The positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited,
1 answer:
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Answer: 0.11 or 11%
Explanation: The dollar-weighted return (DWR) measures the rate of return of an investment or a portfolio, taking under consideration the timing of flows. for every deposit, add the resulting amount to the start balance, and for every withdrawal, subtract that quantity. Check the attachment for the solution.
Once you've got both numbers, divide the first by the second. which will offer you the dollar-weighted investment return, which you'll then multiply by 100 to give you a return in percentage terms.
Answer:
a. 7.30%
b. 4.745%
Explanation:
For computing the pretax cost of debt we have to applied the RATE formula i.e to be shown in the attachment below:
Given that,
Present value = $1,000 × 106% = $1,060
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 8% ÷ 2 = $40
NPER = 14 years × 2 = 28 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula
a. The pretax cost of debt is
= 3.65% × 2
= 7.30%
b. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 7.30 % × ( 1 - 0.35)
= 4.745%
