What is Amazon's WACC? Note: Amazon does not have r preferred stock. Apply the CAPM to estimate the cost of equity using the expected market return and risk-free rate from the Walmart WACC estimate. Answer to 2 decimal places in % format w/o % sign.

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Answer 1

Hence, 0.21 is the amount of taxes that were mentioned in the Walmart example, in addition to 0.66 percent and 12.70 percent.

What is Amazon's WACC?

1.1634= bond from line

Generally, the cost of equity is  mathematically given as

Using the CAPM to estimate the cost of equity using the expected market return and risk-free rate from the Walmart WACC we have

C.E=R+[tex]\beta[/tex] (ER-R)

Where

R=risk free rate

[tex]\beta[/tex] = beta of the investment

(ER-R)=market risk premium

Therefore, from the Walmart WACC

CE=0.66%+1.1634*(12.7%-0.66%)

CE=14.68%

Generally, the Market value is  mathematically given as

MV= 1,215,500,000,000

Generally, the cost of debt is  mathematically given as

CD= 37,855,403,701.28

Hence

Total value= 1,215,500,000,000+37,855,403,701.28

Total value= 1,253,355,404,000

[tex]Weight of equity= \frac{1,215,500,000,000}{1,253,355,404,000}*100[/tex]

Weight of equity= 96.98%

[tex]Weight of debt= \frac{37,855,403,701.28}{1,253,355,404,000} *100[/tex]

Weight of debt=3.02%

Therefore

0.969814*0.68+0.03020.014*(1-0.21) = 14.27%

Hence, 0.21 is the amount of taxes that were mentioned in the Walmart example, in addition to 0.66 percent and 12.7 percent.

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Related Questions

What is cyberbullying? Why does it happen so often?

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Answer:

Cyberbullying happens for many of the same reasons as any other type of bullying, but it may be even more appealing because it can be done anonymously. two kinds of people who are likely to bully: those who are popular and those who are on the social fringes.

Popular kids or teens may bully because:

They see it as a way to stay popular.

Hurting others makes them feel powerful.

Kids or teens who are less socially successful may bully because:

It helps them cope with their own low self-esteem.

They think it will help them fit in with their peers.

They have trouble empathizing with those they hurt.

Governments use tariffs in order to:

A. increase the cost of products imported from foreign countries.

B. promote completely free trade in all countries around the world.

C. invest government funds into a struggling domestic industry.

D. agree on the conditions of trade with another country.

PLEASE HELP :’)

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Answer:Why do governments impose tariffs?

To protect newly established industries from total and premature collapse, the imposition of tax has to be made to curtail excessive demand for foreign-made goods.

Explanation:

Governments use tariffs in order to increase the cost of products imported from foreign countries. Thus the correct option is A.

What is Government?

The government is referred to as an administrative body that helps to perform the function of the country by maintaining peace and order and implementing rules and laws described in the constitution and working for the welfare of its citizens.

If there were significant tariffs, the US would become less dependent on imports. By exploiting the significance of tariffs and raising taxes on imported items, domestic goods are given preference.

Tariffs is referred to taxes applied on imported goods that increase the cost of foreign goods in the country. Due to high price of foreign goods customer shift to domestic goods which helps in improving the economy.

Therefore, option A is appropriate.

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What are the three methods of calculating balance charges on credit cards?.

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The three methods of calculating balance charges on credit cards are:

previous balance method.average daily balance method (excluding and including newly billed purchases.adjusted balance method.

How can we calculate a credit card balance ?

Calculation of the credit balance can be done generally by dividing  the  average daily balance totals by the total number of days in the billing cycle.

Then the result is then  multiplied by the monthly interest  rate, however all the listed method can as well be used.

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In the screening and evaluation stage of the new-product process, the internal approach consists of a firm's employees evaluating Blank______.

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In the screening and evaluation stage of the new-product process, the internal approach consists of a firm's employees evaluating the technical feasibility of a proposed product idea.

