
· Late submitted assignments will NOT be entertained.
· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
Assignment Questions
Q1: Meet Mr. Mohammed, owner of the AL-SALAMAH Company. He would like to complete his financial forecast for next year and wonder if he could use the percentage of sales method. He has determined that his sales will increase by 15% annually over the next three years. If costs are proportional to sales at 80%, and last year’s sales were SAR 2,000, what is the projected net income in year 3? [Marks 2]
Q3: Calculate Weighted Average Cost of Capital (WACC) if tax rate for a firm is 30 and firm’s capital mix consist of $150 million debt @ 7 % return and $500 million equity requiring a 12% return. [Marks 2]
Q3: What is meant by cash conversion cycle? [Marks 1]
Details;
firstly, be keen
secondly, be sober
ThIRDLY, INTEGRITY
fURTHER, BE SOBER
further, be creative
Lastly, be cautious
lASTLY, BE STRAIGHT
