<span>A healthy inflation rate that federal officials for spending business investment and higher wages is 2%. 2% is the most consistent value over the years. If there is a drop it is considered possible drop to deflation. Increase will make long-term decisions questionable.</span>
False, a credit card doesn’t deduct from your checking account nor is it linked to your checking account only a debit card deducts from your checking account.
Answer:
The WACC for this project is 10.605%
Explanation:
The WACC or the weighted average cost of capital is the weighted average return that the company is expected to pay its capital providers.The WACC is calculated by multiplying the cost of each component by their respective weights in the capital structure. The WACC is calculated using the following formula,
WACC = wD * (1-tax) * rD + wP * rP + wE * rE
Where,
- wD, wP and wE represents the weight of debt, preferred stock and common equity respectively as a proportion of total capital.
- rD, rP and rE is the cost of debt, preferred stock and equity respectively.
- The (1-tax) is used in debt component to calculate the after tax cost of debt
WACC = 750000/1708000 * (1-0.25) * 0.096 + 78000/1708000 * 0.107 + 880000/1708000 * 0.135
WACC = 0.10605 or 10.605%
Answer:
The Economic Landscape of Oceania World Geography are catching seals and whales, Trading wood and meats.
Answer:
c. planned investment spending is most likely to decrease.
Explanation:
High interests rates reduce the levels of investment in an economy. Investments are capital intensive ventures and will require borrowing to finance them. When interest rates are high, loans become expensive. For a project to be viable in times of high-interest rates, it will need to have a very high rate of return.
When interest rates are high, banks will offer a higher rate of return on savings. Using savings to finance investments become more costly. Investors would prefer to put their money in a deposit account for higher interest payments than to invest.
High-interest rate thus slows down investments expenditures. The cost of borrowing goes up while the incentives to save increase.
