Answer:
Since there is not enough room here, I prepared an excel spreadsheet
Explanation:
Answer: a. True
Explanation: Higher interest rates tend to attract foreign investment, increasing the demand for and value of the home country's currency. Foreign investment involves capital flows from one country to another, granting extensive ownership stakes in domestic companies and assets. Foreign investment denotes that foreigners have an active role in management as a part of their investment. One major spur of this inflow and outflow is the existing interest rate a country offers. Higher interest rates increases inflow of capital. The opposite is true for countries with lower interest rates, as there is an outflow of capital to countries having higher interest rates.
Answer:
No, it is a bad idea to use only the cost of debt
Explanation:
Only using the cost of debt, is not a good idea because too much amount of borrowing could lose the confidence of the investors and it could lead to the uncertainty in the future cash flows.
Suppliers might be worried regarding the financial situation and lead to the supply disruption. Though, the debt might save the tax expenses, which could lead to the negative cash flow.
When the company does not have adequate amount of cash at hand, it could cause many disruptions of financial. WACC (Weighted Average Cost of Capital) rates need to be used as the capital costs as it weigh the used capital cost and the used debt.
Answer: 8.39%
Explanation:
Margin = Net Income/ Sales
Net income for the company including the new investment:
= 864,000 + (Sales * Contribution margin ratio - Fixed costs)
= 864,000 + (4,200,000 * 30% - 966,000)
= $1,158,000
The combined sales for the company is:
= 9,600,000 + 4,200,000
= $13,800,000
Combined margin:
= 1,158,000 / 13,800,000
= 8.39%
This "it" thing had a "brief" existence of just 16 months. The way it's referred to, it seems 16 months is not a long time for this to exist. Something much bigger, the transcontinental telegraph, came along.
So "supplant" seems to mean "to replace, supersede, or surpass".
