Answer:
Cost of equity is 11.2%
WACC is 8.74%
Explanation:
The formula for cost of equity is given below:
Cost of equity=risk free rate+(Beta *risk premium)
risk free rate is the treasury bill rate of 4%
Beta is 0.9
market risk premium is 8%
cost of equity=4%+(0.9*8%)=11.2%
WACC=Ke*E/V+Kd*D/V*(1-t)
Ke is the cost of equity of 11.2%
Kd is the cost of debt of 5%
t is the tax rate of 40% or 0.4
E is the equity weighting of 70% or 0.7
D is the debt weighting of 30% or 0.3
V is the E+D=0.7+0.3=1
WACC=11.20%
*0.7/1+(5%*0.3/1*(1-0.4)
WACC=7.84%
+0.90%
=8.74%
Because when you are asking somebody, you need to be informed about the object and most objects involve science.
hope this helped :)
Answer:
12.5%
Explanation:
A portfolio has $2,800 invested in stock A
$3,900 is invested in stock B
The expected return of stock A is 9%
= 9/100
= 0.09
The expected return of stock B is 15%
= 15/100
= 0.15
The first step is to calculate the total value
= $2,800+$3,900
= $6,700
Therefore, the expected return on the portfolio can be calculated as follows
= (2,800/6,700)×0.09 + (3,900/6,700)×0.15
= 0.4179×0.09 + 0.5820×0.15
= 0.03761 + 0.0873
= 0.1249×100
= 12.5%
Hence the expected return on the portfolio is 12.5%
Answer:
b. surpluses of the commodity will develop
Explanation:
A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.
If price ceiling is set above equilibrium price, suppliers would increase supply while consumers would reduce demand. This would lead to an excess supply and surplus in the economy.
When price ceiling is set above equilibrium price, it is known as a non binding price ceiling.
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Answer:
ABC Daycare
Effect of Performing Plumbing Services on account on the Accounting Equation:
Assets (Accounts receivable) will increase by $565 and Equity (Retained Earnings) will equally increase by $565
Explanation:
a) Data and Analysis:
Accounts receivable $565 Service Revenue $565
The accounting equation that equals assets to liabilities and equity is always true at all times and with every correctly posted transaction. It implies that assets are financed through the contributions made by either the owners (equity) or the creditors (debts), or a combination of the two. This equation forms the basis for the double-entry system of financial accounting.
