Answer:
d<u>ebt issued by firms and governments,</u>
Explanation:
- A bond describes the indebtedness that is issued to the holder, the most common types include the corporate and the municipal bonds.
- A bond is debt security under which the issuer is obliged to pay the interests or repay the principal at a later date. Very often it's negotiable being a form of loan or IOU.
- This is a type of binding are of various types like high yield bonds and fixed-rate bonds, Zero-coupon bonds, asset-backed securities.
By definition, the Weighted Average Cost of Capital or WACC is
the rate that an organization is expected to pay to all its security holders to
finance its assets.
Mathematically this can be calculated by summation of the
weighted average of the cost:
wacc = 0.4 * 0.06 + 0.15 * 0.075 + 0.45 * 0.13
wacc = 9.38%
Explanation:
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