The central bank uses a ____________________ monetary policy to offset business related economic contractions and expansions? la
1 answer:
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The standard deviation of sample equals: 11
Explanation:
Given:
variance of sample () = 121
no, of observations made = 441
standard deviation = ?
By using the formula:
Standard deviation (S) =
=
=
= 11
Hence the standard deviation is equal to 11.
Answer:
WACC 10.38305%
Explanation:
<em><u>First we solve for the source of financing:</u></em>
Expansion: 5,900,000
60% Equity: 3,540,000
Retained Earnins 2,000,000
then 1,540,000 will be common equity
40% debt: 2,360,000 It can raise up to 3,000,000 so it will be sufficient
D 2,360
E 1,540
RE 2000
V 5,900
Now we can solve for Weighted average cost of capital
Ke 0.15
Equity weight 0.261016949 (1,540,000 / 5,900,000)
Kre 0.12
RE Weight 0,338983 (2,000,000 / 5,900,000)
Kd 0.1
Debt Weight 0.4 ( 2,360,000 / 5,900,000)
t 0.4
WACC 10.38305%