<span>Increasing and decreasing the money supply through monetary policy is generally done by the Federal Reserve. It is actually the central banking system of the United states of America. It was founded on 23rd of December in the year 1913. I hope the answer has come to your desired help.</span>
<u>Entrepreneur I admire:</u>
Richard Branson also known as Old Beardie founder of Virgin Galactic is the person I admire as an entrepreneur. The following strategies have been followed by him,
- The perception on risk has to be unique
- Passion for business has to be injected so that a thorough analysis about the industry and competitor can be done
- A focus on core competencies will help in enhancing the best skills
- Innovation and expansion are essential
- The right amount of capital has to invested at the right time so that the money is not not wasted on unproductive activities.
Answer:
5.08%
Explanation:
This question asks us to calculate the component cost of debt which is used in the WACC calculation if the firm’s tax rate is 40%
To calculate this, we need to know the yield to maturity of the firm. This can be calculated using a formula. In this formula, we will specify that the yield to maturity be represented as the letter Y.
Hence mathematically:
46.25 * [1-(1+Y/2)ˆ-40]/Y/2 + 1000/(1+Y/2)ˆ40 = 1075
Solving this, we get Y = 8.46%
The cost of debt = 8.46% * (1-40%) = 5.08%
Answer:
a. Economies of scale
Explanation:
Economies of scale are cost advantages reaped by large firms. As production increases, cost falls.
I hope my answer helps you.
Answer:
$10.28
Explanation:
<u>Step 1. Firstly we use the of the The dividend discount model (DDM)</u>
This calculation is: D1 = D0 x (1 + g)
D1 = $0.72 x (1 + 2.8%) = $0.74.
Where
Do = Dividend now
D1 = Dividend in year 1
g = growth
<u>Step 2 Next, using the Gordon Growth Model, </u>
Price per share is found to be D(1) / (r - g)
Price = $0.74 / ( 10% - 2.8%) = $10.28
where:
Do = Dividend now
D1 = Dividend in year 1
g = growth
r = required return