Answer:
Maximum Amount Payable = $8333.33
Explanation:
Perpetual Annuity Payment = $500
Growth Rate = 3%
Discount Rate = 9%
Maximum Amount Payable = Present Value of Perpetual Annuity
Present Value of Perpetual Annuity = Perpetual Annuity Payment / (Discount rate - Growth rate)
Maximum Amount Payable = $500 / (0.09 - 0.03)
Maximum Amount Payable = $500 / 0.06
Maximum Amount Payable = $8333.33
Answer:
As a Medium of Exchange
Explanation:
The four functions of money are:
- As a Medium of Exchange
- As a Measure of Value
- As a Store of Value
- As a standard of Deferred Payment.
As a Medium of Exchange
Money as a medium of exchange has its most important role of facilitating the exchange of goods and services. Hitherto before the advent of money. Trade by Barter was the only means of conducting transactions. The use of money in the exchange of gods and services solved the major difficulty encountered with the barter system, which his "Double coincidence of wants".
Money by performing its most traditional role is accepted by all irrespective of whether they need each others good or services.
However to fulfill this role or function, Money has to be generally acceptable, portable, divisible, durable, stable in value and homogeneous.
Answer:
The correct answer is option C.
Explanation:
The fixed costs are the cost that does not vary with the level of output. It does not vary with the level of activity. The total fixed cost remains constant in the entire production process.
The fixed cost per unit is the ratio of total fixed cost and level of output. It decreases as the output level increases and rises with a decline in activity.
The variable cost is the cost that is incurred on the variable inputs used in the production process. It directly varies with the volume of activity. The total variable cost will increase with the increase of output as more variable inputs are employed.
The variable cost per unit is the cost incurred on each unit of output. It does not change with the level of activity unless there is a change in input prices.
Answer:
The Pearson's cost of common equity is 16.00%
Explanation:
For computing the cost of common equity, following formula should be used which is shown below:
WACC = (Equity portion × total cost of equity) + (debt portion × total cost of debt) × (1 - tax rate)
11.50% = (0.55 × total cost of equity) + (0.45 × 0.10) × (1 - 0.40)
11.50% = (0.55 × total cost of equity) + 0.045 × 0.60
11.50% = (0.55 × total cost of equity) + 0.027
11.50% - 2.70% = (0.55 × total cost of equity)
8.80% ÷ 0.55 = total cost of equity
So, total cost of equity = 16.00%
Hence, the Pearson's cost of common equity is 16.00%
Not 100% sure but maybe D
