Answer:
D. Tim consumes more hamburgers and fewer hot dogs.
Explanation:
For his utility to remain constant, Tim will neither consume more goods in total, nor spend more money than before.
Therefore, because the price of hot dogs has risen, while the price of hamburger has remained the same, he will now buy more hamburgers and less hot dogs, because eating more hamburgers and less hot dogs will not decrease his satisfaction, it will remain the same. We can also conclude from that both fast food products are perfect substitutes for Tim.
Answer:
WACC = 7.48%
Explanation:
We can calculate the Firm's WACC by using Excel.
Let's assume this is our Excel Blank Sheet.
A B C D
1 Particulars Rate Weight Weighted rate
2 Debt = 7.75%(1 - 40%) 0.45 =B2×C2
= 4.65%
3 Equity = (0.65/(19 × (1 - 10%)))+6%
= 9.80% 0.55 = B3×C3
4 WACC =SUM(D2:D3)
<h3>
Output:</h3>
A B C D
1 Particulars Rate Weight Weighted rate
2 Debt = 4.65% 45% 2.09%
3 Equity = 9.80% 55% 5.39%
4 WACC 7.48%
<span>The statement "A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less" is true.
The statement "Buying a single company's stock usually provides a safer return than a stock mutual fund" is true.</span>
Capitalize is to give or invest your capital "money" to a company or an industry. According to this question you capitalize all of your assets, therefore your initial fundings will come from shareholding.
And your welcome!
