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tatyana61 [14]
3 years ago
7

WACC. Eric has another​ get-rich-quick idea, but needs funding to support it. He chooses an​ all-debt funding scenario. He will

borrow ​$4 comma 3114,311 from​ Wendy, who will charge him 66​% on the loan. He will also borrow ​$3 comma 3503,350 from​ Bebe, who will charge him 88​% on the​ loan, and ​$1 comma 3391,339 from​ Shelly, who will charge him 1414​% on the loan. What is the weighted average cost of capital for​ Eric?
Business
1 answer:
maks197457 [2]3 years ago
5 0

Answer:

274.7%

Explanation:

The total amount that Eric will borrow will be = 43114311+33503350+13391339 = 90009000.

Now to calculate WACC, we will apply the WACC formula:

WACC = (43114311/90009000)*0.66 + (33503350/90009000)*0.88 + (13391339/90009000)*14.14

Hence,

WACC = 274.74%

The solution was very simple, we just applied the WACC formula by taking the total amount of debt in the denominator of each of the loans taken and multiplied it by the interest rate on which it is taken.

Hope this helps, although I think the values in the question are not correct, but nonetheless I have provide the correct solution according to the given values.

Thanks.

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The state of texas encourages the parties to resolve all conflicts and disputes through alternative dispute resolution procedure
34kurt

The state of Texas encourages the parties to resolve all conflicts and disputes through alternative dispute resolution procedures such as mediation.

Mediation is an act or process of mediating by helping to settle a dispute or create agreement when there is conflict between two or more people or groups. This conflict is usually settled when the parties meet with a mutually selected impartial and neutral person who assists them in the negotiation of their differences.

Texas in United States, encourages the parties who are yet to resolve all conflicts and disputes between them, by mediation. As mediation will help them in settling down their differences.

Hence, mediation is quite necessary in order to resolve all conflicts and disputes.

To learn more about mediation here:

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5 0
1 year ago
A currency trader observes the following quotes in the spot market: 1 U.S. dollar = 122 Japanese yen 1 British pound = 2.25 Swis
andrezito [222]

Answer:

88.38

Explanation:

Given;

1 U.S. dollar = 122 Japanese yen

1 British pound = 2.25 Swiss francs

1 British pound = 1.63 U.S. dollars

Therefore,

2.25 Swiss francs = 1.63 U.S. dollars

1 US. dollar = 2.25/1.63 Swiss francs

1 US dollar = 1.38 Swiss francs

since

1 U.S. dollar = 122 Japanese yen then,

1.38 Swiss francs = 122 Japanese yen

1 Swiss francs = 122/1.38 Japanese yen

1 Swiss francs  = 88.38 Japanese yen

1 Swiss franc can be used to purchase 88.38 Japanese yen.

8 0
3 years ago
Starr Corporation loaned $600,000 to another corporation on December 1, 2020 and, in exchange, received a 3-month, 8% interest-b
prisoha [69]

Answer:

                          Adjusting entry

Date    Account Title                      Debit        Credit

           Interest receivables           $4,000

           ($600,000*8%*1/12)

                   Interest revenue                            $4,000

           (To record accrued interest on note)

3 0
3 years ago
Suppose that the last dollar that Victoria receives as income brings her a marginal utility of 10 utils while the last dollar th
sammy [17]

Answer:

a, Redistribute income from Victoria to Fredrick.

Explanation:

Marginal Utility is defined as the "change in the utility from an increase in the consumption of that good or service." According to my research on marginal utility, I can say that based on the information provided within the question we should Redistribute income from Victoria to Fredrick in order to maximize the combined total utility.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0
3 years ago
Karen Meyer owns and operates Crystal Cleaning Company. Recently, Meyer withdrew $10,000 from Crystal Cleaning, and she contribu
elena-14-01-66 [18.8K]

Answer:

a. Karen Meyer's personal records

c. American red cross

Explanation:

The $6,000 contribution should be recorded in Karen Meyer's personal records because 1) the donation was made on her personal name 2) a donation of such size is relevant when Karen files her taxes.

The contribution should also be recorded in the American red cross records because the organization needs to clarify to the tax authorities where each sum of money it obtains comes from.

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