Answer:
e of the case studies in the textbook, Jerry Harkanell worked as an administrative
continued to alter his timesheets until he was finally caught. How was his scheme detected
Answer: Decline in GDP = $1009.3 billion
Explanation:
Okun's law shows us the relationship between a nation's unemployment rate and its level of output or real GDP.
According to the Okun's law,
Therefore, a 7% decline in GDP as compared to the level in 2009 means,
= 1009.33 billion or 1009.3 billion
Thus, GDP declined by $1009.3 billion.
Answer:
sales forecasting
Explanation:
Sales forecasting is a mathematical tool or process to estimate the amount of sales for a product over a given period of time.
Sales forecasts helps companies to make better business decisions so as to analyse the short-term and long-term performance.
The basis for the forecast are generally the past sales data of the product, industry-wide comparisons, and the economic trends for the related products.
Answer: 9.48%
Explanation:
Given Data
Debts ;
$7 billion
$2 billion
$13 billion
Beta of Fords stock = Beta = 1.50
Market risk premium = Rp = 8.0%
Risk free rate of interest = Rf = 4.0%
Equity rate = 1.7
Market risk rate = 0.8
Risk free rate = 0.03
Therefore;
Cost of Equity ( Re ) = Risk free rate + equity rate × market risk premium
= 0.03 + (1.7 × 0.8)
= 0.166
Preferred Stock Cost ( PSC)= Dividend ÷ stock price
= 4 ÷ 30
= 0.1333
Total debt = 13 + 6 + 2 = 21 billion
D% = 13 billion ÷ 21 billion
= 0.619
E% = 6 billion ÷ 21 billion
= 0.286
P% = 2 billion ÷ 21 billion
= 0.095
RD = debt capital at 8% maturity rate
Tc= 30%
Rwac =(w/ preferred stock)
= Re × E% + PSC × P% + Rd ( 1- Tc) D%
Rwac = (0.166)(0.286) + (0.1333)(0.095) + (0.08)(1- 0.3)*(0.619)
= 0.094803 * 100
= 9.48%
At 30% tax rate Ford weighted average cost is 9.48%
