Answer:
American Explorations current WACC is 9%
Explanation:
The computation of WACC is shown below:
= (Cost of equity × equity percentage) + (after-tax cost of debt × debt percentage)
= (12% × 50%) + (6% × 50%)
= 6% + 3%
= 9%
Since we have to compute only current WACC so we considered the 50-50 ratio. Hence, we ignored 70% cost of debt
WACC shows a relationship between debt, equity and the preferred stock.
Answer:
The correct answer is B
Explanation:
Inferior goods are those goods or kind of goods whose demand declines or decrease when the income of the person or customer increases or rises. In other words, it means that the inferior goods demand is inversely associate to the customer or consumer income.
So, in this case, the income rises by 8% and the quantity demanded for the ice cream declines or falls by 18%, then the vanilla ice cream would considered as the inferior good.
Answer:
1.- The operating income would <u>increase </u>for $680
2.- The operating income would <u>decrease</u> for $680
3.- The Operating Income would be $59,500
Explanation:
We are going to use the contribution margin per unit
<u>This way we avoid most of the calculations</u>
1.- Contribution Margin x ΔUnits = ΔOperating Income
CM per units 17 x 40 = <em>680</em>
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2.- Contribution Margin x ∨Units = ∨perating Income
CM per unit x (-40) = <em>-680</em>
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3.- Contribution Margin x Sales Volume - Fixed Cost = Operating Income
17 x 6,800 - 55,700
115.600 - 55,700 =<em> 59,900</em>
A product placement is part of an existing story. Unlike an advert you aren’t watching a product placement for the product but for the story it is found in.
