4.65% is the component cost of the debt for use in the wacc calculation
First and last I just took the test
<span> 1.A depositor in a bank or </span>credit union has only a few hundred dollars in deposits, he or she is indirectly an equity investor through the bank's stock portfolio. 2.<span>Investing in the </span>stock market<span> is a way of life in the United States</span>
Answer:
D. ceteris paribus condition
Explanation:
The Latin words “Ceteris paribus”, means “all other things remain the same”. It is an assumption usually included when by economists when stating laws or concepts such as demand and supply. Because, actually in the real word, it is feasible to eliminate other variables that might influence an outcome, aside the variables under study. So therefore, we assume all other variables remain constant, when stating the relationship between two variables. For example, when constructing a demand curve showing the relationship between price and quantity demanded, we assume that all other variables that can influence demand other than price, remain the same, which in reality might be difficult to isolate.
Answer:
FV= $198,456.07
Explanation:
Giving the following information:
Annual deposit= $20,000
Interest rate= 8%
Number of periods= 8 years
<u>To calculate the future value after the last deposit, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {20,000*[(1.08^7) - 1]} / 0.08 + 20,000
FV= 178,456.07 + 20,000
FV= $198,456.07
