Answer:
b
Explanation:
the profit motivate anyone to make their own businesses
Answer:
Sam will pay $937.43 weekly or $71.64 quarterly.
The weekly plan has less total cash outflow each year because it involves lower interest charges as the payment is made more frequently.
Sam will have to pay $117.18 if the loan calls for quarterly payments.
Explanation:
The cash outflows are calculated using the PMT formula or function as follows.
Quarterly Payment:
PMT(rate = 0.08/4, nper = 8x4, pv = 22000, fv = 0, 0) = $937.43
Weekly Payment:
PMT(rate = 0.08/52, nper = 8x52, pv = 22000, fv = 0, 0) = $71.64
Annual cash outflow using quarterly payment = $937.43 x 4 = $3749.72
Annual cash outflow using weekly payment = $71.64 x 52 = $3725.28
The weekly plan has $3749.72 - $3725.38 = $24.44 less total cash outflow each year because it involves lower interest charges as the payment is made more frequently.
Sam will have to pay $3749.72 / 32 = $117.18 if the loan calls for quarterly payments.
Answer:
a) 9.00 %
b) 7.80 %
c) yes the weight of the debt increases here is more risk in the investment as the debt payment are mandatory and failing to do so result in bankruptcy while the stock can wait to receive dividends if the income statement are good enough
d) 9.00 %
e) The increase in debt may lñead to an increase in return of the stockholders if they consider the stock riskier than before and will raise their return until the WACC equalize at the initial point beforethe trade-off occurs
Explanation:
a)
Ke 0.12
Equity weight 0.5
Kd(1-t) = after tax cost of debt = 0.06
Debt Weight = 0.5
WACC 9.00000%
c)
Ke 0.12
Equity weight 0.3
Kd(1-t) = after tax cost of debt = 0.06
Debt Weight 0.7
WACC 7.80000%
d)
<em>Ke 0.16</em>
Equity weight 0.3
Kd(1-t) = after tax cost of debt = 0.06
Debt Weight 0.7
WACC 9.00000%
Answer:
7 hours (if the question asked us how many hours he spent without adding the value of the minutes).
Explanation:
From 7 a.m. to 2 pm its 7 hours.
The remainder is 45 minutes.
7 hours + 45 minutes.
If it's in hours it'll be 7 hours. If the question asked hours and minutes it would be 7 hours and 45 minutes.
