Answer:
10.12 %
Explanation:
Weighted Average Cost of Capital (WACC) is the cost of permanent sources of capital pooled together. It shows the risk of the business and is used to evaluate projects.
WACC = Cost of equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock
<u>Remember to use the After tax cost of debt :</u>
After tax cost of debt = Interest x (1 - tax rate)
= 10% x ( 1 - 0.40)
= 6.00 %
<u>Cost of equity :</u>
Cost of equity = Return from Risk free security + Beta x Risk Premium
= 4.00 % + 1.8 x 8.00%
= 18.40 %
<u>Cost of Preference Stock :</u>
Cost of Preference Stock = Dividend / Market return x 100
= $2.50 / $ 25 x 100
= 10%
therefore,
WACC = 18.40 % x 30 % + 6.00 % x 60 % + 10.00% x 10%
= 10.12 %
thus,
Ford's weighted average cost of capital is 10.12 %
Answer:
c. Technological conditions
Explanation:
Technological conditions -
In an organisation , marketing of the goods and services are done with the help of many online and offline platforms .
There is huge importance of technology in the company , as there is extensive of networking sites , websites , in the day to day activities of the company .
Hence , from the given scenario of the question ,
The correct option is c. technological condition.
Answer: 1 unit of X and 2 units of Y
Explanation: Total utility is the complete satisfaction you get from maximising usage of a quantity of a good or service. However another element also needs to be considered, and that is marginal utility. Marginal utility is the satisfaction you get from consuming an additional quantity of a good or service.
Both these factors are important as they determine how much of each product the consumer should buy. To maximise total utility, the consumer must use the full $10 income. But the question still stands as to which combination of products should the consumer purchase.
To make it fair the consumer should start by purchasing one of X and one of Y, and keep taking one of each (starting with X) to keep it fair. However after taking one of X, worth $2, and one of Y, worth $4, there is only $4 left. That means that if the consumer then takes one of X there will be $2 left, disallowing the consumer to afford X, and thus making the purchases unfair. Therefore in terms of meeting the marginal utlility, it is better to then swop to purchasing Y with the remaining $4, and maximising the consumer's total utility.
Credit cards i’m pretty sure
Allison Corporation acquired all of the outstanding voting stock of Mathias, Inc., on January 1, 2017, in exchange for $6,059,500 in cash. Allison intends to maintain Mathias as a wholly owned subsidiary. Both companies have December 31 fiscal year-ends. At the acquisition date, Mathias’s stockholders’ equity was $2,045,000 including retained earnings of $1,545,000
