It is probably safe to say that most if not all decisions involve trade-offs. For example a person may be offered a job that pays well but requires 7 days per week for a month and while this is good for a younger person with no other commitments it may not work for an older person with his own family commitments and other projects. Another decision could be that for support, a husband decides to not take on major time consuming projects while his wife is doing intensive studying to become certified in a field of her choosing so that he can support her. Another example is that when one cannot drive one's son with a disability to a beach to swim because it is too far and uses too much car gas, the money saved on gas some of it could be spent on his groceries.
Answer:
The weights to be assigned to each component in WACC calculation is are,
Debt = 25.17%
Preferred stock = 4.69%
Common Stock = 70.14%
Explanation:
The WACC or weighted average cost of capital is the cost to a firm of its capital structure which can contain the following components- debt, preferred stock and equity. To calculate the WACC, we use the market values of debt and equity in our calculation to assign weights to each component of the capital structure.
Market value of common shares = 49 * 5.8 million = $284.2 million
The total value of capital structure is = 284.2 + 102 + 19 = $405.2 million
<u>The weights to be used in WACC calculation is:</u>
Debt = 102 / 405.2 = 0.2517 or 25.17%
Preferred stock = 19 / 405.2 = 0.0469 or 4.69%
Common Stock = 284.2 / 405.2 = 0.7014 or 70.14%
Answer:
The answer is a. 14.33.
Explanation:
We apply the net present value (NPV) methodology to approach the two options.
+ The lifetime subscription's npv = $(850)
+ The annual subscription's npv = - 85 - [ 85/6% * [ 1 - 1.06^(-n) ], with n is the number of years the subscriber still lives.
To make a lifetime subscription a better buy, the NPV of this option should be higher than the NPV of annual subscription or:
85 + [ 85/6% * [ 1 - 1.06^(-n) ] > 850 <=> 1 - 1.06^(-n) > 0.54 <=> 1.06^(-n) < 0.46 <=> -n < -13.33 <=> n > 13.33.
So, the subscriber should live more than 14.33 years ( 13.33 + 1 years for another next year subscription) to make the lifetime subscription a better choice.
So, a is the correct choice.
Answer:
B. the amount by which government purchases and transfers exceed tax revenues.
Explanation:
Primary deficit is the borrowing requirements of government excluding interest. It is the addition of government purchases and transfers less tax revenues. It is the amount by which spending exceeds money received in form of revenues.
Mathematically
Primary Deficit = Government purchases + transfers - tax revenues.
Primary deficits is different from deficits as net interest isn't added.
The amount that the non-smoker pays per month for premium is $31.25.
<h3>What is the determinant of the premium?</h3>
Generally, in an insurance, the person that smokes will pay higher premiums for life insurance than a non-smoker.
Now, it is given that the non-smokers pays a 25% lower premium for life insurance, that is, 1/4 of the normal premium he is suppose to pay.
Because the smoker present a high risk, he will pay the full premium to cater for high risk situation on the policy.
Premium payable = $125 * 1/4
Premium payable = $31.25
Therefore, the answer is $31.25 for the non-smoker.
Read more about insurance premium
<em>brainly.com/question/25280754</em>