What is screening and evaluation stage?

screening and evaluation stage of the new-product process, involves careful analysis of the product so as to know thefeasibility in the market.

In this case, this stage, brings about firm's employees evaluating the technical feasibility of a proposed product idea.

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Answer: Continuous

Explanation:

What type of analytics would take past purchasing data as inputs into a model and then recommend the best pricing strategy for maximizing revenue

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"Prescriptive Analysis" would take past purchasing data as inputs into a model and then recommend the best pricing strategy for maximising revenue.

What is Prescriptive Analysis?

Prescriptive analytics makes recommendations about potential outcomes and produces actions that are likely to maximise important business KPIs.

Prescriptive Analytics is based on:

Optimisation which helps in achieving the best outcomesStochastic optimisation which helps in how to achieve best outcomes and identify data uncertainties to make best results.

The types of analytics are-

Descriptive, Predictive and Prescriptive analytics.

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What do we call risks in the absence of controls and after controls have been implemented?.

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Risk that exists both before and after controls have been put in place is known as inherent risk.

What is risk?

The term "risk" refers to degree of unfortunately and possibility of loss, injury and hazard. Risk is barrier in the organization.

The various risk levels in a process that have not been regulated or mitigated by risk management are referred to as inherent risk. The level of risk present even in the absence of safeguards is known as inherent risk.

As a result, Inherent risk is risk in the absence of controls and after controls have been implemented.

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Scarcity exists when there are _______ resources available to satisfy all the competing uses.

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Few resources or limited resources or not enough

Have a nice day.

In the 1990s __________ cost the United States between $42.3 billion and $47 billion in direct and indirect costs (about 30% of the nation's total mental health bill).

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In the 1990s anxiety disorders cost the United States between $42.3 billion and $47 billion in direct and indirect costs (about 30% of the nation's total mental health bill).

What is anxiety disorder?

This type of disorder is the one that is known to affect the mental health of a person.

This disorder typically makes it very difficult for sufferers to go through their day.

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The conversion privilege allows investors to switch from one mutual fund to another within a: Group of answer choices management group. fund family. brokerage group. switched fund. convenience group.

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The conversion privilege allows investors to switch from one mutual fund to another within a fund family.

A mutual fund investor's conversion privilege is the ability to shift money between various portfolios provided by the same mutual fund family without incurring another sales charge.

Most mutual fund providers will provide investors with the ability to transfer money across the fund's various holdings.

As their investing objectives change or market conditions change, investors may desire to move money to portfolios with alternative investment objectives. Selling and buying portfolios at the NAV will trigger a taxable event for the investor.

Therefore, the correct option is fund family.

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A physical good, service, or idea that satisfies a want or need is called a(n):

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A physical good, service, or idea that satisfies a want or need is called a product.

What is a product?

Products are objects or produced goods made available for consumers for consumption.

They are known as tangible goods that can be seen and touched. They are produced in order to satisfy human need and want.

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explain how automation impacts network management

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The automation can impact network management by:

By establishing  perfect network view.Easy access to network data

How can automation can impact network management?

By using automation programs, it make network management to be easy and direct because it improve the control that one has on the network.

With automation, it will be easier to  access network data as well the  performance reports.

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Ilene rents a property for the entire year. During the year, Ilene reported a net loss of $15,000 from the rental. If Ilene is an active participant in the rental and her AGI is $140,000, how much of the loss can she deduct against ordinary income in the year

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The loss can she deduct against ordinary income in the year is $5000.

How to calculate the loss?

AGI = $140000

Less: Allowable limit = $100000

Excess = $40000

50% of excess = $20000

Less: Net loss = $15000

Loss deduction = $5000

Therefore, the loss can she deduct against ordinary income in the year is $5000.

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Peanut crops have been destroyed by a fungus. Consumers are substituting almond butter for peanut butter because they perceive it to be a healthier option. The prices of both peanut butter and almond butter are rising. Why

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The prices of both peanut butter and almond butter are rising because of the demand and supply forces.

What is Demand and supply?

