What term refers to the business model of selling goods online through an Internet store site?

WACC. Eric has another get-rich-quick idea, but needs funding to support it. He chooses an all-debt funding scenario. He will

maks197457 [2]

Answer:

274.7%

Explanation:

The total amount that Eric will borrow will be = 43114311+33503350+13391339 = 90009000.

Now to calculate WACC, we will apply the WACC formula:

WACC = (43114311/90009000)*0.66 + (33503350/90009000)*0.88 + (13391339/90009000)*14.14

Hence,

WACC = 274.74%

The solution was very simple, we just applied the WACC formula by taking the total amount of debt in the denominator of each of the loans taken and multiplied it by the interest rate on which it is taken.

Hope this helps, although I think the values in the question are not correct, but nonetheless I have provide the correct solution according to the given values.

Thanks.

5 0

2 years ago

If a firm has a required rate of return equal to the ROE, Group of answer choices the firm can increase market price and P/E by

mario62 [17]

Answer:

the amount of earnings retained by the firm does not affect market price or the P/E

Explanation:

A rate of return refers to the net gain or loss of an investment over a particular time period which is typically a year. It is expressed as a percentage of the investment's initial cost.

The rate of return is referred to as the annual return if the time period is typically a year.

If a firm has a required rate of return equal to the ROE, <u>the amount of earnings retained by the firm does not affect market price or the P/E</u>

8 0

3 years ago

According to this case study, what is an upcoming key technology that will be used in retail stores to improve customer service?

zloy xaker [14]

Answer:

1. According to the case study (copy attached) "the upcoming technology that will be used in retail stores to improve customer service is the Scan As You Go Mobile Devices".

2. It is currently being used by sales officers in some shopping malls to scan items on the spot and let customers pay without going through the cash registers.

It is also being used to help customers take advantage of discounts and coupons on items being purchased. The effect is that customers spend 10% when they shop using this technology.

3. In the future, the customers will be able to check out using their smartphones.

4. According to the case study, the technology referred to in 3 above is already pioneered by Apple Stores.

Cheers!

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5 0

2 years ago

If producers moved the price from P3 to p1 A) producers would encounter a shortage. B) buyers would likely purchase fewer widget

andrew-mc [135]

Answer: D) buyers would scramble to get all available widgets.

Explanation:

The law of demand states that more quantity is demanded at a lower price, therefore if producers move prices from P3 to P1 there would be an increase in quantity of widgets demanded. Buyers would scramble to get all available widgets wich will create a shortage in the market

7 0

3 years ago

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A put option on a stock with a current price of $47 has an exercise price of $49. The price of the corresponding call option is

Sedbober [7]

Answer:

The answer is 5.559539 or 5.56.

Explanation:

From the given question let us recall the following statements

The current price of A put option on a stock = $47

With an exercise price of $49

Annual risk-free rate of annual interest is = 5%

The corresponding price call option is = $4.3

The next step is to find the put value

Now,

The Call price + Strike/(1+risk free interest) The Time to maturity =

Spot + Put price

Thus

The,Put price = Call price - Spot + Strike/(1+risk free interest)Time to maturity

When we Substitute the values, we get,

Put price = (4.35 - 47) + 49/1.05 4/12

Therefore, The Put Price = 5.559539 or 5.56

4 0

3 years ago

Read 2 more answers