Answer:
The company WACC is 13.30%
Explanation:
For computing the WACC, first we have to find the weight-age of both debt and equity.
Since in the question, the weightage of debt and equity is given which is equals to
Debt = 30%
And, Equity or common stock = 70%
So, we can easily compute the WACC. The formula is shown below
= Weighted of debt × cost of debt × (1- tax rate) + Weighted of equity × cost of equity
= 0.30 × 0.10 × (1 - 0.30) + 0.70 × 0.16
= 0.021 + 0.112
= 13.30%
Hence, the company WACC is 13.30%
Answer:
Network externality is the correct answer.
Explanation:
Answer:
earnings per share = $0.67
Explanation:
the earnings per share = stock price / multiple value = $10 / 15 = $0.67
When you read that a stock is selling at a multiple of X, it means that the stock price is currently X times the current earnings per share. In this case, since the stock price is $10, to calculate the EPS you must divide 10 by the multiple value.
Answer: B - beyond the control of either party to the escrow
Explanation: An Escrow account is a legal term used where funds are held in trust whilst two or more parties complete a transaction.
An Escrow is a trusted third party that will be in custody of the funds during the cause of the transaction and will be the one to pay the merchant after all the escrow agreement are fulfilled.
Escrow account reduces the risk of fraud by acting as a trusted third-party that collects, holds and only disburses funds when both Buyers and Sellers are satisfied. It apply mainly to real estate transactions.
Answer:
$205,000
Explanation:
With a pricing formula as stated below
y = 60 + 0.068x1 - 2.5x2
where x1 = total number of square feet of the living space
and x2 = the age of the house (years).
When the age of the home (x2) = 10 years, and the home has 2,500 square feet of living area (x1), the price of the home is
y = 60 + (0.068 * 2,500) - (2.5 * 10)
= 60 + 170 - 25
= 205
Since y is in ($1,000s) as given, the price of the home is $205,000.
