Answer:
18.11%
Explanation:
Data provided in the question:
Selling price = $181
Fees charged = 4% = 0.04
Face value = $181 per share
Dividend paid each year = 10% = 0.10
Annual growth rate = 7% = 0.07
Now,
Uber's cost of capital of this common stock
= [ D1 ÷ (Face value - D1)] + Growth rate
= [ ( $181 × 0.1) ÷ ($181 - 181 × 0.1)] + 0.07
= [ 18.1 ÷ 162.9 ] + 0.07
= 0.1811
or
= 0.1811 × 100% = 18.11%
<u>Solution and Explanation:</u>
Land = 430000 + 48000 - 6800 + 2050 + 1400 = $474650
Building = 2100 + 64000 + 700 + 1200000 + 1610000 + 220000 = $3096800
In the land, cost of land has been included and along with amount to raze old building is included. salvage value is subtracted and legal fees is included and insurance on property cost is also included in the calculation of land.
In the calculation of building, land survey fees is included, drawing of factory plans is included, insurance premium fess is included, instalments amounts is included and interest cost is also included.
Answer:
$5,550
Explanation:
Given:
Principle amount of the loan = $6,000
Duration of the loan = 10 years
Rate of interest = 10.5%
Principle payment made each month = $75
Now,
The total principle amount paid in six months
= Principle payment made each month × 6 months
= $75 × 6
= $450
Now,
the principle amount payment is made on addition to the interest, therefore no interest will be due after 6 months
Hence,
the principle loan balance
= Principle loan amount initially - Total principle paid
= $6,000 - $450
= $5,550
Answer:
Cost of equity is 11.2%
WACC is 8.74%
Explanation:
The formula for cost of equity is given below:
Cost of equity=risk free rate+(Beta *risk premium)
risk free rate is the treasury bill rate of 4%
Beta is 0.9
market risk premium is 8%
cost of equity=4%+(0.9*8%)=11.2%
WACC=Ke*E/V+Kd*D/V*(1-t)
Ke is the cost of equity of 11.2%
Kd is the cost of debt of 5%
t is the tax rate of 40% or 0.4
E is the equity weighting of 70% or 0.7
D is the debt weighting of 30% or 0.3
V is the E+D=0.7+0.3=1
WACC=11.20%
*0.7/1+(5%*0.3/1*(1-0.4)
WACC=7.84%
+0.90%
=8.74%
The impact of a federal budget deficit on interest rates and the trade balance is that it can bring about the inflow of foreign financial capital as well as a better exchange rate.
<h3>How can budget deficit have effect on trade balance?</h3>
When there is a stronger exchange rate there will be a little bit difficult for all the exporters that want to sell their goods to foreign countries, and at this time the imports will become cheaper.
In this case, trade deficit will definitely bring about an inflow of foreign financial capital as well as a good exchange rate.
Learn more about budget deficit on:
brainly.com/question/1083134
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