Answer:
9.04%
Explanation:
The computation of firm's WACC is shown below:-
MV of equity = Price of equity × Number of shares outstanding
= $68 × 12,200
= $829,600
MV of Bond = Par value × bonds outstanding × Percentage of par
= $1,000 × 370 × 0.951
= $351,870
MV of firm = MV of Equity + MV of Bond
= $829,600 + $351,870
= $1,181,470
After tax cost of debt = Cost of debt × (1 - Tax rate)
After tax cost of debt = 5.99 × (1 - 0.39)
= 3.6539
Weight of equity = MV of Equity ÷ MV of firm
= $829,600 ÷ $1,181,470
=0.7022
Weight of debt = MV of Bond ÷ MV of firm
= $351,870 ÷ $1,181,470
= 0.2978
WACC = After tax cost of debt × Weight of debt + Cost of equity × Weight of equity
= 3.65 × 0.2978 + 11.33% × 0.7022
= 9.04%
working from home in fashion and creating her own buisness!
Answer:
Original price= $23,158.58
Explanation:
Giving the following information:
The company purchased a credit plan at Buy Right. Their monthly payments are $1,000 for 2 years. Buy Right will charge 3.45% per year compounded monthly.
First, we need to calculate the final value, using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly pay= 1,000
i= 0.0345/12= 0.002875
n= 12*2= 24
FV= {1,000*[(1.002875^24) - 1]}/ 0.002875
FV= $24,810.48
Now, we can calculate the original price:
PV= FV/(1+i)^n
PV= 24,810.48/ (1.002875^24)
PV= $23,158.58
Answer:
$28,500
Explanation:
FIFO will give the same result whether you use perpetual or periodic system.
Ending Inventory = Units Left × Earliest Price
Therefore,
Ending Inventory = 5700 units × $5.00
= $28,500
The percentage of commercial banks' checking and savings accounts that must be kept in the bank is referred to as :- Statutory Reserve Ratio.
The statutory reserve ratio (SRR) is the proportion of the deposit liabilities that commercial banks are required to keep as a cash deposit with the Central Bank. Under the Monetary Law Act (MLA), commercial banks are required to maintain reserves with the Central Bank at rates determined by the Bank.
<h3><u>Why is SRR important?</u></h3>
Reserve requirements are the amount of funds that a bank holds in reserve to ensure that it is able to meet liabilities in case of sudden withdrawals. Reserve requirements are a tool used by the central bank to increase or decrease the money supply in the economy and influence interest rates.
To know more about SRR, check the links.
brainly.com/question/24174376
brainly.com/question/24179879
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