Answer:
$5.506 million
Explanation:
Data provided in the question:
Cost of the facility = $125 million
Debt-equity ratio = 0.65
cost of equity = 6.1 percent
cost of debt = 1.8 percent
Now,
Let the equity be 'E'
Thus,
= 0.65
or
Debt = 0.65E .................(1)
Thus,
Debt + Equity = $125 million
0.65E + E = $125 million [Debt = 0.65E from (1)]
1.65E = $125 million
or
E = $75.75 million
Thus,
Debt = 0.65E
or
= 0.65 × $75.75
= $49.24 million
Total flotation cost = 6.1% × $75.75 million + 1.8% × $49.24 million
= (4.62 + 0.886) million
= $5.506 million
The component of an environmental scan which pertains to the income, expenditures, and resources affecting the cost of running a business or household is called economy.
An environmental scan refers to an industry analysis where one discusses external environmental factors that have, or could have, an impact on a business operations. This scan is done to identify and interpret potential trends occurring outside the organization.
An economy is a area of production and consumption activities that determines how resources are allocated among all of its participants. An economy is usually region-based, for instance, a country or a town. Thus, it is the component of an environmental scan.
Hence, a country's economy is the wealth that it gets from business and industry.
To learn more about environmental scan here:
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Answer:
The direct labor cost cannot be ascertained from the information given in the question
Explanation:
Direct materials+Direct labor cost= $8300000
In order to determine the labor cost of the $8300000, we need a clue as to the percentage of the labor cost in the total of $8300000 or the portion of $8300000 that belongs to direct materials.
Since such a hint is missing,we can simply guess, costs incurred cannot be shared out on a basis that has no relationship with reality,hence, the correct answer is that the direct labor cost cannot be determined based on details provided.
<span>A firm obeys the least-cost rule by equating the ratios of marginal physical product to the factor price.
The marginal physical product refers to the adjustment in the quantity of aggregate item yields that outcomes from an adjustment in an item input.The marginal physical product identifies with work increments and coming about profitability increments, in economics.
Factor price refers to the cost at which the methods for creation (that is, arrive, work, capital and sometime business enterprise) are sold.</span>
Answer:
series HH bonds has total period of interest earn is of 20 years.
series EE bonds has total period of interest earn is of 30 year
Explanation:
United States government issues many different times of bonds during the different courses of time. Series HH bonds start the series of H types of bonds from January 1980 till August 2004 with a maturity period of 10 years with allowing 10 years as an extension. Thus the total period of interest earn is of 20 years. while on another side, series EE type of bonds starts from 1980 till the government issuing the bonds. The maturity period of the EE bond is of 20 years with a 10 year extension period. Thus the total period of interest earn is of 30 year