Answer:
True
Explanation:
Knowledge is something that cannot just be acquired within a day. It requires lots of reading, studying different books, rigorous amount of trainings and carrying out various research to learn something new. All this takes some period of time, maybe months or years because there is a need to perfectly master the field of study.
Therefore one of the fastest ways to acquire knowledge at a fast rate is to hire an individual who is an expert in that field or purchase an entire company that has already gained the knowledge because trying to achieve that on your own is time consuming.
This is an added advantage to the organisation as it helps to increase its growth rate and face any form of competition in the market.
Hence the statement above is true.
Answer:
13.75%
Explanation:
Data provided in the question:
Total expenditure = $16 million
Debt = $2 million
Preferred stock = $4 million
Common stock = $10 million
After-tax cost of debt = 7% = 0.07
Cost of preferred stock = 9% = 0.09
Cost of retained earnings = 14%
Cost of new common stock = 17%
Now,
Weight of debt = $2 million ÷ $16 million
= 0.125
Weight Cost of preferred stock = $4 million ÷ $16 million
= 0.25
Weight Cost of new common stock = $10 million ÷ $16 million
= 0.625
The weighted average cost of capital for this project
= ( 0.07 × 0.125 ) + ( 0.09 × 0.25 ) + ( 0.17 × 0.625)
= 0.00875 + 0.0225 + 0.10625
= 0.1375
or
= 0.1375 × 100%
= 13.75%
Answer:
E
Explanation:
all of those statements seem valid about being an effective decision maker
Answer:
The correct answer is letter "D": Closing purchase.
Explanation:
Traders buy back an asset that was previously purchased to close that position. In such cases, traders have a short position of the asset, which implies they are expecting the price of the asset to go down to make a profit. When talking about options, the option buyback allows the trader to exit the position closing the purchase.
