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erastova [34]
4 years ago
9

A. 17.2, B. 15.12 C.12% D. 18.7%

Business
1 answer:
loris [4]4 years ago
7 0

Answer:

Option (B) is correct.

Explanation:

Cost of Equity (Ke) = Rf + Beta ( Rp)

where,

Rf = risk free rate

Rp = Market risk premium

Hence,

Beta systematic risk :

= 7% + 1.7 (6%)

= 7% + 10.2%

= 17.2%

Post Tax cost of debt:

=  Kd ( 1 - T)

where,

Kd = cost of debt

T = tax rate

= 20% * (1-0.4)

= 12%

WACC = [ (Ke × We) + (Wd × Kd(1-T)) ]

where,

We = weight of equity

Wd = weight of debt

             = [(17.2% × 0.6) + (0.4 × 20% × (1 - 0.4))]

             = 10.32% + 4.80%

             = 15.12%

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High quality is not necessarily related to price. discuss this, drawing from your own knowledge and experience, and provide examples where this may and may not be true. high quality is not necessarily related to price. <u>quality assurance.</u>

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If the price is low, a small change in price equates to a large change in quality. At higher prices, small price changes correspond to small quality changes. However, in all cases, the higher the price, the higher the quality level.

The price-quality matrix designed by Philip Kotler focuses on the cross-section between his two metrics that give the model its name. By positioning a product or service relative to its competitors, retailers can position themselves in the market based on the price and quality of each item.

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7 0
1 year ago
Shannon qualifies for a federal student loan and plans to pursue a degree program at an out-of-state school. Which action will h
swat32

Answer:

Shannon qualifies for a federal student loan and plans to pursue a degree program at an out-of-state school. Which action will help Shannon reduce the cost?

Shannon needs to apply opportunity cost which entails giving priority to the most important among the choices available, it is expedient of Shannon to apply for the loan and pursue a school within reach where the cost is minimal within the state rather than out of state school which would cost more.

Explanation:

3 0
4 years ago
An investor is planning to invest a total of $15,000 in two accounts, one paying 4% annual simple interest, and the other 3%. If
irga5000 [103]

The amount that should be invested in the account that yields a 4% interest is $10,000.

The amount that should be invested in the account that yields a 3% interest is $5,000.

<h3>What are the linear equations that represent the question?</h3>

a + b = 15,000 equation 1

0.04a + 0.03b = 550 equation 2

Where:

a = amount invested in the account that yields a 4% interest

b = amount invested in the account that yields a 3% interest

<h3>How much should be invested at each rate?</h3>

Multiply equation 1 by 0.04

0.04a + 0.04b = 600 equation 3

Subtract equation 2 from equation 3

0.01b = 50

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3 0
2 years ago
"Free" items only cost the company that gives them away.<br> O A.<br> True<br> OB. False
Semmy [17]

Answer:

A. True

Explanation:

8 0
3 years ago
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For the following statement/questions match the assertion that best matches: When auditing the following accounts identify what
Sedaia [141]

Answer:

When auditing the following accounts, auditors are primarily concerned with:

   Accounts               Assertions

a. Revenue            Overstatements

b. Assets               Overstatements

c. Liabilities           Understatements

d. Expenses         Understatements

Explanation:

Auditors are generally concerned about these assertions when auditing financial statements and their related disclosures: accurate recording, completeness, cut-off, existence, rights and obligations, and valuation.  For revenue and assets, they want to ensure that these are not overstated.  Their overstatement will increase the reported profits of the entity, which is a kind of cooking the books to please analysts.  They are also interested in ensuring that liabilities and expenses are not understated for the same purpose.

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3 years ago
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