Answer:
<em>WACC 10.07765%</em>
Explanation:
We solve for the cost of debt by solving for the discount rate which makes the future coupon payment and maturity of the bond equal to 1,020
This is solved using excel or a financial calculator
C 32.50
time 34
<em>rate 0.03153274</em>
PV $672.0015
Maturity 1,000.00
time 34.00
<em> rate 0.03153274</em>
PV 348.00
PV c $672.0015
PV m $347.9985
Total $1,020.0000
<u>annual cost of debt:</u>
0.031532 x 2 = 0.063064 = 6.31%
<u>debt outstanding:</u>
5,000 bonds x $ 1,000 x 102/100 = 5,100,000
<u>equity</u>:
105,000 shares x $59 each = 6,195,000
For the equity we solve using CAMP
risk free = 0.05
market rate = 0.09
premium market = (market rate - risk free) 0.085
beta(non diversifiable risk) = 1.17
<u>Ke 0.14945</u>
Now we solve for the WACC
D 5,100,000
E 6,195,000
V 11,295,000
Equity weight 0.5485
Debt Weight 0.4515
Ke 0.14945
Kd 0.0631
t 0.34
<em>WACC 10.07765%</em>
Answer:
a. buyers tend to be much less sensitive to a change in pricewhen given more time to react.
Explanation:
The options to this question wasn't provided. The full question can be found here: https://www.chegg.com/homework-help/questions-and-answers/32-holding-forces-constant-price-ofgasoline-rises-number-gallons-gasoline-demanded-wouldfa-q532985
Here are the options to the question:
a. buyers tend to be much less sensitive to a change in pricewhen given more time to react.
b. buyers tend to be much more sensitive to a change in pricewhen given more time to react.
c. buyers will have substantially more income over a ten-yearperiod.
d. the quantity supplied of gasoline increases very little inresponse to an increase in the price of
The demand for a good is usually inelastic in the short run considering the time consumers would take to search for an alternative.
When the price of gasoline rises, it is expected that quantity demanded falls but the fall in quantity demanded might take place over a period of time because it would take time for consumers to find suitable alternatives to gasoline.
I hope my answer helps you
Answer:
it is an assault if they know you, but they can choose if you are accused of it.
Explanation:
Whether the court's judgment will be enforced by a court in Japan depends on the Japanese court's application of the principle of comity
.
Option d
<u>Explanation:
</u>
The constitutional reciprocity, the idea that some courtesies must apply to others or to other jurisdictions in the same country, is unique to the committee of law. The legitimacy and efficacy of their administrative, legislative and judicial decisions is known in particular.
The International Committee doctrine was described in different ways "as a principle of choice of law."
Lord Mansfield, an English solicitor and jurist, introduced the concept of a committee into English legislation. Mansfield considered the application of the committee to be taxable, with courts using foreign law "except to the extent that it was incompatible with public policy principles.
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