If you are talking about the priority of the order of operations. It is C.
Answer:
d.9.34%
Explanation:
The formula for the weighted average cost of capital is provided below as a starting point for solving this question:
WACC=(weight of equity*cost of equity)+(weight of debt*after-tax cost of debt)
weight of equity=1-debt %=1-50%=50%
weight of debt=50%
cost of equity=13.6%
after-tax cost of debt=7.8%*(1-35%)
after-tax cost of debt=5.07%
WACC=(50%*13.6%)+(50%*5.07%)
WACC=9.34%
The discount rate is computed based on the target or preferred capital structure
Answer:
![\left[\begin{array}{ccc}&January&February\\$beginning&45000&27500\\$receipts&97000&150000\\$disbursement&-114500&-163500\\$interest&0&0\\$subtotal&27500&14000\\$minimun&20000&20000\\$Financing&&\\$beginning&0&0\\$payment/loan&0&6000\\$ending&0&6000\\&&\\$ending cash&27500&20000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7D%26January%26February%5C%5C%24beginning%2645000%2627500%5C%5C%24receipts%2697000%26150000%5C%5C%24disbursement%26-114500%26-163500%5C%5C%24interest%260%260%5C%5C%24subtotal%2627500%2614000%5C%5C%24minimun%2620000%2620000%5C%5C%24Financing%26%26%5C%5C%24beginning%260%260%5C%5C%24payment%2Floan%260%266000%5C%5C%24ending%260%266000%5C%5C%26%26%5C%5C%24ending%20cash%2627500%2620000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Explanation:
On January we collect the 85,000 from revenues and the 12,00 form marketable securities.
Then, we add up each disbursement:
Materials 50000
Labor 30000
Overhead (net of depreciation) 19,500
Selling and administrative 15000
Total 114,500
Then we solve for the cash balance and get the blaance as it is higher than 20,000 we do not need financing
Then, this value is the beginning cash for February. As the ending balance is 14,000 we will take 6,000 financing to reach the bare minimum of 20,000
Answer:
Portfolio's beta is 1.04.
Explanation:
Portfolio's beta is the weighted average beta. So, take weightage of each stock, multiply it with the respective beta, and add the results.
Finding Portfolio value for Weightages:
Total Amount Invested OR Portfolio value is = 10,000 + 40,000 = $50,000
Weighted Average Beta:
(10,000 / 50,000) * (.4) + (40,000 / 50,000) * (1.2) = .08 + .96 = 1.04.
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