Answer:
d. $1,876,306.49
Explanation:
As for the provided information,
Total funds needed at end of 4.5 years = $2.2 million
For this current savings are to be invested on a compound interest, where the rate of interest = 3.6%
Compounding period = Annually.
Therefore, future value factor of $1 after 4.5 years @ 3.6% = 1.1726997
The value of $2.2 million as on date = 
= $1,876,306.49
Therefore, the correct answer is
Option d.
Answer:
a) Raise the sales revenue.
b) Decrease the cost of raw materials.
c) Decrease discretionary fixed cost
Explanation:
<em>Return on Investment (ROI) = Divisional Profit Contribution / Assets Employed in the Division</em>
ROI increases when the Divisional Profit Contribution increased and Assets Employed in the Division are reduced.
Answer:
corporate-level strategy
Explanation:
Based on the information provided within the question it can be said that this is an example of a corporate-level strategy. This strategy refers to when the higher ups in a business make an informed decision that will affect the company as a whole, including the company's employees, finances, human resources, management, and even the location at which products/services are sold. Such is the case in this scenario since they are jumping into a new country in order to dominate that sector within the telecommunications business.
Answer:
component cost of debt to calculate wacc = 0.7
Explanation:
given data
par value = $1000
time = 20 year
rate = 7%
tax rate = 40%
tax rate = 30 %
to find out
cost of debit use to calculate wacc
solution
we know cost of debt before tax is 7%
so when tax is 30 % cost of debt after tax is = 7% ( 1 - tax rate )
cost of debt after tax = 7% ( 1- 0.30 )
cost of debt after tax = 4.9 .......................1
and
so when tax is 40 % cost of debt after tax is = 7% ( 1 - tax rate )
cost of debt after tax = 7% ( 1- 0.40 )
cost of debt after tax = 4.2 .......................2
so
from equation 1 and 2
component cost of debt to calculate wacc = 4.9 - 4.2
component cost of debt to calculate wacc = 0.7
Answer:
13.55%
Explanation:
The computation of rate of return for the project is shown below:-
For computing the rate of return for the project first we need to compute the Rate of return as per CAPM which is here below:-
Rate of return as per CAPM = Risk free rate + Beta × Premium
= 2.8% + 1.25 × 7%
= 11.55%
Required rate of return = Rate of return as per CAPM + Project's discount rate
= 11.55% + 2%
= 13.55%
