Answer:
B. Holly's statement is normative, but Ben's is positive.
Explanation:
Positive statements are based on objective deduction of what is, or was. It is based on facts. Ben's comment "an increase in the tax on beer will raise its price", is an example of positive statement.
Normative statements are subjective and based on individual values and judgement. In her statement Holly appears to be biased against drinking much. She says "taxes should be increased on beer because college students drink too much." Is a normative statement.
Answer:
$525,000
Explanation:
The computation of the net inflow or outflow is shown below:
= Total outflow - total inflow
where,
Total outflow = ∈2,000,000 × $1.05 = $2,100,000
Total inflow = ∈1,500,000 × $1.05 = $1,575,000
Now put these values to the above formula
So, the value would equal to
= $2,100,000 - $1,575,000
= $525,000
This amount shows a net outflow as total outflow is greater than the total inflow.
Answer:
WACC is 9%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
According to WACC formula
WACC = ( Cost of equity x Weightage of equity ) + ( Cost of debt ( 1- t) x Weightage of debt ) + ( Cost of Preferred equity x Weightage of Preferred equity )
As per given data
Market Values
Equity = $7 billion,
Preferred stock = $2 billion
Debt = $13 billion
Cost
Equity
Capital asset pricing model measure the expected return on an asset or investment. it is considered as the cost of common stock.
Formula for CAPM
Cost of Equity = Risk free rate + beta ( market return - risk free rate )
Cost of Equity = Rf + β ( Mrp )
Cost of Equity = 3% + 1.6 ( 8% ) = 15.8%
Preferred stock = $2 / $26 = 0.077 = 7.7%
Debt = 8%
Placing values in the formula
WACC = ( 15.8% x $7 billion / $22 billion ) + ( 8% ( 1- 0.3) x $13 billion / $22 billion ) + ( 7.7% x $2 billion / $22 billion )
WACC = 5.03% + 3.31% + 0.7% = 9.04%
Answer:
tempering
Explanation:
i was searching g o o g l e and it took a while to figure it out i am sure this is the correct one.
Answer:
I believe this would be D
Explanation:
I say that it is D because it is asking about what they would do under certain circumstances and or situations to see what they would say
