Explanation:
<em>A change in a country's balance of payments can cause fluctuations in the exchange rate between its currency and foreign currencies. The reverse is also true when a fluctuation in relative currency strength can alter balance of payments</em><em>.</em>
Answer:
D. The two assets have the same coefficient of variation.
Explanation:
the coefficient of variation = standard deviation / mean
- the coefficient of variation of the stock = 20% / 12% = 1.67
- the coefficient of variation of the treasury bonds = 15% / 9% = 1.67
As a general, the lower the coefficient of variation, the more exact is the estimated return.
Answer:
After cost of debt is 4.27%
Cost of equity of 15.75%
WACC is 7.37%
Explanation:
US Steel cost of debt can be ascertained dividing the interest expense by the total value of debt since that gives the percentage of the debt paid as coupon interest to bondholders;
cost of debt =$214.0million/$3,160.million=6.77%
after tax cost of debt(Kd) =7.13%*(1-0.37)=4.27%
Cost of equity can be computed using the below formula:
Ke=Rf+beta*(Mp)
Rf is the risk free rate of 2.5%
Mp is the market premium of 5%
beta is 2.65
Ke=2.5%
Ke=2.5%+(2.65*5%)=15.75%
WACC=Ke*E/V+Kd*D/V
E is weight of equity of 1.17
D is the weight of debt 3.16
V is the sum of the weights (1.17+3.16)=4.33
WACC=(15.75%*1.17/4.33)+(4.27%*3.16/4.33)=7.37%
A $60,000 outlay for a new machine with a usable life of 15 years is called <u>capital</u><u> </u><u>expenditure</u>.
Capital expenditure is the cash spent with the aid of the authorities on the development of machinery, gadget, construction, health facilities, education, and many others. It is also the expenditure incurred on acquiring constant assets like land and funding via the authorities that offer profits or dividends in destiny.
Capital expenditures are lengthy-time period investments, which means the belongings bought have a useful lifestyle of 365 days or extra. kinds of capital expenditures can encompass purchases of assets, systems, land, computer systems, furniture, and software program.
Capital expenditure or capital rate is the money a company or company entity spends to shop for, hold, or improve its constant assets, such as homes, cars, equipment, or land.
Learn more about capital expenditure here brainly.com/question/24155004
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<span>with an exchange rate of 11 pesos per dollar, the hotel stay will cost $636.36</span>