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3 years ago

Why is it difficult to pay off debt and how can debt payments work against consumers?

1 answer:

8 0

Debt is hard because people like to put it off, and that putting it off has a cost called interest, eventually, something wil hit the consumer that will knock them oout and prevent them from making payments on time deepeenging them further into debt, then this repreats for along time

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\AllCity, Inc., is financed 40% with debt, 8% with preferred stock, and 52% with common stock. Its cost of debt is 5.7%, its pre

Pachacha [2.7K]

Answer:

WACC = 6.38%

Explanation:

Cost of equity = 1.7% + (1.15 x 5.6%) = 8.14%

Weight of equity = 52%

After tax cost of debt = 5.7% x (1 - 35%) = 3.705%

Weight of debt = 40%

Cost of preferred stock = $2.49 / $30 = 8.3%

Weight of preferred stock = 8%

WACC = (8.14% x 0.52) + (3.705% x 0.4) + (8.3% x 0.08) = 6.3788% ≈ 6.38%

3 0

3 years ago

According to circus founder P. T. Barnum, what happens without publicity?

almond37 [142]

Answer:

"A terrible thing happens without publicity...nothing!"

3 0

3 years ago

Read 2 more answers

Nelson Whiting (single) purchased a home in Denver, Colorado, for $300,000. He moved into the home on July 1 of year 1. He lived

Levart [38]

Answer:

$150,000

Explanation:

A rise in the worth of an asset over time that puts a higher price than the price the asset was purchased for is called a capital gain. Capital gains are not realized unless the assets are sold over and above their purchase prices.

In this case the asset was bought for $300,000 and sold for $450,000 representing a net gain of $150,000. All other factors remaining same, this is the amount of gain that Nelson can realize. There are normally capital gains tax payable that can be deducted from the net gain, not applicable in this case.

Hope that helps.

4 0

3 years ago

Alex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December

SpyIntel [72]

Answer:

The amount of cash collections from customers reported by Alex company for the year ended December 31, 2018 is $4,125,000.

Explanation:

Cash collection refers to the collection of cash from from an individual or a business whom invoice has been issued to. Any invoice unpaid are noted as being outstanding.

Cash collection fomular is therefore;

Cash collection = Sales on account + Cash sales + Decrease in accounts receivable

=$2,100,000 +$1,110,000 + $915,000

=$4,125,000

4 0

4 years ago

Which of the following represents a human resource factor that firms must consider when selecting an FDI location?A) intellectua

mina [271]

The involvement of labor unions represents a human resource factor that firms must consider when selecting an FDI location.

Economic theory holds that foreign direct investment (FDI) favors labor-intensive, low-tech output in emerging nations while favoring industrialized nations for high-tech production. FDI typically travels to nations where it is possible to use the internalization benefits of foreign investments to combine ownership advantages with location-specific advantages of the host nations (UNCTAD, 1998). FDI typically depends on a variety of investment-related criteria, such as the investment's motivation (market, resource, or efficiency reasons), the sector of the investment (manufacturing or services), and the size of the multinational firm or investor.

To know more about foreign direct investment click here,

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1 year ago