Answer: 9.7%
Explanation:
Given Data
Rf = Risk free return = 6%,
Rpm = Risk premium = 4%,
Beta = 0.9
Wd = Debt = 20%
rd = cost of debt = 8%
We = equity = 80%
Re = Rf + Beta (Rpm)
= 0.06 +0.9 (0.04)
= 0.096 * 100
= 9.6%
Unlevered Equity Cost ;
ReU= Wd × rd + We × re
= 0.20 × 8% + 0.80 × 9.6%
= 9.28%
Levered Equity Cost:
New Debt = 60%,
New Equity = 40%,
New rd = 9%
ReL = ReU + (ReU - rd) (D ÷ E)
= 9.28% + (9.28% - 9%) (0.60 ÷ 0.40)
= 0.097 * 100
= 9.7%
Answer:
Production= 1,940 units
Explanation:
Giving the following information:
Sales (in units):
January= 1,700
February= 1,900
March= 2,100
Ending inventory for each month should be 20% of next month.
To calculate production, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 1,900 + (2,100*0.2) - (1,900*0.2)
Production= 1,940 units
People have limited resources, so each purchase decision has to be based on weighing the pros and cons. If the expected benefits of something are higher than the expected costs, they will make the decision but if the costs are higher than the benefits they will avoid making it.
Answer:
(1) <em>Services</em> <em>are not separable.</em>
<em>(2) Services</em> <em>are intangible: they can only be felt</em>.
Explanation:
(1) <u>Services are not separable</u>
Services can't be separated from a person once they are felt. In this case Greer felt had a satisfactory experience of manicures several times which enabled her to have a judgment about the latest manicure service.
(2) <em><u>Services </u></em><u>are intangible: they can only be felt</u>
<em>Services</em> are intangible i.e. they can only be felt. The past fruitful experiences of Greer towards the manicure services and the current latest manicure service experience was only felt by her and not measured numerically. The experiences felt from the respective service offerings enabled her to make the decision about her latest services availed of manicure.
Answer and Explanation:
a. Common access card (CAC)