Answer:A. Priority to payment in all states.
Explanation: "Assignment" is a legal or Business term used to describe the transfer of ownership of a particular asset or liability from a one person(assignor) to an another person(an assignee). THIS IS USED IN DIFFERENT FORMS IN BUSINESS, it CAN BE IN THE TRANSFER OF REAL ESTATES TO SHARES ETC.
IT IS EFFECTIVE IN LAW WHEN THE NOTIFICATION IS RECEIVED BY THE DEBTOR WHICH IN THIS CASE IS ELIN.
Priority to payment is to Holli in all the States.
Answer:
Capital budgeting
Capital Structure
Working Capital Management
Explanation:
When a company wants to introduce any new product in the market it will do the cost benefit analysis and will involve the capital budgeting decisions.
When any kind of bonds are sold, shares are issued, debentures are sold, then that is about creating source of capital that is about, capital structure decision.
When the decision is made relating to any current assets or current liabilities, it is refer to working capital decisions as the working capital includes decision of current assets and current liabilities.
I think the most appropriate answer would be "greater"
I hope it helped you!
a.
WACC is calculated as –
WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)
WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))
WACC = 10.46%
b. After tax cost of debt is calculated as –
After tax cost of debt = (1- tax rate) X cost of debt pre-tax
After tax cost of debt = ((1- 40%)*8.1%))
After tax cost of debt = 4.86%