Answer:
the no of pools need to be produced is 29,500 units
Explanation:
The computation of the no of pools need to be produced is given below:
= Ending finished goods inventory units + number of units sold - beginning finished goods inventory units
= 2800 + 28000 - 1300
= 29500 units.
Hence, the no of pools need to be produced is 29,500 units
Answer:
a. 6.56%
b. 10.62%
Explanation:
Debt-equity ratio=debt/equity
Hence debt=1.2 equity
Let equity be $x
Debt=$1.2x
Total=$2.2x
WACC=Respective costs*Respective weight
a.
8.7=(x/2.2x*13)+(1.2x/2.2x*Cost of debt)
8.7=5.909+(1.2/2.2*Cost of debt)
Cost of debt=(8.7-5.909)*(2.2/1.2)
=5.1167%(Approx)
Hence pretax cost of debt=Cost of debt/(1-tax rate)
=5.1167/(1-0.22)=6.56%(Approx).
b.
8.7=(x/2.2x*Cost of equity)+(1.2x/2.2x*7.1)
8.7=(1/2.2*Cost of equity)+3.8727
Cost of equity=(8.7-3.8727)*2.2
=10.62%
Answer:
see below
Explanation:
Inflation refers to the gradual increase in the general prices of goods and services in the country over time. Increased economic activities in a country lead to an increase in the money supply, which leads to inflation. Inflation results in a reduction in the purchasing power of a country's currency.
A currency losing its purchasing power means one unit of money will buy fewer items than it could in the previous period. The inflation rate is measured using the consumer price index system. The system compares the price of a basket of consumer goods between different periods. An increase in the price of the basket means the currency will buy less of the basket, implying a decline in the currency strength.
Deflation is the opposite of inflation. Deflation is a decrease in prices. It results in the strengthening of a country's currency or increased purchasing power.
Answer:
The correct answer is option b.
Explanation:
The primary security market refers to the part of the capital market where the securities are initially issued. It is the market where the securities are created.
In this market, the companies issue their securities such as bonds and stocks as initial public offerings. It is also called the new issue market. In this market, the newly issued securities are directly sold by the issuers to the investors.
These securities then are traded in the secondary market by the investors. The secondary markets are stock markets such as NYSE and NASDAQ.