Answer:
WACC = 0.06192 or 6.192%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of one or all of the following components namely debt, preferred stock and common stock.
For a company with 2 components of capital structure, the formula for WACC is,
WACC = wD * rD * (1 - tax rate) + wE * rE
Where,
- wD and wE is the weight of debt and equity
- rD and rE is the cost of debt and equity
- we use the after tax cost of debt so we multiply the rD by (1 - tax rate)
Total weight of capital structure = 1 + 4 = 5
Weightage of debt = 1/5
Weightage of equity = 4/5
WACC = 1/5 * 0.04 * (1 - 0.26) + 4/5 * 0.07
WACC = 0.06192 or 6.192%
A, True
You need a short term goal to help you achieve your long term ones.
How are you going to get to A to Z if you can't get pass B?
Answer:
$6,541.32
Explanation:
the formula that would be used to solve this question is :
The formula for calculating present value:
FV x (1+r)^-n = P
FV = Future value = $9,963
P = Present value
R = interest rate = 5.4%
N = number of years = 8
$9,963 x (1.054)^-8 = $6,541.32
The correct statement is that the normal price of the online TV service is $8.95 if the Greenbaum family spends $11.85 over the bill paid each month. So, the correct option is C.
The computation of the normal price can be calculated with the use of given information regarding the credit price monthly and adding such amount by dividing the quarterly spends by 3.
<h3>Computation of monthly payment. </h3>
- The calculation of the TV service cost for each month can be calculated by applying the given information. If the cost of 3 months was $11.85, then one month cost will be,
- But we know that there is a credit of $5 on each month's bill, and therefore the monthly normal price will be calculated as,
Hence, the correct option is C that the normal cost of the online TV service with a credit of $5 each month will be at a monthly payment of $8.95
Learn more about <u>Monthly Payment</u>s here:
brainly.com/question/22891559
Answer:
D. None of the above.
Explanation:
monetary polict affects the interest rates, but the exact intreset rates are difficult to predict due other tfactors affecting the interest rate.
the money multiplier is considerably unstable and at times, the monetary policy can turn out to be ineffectiveif the inverstment adn consumption fail to respond to changes in the interest rates.