Answer: 9.7%
Explanation:
Given Data
Rf = Risk free return = 6%,
Rpm = Risk premium = 4%,
Beta = 0.9
Wd = Debt = 20%
rd = cost of debt = 8%
We = equity = 80%
Re = Rf + Beta (Rpm)
= 0.06 +0.9 (0.04)
= 0.096 * 100
= 9.6%
Unlevered Equity Cost ;
ReU= Wd × rd + We × re
= 0.20 × 8% + 0.80 × 9.6%
= 9.28%
Levered Equity Cost:
New Debt = 60%,
New Equity = 40%,
New rd = 9%
ReL = ReU + (ReU - rd) (D ÷ E)
= 9.28% + (9.28% - 9%) (0.60 ÷ 0.40)
= 0.097 * 100
= 9.7%
Answer:
The final payment would be of amount $9000
Explanation:
The keywords of the question state that the bank needs an equal amount of money by both of the payment procedures. Hence, no matter which payment method I choose on the outstanding loan, the bank would need a sum of 3x3000 = $9000
the right answer is TRUE, i got it wrong for putting it as false
Answer: The answer is FILL IN
A planning gap is the difference between the projection of the path to reach a new sales revenue goal and the projection of the path of a plan already in place. The ultimate purpose of the firm's marketing program is to <u>"FILL IN"</u> this planning gap.
Answer:
Material A = 234,000 lbs.
Material B = 39,000 lbs.
Explanation:
First we must determine how many units we have to manufacture:
expected sales + ending inventory - beginning inventory = 76,000 + 10,500 - 8,500 = 78,000 units to be manufactured
now we calculate the amount of direct materials used:
Material A: 78,000 units x 3 lbs. per unit = 234,000 lbs.
Material B: 78,000 units x 1/2 lb. per unit = 39,000 lbs.