Proposals to increase the U.S. minimum wage to $15 an hour are often met with vehement objections that fast food workers should
1 answer:
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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%
Answer:
Explanation:
From an economist perspective, the demand and supply model predict that when there is an increase in demand (more people demand more gasoline because of the heavy tourist traffic) prices will increase, but the equilibrium quantity (quantity supplied, and quantity demand are equal) increases too. In the demand and supply graph, an increase in demand shifts the demand curve to the right (the graph attached shows that price changes from p1 to p2 and quantity changes from q1 to q2). Then, the economist perspective differs from the tourist perspective because prices do not rice because companies use excuses to "jack up" them, they rice because of the demand and supply model predicts it.
