Answer:
WACC = Ke(E/V) + Kd(D/V)(1-T) + Kp(P/V)
WACC = 15(60/100) + 5(30/100)(1-0.3) + 10(10/100)
WACC = 9 + 1.05 + 1
WACC = 11.05%
Explanation:
Weighted average cost of capital is a function of cost of common stock and the proportion of common stock in the capital structure plus after-tax cost of debt and proportion of debt in the capital structure plus cost of preferred stock and the proportion of preferred stock in the capital structure. Ke = Cost of equity or common stock, kd = cost of debt and kp = cost of preferred stock.
Answer:
credit rationing
Explanation:
Credit rationing is a situation in which borrowers give out a fixed amount of loan to lenders for a specified time at a rate tied to the market interest rate. In this situation, loans do not exceed a certain amount from the borrower no matter what attractive offers are given by the lenders to be able to get a larger loan amount. This is done by the borrower becasue the borrower is earning maximum profits from interest rates and also is a means to maintain equilibrum between loan funds and loan demands.
Cheers.
Answer:
True.
Explanation:
The Contribution margin i.e Sale price less Variable Cost per unit for product A is (15-4) is $11 & for product B is ( 21-13) is $8. for making 4 units of product A we need three machine hours, so if we divide units by machine hours only 0.9 unit of A can be made in an hour while we can made 5 units in 0.7 hours pf product B, so if we divide 5 by 0.7, approximately 7 unit of B can me made in an hour.
Thus, in the production of 1 hour we can make $10 from product A while we can make $ 57 from product B.
Product A Product B
S.P $15.00 $21.00
V.C $4.00 $13.00
Contribution Margin Per unit $11.00 $8.00
Units Produce Per hour Production 0.9 7
CM Per hour $10.27 $57.14
When selling the 100th widget, the firm will always receive A. less marginal revenue on the 100th widget than it received on the 99th widget.
A downward-sloping demand curve simply means that when there's a reduction in the price of a good, the consumers will purchase more of that product.
Based on the information given, when selling the 100th widget, the firm will always receive less marginal revenue on the 100th widget than it received on the 99th widget. The marginal revenue is the increase in revenue based on an additional unit of output that's sold.
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Licensing of the brand, a reputation for quality, and a large number of retail stores are examples of potential strengths that a firm may identify during a swot analysis.
<h3>What is a SWOT analysis?</h3>
This is the framework that is used to know the strength of an organization, its weaknesses, its opportunities and its threats.
The SWOT analysis is useful due to the fact that it relates to situational analysis or assessment.
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