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3 years ago

Which of the following is not normally considered an area of personal finance?

1 answer:

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Choice of a marriage partner does not form part of personal finance. Ideally, personal finance talks about retirement planning, investments, budgeting, cash flow or any other things that may affect financial stability.

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A firm's cost of equity is 22%. Its before-tax cost of debt is 13% and its marginal tax rate is 21%. The firm's capital structur

alisha [4.7K]

Answer:

WACC= 17.95%

Explanation:

Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund.

It is calculated using the formula below:

WACC = (We×Ke) + (Wd×Kd)

Ke-cost of equity- 22%

We- equity weight- 100% - 45% = 55%

Kd-After tax cost of debt-10.3%

Wd- 45%

After tax cost of debt = Before tax ×× (1- tax rate)

After tax cost of debt = 13%× (1-0.21) = 10.3%

Cost of equity = 22%

WACC =(0.55× 22%) + (0.45× 13%)=17.95%

WACC= 17.95%

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3 years ago

According to your text, in the broadest terms, the "marketplace" refers to:_________

OLga [1]

Answer:

A. The World of trade

Explanation:

The marketplace is an economic system where companies compete with each other in order to sell their products. It is a place where trade occurs. In the broadest terms, a marketplace is the world of trade where buying of goods and services takes place.

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3 years ago

Salon Du Jour offers special combination packages at a reduced price. Separately, a haircut is $30 and a conditioning treatment

Andreas93 [3]

Answer:

product bundle

Explanation:

Product bundling is a sales promotion strategy that involves marketers offer a discount on two or more items sold together as a single item. Complementary goods, or similar items are packaged and offered to consumers. Product bundling is also called package deals.

Product bundling may be targeted to a particular item on the bundle or both. Due to the discount offered, product bundling increases the revenues from the products on offer. It also can increase the market share for each of the products on offer. In this case, a haircut and a conditioning treatment are complementary services. Bundling them together encourages consumption for both.

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4 years ago

The Shoe Exchange issues 3,000 shares of its $1 par value common stock to provide funds for further expansion. The issue price i

Nezavi [6.7K]

Answer:

Debit Cash account $57,000

Credit Shares capital $3,000

Credit Share premium $54,000

Being entries to record cash received from the issuance of shares

Explanation:

Par value per share = $1

Issue price per share = $19

Premium per share from issue = $19 - $1

= $18

Number of issued shares = 3000

Share capital balance from issue = 3000 × $1

= $3000

Premium balance = 3000 × $18

= $54,000

Cash received from Issue = 3000 × $19

= $57,000

Entries to be posted

Debit Cash account $57,000

Credit Shares capital $3,000

Credit Share premium $54,000

Being entries to record cash received from the issuance of shares.

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3 years ago

A conservative investor has a portfolio that consists of diversified investments in equity securities, debt securities, and mone

satela [25.4K]

Answer:

Real Estate-Related Investments.

Explanation:

Real estate related investments involves the purchase, management, renting and sale of real estate properties with the aim of making profit.

Real estate investment is capital intensive and has low liquidity compared to other forms of investment.

This will be a good option for the conservative investor because real estate investment is stable and not prone to huge losses that can be incurred in the money markets. Also real estate is not affected by equities market. So will be a safety net in case of failure in the equity market.

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3 years ago