Answer:
a. cost of debt
Explanation:
The formula to compute the weighted average cost of capital is shown below:
= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
Since the payment for the dividend is not entitled to a tax deduction but the payment for interest is entitled to a tax deduction. And, the after-tax is considered for the cost of debt and the same is shown in the formula above
The fact that mutual funds provide small investors with a diverse portfolio and experienced management is one of their appealing qualities.so statement is true.
<h3>What draws small investors to mutual funds?</h3>
Investors have access to a greater variety of investments through mutual funds than they could on their own. By pooling your funds, you may take advantage of economies of scale. The monthly contributions improve the investor's assets. Funds are more liquid because they are often less volatile.
The ability to diversify and thereby distribute risk over a number of investments is one of the reasons mutual funds are so well-liked by investors. People are drawn to mutual funds because they provide an opportunity for typical individuals to invest in professionally managed funds.
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Answer:
The mutual fund charge investors can charge you certain fee which is equivalent to the investment assets percentage. Also, an unofficial benchmark has been fixed to 1 %, though the advisers can take from you a little less or a little more. Hence, if you are investing $200,000. you need to invest $2000 each year as fee. However, the commission varies with product types as well
Explanation:
The mutual fund charge investors can charge you certain fee which is equivalent to the investment assets percentage. Also, an unofficial benchmark has been fixed to 1 %, though the advisers can take from you a little less or a little more. Hence, if you are investing $200,000. you need to invest $2000 each year as fee.
However, the commission varies with product types as well. The ELSS fund requires 4.5% to 1%, the equity funds requires 0.5 to 2.5% and debt funds require 0.2% to 0.8%.
The market of price controls will demand
