Answer:
12.085 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Preference Stock x Weight of Preference Stock + Cost of Debt x Weight of Debt
Remember to use the after tax cost of debt :
after tax cost of debt = interest x ( 1 - tax rate)
= 8.00 % x (1 - 0.35)
= 5.20 %
therefore,
WACC = 22.00 % x 0.40 + 8.50 % x 0.05 + 5.20 % x 0.55
= 12.085 %
thus
the firm's WACC given a tax rate of 35 percent is 12.085 %
Answer:
$1,213,657.685
Explanation:
For computation of compounded future value first we need to find out the present worth which is shown below:-
= $88,172.32636
Now, Future value = Present worth × (1 + interest rate)^number of years
= $88,172.32636 × (1 + 6%)^45
= $1,213,657.685
Therefore we have applied the above formula to determine the future value.
Answer:
Aggregating potential car buyers into groups that have common needs and will respond in the same way to a marketing campaign is a process known as:
Market segmentation.
Explanation:
Market segmentation is a marketing effort by a business entity to classify its customers into groups according to similar characteristics and based on Demographic, Psychographic, Geographic, and Behavioral segments. Market segmentation helps the entity to identify market opportunities, design products, time marketing efforts, select appropriate media, and efficiently allocate resources to achieve its marketing goals.
Credit is the amount of money that a company will lend to you, and debt is the amount of credit that you have borrowed and still owe.
Your credit score has many components: payment history, amount of available credit that you are using, length of your credit history, types of accounts (credit mix), and new credit.
A loan is a type of credit, and assets are things of value that you own by yourself without owing money on them.
Collateral is assets that you can use to secure a loan, so that if you don't pay what you owe the lender can take those assets from you to recover the amount you owe them.
Installment credit is a loan that you pay in chunks every month/year. Revolving credit is automatically renewed as you pay off the debt. If the credit amount is $1000, and you borrow $500 you will have $500 left. If you then pay off $200 you will automatically have $800 of credit available to you.
All of the Above organizations provide that service. (D)
