Sora is the best group note taker; she meets are the criteria.
Answer:
7.38%
Explanation:
Calculation to determine what would be AJC's new WACC and total value
Using this formula
WACC and total value=(Equity)(Required rate of return on equity)+(Debt)(1-Tax rate)(Required rate of return on debt)
Let plug in the formula
WACC and total value=(0.6)(0.095)+(0.4)(1-0.4)(0.07)
WACC and total value=0.057+0.0168
WACC and total value=0.0738*100
WACC and total value=7.38%
Therefore would be AJC's new WACC and total value is 7.38%
The average cost curve and the variable revenue curve are two lines which intersect at level of output when the firm is supplying and that business is earning zero economic profits.
If the price which the firm is charging from customer is higher than its average cost of production for the quantity of the goods produced, then the firm will earn profits to a large extent.
Conversely, if the price which is charged by the firm is lower than its average cost of production, the firm will suffer losses.
Thus when the cost is equal to the revenue of the firm it means there is no profit at all. At this level the average cost curve will intersect the revenue curve.
To know more about marginal cost curve here:
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Demand and supply are creating customers who are educated about their needs and all the available options for meeting those needs.
Demand is when people are willing to buy and pay for goods and services at a certain time, while supply is the amount of goods and services available by suppliers to consumers.
There is usually an interaction between the sellers of a resource and the buyers for that resource hence supply create and make available resources while demand pay for the available resources.
Therefore, Demand and supply are creating customers who are educated about their needs and all the available options for meeting those needs.
Learn more: brainly.com/question/4803223
Answer:
8.1%
Explanation:
Firstly, let look at the formula for calculating weighted average cost of capital (WACC):
WACC = (D/A) x r_D x (1-t) + (E/A) x r_E + (PE/A) x r_PE, where:
A: Market value of company asset;
D: Market value of company debt;
E: Market value of company equity;
PE: Market value of company preferred equity;
r_D: cost of debt;
r_E: cost of equity/retained earnings;
r_PE: cost of preferred equity;
t: tax rate
Putting all the numbers together, we have:
WACC = 35% x 6.5% x (1-25%) + 55% x 10.5% + 10% x 6% = 8.1%
