Answer:
9%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
According to WACC formula
WACC = ( Cost of common stock x Weightage of common stock ) + ( Cost of preferred stock x Weightage of preferred stock ) + ( Cost of debt ( 1- t) x Weightage of debt )
As WACC is calculated using Market values.
Company Value = 100%
Value of Debt = 28%
Value of Debt = 100% - 28% = 72%
WACC = ( 10.54% x 72% ) + ( 5.27% x 28% )
WACC = 7.59% + 1.48% = 9.07% = 9% (rounded off)
Answer: b. people face trade-offs
Explanation:
From the question, we are informed that Bullie Jean has $120 to spend and wants to buy cither a new amplifier for her guitar or a new mp3 player to listen to music while working out.
We are further informed that the amplifier and the mp3 player cost $120, each and so she can only buy one. This shows that people face trade offs and have to make a choice regarding some decisions. Here, an opportunity cost will be the one that she didn't buy at the expense of the other.
Performing calculations and using equipment
Answer:
the amount of the cost of goods sold is $55,120
Explanation:
The computation of the cost of goods sold for the month is shown below:
Since 800 units were sold out of which 360 units would sold at $70 and the remaining units i.e. 440 units would be sold at $68
= 360 units × $70 + 440 units × $68
= $25,200 + $29,920
= $55,120
Hence, the amount of the cost of goods sold is $55,120
