Answer: Exchange rate forecasting is important because exchange rate influence all aspects of business.
Explanation:
Exchange rate forecast is a method that is used to predict exchange rates by collecting all the relevant factors that may affect a currency. Exchange rate forecasting is vital because exchange rates influence all aspects of business.
The exchange rate plays a vital role for firms that import raw materials and export goods. A depreciation i.e a devaluation of the currency will make exports cheaper and therefore exporting firms will benefit. Every firm is interconnected in one way or the other, therefore exchange rate is vital.
Product Life Cycle, for which the stages include launch, growth, saturation and decline. Hope it helps!
Answer:
WACC = 10.35%
Explanation:
The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion that each source of finance bears to the total capital in the pool..
After-tax cost of debt = (1- tax rate) × before tax cost of debt
= (1-0.23)× 7.5% = 5.8%
Type Cost (%) Weight cost × weight
Equity 12.8 65% 8.32
Debt 5.8 35% <u> 2.03 </u>
Total 10.3
WACC = 10.35%
The answer to this statement is True goods and services can be easily balanced and purchased at certain prices and if needed the prices will increase
