Answer:
7%
Explanation:
It would grow by 7% each year which is the rate of return on stocks
Answer:
WACC= 17.95%
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund.
It is calculated using the formula below:
WACC = (We×Ke) + (Wd×Kd)
Ke-cost of equity- 22%
We- equity weight- 100% - 45% = 55%
Kd-After tax cost of debt-10.3%
Wd- 45%
After tax cost of debt = Before tax ×× (1- tax rate)
After tax cost of debt = 13%× (1-0.21) = 10.3%
Cost of equity = 22%
WACC =(0.55× 22%) + (0.45× 13%)=17.95%
WACC= 17.95%
Answer:
$76,260
Explanation:
Calculation to determine the total period cost for the month under variable costing
Using this formula
Total Period cost = Variable selling and administrative cost + Fixed manufacturing overhead + Fixed selling and administrative cost
Let plug in the formula
Total Period cost = ($14 × 1,760) + $18,180 + $33,440
Total Period cost =$24,640+$18,180 + $33,440
Total Period cost =$76,260
Therefore the total period cost for the month under variable costing is $76,260
Answer:
The total number of firms in this industry will decrease in the long run because increased competition will mean lower profit margins which will lead to some firms earning sub normal profits which will force them to leave the industry.
Explanation:
Answer:
supply of loanable funds to the left; increase and decrease respectively.
Explanation:
The increase in the capital gains tax will reduce, the savings as it axes earnings on assets in the stock market. This reduction in savings will cause the supply of loanable funds to decrease.
This will further cause the supply curve for loanable funds to shift to the left. This leftward shift in the loanable fund's supply curve will cause the interest rate to increase and the equilibrium quantity of loanable funds to decrease.
