Answer:
Option C is correct answer
Explanation:
We have the following details:
Cost of Debt (Kd) = 12%
Tax Rate = 30%
Cost of debt for discounting Capital Project is Post Tax Cost of debt
The reason of this is that the Interest paid on debt is eligible for tax deduction, Hence Post Tax cost of debt will be used for discounting the project cashflows
Discount rate = Cost of Debt * ( 1 - Tax rate )
= 12% * (1 - 0.30)
= 12% * (0.70)
= 8.4% is the cost of debt that should be used in calculating the cost of capital for capital budgeting purposes.
Before we can answer which of the following is not a type of bank, we need to know first the definition of a bank<span>. A bank is a financial institution who is licensed and allowed to collect, receive money, manage your account and keeps your money secured. Banks </span>also offer<span> services, credits and loans. There are two types of </span>bank, namely<span>, commercial and investment banks.</span>
Answer:
portfolio's new beta is 1.25
Explanation:
Total number of stocks available in the portfolio = 15
Total portfolio = 1.20
Beta of stock to be sold = 0.8
Beta of stock to be purchased = 1.6
Weight of one stock (replacing stock) = 1/15
New portfolio beta = Total portfolio - (Weight * Beta of selling stock) + (Weight * Beta of purchasing stock)
New portfolio beta = 1.20 - [(1/15) * 0.8] + [(1/15) * 1.6]
= 1.20 - 0.05333 + 0.10667
= 1.25334
≈ 1.25
These illustrations highlight the influence of competitive elements as a component of the external environment.
<h3>Is competition a part of the external environment?</h3>
By definition, the external environment includes all external forces and influences that have an impact on how businesses operate. Competitive, political, technological, and economic issues are included in the business environment variables.
<h3>What does external competition entail?</h3>
A business competes and operates in a dynamic external system known as a competitive environment. The marketplace in which you compete will be more competitive the more vendors there are of a given good or service.
<h3>Which elements influence the competitive environment?</h3>
From a microeconomics perspective, there are five fundamental variables that might affect competition: the characteristics of the product, the number of sellers, entrance barriers, the accessibility of information, and location.
learn more about competitive factors as part of the external environment here<u> brainly.com/question/15071676</u>
#SPJ4