Demand and supply forces are the deriving forces of the market which influence the prices of the commodities. Demand refers to the willingness and ability to purchase the commodity.  

Supply refers to the availability of the product and services in the market that to as per the requirement in the market. Thus both the terms are interrelated and interconnected to each other.

As per the above situation, the rise in the demand of the peanut butter is due the loss of the crop due to fungus with created shortage in the supply of the peanut in the market.

Thus people shifted to its substitute almond butter which rises the demand of the almond butter as well.

Therefore it increased the prices of the  both the kinds of the butter available in the market.

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When will the Social Security fund dry up at Its current level?
• A.
2022
© B.
2027
• C
2037
© D. 2097
© E. 2117

Answers

Answer:

c. 2037

Explanation:

As a result of changes to Social Security enacted in 1983, benefits are now expected to be payable in full on a timely basis until 2037, when the trust fund reserves are projected to become exhausted.

The correct answer would be C.

A situation in which each firm chooses the best strategy given the strategies chosen by other firms is called a.

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Answer:

A Nash equilibrium results when every firm in an industry chooses a strategy that is optimal given the strategies chosen by its competitors.

over time, the members of an organization have developed ______ as a result of coping with the organization’s challenges and coordinating resolutions that work for them.

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Over time, the members of an organization have developed patterns as a result of coping with the organizational' s challenges and coordinating resolutions that work for them.

What are organizational challenges?

A major challenge faced by organizations is the need to ensure consumer needs are concentrated on, while also striking a balance among the interests of countless other people or groups.

Hence, over time, the members of an organization have developed patterns as a result of coping with the organizational' s challenges and coordinating resolutions that work for them.

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why is innovation a key component of a manager's job in today's business environment?

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Innovation gives companies a "fresh" image without changing much real substance.

What is innovation?

This refers to the process or an exciting new way of doing something. It involves coming up with new ideas, which is different from the existing one.

Hence, innovation is a key component of a manager's job in today's business environment because it gives companies a "fresh" image without changing much real substance.

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kentucky licensee giana manages three star realty’s main office. she’s in charge of training and mentoring the firm’s staff. what kind of licensee is she?

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Giana who is in charge of training and mentoring the firm’s staff is a:

Principal Broker

Who is a Principal Broker?

A principal broker is found in many real estate offices. The role of these brokers is to ensure that all the staff and their methods of engagement are in agreement with the proscribed laws of the nation and state.

Since Giana has to train and mentor the firm's staff to conform to agreed standards, she can be referred to as a Principal Broker.

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In the absence of taxes, the value of a firm is the same with debt financing as it is with equity financing because Blank______. Multiple select question. equity financing is actually better than debt financing debt financing is actually better than equity financing MM demonstrated that debt financing is neither better nor worse than equity financing in the absence of taxes the asset to be financed is the same

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MM demonstrated that debt financing is neither better nor worse than equity financing in the absence of taxesthe asset to be financed is the sameWhat is debt financing?

Debt financing is the process through which a business sells debt instruments to retail and/or institutional investors in order to raise funds for working capital or capital expenditures. The people or organizations receiving the funds become creditors and are given the assurance that the principal and interest on the loan will be paid back. The other method of raising money in the debt markets is by issuing stock in a public offering; this process is known as equity financing.

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Suppose the equilibrium price for soft drinks is $1.50 but the current price in the soft drink market is $1.25 for each soft drink. This implies that

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Suppose the equilibrium price for soft drinks is $1.50 but the current price in the soft drink market is $1.25 for each soft drink. This implies that there will be surplus of soft drink .

What is supposed through Market Equilibrium?

Equilibrium is the nation wherein marketplace deliver and call for stability every other, and as a end result costs turn out to be stable. Generally, an over-deliver of products or offerings reasons costs to head down, which leads to better call for—at the same time as an under-deliver or scarcity reasons costs to head up ensuing in much less call for.

A surplus exists whilst the charge is above equilibrium, which inspires dealers to decrease their costs to remove the surplus.

How do you calculate Market Surplus at Equilibrium?

