Answer:
A.8.85%
Explanation:
Computation to determine the weighted average cost of capital for Zonk based on the new capital structure.
First step is to calculate the Cost of equity capital using this formula
Cost of equity capital = Risk free rate + (Beta*Market premium)
Let plug in the formula
Cost of equity capital = 2.3% + (1.13*5.3%)
Cost of equity capital=8.28%
Now let determine theWeighted average cost capital
Weighted average cost capital = [.70*.14*(1-.35)]+(.30*.0828)
Weighted average cost capital= [.70*.14*.65]+.02484
Weighted average cost capital=0.0637+.02484
Weighted average cost capital= .0885*100
Weighted average cost capital= 8.85%
Therefore the weighted average cost of capital for Zonk based on the new capital structure is 8.85%
Start Investing With A Game Plan.
- Before you invest your first dollar into the stock market ask yourself, "Why am I investing, and what do I want to achieve?"
- Diversify. Investing is about more than just the stock market. ...
- Define Your Goals.
- Stay Committed.
- Don't Panic.
- Stick To One Strategy.
- Practice Patience.
- Think Long Term.
If the economy has 100 workers, then the economy can produce a maximum of 500 tennis rackets.
Given, MPLT = 5 tennis rackets
MPLB = 4 baseball bats Number of workers =100
So, if the economy has 100 workers, then, 5 × 100 = 500
Hence, the economy can produce 500 tennis rackets.
There are two main sources of growth of the economy. First is the growth in the size of the workforce and second, growth in the productivity of that workforce.
Hence, either can increase the overall size of the economy but only strong productivity growth can increase per capita GDP and income.
To learn more about economy here:
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Answer: $600F
Explanation:
Given the following :
standard unit price - $1.80
actual purchase price per unit - $1.65
actual quantity purchased - 4,000
units actual quantity used - 3,900
units standard quantity allowed for actual production - 3,800 units
Material purchase price variance = ( Actual unit price of material - standard unit price of material) × Actual unit of material purchased
($1.65 - $1.80) × 4000
( $0.15) × 4000
$600F (Favorable) because standard price is higher than actual price
Answer:
If there is a decrease in supply of goods and services while demand remains the same, prices tend to rise to a higher equilibrium price and a lower quantity of goods and services. ... However, when demand increases and supply remains the same, the higher demand leads to a higher equilibrium price and vice versa.
Explanation:
