Answer:
The weighted average cost of capital to raise $3000000 is 7.17%
Explanation:
The weighted average cost of capital to acquire $3000000 is the weighted average of the cost of each financing option that the company will use to raise this amount. The weights of each option is the finance provided by the option divided by the total finance required. thus the weighted average cost of capital is,
Assigning the weights to each loan,
- First National Bank = 1500000 / 3000000 = 1/2
- Banner Bank = 1000000 / 3000000 = 1/3
- Western National Bank = 500000 / 3000000 = 1/6
Weighted average cost of capital = 1/2 * 0.06 + 1/3 * 0.09 + 1/6 * 0.07
Weighted average cost of capital = 0.07166 or 7.166% rounded off to 7.17%
Answer:
B) Because game theory is used to study conflict and cooperation in a competitive arena.
Explanation:
Oligopoly refers to the situation when the competition is limited which means that there are very few firms competing against each other.
Game theory: Studying strategies and actions of firms in a competitive market.
<em>Economists </em>use this study to explain oligopoly because companies have their own interests, and they often take actions which are against other companies so by studying game theory they understand the situation when companies are cooperating or are in conflict.
D. Both allow you to make a purchase in a store or online
I don’t know if I’m right. But yeah
Answer:
2.96% will be effective rate of the investment
Explanation:
First year:
1,000 x 1 + 10%) = 1,100
<em><u>Second year: </u></em>
1,100 + 3,000 = 4,100 invesmtent balance
4,100 x (1 - 5%) = 3,895
<em><u>Third year:</u></em>
3,895 + 2,000 = 5,895
5,895 x (1 + 2%) = 6012.9
<em><u>Fourth year:</u></em>
6012.9 + 500 = 6512.9
6,512.9 x (1+ 8%) = 7033.932
We calcualte rate that is equivalent with the following cash flow:
We solve using excel goal seek
0.029646151
<span> Strong emotions or feelings are necessary</span>