Out of the choices given, the best financial situation is to have enough money saved for your emergency fund and are paying off your credit card debt. You need to make sure you have your emergency fund saved for and then pay off your debt because if you don't and an emergency arises you are likely going to use the credit card again for the emergency. Paying off credit card debt is important but at the same time, paying off your credit card while not adding funds to it is even more important.
Answer:
8.15%
Explanation:
The weighted average cost of capital is the sum of costs of different sources of finance multiplied by their respective weights as shown by the formula below:
WACC=(cost of equity*weight of equity)+(cost of preferred stock*weight of preferred stock)+(after-tax cost of debt*weight of debt)
cost of equity=11.25%
weight of equity=55%
cost of preferred stock=6.00%
weight of preferred stock=10%
after-tax cost of debt=6.50%*(1-40%)=3.90%
weight of debt=35%
WACC=(11.25%*55%)+(6.00%*10%)+(3.90%*35%)
WACC=8.15%
Answer:
The interest expense may she deduct this year is $18200.
Explanation:
interest expense deducted this year = interest on home load + marginal interest for the purchase of stock
= $15,100 + $3,100
= $18200
Therefotr, the interest expense may she deduct this year is $18200.
Answer:
Big buy must sell at large at a smaller price which will give tough time to Radio Shack and this is the threat that RadioShack don't want to bear.
Explanation:
Best Buy will choose large quantity because it helps in satisfying the needs of public at large at a lower price. This will force RadioShack to lower its price which will result in losses and this fear of losses will act as a enterance deterent. Though the profit on this strategy is lower but it will safeguard future revenues as RadioShack will not enter the market or get defeated very quickly.
