Answer:
Investment in fund b = $15,000
Explanation:
Let us assume funds invested in fund b = x while the sum total of funds invested in fund a & b = Y .ie Y = $6000 + x
Fund A returned $6000 * 3/100 = $180
Fund B returned = x & 10/100 = x/10
8%y(total returns) = funds a returns + fund b returns
8%y = $180 + (x/10)
let is replace y with 6000 + x
(6000 +x) * 8% = 180 + (x/10)
480+ 8x/100 = 180 + (x/10)
480 - 180 = (x/10) - (8x/100)
300 = (10x - 8x )/100
300 = 2x/100
300*100 = 2x
30,000 = 2x
x = 15, 000
$42.25
- trade prices that are shown on the tape DO NOT include commission.
Answer: The answers are explained below.
Explanation:
• Cost of debt: The cost of debt is the interest rate that a company is charged on its debts. It is the interest paid on bonds, loans etc. The cost of debt is usually the before-tax cost of a debt.
• Cost of equity: The cost of equity is the return a firm pays to its equity investors e.g shareholders in order to reward them for the risk taken by investing their capital. Companies need capital to operate and grow hence, individuals and organizations who provide funds to such companies are rewarded.
• After tax WACC: The Weighted Average Cost of Capital (WACC) is a firm's combined cost of capital including preferred shares, common shares, and debt after the deduction of tax.
• Equity Beta: It measures the sensitivity of the stock price to changes in market. Equity Beta is also called levered beta.
• Asset beta: It is the beta of a firm without the effect of debt. It is a company's volatility of returns without its indebtedness.
• Pure play comparable: The pure play comparable is the taking of the beta estimate of another company that is comparable and in same line of business.
• Certainty equivalent: It is the guaranteed return that an individual would take now, rather than awaiting a higher but uncertain return later in the future.
Answer:
Option D is correct.
Third-degree price discrimination
Explanation:
tennis coach charges $15 per hour for tennis lesson for children and $30 per hour for tennis lessons for adults. This can be viewed as a practice of <u>Third-degree price discrimination.</u>
Third Degree Price Discrimination involves charging a different price to different groups of consumers for the same good. These groups of consumers can be identified by particular characteristics such as age, sex, location, time of use.
