Answer: BRIDGE LOAN
Explanation: As the name says the bridge loan are the type of loans that bridge the difference between the new home of the buyer and the new mortgage in case the buyers existing home hasn't been sold yet. It is a type of short term loan, the usual time period for such kinds of loan is 2 weeks to 3 years.
In this case Karen and Jay have purchased the new house but sale of their old house is still pending thus from the above explanation we can conclude that bridge loan would be appropriate for them.
Answer:
5.38 %
Explanation:
WACC = Cost of Equity x Weight of Equity + Cost of Debt x Weight of Debt
where,
Cost of Equity = 9.00 % (given)
After tax Cost of Debt = 6% x (1 - 0.21) = 4.74 %
Market Value of Equity = 1/5 x $13 million = $2.6 million
Weight of Equity = $2.6 million / $11.6 million = 0.22
Weight of Debt = $9 million / $11.6 million = 0.76
therefore,
WACC = 9.00 % x 0.22 + 4.74 % x 0.76
= 5.38 %
thus
the company’s WACC is 5.38 %
Answer:
8.20%
Explanation:
Debt equity ratio = 0.95
or
Debt = 0.95 × equity
Cost of equity, ke = 11% or 0.11
Pretax cost of debt, kd = 7% or 0.07
Tax rate = 24% or 0.24
Therefore;
WACC = {Weight of equity × ke } + {Weight of debt × kd × (1-Tax rate)}
It is to be noted that ;
Weight of equity = Equity ÷ (Debt + Equity)
= Equity ÷ ( 0.95×Equity + Equity)
=1 ÷ 1.95
=0.513
Also,
Weight of debt = Debt ÷ ( Debt + Equity)
=0.95 × Equity ÷ ( 0.95 × Equity + Equity)
= 0.95 ÷ 1.95
=0.487
Hence,
WACC = {0.513 × 0.11} + {0.487 × 0.07 × (1-0.24)}
= {0.05643} + {0.03409 × 0.76}
= 0.0823384
or
0.0823384 × 100%
=8.23384
=8.20%
False, this is a product development strategy.
A marketing development strategy finds <em>new </em>markets for <em>existing </em>products, which is the opposite of what Issac is doing.
Answer: Normal good
Explanation:
A normal good is a good that has a positive correlation between its income and demand. This means that for a normal good, an increase in income will lead to an increase in the demand for the good while a reduction in income will also lead to a reduction in the demand for the good.
Cassandra bought 16 clothes when her income was $40000 but when her income reduced to $35000, she bought less of the good. That means that the cotton blouses bought by Cassandra are normal good.
