Answer:
economics a situation in which the market demand for a commodity is greater than its market supply, thus causing its market price to rise.
Explanation:
this is the definition. hope this helps.
Answer:
a. 6.56%
b. 10.62%
Explanation:
Debt-equity ratio=debt/equity
Hence debt=1.2 equity
Let equity be $x
Debt=$1.2x
Total=$2.2x
WACC=Respective costs*Respective weight
a.
8.7=(x/2.2x*13)+(1.2x/2.2x*Cost of debt)
8.7=5.909+(1.2/2.2*Cost of debt)
Cost of debt=(8.7-5.909)*(2.2/1.2)
=5.1167%(Approx)
Hence pretax cost of debt=Cost of debt/(1-tax rate)
=5.1167/(1-0.22)=6.56%(Approx).
b.
8.7=(x/2.2x*Cost of equity)+(1.2x/2.2x*7.1)
8.7=(1/2.2*Cost of equity)+3.8727
Cost of equity=(8.7-3.8727)*2.2
=10.62%
<span>Falling for anything which makes companies and other people think you're too stupid or too young to know better.
Trust should be given to the people who already proof and earn their worth to you. Putting to low of a threshold to trust others will make it easier for you do be deceived and would bring a lot of negative outcome for your organization.</span>
