Answer:
WACC = 10(1,500,000/3,000,000) + 12(1,000,000/3,000,000) + 13(500,000/3,000,000)
WACC = 5 + 4 + 2.17
WACC = 11.17%
Explanation:
WACC is a function of interest charged by each bank and the proportion of funds provided by each bank in relation to the total amount required by the investor.
Answer:
Market interest rate is also known as nominal interest rate. The nominal interest rate is sum of real interest rate and inflation rate. Fed try to control the monetary condition and real interest rates by manipulating money supply. These interest rates also affect the demand of money in market.
Part (a)
When commission of brokers decreases then buying and selling of stocks becomes easier and cheaper and people would transact in more and more stocks which will decrease the demand of money as liquidity of stock has increased.
Part (b)
When grocery store starts accepting credit cards then people would need to carry less cash and demand of money will decrease.
Part (c)
As financial investors are now worried about riskiness of stocks so they will decrease their investment in stocks and prefer holding more money so demand of money will increase.
Answer:
Verbal/linguistic learners prefer learning activities that involve reading, writing, and speaking.
Explanation:
Answer:
It is false that Joint Application Development (JAD) group produces the best definition of a new system.
Explanation:
JAD group does not produce the best definition of a new system, here is why:
• JAD system incorporates participants with different opinions. Different opinions within the team make it difficult to align goals and maintain focus
• Depending on the size of the project, JAD may require a longer time that will put a strain on the execution of a project
• JAD is too expensive and can be cumbersome/difficult if group is too large
• JAD produces a details and information that is a tentative model not a complete development methodology.
