Answer:
0.45
Explanation:
Calculation for What would be its weight on common equity
Using this formula
Weight on common equity= Common equity/(Debt+Preferred stock+Common equity+ )
Let plug in the formula
Weight on common equity=$3.3 million /($1.1 million +$3 million +$3.3 million)
Weight on common equity=$3.3 million/$7.4 million
Weight on common equity=0.45
Therefore What would be its weight on common equity is 0.45
Answer:
The answer is: E) None of the above
Explanation:
Using an excel spreadsheet and the RATE function, we can calculate the monthly interest rate of renting the TV:
=RATE(36,-60,1000)
= 4.94% monthly interest rate
Then we multiply the monthly interest rate by twelve to get the APR:
APR = 4.94% x 12 = 59.3%
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