Bonds = 75,000*1000 = 75 Million
Preferred stock = 750,000*64 = 48 Million
Common stock = 2.5 Million *44 =110 Million
Total capital = 75+48+110 = 233 Million
Weight of debt (Wd) = 75/233 = 0.3219
Weight of preferred stock (Wp)= 78/233 = 0.206
Weight of equity (We) 1-0.3219-0.206 = 0.4721
Cost of debt after tax (Rd)= 7.5%*(1-0.34) = 4.95%
Cost of preferred stock (Rp)=6/64 = 9.375%
Cost of equity(Re) = rf + beta*(rm-rf) = 2.3+1.21*(11.2-2.3) = 13.069%
WACC = Wd *Rd + Wp*Rp + We*Re
WACC = 0.3219*4.95 + 0.206*9.375 + 0.4721*13.069% = 9.69%
Answer:
b. Server factory
Explanation:
Server factory is setup in a location possessing advanced suppliers, competitors and research and knowledge centers to provide proper knowledge regarding any thing that is new.
Answer:
The answer is c. The price of servants would increase and the quantity of servants would decrease.
Explanation:
The storms would decrease the supply of slaves forcing the prices to increase.
The main problem in regards of fee for service model to
doctors is that they are likely to provide an incentive to overtreat by which
it allows the doctors to provide treatment several times and it drives the cost
high for everyone involved.
The definition of commodity is D. Some examples are gold, silver and copper.