Answer:
The WACC is 11.64%
Explanation:
The weighted average cost of capital or WACC is the cost to firm of raising its total capital based on its capital structure. The capital structure of the firm can contain debt, preferred stock and common stock. The WACC take the weight of each component as a proportion of total value of assets and multiply it by the rate of return or cost of each component.
WACC = wD * rD * (1-tax rate) + wE *rE
Where,
- wD and wE represent the weights of debt and equity as a proportion of total assets
- rD and rE are the cost of debt and cost of equity
- We multiply rD by (-tax rate) because we take after tax cost of debt for WACC calculation
Weight of debt = 2000000 / (2000000 + 3000000) = 2/5 or 0.4
Weight of equity is = 1 - 0.4 = 0.6
WACC = 0.4 * 0.06 * (1-0.4) + 0.6 * 0.17
WACC = 0.1164 or 11.64%
Answer:
present value = $57.14.28
present value = $2857.13
Explanation:
given data
perpetuity value = $400
interest rate = 7% = 0.07
interest rate = 14% = 0.14
to find out
What is the present value
solution
we get her present value that is express as
present value = ............1
put here value for rate 7% and 14%
present value =
present value = $57.14.28
and
present value =
present value = $2857.13
Answer: Economic profit covers implicit costs as well.
Explanation:
Economic profit and Accounting profits are two different things. Economic profit accounts for both explicit costs (operating costs) and implicit costs (opportunity costs) while Accounting profit accounts for only explicit costs.
When economic profit is zero therefore, it means that the firm is still covering the implicit costs so they will not be enticed to divest because their opportunity costs are being taken care.
It would therefore be wise to stay invested as this shows that this alternative is the best out of the other alternatives.
Answer:
A: Demand of euros in foreign market.
B: Supply of Euros
C: Demand of Euros
D: Demand of Euros
E: Supply of Euros
F: Demand of Euros
G: Supply on Euros.
Answer:
The correct answer is A) technological component.
Explanation:
In many cases, when talking about information systems and information technology in the business context. You tend to consider them the same thing. However, although they have a close relationship they are not the same.
One of the ways to evaluate what the ICT contribution a company requires is by analyzing each of the elements that make up the ICT. These elements are called technological components.