Total marketplace surplus may be calculated as overall blessings – overall expenses. Alternatively, we are able to calculate the region among our marginal advantage and marginal cost, restricted through quantity. This is the equal of locating the distinction among the marginal blessings and the marginal expenses at every stage of production.

Your question is incomplete, but most probably your full question was:

Suppose the equilibrium price for soft drinks is $1.50 but the current price in the soft drink market is $1.25 for each soft drink. This implies that:

A. there will be a surplus of soft drinks.

B. there will be a shortage of soft drinks.

C. the demand curve for soft drinks will shift leftward.

D. the supply curve of soft drinks will shift leftward

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A general partner who puts together the administrative organization of the limited partnership and handles the registration of the securities with the states is known as the

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Limited partner.

What is a Limited partner?A limited partner is a shareholder whose liability for the company's debts is limited to the amount they contributed to the business. Silent partners are another name for limited partners.What is Limited Partnership?Similar to a general partnership, a limited partnership (LP) must have at least one general partner (GP) and at least one limited partner, as opposed to the minimum requirement of two GPs for general partnerships. Different from limited liability partnerships, which only have limited liability for each participant, are limited partnerships.The GPs are, in most significant ways, in the same legal position as partners in a traditional firm: they have management control, share the right to use partnership property, divide the firm's profits into fixed shares, and have joint and several liabilities for the partnership's obligations.

Therefore, the answer is a limited partner.

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Decades ago, developing and implementing the "right" marketing strategy was all about _________________ . In today's economy, however that emphasis has shifted to developing strategies that attract and retain customers over the long term.

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In decades past, the development and implementation of marketing strategy was about b.creating a large number of transactions in order to maximize a firm's market share.

What was the focus of marketing strategy in the past?

Companies wanted to increase the number of sales transactions they had as they believed it would lead to a higher market share.

These days however, companies try to retain their customers over the long term so they can have a sustainable revenue base.

Options for this question are:

a.aggressive selling in order to maximize sales volume.

b.creating a large number of transactions in order to maximize a firm's market share.

c.making products of moderate quality that could be sold at the lowest price possible.

d.conducting extensive research to discover customer needs.

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Factory labor charges that cannot be easily traced to a job are treated as ______.

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Answer:

Manufacturing overhead

Appropriate and effective marketing metrics must be designed to identify, track, evaluate, and provide key benchmarks for improvement. In the context of change drivers affecting the future of marketing, this reflects the

Answers

Marketing metrics change with campaign preferences and generational attitudes.

What is marketing?

The practice of a business of promoting the purchase and sale of goods and services is referred to as "marketing." Promotion, publicity, and advertising make up marketing.

Marketers can track marketing analytics to gauge the effectiveness of their campaigns.

Marketing offers a measurable means of keeping track of progress and gauging efficiency.

As a result, shift in generational values and preferences.

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With regard to promoting standards of excellence, LaFasto and Larson (2001) identified three Rs that help improve performance: require results, review results, and ______.

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The 3 Rs that LaFasto and Larson (2001) identified as imporant to improve performance includes:

require resultreview resultreward result

Who is LaFasto and Carl Larson?

These are economist that explored the performance question for more than 20 year and also proposed a model called "Five Dynamics of Teamwork and Collaboration.

In conclusion, the 3 Rs that LaFasto and Larson (2001) identified as important to improve performance includes require result, review result and reward result.

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short notes on audit and auditor ​

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Answer:

Audit

Audit is the examination or inspection of various books of accounts by an auditor followed by physical checking of inventory to make sure that all departments are following documented system of recording transactions.

Auditor

An auditor is a person authorized to review and verify the accuracy of financial records and ensure that companies comply with tax laws.

The graph of f(x) = x2 is translated to form
g(x) = (x – 2)2 – 3.

Answers

A parabola opens up. It goes through (0, 1), has a vertex at (2, negative 3), and goes through (4, 1).

What is graph?

A network can be mathematically represented as a graph, which shows the connections between the lines and the points.

