Answer:
i believe the answer is TRUE
Explanation:
Answer:
Weight of debt = 0.2453 or 24.53%
Weight of preferred stock = 0.0486 or 4.86%
Weight of common equity = 0.7061 or 70.61%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a company can consist of one or more of the following components namely debt, preferred stock and common stock.
To calculate the WACC, we use the market value of each component.
- The market value of debt is$101 million.
- The market value of common equity is 290.7 million
- The value of preferred stock is $20 million
Market value of common equity = 51 * 5.7 = 290.7 million
The weights to assigned to each components are,
Total weight of all components = 101 + 20 + 290.7 = 411.7 million
Weight of debt = 101 / 411.7 => 0.2453 or 24.53%
Weight of preferred stock = 20 / 411.7 => 0.0486 or 4.86%
Weight of common equity = 290.7 / 411.7 => 0.7061 or 70.61%
<span>Under economic conditions where people are optimistic about the stability and equilibrium of the economy, price levels are likely to rise and GDP is likely to rise similarly. Confidence and optimism about future economic stability would allow consumers to buy good with confidence and for growth in price level and growth in real GDP to take place gradually and continually.</span>
Answer:
$102.21
Explanation:
The computation of value-weighted index is shown below:-
Today value
Stock A = $20 × 1000
= $20,000
Stock B = $30 × 500
= $15,000
Stock C = $50 × 1200
= $60,000
Total market value = $60,000 + $15,000 + $20,000
= $95,000
Tomorrow
Stock A = $22 × 1,000
= $22,000
Stock B = $35 × 500
= $17,500
Stock C = $48 × 1,200
= $57,600
Total market value = $57600 + $17,500 + $22,000
= $97,100
Value weighted return = Tomorrow Total market value ÷ Today Total market value × 100
= $97100 ÷ $95000 × 100
= $102.21
Answer:
The SWOT analysis is done by considering two factors i.e. internal factor and external factors. The external factors are the threat and opportunities which are provided from the outside. These external factors include technological change and socio-cultural change that can affect your company.
