Answer:
weighted average cost of capital = 13.10%
Explanation:
given data
Debt = 35%
Preferred stock = 15
Common equity = 50
cost of debt = 9 percent
cost of preferred stock = 13 percent
cost of common equity = 16 percent
to find out
Weighted Average cost of capital
solution
we get here weighted cost of each source of capital that is
Weighted Cost of Debt = 0.35 * 9% = 3.15 % ....................1
Weighted Cost of Preferred Stock = 0.15 * 13% = 1.95% .........2
Weighted Cost of Common Stock = 0.50 * 16% = 8 % ..............3
so
so weighted average cost of capital will be
weighted average cost of capital = 3.15 % + 1.95% + 8 %
weighted average cost of capital = 13.10%
Answer:
Communication is the key to success. Plan, organize and strategically plan to help the business
Explanation:
Communication helps in
1. Increasing brand familiarity
2. Increasing product awareness
3. Product availability
4. Offers
These will help improve business.
During a period of economic expansion, the demand curve for bonds shifts to the left.
<h3>What is the effect of an economic expansion?</h3>
During an economic expansion, the supply of money in the economy rises and the demand for money also increases. This leads to an increase in the interest rate and the price of the bonds would fall.
If expected profitability is expected to be high, people would prefer to hold more risky investment. Thus, there would be a fall in the demand for bonds. The demand curve for bonds would shift to the left.
Here are the options to this question:
A) the demand curve for bonds shifts to the left.
B) the supply curve of bonds shifts to the right.
C) the equilibrium interest rate falls.
D) the equilibrium price of bonds rises.
To learn more about economic expansion, please check: brainly.com/question/831569
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Answer:
selling price of this car is $22700
Explanation:
given data
zero interest = 72 months
monthly payment = $350
market interest rate = 3.5% per year = 0.2917 % per month
time = 6 year = 72 months
solution
we get here present value of annuity that is
present value annuity = ( 0.2917 % per month , 72 months )
present value annuity = 64.8568
so here selling price of car is
selling price = monthly payment × present value annuity ............1
selling price = $350 × 64.8568
selling price = $22700
so selling price of this car is $22700