Answer:
Option (a) 12.23%
Explanation:
Data provided in the question:
Debt-equity ratio = 0.6
or
Debt = 0.6 × Equity
Cost of equity, ke = 16% = 0.16
Pretax cost of debt, kd = 9% = 0.09
Tax rate = 34% = 0.34
Now,
Firm's WACC = [ weight of equity × ke] + [ Weight of debt × kd × (1-Tax rate) ]
also,
weight of equity = Equity ÷ ( Debt + equity )
= Equity ÷ ( 0.6 × Equity + equity )
= 1 ÷ 1.6
= 0.625
weight of Debt = Debt ÷ ( Debt + equity )
= 0.6 × Equity ÷ ( 0.6 × Equity + equity )
= 0.6 ÷ 1.6
= 0.375
Thus,
Firm's WACC = [ 0.625 × 0.16 ] + [ 0.375 × 0.09 × (1- 0.34) ]
= 0.1 + 0.022275
= 0.122275
or
= 0.122275 × 100%
= 12.2275% ≈ 12.23%
Answer: Sell before assembly, the company will be better off by $1 per unit.
Explanation:
To solve the above question, we need to calculate the incremental profit or loss first. This will be:
= After assembling sales value - Unassembled unit sales value - Coat if further processing
= $87 - $62 - $26
= -$1
Since there is an incremental loss of $1, then the correct answer is "Sell before assembly, the company will be better off by $1 per unit".
Answer:
True
Explanation:
The statement is true.
Suppose a consumer purchases a bundle of goods, say 40 units with his given money income of $1000.
Now, if there is a fall in the price level of the goods then this will increase the purchasing power of the consumer and hence he will be able to buy more quantity of goods, say 60 units with the same level of money income i.e $1,000.
This illustrates that as the price level falls, the purchasing power of the consumer increases or we can say that holders of money become richer.
Answer:
- Now that the very evidence that lead to conviction of the defendant, that person will no longer serve the sentence given as a punishment as a result of the crime committed.
- Yes, the defendant would be free to go for now, unless they can produce any more evidence to charge him with the crime he allegedly committed.
- Conventionally it would go back to the trial court until and unless specified otherwise by the judge.
- It could go all the way up to the supreme court depending on whether the legal counsel handling the case puts in a request for it.
Hope that answers the question, have a great day!
Answer:
no i do not have a copy or a page i also need one if you have it can you add it plz
