Answer:
WACC is 9%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
According to WACC formula
WACC = ( Cost of equity x Weightage of equity ) + ( Cost of debt ( 1- t) x Weightage of debt ) + ( Cost of Preferred equity x Weightage of Preferred equity )
As per given data
Market Values
Equity = $7 billion,
Preferred stock = $2 billion
Debt = $13 billion
Cost
Equity
Capital asset pricing model measure the expected return on an asset or investment. it is considered as the cost of common stock.
Formula for CAPM
Cost of Equity = Risk free rate + beta ( market return - risk free rate )
Cost of Equity = Rf + β ( Mrp )
Cost of Equity = 3% + 1.6 ( 8% ) = 15.8%
Preferred stock = $2 / $26 = 0.077 = 7.7%
Debt = 8%
Placing values in the formula
WACC = ( 15.8% x $7 billion / $22 billion ) + ( 8% ( 1- 0.3) x $13 billion / $22 billion ) + ( 7.7% x $2 billion / $22 billion )
WACC = 5.03% + 3.31% + 0.7% = 9.04%
Answer:
b. It creates equality throughout society
Explanation:
Specialisation & Trade refer to tendency of countries to produce goods of their specialisation & trade them with each other , rather than each country producing each good.
It leads to increase in productivity from knowledge specialisation, based on advantage (absolute, comparative) based production. It also makes people better off, increase in welfare due to choice expansion among differing preferences.
However, it is not in anyways connected to equality throughout society.
Answer:
E, C, B
Explanation:
Those seem like they'd be Carrer clusters
Answer:
She failed to properly assess her risk of storm damage.
Explanation: Edge 2021
Answer:
The quantity supplied will increase which explains the shape of the supply curve
Explanation:
There is a positive direct correlation between price and quantity supplied. When the price of a commodity increases, producers are motivated to increase the supply of their commodities in order to earn higher prices. Similarly, when the price of the commodity falls, producers will supply less of the commodity since the commodity will be less profitable.
