When supply increases, the most likely result is the price will lower. This is based on the concept of supply and demand, so when demand goes up and the supply goes down, the price goes up. If the Demand goes down but the supply goes up, the price lowers.
Answer:
WACC = 12.040%
Explanation:
WACC represents weighted average cost of all sources of financing. In the question there are three sources of finance 1) Equity 2) Preferred Stock 3) Debt.
1) Equity: The firm intends to raise $ 320,000 from equity out of total financing of $ 570,000 e.g. 56% of total financing comes from Equity. Thus multiplying the cost of equity 14.7% (given) with ratio of equity financing, we get to weighted average cost of equity of 8.253%.
2) Debt: The firm is raising $ 230,000 from debt e.g. 40% of total financing. The proportion of debt is multiplied by post tax cost of debt as the interest expense is deductible expense for tax purposes in most of the jurisdiction. Therefore we reduce the cost of debt with element of (1 - tax rate), thus we get to 8.325% = 11.1 (1 - 25%) as total cost of debt. In order to get weighted average cost of debt we multiply this post tax cost of debt with ratio of debt financing 40%, thus weighted average cost of debt is 8.325 * 40% = 3.359%
3) Preferred Stock: The firm is also raising finance from preferred stock having cost of 12.2%. Proportion of financing from preferred stock is 4% in total mix of financing, thus weighted average cost of preferred stock is 12.2% * 4% = 0.428%.
Now adding weighted average cost of all three sources of funding, we get WACC: 8.253% + 3.359% + 0.428% = 12.040%
Answer:
9.7 million
Explanation:
California a state in the United States of America is considered to be first or number one in ranking concerning agricultural activities in the country. Agriculture is generally understood to be the most significant industry in California and in 1981, the agricultural acreage equaled 9.7 million acres.
Hence, the correct answer to the question is 9.7 million acres.
The principle that is ideal for branding through sponsorship scenario are the following;
<span>-
</span>Taking advantage of the excellent overlaps that
are between with the customer and the benefit of the brand
<span>-
</span>The individual should be able to connect with
the consumer in a meaningful and fun way
<span>-
</span>Unique connections should be leverage between
the brand and the consumer by means of building loyalty and favorable word