Cost of equity capital is closest to: 16 percent
Solution:
WACC is covered on page 120 Corporate Finance, under Capital Structure.
Using the standard equation for WACC = %wt Equity x cost of equity (re) + %wt Debt x cost of debt (rd).
Since there is a 20% tax rate for the firm, the cost of borrowing is reduced by that amount. So the cost of debt is 4%, not 5%.
Plug the formula: 10% = 50% x re + 50% x 4%
The formula ( i.e. 0.1+(0.1-0.05)(1)(1-0.2)) in CFAI reading is questionable.
The calculation is 0.1+(0.1-0.05*(1-0.2))*(1)=16%
The financial advantage (disadvantage) of discontinuing the Beta product line is take contribution margin of dropped product as a negative, add traceable fixed OH of dropped product.
<h3>Beta product line</h3>
In order to find any defects or difficulties before a general release, beta product line testing gives actual users the chance to utilize a product in a production setting. Before making a product available to a large public, beta product line testing is the last stage of testing. The goal is to find as many defects or usability problems in this confined environment as you can.
A production environment using the same hardware, networks, etc. as the final release is used by beta testers, who are "actual" users, to do their testing. Additionally, since these tests cannot be carried out in a lab or stage setting, this presents the first opportunity for comprehensive security and reliability testing.
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Answer:
D. earning a bachelor's degree to become an interior designer
Explanation:
Answer:
All of the above are correct
Explanation:
We evaluate the validity of each of the options.
A) option A is correct
According to the law of demand, all things being equal an increase in price leads to a decrease in the quantity demanded.
If there was no tax, it would have been sold at a lesser price which would have driven the demand curve upwards
B) Option B is correct
The incidence of the tax is summarized by the fact that tax payments are sent to the government.
C) Option C is correct
The total tax is $1 with the buyers paying $0.8 more for a bottle of liquor. This means they bear the burden of paying 80% of the tax
D) Is correct.
Having evaluated the validity of all the options to be correct, then this particular option is correct too
Whereas American business embodies individualism, achievement, competition, and informality, Mexican business stresses collectivism, continuity, cooperation, and formality.
American business is a business of entrepreneurship, and corporations, together with responses by consumers, critics, and government.
In broader context, it is a major part of the Economic history of the United States which focuses on specific business enterprises.
Mexico is expected to continue to be a drawing for the industry of mobility. Successfully doing businesses rely heavily on understanding Mexico’s unique business culture.
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