Answer:
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm can be made up of one or more of the following components namely debt, preferred stock and common equity. The WACC is normally calculated using the market value of these components. The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- wD, wP and wE represents the weight of debt, preferred stock and common equity in the capital structure based on the market value
- rD, rP and rE are the cost of debt, preferred stock and common equity respectively.
To calculate the weight that should be assigned to the preferred stock in the calculation of WACC, we need to determine the market value of preferred stock and the market value of the capital structure.
Market Value - Debt = 10000 * 1000 * 1.01 = $10.1 million
Market Value - Preferred stock = 1 * 114.50 = $114.5 million
Market Value - Common equity = 26 * 15 = $390 million
Total MV of capital structure = 10.1 + 114.5 + 390 = $514.6
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Answer:
Business economics often handles the analysis of various costs that business firms incur. Every business always desires to minimize their costs and maximize its profits by embracing different economies of scale. Nonetheless, the firms fail to determine exact costs that are involved in the production process.
Answer:
Advergame
Explanation:
An advergame is a game that is developed in conjuction with a corporate firm which contains advertisment of the products of the corporate firm as well as the firm itself.
In an advergame, adverts related to the corporate firm that has teamed up with the gaming company are displayed at stages or intervals as agreed upon by the corporate firm and the gaming company.
In the case of Chipotle, it developed a social game to help customers get coupons that can be redeemed at Chipotle stores all over. The scarecrow game is an advergame.
Cheers.
Answer:
hiii...myself tanvi new on brainly...can get some help from you plz....to know the people
Answer: Public ownership is the most common and effective public policy toward monopolies in the United States
Explanation:
A natural monopoly is a monopoly that occurs as a result of the company having an economies of scale and also due to the huge amount of money required for its investment. These monopolies are subject to regulation.
Also, sometimes the best public policy toward a monopoly is to do nothing. Lastly, antitrust laws may prevent mergers that would actually raise social welfare.
Therefore, based on the question asked, the answer is option B.
