Answer:
The correct answer to the following question is option E) 9.06% .
Explanation:
Here the cost of equity given is - 11.8%
Pre tax cost of debt- 6.9%
Tax rate- 35%
So the after tax cost of debt - 6.9% x 65%
= 4.485%
The debt to equity ratio - .6
So the weight of debt - .6 / ( 1 + .06 )
= .375
Weight of equity - 1 / ( 1 + .06 )
= .625
Weighted average cost of capital =
Debts cost x weight of debt + Equity cost x weight of equity
= 4.485 x .375 + 11.8 x .625
= 1.681875 + 7.735
= 9.06%
A) a motive is a reason you do something. In business it'd be, for example, profit motive. Your motive is the amount in the profit
Answer:
$140
Explanation:
Calculation for What is the least amount the government can spend to overcome the $350 billion gap
First step is to find the Multiplier using this formula
Multiplier=1(1-Marginal propensity)
Let plug in the formula
Multiplier=1/(1-0.6)
Multiplier=1/0.4
Multiplier=2.5
Now let calculate the least amount the government can spend using this formula
Least amount=Gap/Multiplier
Let plug in the formula
Least amount=$350 billion /2.5
Least amount=$140
Therefore the least amount the government can spend to overcome the $350 billion gap is $140
The average price of a house in the u.s. is $265,000. this statement describes an Inferential Statistic.
Statistical inference is the technique of using information analysis to infer houses of an underlying distribution of possibility. Inferential statistical evaluation infers homes of a population, for instance by trying out hypotheses and deriving estimates.
Inferential facts are regularly used to evaluate the differences between the remedy businesses. Inferential facts use measurements from the pattern of topics within the test to evaluate the treatment organizations and make generalizations approximately the bigger population of subjects. inferential statistics are used to decide if there's a good-sized distinction between the method of businesses and the way they're associated. T-tests are used while the facts sets comply with a regular distribution and have unknown variances, just like the records set recorded from flipping a coin one hundred instances.
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The expected return for stock A and B is 8.55% and 15.11% respectively.
<h3>What is the Expected return?</h3>
= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)
Expected return for stock A:
= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)
= 0.0855
= 8.55%
Expected return for stock B:
= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)
= 0.1511
= 15.11%
Therefore, the expected return for stock A and B is 8.55% and 15.11% respectively.
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