Answer: Option D
Explanation: In simple words, weighted average cost of capital refers to the amount of return that the investors of a company are expecting. It includes all the security holders of the company and calculates the rate as per the weights that are applicable in the target capital structure.
Weighted average cost of capital is of high importance as it helps an organisation to clearly evaluate and analyze its current financial situation and if they need to change their existing capital structure.
A high WACC calls for higher profits as company has to make sure that security holders gets their returns and vice versa.
Answer:
Required rate of return for the project = 9.7%
Explanation:
The risk-adjusted discount factor = cost of equity + the adjustment
Cost of equity can be calculated using the capital asset pricing model CAPM
Using the CAPM , the rate of return on equity can be determined as follows:
E(r)= Rf +β(Rm-Rf)
E(r) =? , Rf- 3.3%, Rm- 7.5%, β- 0.94
Cost of equity = Rf + β (Rm -Rf)
Cost of equity = 3.3% + 0.94×(7.5-3.3)= 7.248
The risk-adjusted discount factor= 7.248 + 2.5= 9.748
Required rate of return for the project = 9.7%
Answer:
a. true
b. false
c. true
d. false
e. true
f. false
g. true
h. true
Explanation:
a. we solve for depreciation
$50,460,000/15
= $3364000
this is true
b. retained earnings have no roles to play in this option. false
c. The long term debt has been sen to chaange by
50460000-16741282
= $33718718
true
d. This is false retained earnings have no role to play here.
e. This is true because this is the amount that was used to purchase the plant
f. false since retained earning has nothing to do here.
g. this is true also. the face value of the bond is $33,718,718.
h. this is true. since palnt and equipment is $5046000
Answer: d. Pen and pencils.
Explanation:
Cross-price elasticity measures the degree of responsiveness of the demand for a certain good towards the change in the price of a related good. Percentage is used to measure cross-price elasticity.
In case of two goods like pens and pencils, cross price elasticity is positive. That is, if the price of a pen increases, it will lead to an increase in the demand for pencils. The propertional change in price of pens give a positive relative change in the demand for pencils.
The answer is After the seller accepts the purchase offer.
Millie is a buyer who has given her agent an earnest money check for $10,000 with an offer to purchase. The check will be deposited after the seller accepts the purchase offer.
What is Purchase offer?
- An offer could be a conditional proposition made by a buyer or vender to purchase or offer an resource, which gets to be lawfully authoritative in case accepted.
- There are numerous different types of offers, each of which incorporates a particular combination of highlights extending from estimating prerequisites, rules and controls, sort of resource, and the buyer's and seller's motives.
- When it comes to value and obligation offerings, the advertising cost is the cost at which freely issued securities are advertised for buy by the venture bank guaranteeing the issue.
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