Figure represents graph of  f(x) =[tex]x^{2}[/tex] and g(x) =(x-[tex]2)^{2}[/tex] —3

The X-axis shift is represented by the new function g(x) = f(x—c) and The Curve is moved c units along the right side of the X-axis in the f(x) graph.

The new Y-axis shift function is represented by g(x) = f(x) + b. The curve is moved b units along the Y-upward axis's direction in the graph of f(x).

If you look at the graphic, you can see that the vertex of f(x) has its X-axis and Y-axis displaced by 2 units and 3 units, respectively, to produce the value g(x)

Now, g(x) = (x-[tex]2)^{2}[/tex] —3  = f(x-2) + (-3)

Therefore, the new vertex we get is (2,-3)

g(0) = (0-[tex]2)^{2}[/tex] —3

g(0) = 4-3

g (0) = 1

As a result, g(x) passes through (0,1)

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The population of discouraged workers causes the: Group of answer choices actual unemployment rate to overstate the true level of unemployment. actual unemployment rate to increase when the workers are not included in the unemployment calculation. actual unemployment rate to understate the true level of unemployment. natural rate of unemployment to increase.

Answers

The population of discouraged workers causes the actual unemployment rate to increase when the workers are not included in the unemployment calculation.

How does the unemployment rate change as a result of discouraged workers?

The discouraged worker impact, put simply, refers to someone who has given up looking for work because they think there are no openings. The Bureau of Labor Statistics (BLS) defines a discouraged worker as someone who wants to work and is able to do so but hasn't looked for employment in the previous four weeks because they think they won't be able to find employment for a variety of reasons, such as perceived discrimination or a lack of demand for workers in their field.

According to BLS statistics, minorities, older workers, and recent graduates have the highest rates of disenchanted workers. According to some economists, the fraction of discouraged workers keeps the total unemployment rate high.

Disappointed people frequently attempt to reenter the workforce as the economy grows and new jobs become available. They are regarded as unemployed after they start seeking work once more until they find a job. The flood of previously discouraged job seekers may therefore keep the unemployment rate high even while the general number of jobs rises and people return to the workforce.

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John has $10,000 in debt with discover, $4,000 in debt with chase, $9,000 in debt with citi bank, and $3,000 in debt with wells fargo, giving him a total debt of $26,000. what percentage of john's total debt is with discover

Answers

The percentage of John's debts with discover is [tex]38.46%[/tex], by using percentage calculation.

Given,

John's total debt:

$10,000 with discover$4,000 with chase $9,000 with Citi bank$3,000 with wells Fargo

Total debt of John is $26,000, to calculate his Percentage of debt with discover, we need to add all the debts and then calculate how much percentage is 10,000 of 26000.

Calculation is as follows:

[tex]10000/26000*100=38.46[/tex]

Hence, The percentage of John's debts with discover is [tex]38.46%[/tex][tex]%[/tex], by using percentage calculation.

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CAT is an online forum where professionals who work with Caterpillar equipment and engines can exchange ideas and information, find answers, and get expert advice from their peers. To help members get the most out of the community, CAT members offer feedback and suggestions. All of the following are true about online simultaneous product development EXCEPT that the internet _______. a. allows for input from multiple partners b. does not allow for assessing new products c. allows for input from a variety of locations d. offers a variety of R

Answers

CAT is online forum for professionals who work with Caterpillar equipment and engines can exchange ideas and information where the internet "does not allow for assessing new products".

What is Classroom Assessment Techniques (CAT)?

Teachers utilise classroom assessment techniques, sometimes known as CATs, to determine how well their students are understanding important concepts during a lesson or a course. The methods are intended to be a kind of formative assessment that also enables teachers to modify a lesson based on the requirements of pupils.

The advantages of using classroom assessment techniques are-

The focus on student learning is aided by classroom assessment for teachers. In order to address the needs of that group in terms of learning, teachers can better focus the class by identifying what the students have understood and what is unclear. This can include going over some topics again or devoting less time to others.

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