Answer:
$38,851 approx
Explanation:
As per the information provided in the question, the minimum annual rate of return would be at-least equal to the usual rate of return the investor (here uncle) earns. Here it is 9% per annum.
Anything earned below this rate of return will not satisfy the investor since this represents the minimum required rate of return.
A= 
Where A= Amount
P= Principal
r= Annual Rate Of Interest
n= period of loan
Therefore, A= 
A= $38,850.87 or $38,851 approx.
Answer:
13.75%
Explanation:
Data provided in the question:
Total expenditure = $16 million
Debt = $2 million
Preferred stock = $4 million
Common stock = $10 million
After-tax cost of debt = 7% = 0.07
Cost of preferred stock = 9% = 0.09
Cost of retained earnings = 14%
Cost of new common stock = 17%
Now,
Weight of debt = $2 million ÷ $16 million
= 0.125
Weight Cost of preferred stock = $4 million ÷ $16 million
= 0.25
Weight Cost of new common stock = $10 million ÷ $16 million
= 0.625
The weighted average cost of capital for this project
= ( 0.07 × 0.125 ) + ( 0.09 × 0.25 ) + ( 0.17 × 0.625)
= 0.00875 + 0.0225 + 0.10625
= 0.1375
or
= 0.1375 × 100%
= 13.75%
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
A
Explanation:
wldodoro and I have been compounded 3orif for the local community and sort them 56feet out in the development area and to the environment I will not magnify the role I am
Answer:
Explanation:
There are many successful businesses that have risen from nothing. One business that stands out was the website X which is now known as Paypal. Looking at this business and many other successful ones I have learned that making a business successful relies on two main factors. Whether or not your product/service solves a real-life problem, and if you have your correct target audience. Getting both of these two factors correct almost guarantees that your business will be a success assuming you put in the effort.
