Answer:
WACC for A: 9.05%
WACC for B: 9.50%
WACC for C: 12.20%
WACC for D: 12.65%
Explanation:
WACC for a division will be equal: Percentage of Debt in capital employed by the Division x Cost of Debt + Percentage of Equity in capital employed by the Division x Cost of equity = 50% x 6% + 50% x ( Risk free rate + Beta of each Division x Risk premium) = 3% + 50% x ( 4% + beta of each Division x Risk premium)
Risk premium for the 4 Divisions is equal to (Cost of equity for the whole firm - Risk free rate) / beta = 9%
Thus WACC for a division will be equal: 3% + 50% x ( 4% + beta of each Division x 9%).
Substitute beta of each Division from A to D provided in the question, we have: WACC for A: 9.05%; WACC for B: 9.5%; WACC for C: 12.2%; WACC for D: 12.65%.
Explanation:
The ad features a character named Cheryl who calls State Farm to check whether she's insured for the outdoor "she shed" burning down in front of her and her husband, Victor. The prevailing fan theory is that Victor burned down the she shed
The right to trade in investment over a certain period of time is called C. Option.
Answer:
Cost of equity= 10,50%
Explanation:
The cost of equity is the return a company requires to decide if an iThe cost of equity is the return a company requires to decide if an investment meets capital return requirements. A firm's cost of equity represents the compensation the market demands in exchange for owning the asset and bearing the risk of ownership.
Cost of equity= (D1/P0)+g
D1= next year dividend (D0*
P0=actual price
g= growth rate of dividends
In this exercise:
D1=D0*(1+g)=0,90*1,07=$0,963
P0=$27,50
g=0,07
Cost of equity= 0,963/27,5+0,07=0,1051=10,50%
Answer: Conflict theorist
Explanation: Conflict theory as pustulated by Marl, States that society is in a state of perpetual conflict caused by competition for limited resources available. It holds that social order in a society is maintain by dominance and power rather than conformity and consensus.
Conflict theorist views society as an arena of inequalities that create social conflict and social change. They are people that believed and hold conflict theory as a view.
