Answer:
10.34%
Explanation:
Calculation to determine what will Nantucket's new WACC be
New Firm Value= $640,000 + (.34) ($300,000)
New Firm Value= $742,000
Capital Structure = $300,000 + $442,000
($742,000-$300,000=$442,000)
rs = .12 + (300/442) * (.12 - .08) * (1 - .34)
rs= .12 + .0179
rs = .1379*100
rs = 13.79%
Now let calculate the New WACC
New WACC = (300/742) * (.08) * (1 - .34) + (442/742) * (.1379)
New WACC= .0213 + .0821
New WACC= .1034*100
New WACC= 10.34%
Therefore what will Nantucket's new WACC be is 10.34%
Answer:
1. Exporting - c. Manufacturing and transportation costs
2. Turnkey Contracts e. FDI and foreign country
3. Licensing f. Risk and Capital investment
4. Franchising d. Host country and controls
5. Joint Venture - a. Development cost and Operational Strategy
6. Who Ply-own - Risks and profits
7. Subsidiaries - b. Costs, risks and profits
Explanation:
Exporting is beneficial for a country as it brings money to the country but it has many disadvantages. There is high manufacturing and transportation cost. There can be trade barriers in some countries which will restrict the trade benefit. Owing a subsidiary is beneficial when it is profitable but when subsidiary incurs loss the parent has to bear it. It involves high risk investment.
Answer:
14,619.88
Explanation:
The investment today amount shall be calculated using the following formula:
F=P(1+i/n)^nt
F= total future amount which include interest+principal=$25,000
P=Amount that should be invested today
i=interest rate per year=2.15%
n=number of months in a year=12
t=time involved in investment in years=25
F=P(1+i/n)^nt
25,000=P(1+2.15%/12)^12*25
25,000=P(1.71)
P=14,619.88
Answer:
<em>Max APR=6.34%</em>
Explanation:
<u>Present Value of Payments</u>
If someone borrows an amount PV and will make regular payments of R dollars, then the relation between them is
Where
We know the maximum value for R is $650, thus we can know the minimum value for Fa with:
It means that we need to find the value of i such that (for n=48):
This equation cannot be solved in terms of natural or algebraic functions. We need to find the best possible value of i by any numerical approximate method. Let's start off by setting i=0.01
It's too far away from the required value. Now we adjust to i=0.005
This is a much better value. A final iteration for i=0.00528 gives
This value is close enough to the required answer. Converting it tho APR:
Answer:
the standard deviation is 4.2%
Explanation:
The computation of the standard deviation of the portfolio is given below:
expected standard deviation of the portfolio is
= Allocation percentage of stock index × standard deviation of returns on the stock index
= 0.70 × 6%
= 4.2%
Hence, the standard deviation is 4.2%