Answer:
The answer is letter C.
Explanation:
Revenues of the blended component unit.
The question is incomplete, below is the complete question.
Summarize how Federal spending priorities has changed since the 1960s.
(Changing budget priorities) What spending category claimed the largest share of federal outlays during the 1960s? How about during the most recent decade?
Answer:
A) Addressing on a national defence,largest share of federal outlays was claimed during the 1960s.
So to say,during the said 1960s, what contributed between 40 to 50 percent of federal outlays is spending on national defence.
B) Following the coming decade, that is during the most recent decade, Federal government having moved it's focus of spending from national defense to income redistribution. Some programs like Medicare,social security as well as other welfare related programs now account for federal spending.
Recently in this decade,just Medicare accounts for up to 30 percent of the federal outlays and when combined with welfare spending,up to 50% percent big outlays is visibly seen for these programs.
Moreover, spending on national defense has always been fixed in recent decades at about 18%.
Answer:
a. 8.04%
Explanation:
Cost of equity = [D1/P0(1-f)] + g
= [$0.65/$15(1-0.1)] + 0.06
= 10.81%
Cost of debt = 7.75%(1-0.40)
= 4.65%
WACC = 10.81%x0.55 + 4.65%x0.45
= 8.04%
Answer: Callable bonds
Explanation: In simple words, callable bonds refers to the bonds that have an embedded option that the issuer of such bonds can retain them at a specific date and a t a specific price.
The issuer of bonds holds the right to call back bonds and the bondholders have an obligation to do so. Thus, the holders of such bonds bears a high risk relating to reinvestment as the issuer will only repurchase these bonds when the yield in market is lower than the yield they are paying to the bond holders.
Therefore, at the time of issuance such bonds offer higher yields than market.
Answer:
EAC of machine A: $-179.63
EAC of machine B: $-168.42
Explanation:
Firstly, we need to calculate total net present value (NPV) of all cashflows for each of the machines. Then, we will use these amounts to solve for the equvalent annual cost (EAC) for each machine.
NPV of machine A = -85 - 130/(1 + 11%) - 130/(1 + 11%)^2 = -307.63
NPV of machine B = -155 - 105/(1 + 11%) - 105/(1 + 11%)^2 - 105/(1 + 11%)^3 = -411.59
Now, we will solve for the EAC of each machine:
Machine A: -307.63 = EAC_A/(1 + 11%) + EAC_A/(1 + 11%)^2. Solve the equation, we get EAC_A = -179.63.
Machine B: -411.59 = EAC_B/(1 + 11%) +. .. + EAC_B/(1 + 11%)^3. Solve the equation, we get EAC_B = -168.42.
So, we should choose machine B