Answer:
11.86%
Explanation:
First we need to calculate the return on equity(Re).
re = rf + B(rm-rf)
re = 0.03 + (1.4)*(0.11-0.03) => 0.142 or 14.2%.
Now the formula for WACC is,
WACC = (re * %of Equity) + ((rd * %of Debt)(1-tax rate))
Hence this is calculated as,
WACC = (0.70*0.142)+((0.30*0.08(1-0.20))
WACC = 11.86% or 0.1186.
Hope this helps. Goodluck.
Factors of production<span> is an economic term that describes the inputs that are used in the </span>production<span> of goods or services in order to make an economic profit. The </span>factors of production<span> include land, labor, capital and entrepreneurship.</span>
Answer:
A Confirming sales prospects
Explanation:
In confirming sales prospects, you are giving the customer a little push to buys the product. You have realized that the customer is convinced but has not made an order. Confirming sales is provoking the customer to make the call.
Several techniques are used by sales representatives to close sales. For example, you can ask the customer, between these two products, which one will you take? Or you can ask, how many pieces do I pack for you today?
Confirming sales encourages the customer to make a decision and pay for the product. The purpose of the selling process is to convert a prospective customer into a buying customer. Confirming the sale comes almost at the end of the selling process.
The right answer for the question that is being asked and shown above is that: "decrease." If the price of butter increases, then the demand for margarine will likely <span>decrease. The answer is correct as far as the price of the butter increases.</span>
Answer:
B) Maturity value of the bonds plus the present value to investors of the future interest payments.
Explanation:
Bond price is the present discounted value of the future cash stream generated by a bond. It refers to the sum of the present values of all likely coupon payments plus the present value of the par value at maturity. To calculate the bond price, one has to simply discount the known future cash flows.
If a bond's coupon rate is more than its YTM, then the bond is selling at a premium. If a bond's coupon rate is equal to its YTM, then the bond is selling at par. Formula for yield to maturity: Yield to maturity(YTM) = [(Face value/Bond price)1/Time period ]-1.
