1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Effectus [21]
3 years ago
11

A production possibilities curve represents

Business
1 answer:
pychu [463]3 years ago
8 0
A is the correct answer
You might be interested in
Financial aid that is given based on a family financial background is called ____ aid.
Likurg_2 [28]
The financial aid that is given based on the financial status and background of the family of a person is termed as Need Based Aid. Need Based Aid and Need based scholarships are offered by a wide range of institutions to help financially weak families and individuals.

Therefore, the correct answer is
Option D) Need Based
8 0
3 years ago
Read 2 more answers
570,000. The firm will raise the $570,000 in capital by issuing $230,000 of debt at a before-tax cost of 11.1%, $20,000 of prefe
exis [7]

Answer:

WACC = 12.040%

Explanation:

WACC represents weighted average cost of all sources of financing. In the question there are three sources of finance 1) Equity 2) Preferred Stock 3) Debt.

1) Equity: The firm intends to raise $ 320,000 from equity out of total financing of $ 570,000 e.g. 56% of total financing comes from Equity. Thus multiplying the cost of equity 14.7% (given) with ratio of equity financing, we get to weighted average cost of equity of 8.253%.

2) Debt: The firm is raising $ 230,000 from debt e.g. 40% of total financing. The proportion of debt is multiplied by post tax cost of debt as the interest expense is deductible expense for tax purposes in most of the jurisdiction. Therefore we reduce the cost of debt with element of (1 - tax rate), thus we get to 8.325% = 11.1 (1 - 25%) as total cost of debt. In order to get weighted average cost of debt we multiply this post tax cost of debt with ratio of debt financing 40%, thus weighted average cost of debt is 8.325 * 40% = 3.359%

3) Preferred Stock: The firm is also raising finance from preferred stock having cost of 12.2%. Proportion of financing from preferred stock is 4% in total mix of financing, thus weighted average cost of preferred stock is 12.2% * 4% = 0.428%.

Now adding weighted average cost of all three sources of funding, we get WACC: 8.253% + 3.359% + 0.428% = 12.040%

3 0
3 years ago
Which of the following has the greatest impact on your cash flow?<br>​
Delicious77 [7]

Answer:

Explanation:when cash comes In bills hit you hard

3 0
3 years ago
A manufacturer reports the following costs to produce 10,000 units in its first year of operations:
rewona [7]

Answer:

Option (C) is correct.

Explanation:

Variable overhead per unit:

= Variable overhead ÷ Total units produced

= $70,000 ÷ 10,000

= $7 per unit

Fixed overhead per unit:

= Fixed overhead ÷ Total units produced

= 120,000 ÷ 10,000

= $12 per unit

Total product cost:

= Direct materials + Direct labor + Variable overhead + Fixed overhead

= 10 + 6 + 7 + 12

= $35 per unit

7 0
3 years ago
Calculate the risk-adjusted asset base for a bank with: a. Cash of $20 million, 0% b. Gen. Obligation municipal security of $100
Ulleksa [173]
This is what i found  Answer 1
Risk-Adjusted Asset Base
The calculation of the risk-adjusted asset base for a bank is as below-
Risk-adjusted asset = (Cash × 0%) + (municipal security × 20%) + (home mortgages × 50%) + (Commercial loans × 100%)
= (20 × 0%) + (100 × 20%) + (500 × 50%) + (300$ × 100%)
= 0 + 20 + 250 + 300
= $570 million
The outcome shows that the risk-adjusted or weighted asset based for the bank will be $570 million.
Tier1 and Tier 2 Capital:
If the bank has no off-balance sheet activity then minimum required level of Tier 1 and Tier 2 capital will be-
Tier 1 capital = Risk-weighted asset × 4%
= $570 × 4%
= $22.8 million
Tier 2 capital = Maximum of 1.25% of risk-weighted asset
= $570 × 1.25%
= $7.125 million
Total capital = $22.8 + $7.125 => $29.925 million
The outcomes indicate that the minimum required level of Tier1 and Tier 2 capital is $22.8 million and $7.125 million for the bank.
Bank Comply with Capital Requirements:
If the bank has Tier 1 capital of $25 million and Tier 2 capital of $15 million then it will comply with its capital requirements of $29.925 million. It is because in this situation, total capital of bank is $37 million that is higher than the above calculated capital of $29.925 million.
Impact of off-Balance Sheet Activities on Capital Requirements
The addition of off-balance sheet activities might increase the capital requirement of the bank. It is because an off-balance sheet items is a financial contract that can create credit loss for the company due to credit risk. So, in case of adding off-balance sheet activities, a bank will require more capital to cover credit loss. Along with this, it can also increase the minimum ratio of capital to risk-weighted assets from 8% and in that situation; the bank will need more capital (Carmichael & Graham, 2012).
Answer 2
Probability of Repayment and Risk Premium
A).
If the rate on a one-year treasury bill is 6% and in case of loan default, no payments are expected on financial securities then the probability of repayment and the risk premium on 1 year AA-rated loan yielding 9 percent will be-
Probability of Repayment:
The following formula can be useful to determine probability of repayment.
P = (1 + I) / (1 + k)
Where,
I = 6%
k = 9%
Then, ...you have $2.19 left :D
 
4 0
3 years ago
Other questions:
  • Locally manufactured Bubbles is a popular brand of detergent in Germany. However, with the entry of a foreign multinational into
    12·2 answers
  • The epa tries to balance protecting business interests with protecting
    10·2 answers
  • PLEASE HELP DO NOT WASTE ANSWERS URGENT
    10·1 answer
  • Michelle operates a food truck. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction
    13·1 answer
  • When we often interupt a person who is speaking to us, we'er likely to give the impression that we?
    12·1 answer
  • On June 1, 2019, the City of Allentown, PA issued at par, a ten-year, 5.5%, $5,000,000 in serial bonds, with interest payable se
    13·1 answer
  • You want to endow a scholarship that will pay $13000 per year​ forever, starting one year from now. If the​ school's endowment d
    7·1 answer
  • Let’s assume that the total possible number of job evaluation points is 875 rather than 1,000. Based on the following weighting
    5·1 answer
  • VideoPlus, Inc. manufactures two types of DVD players, a deluxe model and a standard model. The deluxe model is a multi-format p
    15·1 answer
  • imagine that you are a promoter of concerts and pop-up events. you need to know how well last month's events did in order to mak
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!