Answer:
Cost of equity is 11.2%
WACC is 8.74%
Explanation:
The formula for cost of equity is given below:
Cost of equity=risk free rate+(Beta *risk premium)
risk free rate is the treasury bill rate of 4%
Beta is 0.9
market risk premium is 8%
cost of equity=4%+(0.9*8%)=11.2%
WACC=Ke*E/V+Kd*D/V*(1-t)
Ke is the cost of equity of 11.2%
Kd is the cost of debt of 5%
t is the tax rate of 40% or 0.4
E is the equity weighting of 70% or 0.7
D is the debt weighting of 30% or 0.3
V is the E+D=0.7+0.3=1
WACC=11.20%
*0.7/1+(5%*0.3/1*(1-0.4)
WACC=7.84%
+0.90%
=8.74%
Answer:
Demand
Consumer interference
Explanation:
The social demand curve represents the benefit of demand to the whole society whereas the normal demand curve represents the benefits to the consumers only. The demand curve represents the social cost curve and the market failure is analyzed by the customer interference.
The percentage of adults, nationally, that were current on all credit payments in the last year is 78.5% .
Your friend is incorrect in assuming that all will have high credit scores. because base on the fact that a lot young adults have no credit experience. They are said to often have a high balance on too many credit card.
The state’s on-time payment record compare to the national rate is known to be Texas who are said to have an on-time payment record of 6.7% that is known to be lower than the national rate.
Miral county’s payment rate is 80%, 10% higher than the state of Texas.
The “clumping may be due to the types of jobs that are available to certain states.
<h3>The reasons our credit card or loan bill paid late?</h3>
The reasons why our credit card or loan bill late said to be late is known to have a lot of serious effects if not managed. It can lead to:
- Credit score reduction drastically, that can affect your credit report badly.
- It can also affect the types of opportunities, etc. that one can get through the credit bureau.
learn more about credit payments from
brainly.com/question/2151013
Answer:
Bond's Current Yield 4.39%
Explanation:
The bond's current yield is calculated as below:
Bond's Current Yield = Annual Coupon Payment/Current Bond Price*100
Substituting values in the above formula, we get,
Bond's Current Yield = (100*4.30%)/97.85*100 = 4.39%
Answer:
ROI = net profit / total investment
1. What is the current return on investment (ROI) being realized by your division
- ROI = $625,000 / $4,150,000 = 15.06%
2. What would happen to the near-term ROI of your division after adding the effect of the new investment?
- ROI = ($625,000 + $50,000) / ($4,150,000 + $550,000) = 14.36%
If you carry out the new project the ROI of your division will decrease.
3. As manager of this division, given your incentive compensation plan, would you be motivated to make the new investment?
- Even though the new project's return (9.1%) is considered acceptable by upper management, you will probably reject it since it will decrease your division's total ROI. When managers are assigned bonuses based on certain achievements, reducing your profitability ratio will probably result in no bonus.
