Answer:
6.442%
Explanation:
Given:
Amount borrowed from Wendy = $1,227
Charges on loan by Wendy = 4% = 0.04
Amount borrowed from Bebe = $1,143
Charges on loan by Bebe = 6% = 0.06
Amount borrowed from Shelly= $630
Charges on loan by Shelly = 12% = 0.12
Now,
Total cost of capital = $1,227 + $1,143 + $630 = $3,000
Weight of Wendy = 
= 
= 0.409
Weight of Bebe =
= 
= 0.381
Weight of Shelly=
= 
= 0.21
The weighted average cost of capital for Eric
= ∑ (weight × cost)
= 0.409 × 0.04 + 0.381 × 0.06 + 0.21 × 0.12
= 0.01636 + 0.02286 + 0.0252
= 0.06442
or
= 0.06442 × 100% = 6.442%
Answer:
A. can be held liable for negligence because the store has a duty to warn its customers against foreseeable risk.
Explanation:
Negligence is a breach of act or certain level of behaviour, expected to be carried out by a reasoble person normal under the normal circumstances.
For a negligence claimed to stand in the court of law,
There must be an absence of duty of care by the defendant to the plaintiff.
There must be damages, losses, injury or harms suffered in the process by the plaintiff.
Causation. It must be proven that the plaintiff suffered loss, damage or injury as a result of defendant's negligence.
Examples of negligence is a shop owner who fails to put caution sign on a wet floor, a driver who fails to observe road signs thereby causing injury to pedestrians.
Answer:
a. The portfolio weights that remove all risk is 50%
.
b. The risk-free rate of interest in this economy is 13.5%
Explanation:
The formula for standard deviation of a portfolio, of which i cannot type:
a. If we let sigma p = std. deviation of portfolio
rho 1,2 = correlation
if sigma = 0 and rho = -1, then the first equation can be re-written as :
0 = w1^2 * s1^2 + w2^2 * s2^2 + 2 * w1 * w2 * s1 * s2 * -1
0 = (w1s1 - w2s2)^2
w1s1 = w2s2
w1 * 0.03 = w2 * 0.03
w1 = w2 = 50%
Therefore, The portfolio weights that remove all risk is 50%
.
b. Expected return of the portfolio = 0.5*20% + 0.5*7%
= 13.5%
This portfolio has zero risk, risk free rate = 13.5%
Therefore, The risk-free rate of interest in this economy is 13.5%
Answer:
$16,335.90622
Explanation:
The computation of the additional income earned is shown below:
For 40 years
Future value = Present value × (1 + rate of interest)^number of years
= $1,500 × (1 + 0.065)^40
= $18,624.1118
For 50 years
Future value = Present value × (1 + rate of interest)^number of years
= $1,500 × (1 + 0.065)^50
= $34,960.01802
Now the additional amount is
= $34,960.01802 - $18,624.1118
= $16,335.90622
Answer:
$480,000
Explanation:
Calculation to determine what total relevant costs to make the part internally are
First step is to calculate Relevant cost per unit:
Relevant cost per unit:
Direct materials $6
Direct labor $24
Variable manufacturing overhead $12
Fixed manufacturing overhead ($15 × 0.40) $6
Relevant manufacturing cost $48
Now let determine the Total relevant costs to make the part internally
Total relevant costs to take the part internally=($48 × 10,000)
Total relevant costs to make the part internally = $480,000
Therefore total relevant costs to make the part internally are $480,000
