Answer:
WACC= 17.95%
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund.
It is calculated using the formula below:
WACC = (We×Ke) + (Wd×Kd)
Ke-cost of equity- 22%
We- equity weight- 100% - 45% = 55%
Kd-After tax cost of debt-10.3%
Wd- 45%
After tax cost of debt = Before tax ×× (1- tax rate)
After tax cost of debt = 13%× (1-0.21) = 10.3%
Cost of equity = 22%
WACC =(0.55× 22%) + (0.45× 13%)=17.95%
WACC= 17.95%
When someone pays back a loan quickly it is called a sudden payoff. This question is question every consumer asks in order to decide if he/she should take a loan or not. The best for your financial state is to pay your loan the sooner you can. The reason is: you save money when you pay a loan off early and y<span>ou are financially stronger when your debt is paid.</span>
Answer:
The answer is 7.37%
Explanation:
Solution
Given that
Bond per value = future value =$1000
The current price = $1,066.57
Time = 22 years * 2
=44 semi-annual periods
The year of maturity = 6.78%/2 = 3.39%
Thus
The coupon rate is computed by first calculating the amount of coupon payment.
So
By using a financial calculator, the coupon payment is calculated below:
FV= 1,000
PV= -1,066.57
n= 44
I/Y= 3.39
Now we press the PMT and CPT keys (function) to compute the payment (coupon)
What was obtained is 36.83 (value)
Thus
The annual coupon rate is: given as:
= $36.83*2/ $1,000
= $73.66/ $1,000
= 0.0737*1,00
=7.366% or 7.37%
Therefore 7.37% is the bond's coupon rate.
Answer:
60%
Explanation:
price elasticity of demand= (Q2-Q1)/ [(Q2+Q1)/2] divided by (P2-P1)/ [(P2+P1)/2]
Where Q is change in quantity
P1 is Price 1 =10 , Price 2= 20
Price elasticity of demand =0.9
Therefore
0.9= (Q2-Q1)/ [(Q2+Q1)/2] divided by (P2-P1)/ [(P2+P1)/2]
0.9= (Q2-Q1)/ [(Q2+Q1)/2] divided by (20-10)/ [(20+10)/2]
0.9 = (Q2-Q1)/ [(Q2+Q1)/2] ÷ 10/15
0.9 = (Q2-Q1)/ [(Q2+Q1)/2] ÷ 0.6667
(Q2-Q1)/ [(Q2+Q1)/2] = 0.9 × 0.667
=0.6
Expressed as percentage = 0.6 × 100
=60%
The correct answer to this open question is the following.
In the set of all past due accounts, let the event A mean the account is between 31 and 60 days past due and event B means the account is that of a new customer. The complement of A is all accounts fewer than 31 or more than 60 days past due.
That is why is so important to maintain a good credit score. A past-due account was not paid on time and with the minimum amount of money it was required. So pay attention to the last day marked in your account statement. It is not a good thing to your record and you will be paying extra money due to a late fee.