Answer:
Project's WACC = 12.95%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm may contain one or all of the following components - debt, preferred stock, common stock. For a firm with two components in capital structure in form of debt and equity, the WACC is calculated as follows,
WACC = wD * rD * (1+tax rate) + wE* rE
Where,
- wD and wE are the weights of debt and equity in the total capital structure
- rD and rE are the cost of each component
- We multiply the cost of debt by 1 - tax rate to calculate the after tax cost of debt
We must first determine the weight of debt and equity in total capital structure.
A debt to equity ratio of 0.64 means 0.64 debt for every 1 dollar of equity. The total assets are made up of debt + equity. So, total assets are 0.64 + 1 = 1.64
Weight of debt = 0.64 / 1.64 = 16/41
Weight of equity = 1 / 1.64 = 25/41
WACC = 16/41 * 0.053 + 25/41 * 0.149
WACC = 0.1115 or 11.15%
The projects cost of capital is 1.8% more than the company's WACC.
So, the project's cost of capital is,
Project's WACC = 11.15% + 1.8%
Project's WACC = 12.95%
Answer: The correct answer is "B. $10,000; 4%; four years".
Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is <u>$10000,</u> the coupon rate is <u>4%,</u> and the term of this bond is <u>four years.</u>
<u></u>
Explanation: The maturity of the bond is at 4 years.
Its future value or face value is 10000.
The coupon rate is equal to 
x 100
So Coupon rate = 
x 100 = 4%
Answer:
Pepsi got into the Indian market market space on time after Coco-cola introduced their product and left. Pepsi came and accumulated alot of market shares which is an advantage for them for early timing and entry. Pepsi get an early entry while the market is developing and grew with the development of the market, thereby accumulating a lot of market shares. and that is an advantage of early entry.
Coca-Cola came back to Indian market space after 15 years, at that time, Coca-Cola would not take market share away from Pepsi companies because the beverage market was growing consistency from year to year with the early birds in the market space. This is disadvantage of Coca-Cola.
Answer: $3,425
Explanation: Quarterly compounding periods for 18 years is 4 x 18 = 72 and the payment amount is $2,000.
2000 (1+.03/4)^72 = 3425.11
Answer: Creating an inventory of the data elements contained in the database.
Explanation:
The data dictionary of an organization is a central data storage location. The data dictionary helps to give an organization the information on data they have and how their data is interrelated.
