C. Some sources say the flu vaccine could lessen negative affects on the economy.
- Apex
Answer:
Weight of equity = 0.31067 or 31.067% or 96/309
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component based on market value in the capital structure
- r represents the cost of each component
- D, P and E represents debt, preferred stock and common equity respectively
To calculate the weight of equity in WACC computation, we first need to find out the Market value(MV) of each component and the market value of the overall capital structure.
MV of common equity = 8 million shares * 12 per share
MV of common equity = $96 million
MV of Preferred stock = 6 million shares * 30 per share
MV of Preferred stock = $180 million
The bonds are usually have a par value of $1000 unless specified otherwise.
MV of debt = 30 thousand * $1000 * 110%
MV of debt = $33 million
MV of total capital Structure = 96 + 180 + 33 => $309 million
Weight of equity = 96 / 309
Weight of equity = 0.31067 or 31.067% or 96/309
Answer:
<u><em></em></u>
- <u><em>D. Quantitative and divisional</em></u>
<u><em></em></u>
Explanation:
<em>AQCD</em> stands for actionable, quantitative, comparative, and divisional.
Hence, the only choice that contains two of those <em>attributes </em>is D.
<em>AQCD</em> are criteria that the factors used in a SWOP analysis must meet to ensure that the factors are as specific as possible. This is, the the external and internal factors in the SWOP analysis should be stated in the most <em>actionable, quantitative, comparative, and divisional </em>terms to avoid vagueness.
Remember that SWOT analysis is the tool for stratetic management to analyse the strengths, weaknesses, opportunities, and threats that the enterpise posses or face. The two former are internal factors and the two latter are external factors.
Those AQCD is aimed to state the factors as specific as possible.
Answer: ER(P) = Rf + β(Rm-Rf)
ER(P) = 1.9 + 1(10.6-1.9)
ER(P) = 1.9 + 1(8.7)
ER(P) = 10.6%
Explanation: In this question, CAPM will be used in determining the expected return of the stock. The risk free rate was not given but it was derived from the difference between overall stock market return and risk-premium ie 10.6%-8.7%, which is equal to 1.9%. In addition, the beta of the stock is 1, which corresponds to market beta. The application of the stated figures in the CAPM formula gives an expected return of 10.06%.
