Answer:
weighted average cost of capital = 13.10%
Explanation:
given data
Debt = 35%
Preferred stock = 15
Common equity = 50
cost of debt = 9 percent
cost of preferred stock = 13 percent
cost of common equity = 16 percent
to find out
Weighted Average cost of capital
solution
we get here weighted cost of each source of capital that is
Weighted Cost of Debt = 0.35 * 9% = 3.15 % ....................1
Weighted Cost of Preferred Stock = 0.15 * 13% = 1.95% .........2
Weighted Cost of Common Stock = 0.50 * 16% = 8 % ..............3
so
so weighted average cost of capital will be
weighted average cost of capital = 3.15 % + 1.95% + 8 %
weighted average cost of capital = 13.10%
Answer:
The correct answer is economics of scale.
Explanation:
Economies of scale can be defined as the cost advantage experienced by the firms when they increase their output level. As the cost of production gets spread over a large quantity of output the average cost declines.
These costs can be both variables as well as fixed. Economies of scale can be both internal as well as external.
Size of business affects the economies of scale, larger the firm the more will be savings on cost.
Number 1 is B
number 2 is C
Answer:
The question is missing the options which can be found in the attached.
The correct option is banker's acceptance
Explanation:
Banker's acceptance is a guarantee by a bank to the exporting party to pay a sum of money at specific date.
In international business, exporters would require additional security against their receivable usually request for a banker's acceptance also known as bill of exchange.
The bank pays the exporter a discounted amount as agreed then chase the importer for the full value of the transaction.The difference between the discounted amount paid by the bank and the full value recoverable from the importer is the bank's margin.
Answer:
The answer to this question is c.it is best to have money today, so it can be put to work sooner to make even more money.
Explanation:
The time value for money is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that provided money can earn interest, any amount of money is worth more the sooner it is received.
It emphasis on the fact that a dollar received today is worth more than a dollar received in the future because of some changes that may have occurred.
From the above explanation we can conclude that the answer is c.it is best to have money today, so it can be put to work sooner to make even more money.
