Answer:
D. implies that, for most people, the marginal benefit of reading a second newspaper is less than the marginal cost
Explanation:
When marginal cost is greater than marginal benefit ,There's inefficiency. It is better for the consumer to stop consumption at this point.
I hope my answer helps you
Answer:
WACC = 10.50 %
Explanation:
(‘1) Calculation of cost of debt- Cost of debt is nothing but yield to maturity of bond
Yield to maturity is nothing but the rate of return at which all future cash flows will become equal to current market price.
Current Market Price = PV of Coupon payments + PV of FV of bond
1040= 34 [ 1- (1+0.5 YTM)-2 x 30 / 0.5 YTM] + 1000 / ( 1+0.5 YTM )2 x30
YTM = 6.5 %
So cost of debt Rd = 6.5 %
(‘2) Cost of Preferred stock
Rps = Dps / Price
Rps = 5/78 = 6.41 %
(3) Cost of Common Stock
Rs = Risk Free rate + Beta x Market Risk Premium
Rs = 4.80 + 1.14 x 7
Rs = 12.78 %
4. Check the image attached.
WACC = 10.50 %
WACC= Wd x Rd x ( 1- Tax rate) + Wps x Rps + WCE x Rs
Post Tax Debt cost will be considered in WACC
Post Tax cost of debt= Cost x ( 1- Tax Rate )
Post Tax Cost = 6.5 x ( 1-0.38) = 4.03 %
Here is the answer to the given question above. Although SAFETY AND HEALTH <span>programs are recommended for all general industry businesses, they are completely voluntary and not required. These programs are often recommended with a purpose and this include improving the health and well-being of the viewers by reducing injuries and illnesses and workers compensation costs. Hope this helps.</span>
Answer: $8,391.90
Explanation:
So the company borrowed $40,000 from a bank.
They are to pay 7% interest on the note per year for 6 years.
We are to find the annual payments.
7% represents a constant payment schedule per year so we can use an Annuity formula.
Seeing as the Annuity factor has been calculated for us already we don't need to formula though.
The present value of an annuity factor for 6 years at 7% is 4.7665.
Calculating the present value of the annual payment can be done as follows,
= Amount / PVIFA (Present Value Interest Factor for an Annuity)
= 40,000/4.7665
= 8391.90181475
= $8,391.90
The annual payments equal $8,391.90.
<span>Cash advance fee:
2% of $200 = 0.02 * 200.00 = $4.00
One month's interest, if the interest is compounded monthly:
18% of $204.00, divided by 12 months/year = 0.18 * 204.00 / 12 = $3.06
Total paid:
$200 + $4 + $3.06 = $207.06
Paying directly with the card instead of borrowing cash would have saved the $4 charge and would also have reduced the interest from $3.06 to $3.00.
Paying directly with the card and then paying before the billing cycle would also save the $3.00.She would only have paid the original $200, saving the whole $7.04.
Effect of paying directly with the card and paying it off before the billing cycle: $200 total paid, saving $7.04 in fees and interest.</span>