I would say first the Online Bank which has very low personnel costs could offer the highest interest rates, probably followed by the credit union in which members are all shareholders so they should receive preferential treatment, and finally the Traditional Banks which most likely have a higher overhead than the other two so the result would be lower interest rates on savings accounts to the customer.
Answer:
The correct answer is <em>maximize shareholder wealth.</em>
Explanation:
The concept of "shareholder wealth", to put it simply, is really capital gains and dividends. Regardless of which model the company uses - and many companies do not pay dividends - the wealth of the shareholders is the normal operation of the company and, above all, the main expectation of the shareholders. There are other corporate objectives, such as maximizing sales, market share or debt reduction. These should not immediately lead to the maximization of wealth. The idea of shareholder wealth is closely linked to the idea of expansion and the continuous profits of companies.
Answer:
WACC = 7.48%
Explanation:
We can calculate the Firm's WACC by using Excel.
Let's assume this is our Excel Blank Sheet.
A B C D
1 Particulars Rate Weight Weighted rate
2 Debt = 7.75%(1 - 40%) 0.45 =B2×C2
= 4.65%
3 Equity = (0.65/(19 × (1 - 10%)))+6%
= 9.80% 0.55 = B3×C3
4 WACC =SUM(D2:D3)
<h3>
Output:</h3>
A B C D
1 Particulars Rate Weight Weighted rate
2 Debt = 4.65% 45% 2.09%
3 Equity = 9.80% 55% 5.39%
4 WACC 7.48%
Answer:
$2.40
Explanation:
The computation of cost per gallon as given below:-
Material = $2,142,000
Labor = $183,600
Manufacturing overhead = $734,400
Total cost = Material + Labor + Manufacturing overhead
= $2,142,000 + $183,600 + $734,400
= $3,060,000
Number of gallons produced in June = $1,275,000
Cost per Gallon = Total cost ÷ Number of gallons produced in June
= $3,060,000 ÷ $1,275,000
= $2.40
