Answer:
The WACC before bond issuance is 3.9% and the WACC after bond issuance is 3.71%
Explanation:
In order to calculate the WACC before bond issuance
, we would have to calculate first the cost of equity using capital asset pricing model
.
So Using CAPM we have Rf + Beta x Market risk premium
=
0.5% + 0.85 * 4%
= 3.9%
. cost of equity
Therefore WACC before bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= 3.9%
. WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.
In order to calculate the WACC after bond issuance we make the following calculation:
WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= (3.9% x 0.9) + (2% x 0.1)
= 3.51% + 0.2%
= 3.71%
Answer:
Extinction
Explanation:
Contingency of extinction occurs when previously reinforced behaviours are removed or changed as a result of changes in the environment. In this scenario, the behaviours that was changed in the current year was the payments of bonuses to top managers. The changes in the environment was the poor performance and average stock price dropping. It resulted in the top managers not receiving their annual bonuses this time.
Answer:
stringed musical instrument
Explanation:
The piano is an acoustic, stringed musical instrument invented in Italy by Bartolomeo Cristofori around the year 1700 (the exact year is uncertain), in which the strings are struck by hammers.
Answer:
related diversification
Explanation:
Since disney has generated the various merchandise that is connected to each other it could be range from clothing to electronics to household times
Here it would represent the related diversification as the products are diversified either introduce a new product or change in the old products
So this growth strategy would be considered in the given case
Answer: strikebreakers.
Explanation:
Strikebreakers are the people who are employed by an organization in place of the employees who are on strike. Strikebreakers make the strike ineffectual as they perform the work of the employees who have gone on strike.
Strikebreaker work even though there's ongoing strike. Strikebreakers are usually not employed by the firm before the trade union dispute, but are employed during or after the strike to keep the organization running.
