Answer:
23.12%
Explanation:
Internal rate of return (IRR) is the rate at which the Net present value (NPV) of a project equals to zero.
Using a financial calculator and the CF function, input the following to find IRR;
Initial investment; CF0 = -1,200,000
Yr1 cashflow inflow ; C01 = 235,000
Yr2 cashflow inflow ; C02 = 412,300
Yr3 cashflow inflow ; C03 = 665,000
Yr4 cashflow inflow ; C04 = 875,000
Then key in IRR CPT = 23.119%
Therefore, the Internal rate of return this expansion is 23.12%
Answer:
A. 12.1%
B. 8.9%
Explanation:
a. Calculation for What is the company's new cost of equity
Using this formula
New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]
Let plug in the formula
New cost of equity=[0.089+[(0.089-0.057)*(1)*1]
New cost of equity=[0.089+0.032*(1)*1]
New cost of equity=[0.121*(1)*1]
New cost of equity=0.121*100
New cost of equity=12.1%
Therefore the company's new cost of equity will be 12.1%
b. Calculation for What is its new WACC
Particular Weight Cost Weighted cost
Equity 0.5000 *12.1% = 0.0605
Debt 0.5000 * 5.7% =0.0285
WACC =0.089*100
WACC =8.9%
(0.0605+0.0285)
Therefore the new WACC will be 8.9%
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Based on the current economic expansion (beginning in mid-2009), the bottom 90% of earners are actually losing income.
Generation Z refers to the generation born between 1997 and 2012, following the millennial generation. Gen Z will soon be the largest cohort of consumers. Brands wanting to participate in this opportunity should understand their own trends and digital expectations. Economics is the social field that studies how communities use scarce resources to meet their insatiable needs.
Three factors have contributed to the rapid growth of the world population over the last 200 years: Decreased mortality due to economic concomitant increases in fertility; better treatment of the disease reduces child mortality.
Learn more about economics at
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Answer: Degree of Operating Leverage
A Tech = 2.75
Z Tech = 3
Explanation:
As defined in question itself,
Degree of Operating Leverage = 
As here, it is provided that profit for both the companies are same amounting $4 million.
Although the fixed cost differ by $1 million.
A Tech Degree of operating Leverage = 1 + 
= 2.75
Z Tech Degree of Operating Leverage = 1 + 
= 3
This clearly demonstrates that A Tech will reach its break even faster than the Z Tech as the ratio of fixed cost to variable cost is lower in A tech in comparison to Z Tech.
