Answer:
explains how a firm's WACC increases with the use of financial leverage.
Explanation:
According to the MM Proposition II with taxes, the cost of equity rises with the increases use of debt in the capital structure of a firm.
= 
× 
As cost of equity increases, the firm's WACC increases also
The MM Proposition I with taxes reveals how utilizing the tax shield on debt causes an increase in the value of a firm
Answer:
A. Together with the Product Owner, focus on what can be done and identify a way to deliver something valuable at the end of each Sprint
Explanation:
The approach that is to be applied for delivering the value that becomes difficult is to come together by involving the owner of the product so that we get to know by focusing it and identify the way for delivering the valuable things so that in return the customer could satisfy with the product and the chances of building a long term relation would became high
Answer:
which of the following is not considered a credit?
overdraft fee
Explanation:
Answer:
Risk free interest rate is 5%
Y is 15.5% at a Beta of 1.5
X is 0.29 when Y is 7%
Explanation:
Risk free interest is 0.05 which 5% as given in the equation
The average expected return is given by Y
Y=0.05+0.07X
Since Beta is the same as X, when equals 1.5,Y is calculated thus
Y=0.05+0.07(1.5)
Y=0.05+0.105
Y=0.155
Y=15.5%
The value of Beta at an average return of 7% is computed thus:
7%=0.05+0.07X
where X is the unknown
0.07=0.05+0.07X
0.07-0.05=0.07X
0.02=0.07X
X=0.02/0.07
X=0.29
The scenario illustrates that the Beta, which is the risk of investment and the Y , the expected average return are positively correlated.
Answer:
$43,500
Explanation:
Calculation for What is the revised depreciation expense for 2022
2022 Revised depreciation expense=290,000/4 years
2022 Revised depreciation expense=72,500
2022 Revised depreciation expense=(290,000-72,500)/(6-1)
2022 Revised depreciation expense=217,500/5
2022 Revised depreciation expense=$43,500
Therefore the revised depreciation expense for 2022 is $43,500
