Answer:
11%
Explanation:
The formula to compute WACC is shown below:
= Weightage of debt × after cost of debt + (Weightage of preferred stock) × (cost of preferred stock) + (Weightage of common stock) × (cost of common stock)
= (0.40 × 6%) + (0.10 × 11%) + (0.50 × 15%)
= 2.4% + 1.1% + 7.5%
= 11%
Simply we multiply the weightage with its cost so that the correct cost of capital can come based on weighted average
Answer:
D. Most potential buyers already have a product that satisfies this need or want.
Explanation:
A saturated market is one that is not creating additional demand for a product. It means demand for a particular product has reached its optimal level. In a saturated market, the sales growth of a product stagnates. All potential buyers have a product they are happy to consume. New entrants will have a challenge penetrating a saturated market.
Answer:
Particulars Amount
Sales $955,000
Less: Fixed cost of goods sold $111,000
Less: Variable cost of goods sold <u>$261,000</u>
Gross Profit $583,000
Less: Fixed selling & admin. costs $111,000
Less: Var. selling & admin. costs <u>$136,000</u>
Operating Income <u>$336,000</u>
Answer:
A. Because the bank can invest your money to make more money for itself
