<span>If the interest rate is 10%, the factor for the future value of annuity due of 1 for n = 5, i = 10% is equal to the factor for the future value of an ordinary annuity of 1 for n = 5, i = 10%
</span><span>multiplied by 1.10.</span>
The weighted average cost of capital (WACC) is the average rate an organization pays to finance its assets.
<h3>How is Weighted Average Cost of Capital determined?</h3>
It is calculated by averaging the rates of all of the company's capital sources (debt and equity), with weights assigned based on the proportions of each component.
Business owners may consult their WACC to discover the ideal ratio of equity to debt for their organization. A company's cost of equity is frequently higher than the interest rate on its debt. Entrepreneurs usually want a higher rate of return on their investment than what lenders charge for borrowing money. In addition, interest on debt is tax deductible. Therefore, as a company's debt as a percentage of total capital increases, its WACC frequently declines. Getting lower borrowing rates reduces WACC.
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Answer:
1. Many people do not trust businesses that sell products online, especially if they are not familiar with the company’s name. Yet they will walk into a new business in their city and shop with little concern. What causes the difference in people’s views of online businesses versus traditional businesses?
The idea of interactive with a non human entity as a computer make people feel acquard as they distrust what are the final intentions of the person behind the e-shop. They also feel fear as ther dont know where they can go to complain about some deal gone wrong.
2. Do you agree with Dontae that it is easier to shop in an actual store in a mall than from the same business online? Why or why not?
No, it is easier to buy online as the person do not need to expend the same time an energy in going and buying from a mall
3. What is your opinion of Jillian’s comparison between entering a credit card number online and handing the card to a clerk who checks it using a telephone line from the store to the credit card company?
I agree, it is the same as buying online, as the clerk could commit a crime as well as the person that is in the telephone.
Chapter 2 Discussion
4. What do you think of Toni’s idea of downloading music for free? Do you think this is legal? How can Toni be sure that she is engaging in legal and ethical behavior when she uses the freemusic site?
Is a good idea and it depends in the type of page you are browsing. If the internet page has a disclaimer saying that the music that is offering is free to download and is legal there is no unethical behavor in it.
Explanation:
Answer:
sales decline
Explanation:
everyone stopped buying DVDS because they are kind of useless at this time period, which means they couldn't make any money
Answer:
$89.66
Explanation:
Data provided in the question:
Amount deposited by sister = $2,500
Interest earned by sister = 6.5% = 0.065
Time = 15 years
Now,
let the amount to be deposited be 'P'
Therefore,
using the compounding formula
$2,500 × (1 + 0.065)¹⁵ = P × (1 + 0.0625)¹⁵
or
$2,500 × 2.5718 = P × 2.48276
or
P = $2,589.66
Therefore,
Extra amount to be deposited = $2,589.66 - $2,500
= $89.66