Answer:
7.38%
Explanation:
Calculation to determine what would be AJC's new WACC and total value
Using this formula
WACC and total value=(Equity)(Required rate of return on equity)+(Debt)(1-Tax rate)(Required rate of return on debt)
Let plug in the formula
WACC and total value=(0.6)(0.095)+(0.4)(1-0.4)(0.07)
WACC and total value=0.057+0.0168
WACC and total value=0.0738*100
WACC and total value=7.38%
Therefore would be AJC's new WACC and total value is 7.38%
Answer:
It is $329,209.31
Explanation:
Please attached sheet for computation.
Answer:
Option C: Annual variations in investment are larger than annual variations in consumption
Explanation:
Investment
This is simply the act of buying or purchase of assets with the sole aim of increasing future income.
Investment risk
This is simply known as the likelihood of an investment will fail to pay the expected return or fail to pay a return at all.
Portfolio diversification
This act so as to limit the risk by spreading investment money among a wide range of investment tools.
Rate of return
This is simply known as the total return on an investment usually in percentage of the amount of money put into the investment.
Answer:
12
Explanation:
Calculation to determine the marginal product of adding the 4th worker
Using this formula
MP=ΔTPΔL
Let plug in the formula
ΔTP=57−45
ΔTP=12
Therefore The marginal product of adding the 4th worker is 12 sandwiches.