Answer:
6.218%
Explanation:
we can use the present value of an annuity due formula:
present value = annual payment x annuity due factor
- present value = 100
- annual payment = 7
- PV annuity due factor, %, 30 periods = ?
100 = 7 x annuity factor
annuity factor = 100 / 7 = 14.28571429 ≈ 14.286
using an annuity calculator, the interest rate for a PV annuity factor, 30 periods and equal to 14.286 is 6.218%
Answer:
Cost of equity is 11.2%
WACC is 8.74%
Explanation:
The formula for cost of equity is given below:
Cost of equity=risk free rate+(Beta *risk premium)
risk free rate is the treasury bill rate of 4%
Beta is 0.9
market risk premium is 8%
cost of equity=4%+(0.9*8%)=11.2%
WACC=Ke*E/V+Kd*D/V*(1-t)
Ke is the cost of equity of 11.2%
Kd is the cost of debt of 5%
t is the tax rate of 40% or 0.4
E is the equity weighting of 70% or 0.7
D is the debt weighting of 30% or 0.3
V is the E+D=0.7+0.3=1
WACC=11.20%
*0.7/1+(5%*0.3/1*(1-0.4)
WACC=7.84%
+0.90%
=8.74%
Answer:
The labor market is the phrase used to describe the supply of labor by employees and demand of labor by the employers as such there is an interaction between the workers and the employers where wage is paid to the workers by the employers for the labor the workers supplied
Being educated gives an employee the capacity to be more productive and gives an indication of the potential of prospective employees to recruiters and employers. Therefore, qualifications attained are an advantage when seeking employment alongside many several other job seekers
Therefore, a grade 12 school-leaver competing for a job alongside several others with similar or tertiary education is less likely to secure a desired job or vocation
However, with a tertiary education, such job seekers would more readily convince recruiters about their ability to satisfactorily perform their desired job
Explanation:
The effect of the declaration of a cash dividend on a company's financial statements is to decrease both stockholders' equity and total assets.
<h3>What are cash dividends?</h3>
Dividends are cash payments made to the stockholders of a public company. Stockholders are individuals who purchase shares in a public company.
Dividends are paid with cash, thus, the assets of a company would decline. Since assets is positively related to stockholders equity, stock holder's equity would also decline.
To learn more about dividends, please check: brainly.com/question/13672624
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