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Hunter-Best [27]
3 years ago
11

A firm has $76,000,000 in debt, which accounts for 43% of their total funds raised; the after-tax cost of these funds is 6.10%.

The same firm has $100 million in common stock, which accounts for 57% of their total funds raised; their after-tax costs (including transaction costs) are 15.7%. What is the weighted average cost of capital for these funds?
10.21%
8.92%
2.63%
11.55%
Business
1 answer:
Digiron [165]3 years ago
7 0

11.55% is the weighted average cost of capital for these funds

Explanation:

Firm has 76000000 in debt and 100000000 in equity. Thus the proportion of debt =

             = 76000000/(76000000 + 100000000)

             = 43.18%

and proportion of equity =  1 - 43.18%  = 56.82%

Therefore, WACC =  0.4318 * 6.1 + 0.5682 * 15.7

                               = 11.55%

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Campbell's soup used several advertising campaigns that stressed the benefits of soup in general. for example, one tagline used
enot [183]

Answer:

The correct answer is letter "A": generic problem recognition.

Explanation:

While talking about how consumers recognize problems, generic problem recognition refers to a marketing strategy by which different features of a product are promoted highlining the benefits it carries over satisfying the same need. The more features are presented of the product, the more chances to increase its market share.

Therefore, <em>by portraying consumers the different benefits of its soup, Campbell aimed to stimulate the generic problem recognition.</em>

7 0
3 years ago
When economists speak of a deadweight​ loss, they are referring to?
nadezda [96]
Deadweight loss is a type of economic inefficiency when a good or service is not at its economic equilibrium (where supply equals demand). This loss may be experienced because of a tax or subsidy, or because of market power, such as a monopoly. Economists refer to deadweight loss when they want to show the negative effects of certain policy decisions that are less than optimal. 
5 0
3 years ago
In the past decade, the dollar value of world trade has ______.
Sergeeva-Olga [200]

Options for this question include:

a. Tripled

b. Remained the same

c. Doubled

d. Declined

___________________________________________________________

World trade has been on the rise in the past decade and as a result, the dollar value of world trade has c. Doubled.

Thanks to more integration, less restrictive government policy, a rise in population and standards of living, world trade has increase over the past couple of decades such that:

  • Trade in goods has risen from $10 trillion in 2005 to $18.8 trillion in 2019
  • Trade in services has risen from $2.5 trillion in 2005 to $6 trillion in 2019

When looking at the trade of goods, one can see that trade has almost doubled and in the case of services, close to triple.

We can therefore conclude that world trade has doubled in the past decade.

<em>Find out more at brainly.com/question/14276199.</em>

7 0
2 years ago
perfectly competitive firm sells pineapples for​ $4 each. MR​ = MC at a quantity of 600 units. Average total cost at the​ profit
mart [117]

Answer:

$ 750

Explanation:

Total cost = average total cost × quantity = $ 2.75 × 600 = $ 1650

Total revenue = price × quantity = $ 4 × 600 = $ 2400

profit = $ 2400 - $ 1650 = $ 750

5 0
2 years ago
When a nation's currency suddenly loses value, the ________ may step in to buy the afflicted currency?
cricket20 [7]
If a nation's currency drops in value significantly, the International Monetary Fund could step in and buy the currency so that some stability could occur economically
3 0
3 years ago
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