The first rule in terms of photographic and recorded
evidence admissibility is that the photographic and recorded evidence must be
relevant in order to be admissible and for it to be counted and acceptable as
it is being done in the first place.
Answer:
Cost of debt (Kd) = 6.1%
Cost of preferred stock = <u>Dividend paid</u>
Current market price
= $2.53
$33
= 0.0767 = 7.67%
Risk-free rate (Rf) = 2.2%
Beta (β) = 1.11
Market risk premium (Rm - Rf) = 6.7%
Cost of equity (Ke) = Rf +β(Rm - Rf)
Cost of equity (Ke) = 2.2 + 1.11(6.7)
Cost of equity (Ke) = 9.637%
WACC = Kd(D/V)(1-T) + Kp(P/V) + Ke(E/v)
WACC = 6.1(39 /100)(1 -0.35) + 7.67(11/100) + 9.637(50/100)
WACC = 1.55 + 0.84 + 4.82
WACC = 7.21%
Explanation:
In this case, cost of debt has been given. Cost of preferred stock is calculated as current dividend paid divided by current market price.
Cost of equity is calculated based on capital asset pricing model, which is Risk-free rate plus beta multiplied by the market risk premium.
WACC equals after-tax cost of debt multiplied by the proportion of debt in the capital structure plus cost of preferred stock multiplied by the proportion of preferred stock in the capital structure plus cost of equity multiplied by proportion of equity in the capital structure.
Answer: Experiencing declining production capacity because net investment is negative
Explanation:
Investment in a country includes capital Expenditure such as buildings, roads, inventory and etcetera which contribute to the production capacity of the Nation.
Net Investment is calculated by subtracting Depreciation from the Gross Private Domestic Investment. When Net Investment is negative, it means that the Production capacity of the nation is weakened and declining because the Investment available is not able to produce as much.
In the country described, the Net Investment is,
= Gross Private Domestic Investment - Consumption of Fixed Capital (Depreciation)
= 46 - 52
= -$6 billion
The Net Investment for this Economy is negative showing a declining production capacity.
Answer:
$50
Explanation:
The contribution margin per unit of any company's product can be calculated using the following formula:
Contribution margin per unit=Sale price per unit- Variable cost per unit
In this question
Sale price per unit=$80
Variable cost per unit=$30
Contribution margin per unit=80-30
=$50
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