Answer:
The correct answer is (C) the foreign purchases effect.
Explanation:
As a result of a negative situation for the internal economy, where the price of goods and services increases as a result of economic phenomena, people and companies tend to resort to the process of purchasing abroad, in order to meet their needs with A minimum amount of money.
Answer:
c. 11.02 percent
Explanation:
Weighted Average Cost of Capital (WACC) is the return that is required by the long term providers of Finance for the Business.
WACC = Ke × E/V + Kp × P/V + Kd × D/V
Where,
Ke = Cost of Equity
= 15.8 %
E/V = Market Weight of Equity
= 0.46
Kp = Cost of Preference Stock
= 8.3 %
P/V = Market Weight of Preference Stock
= 0.05
Kd = After tax Cost of Debt
= 6.8 %
D/V = Market Weight of Debt
= 0.49
Therefore,
WACC = 15.8 % × 0.46 + 8.3 % × 0.05 + 6.8 % × 0.49
= 11.015 or 11.02 %
To find the Inn's nightly cost before tax is added you will divide the total cost of the room $144.16 by the tax rate of 6%. When you divide the tax rate you will move the decimal over and use the number 1.06 (6%). When you divide $144.16 by 1.06 the answer is $136 per night before tax. To check your work you can multiply $136 by 1.06 giving you a total cost of $144.16 after tax.
True,credit union members don't make donations to their credit union.
Answer:
13.55%
Explanation:
The computation of rate of return for the project is shown below:-
For computing the rate of return for the project first we need to compute the Rate of return as per CAPM which is here below:-
Rate of return as per CAPM = Risk free rate + Beta × Premium
= 2.8% + 1.25 × 7%
= 11.55%
Required rate of return = Rate of return as per CAPM + Project's discount rate
= 11.55% + 2%
= 13.55%
