Travel different places and work.
Answer:
WACC - new project = 6.408% rounded off to 6.41%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure can consist of one or more of the following components namely debt, preferred stock and common equity. The WACC is calculated as follows,
WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component
- r represents the cost of each component
- D, P and E represents debt, preferred stock and common equity
- rD * (1 - tax rate) is the after tax cost of debt
We first need to calculate the WACC of the company and then adjust it for the new project.
WACC = 35% * 3.28% + 65% * 10.4%
WACC = 7.908%
As the new project is less risky and has an adjustment factor of -1.5%, the required rate of return for the new project will be,
WACC - new project = 7.908% - 1.5%
WACC - new project = 6.408% rounded off to 6.41%
The products and services are very similar but there may be differences in how they are marketed, the fees charged, and the level of customer service provided.
Answer: The correct answer is "C. can earn positive, negative, or zero economic profit in the short run, but will earn zero economic profit in the long run".
Explanation:
In perfect competition we have a dynamic economy with technology and changing consumer tastes, we will always have some competitive industries with economic benefit and others with economic losses, as adjustments are made.
The economic benefits are forced to zero because companies enter without barriers to entry into the industry.
Losses are eliminated due to companies that leave the industry to obtain at least a normal profit elsewhere and Resources are reallocated, from industries that have losses, to industries that have economic benefits.
Therefore, in the short term it is possible for companies to obtain extraordinary benefits, while in the long term the entry and exit of companies eliminates these exceptional benefits.
Preparation of statement of owner's equity for Hawkin for the month ended December 31.
<h3>What is owner's equity?</h3>
Owner's equity is the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off in the case of liquidation.
Owner's Equity = Assets – Liabilities
Assets
Cash $ 8,300
Accounts Receivable 1,100
Supplies $2,800
Equipment 15,100
Total Assets $27,300
Liabilities
Accounts Payable 7,600
Withdrawals 2,100
Total liabilities ($9,700)
Owner's equity $17,600
Learn more about owner's equity here : brainly.com/question/11110287
