Answer:
A. 12.1%
B. 8.9%
Explanation:
a. Calculation for What is the company's new cost of equity
Using this formula
New cost of equity=Cost of capital+[(Cost of capital- Debt interest rate ) *(Debt-equity ratio)*(1)]
Let plug in the formula
New cost of equity=[0.089+[(0.089-0.057)*(1)*1]
New cost of equity=[0.089+0.032*(1)*1]
New cost of equity=[0.121*(1)*1]
New cost of equity=0.121*100
New cost of equity=12.1%
Therefore the company's new cost of equity will be 12.1%
b. Calculation for What is its new WACC
Particular Weight Cost Weighted cost
Equity 0.5000 *12.1% = 0.0605
Debt 0.5000 * 5.7% =0.0285
WACC =0.089*100
WACC =8.9%
(0.0605+0.0285)
Therefore the new WACC will be 8.9%
In early America, a traditional market structure existed when people bartered goods they produced for goods they needed.
Explanation:
Bartering is the mechanism between two entities without the use of cash in the exchange of trading products or services. When people trade, they are all benefited by receiving goods or services that they need or want.
Bartering does have a benefit as there is something that even people with no money could get for them. Bartering may include exchanging an object for a service.
For eg, in return for a tin of apples from either a tree in their yards you might agree to work for somebody. If you choose to trade for a need, you can save cash for other requirements.
Answer:
The correct answer is: 1. Functional.
Explanation:
A functional strategy is one that requires the HOW? Do, operate, function, that is, after delimiting the corporate strategy that specifies what to do ?, the functional strategy, indicates how to apply and use resources to achieve what you want to achieve.
A functional area of the company adopts this type of strategy to achieve the objectives embodied in the strategy of the corporation, maximizing the resources available and their productivity. In addition, it seeks the care and development of functional and operational capacity in order to achieve a competitive advantage to the company.
These strategies generate a frame of reference used by the administration of operations and functions to support the organizational and business strategy.
