Answer:
c. 15.8%
Explanation:
The cost of equity is the WACC (weighted average cost of equity)
WACC formula = wE*rE + wD*rD(1-tax) , whereby
wE = weight of equity = 65%
rE = cost of equity = 20%
wD = weight of debt=35%
rD(1-tax ) = after tax cost of debt =8%
WACC = (0.65 *0.20) + (0.35*0.08)
= 0.13 + 0.028
= 0.158 or 15.8%
Therefore, the overall cost of capital is 15.8%
Answer:
quantity of product produced in a given period increases, the cost of manufacturing each unit decreases
Explanation:
Economies of scale happens when the average total cost (variable + fixed production costs per unit) decreases as total output increases. This generally takes place because fixed costs are the same for a small number of units produced or a large number of units produced, so the average fixed cost per unit tend to decrease as more units are produced (at least up to certain point). Variable production costs per unit can also decrease as total output increases since materials might be purchased in larger quantities resulting in higher discounts or labor productivity increases.
Answer:
$6.
Explanation:
Holding stock of a Public company entitles you to a potential return on your investment which can be in the form of Capital Appreciation/Gain, that is buying at low and selling at high, or Dividends received. In the given question, we are not required to calculate total return rather capital gain, simply the difference between purchase price and selling price, so there is no need to account for dividends. The formula for Capital Gain is given below:
Capital Gain / Appreciation = Selling Price - Purchase Price
⇒ Capital Gain = 38 - 32 = $6.
I'm going to use A B C going down from "prevents detects(A).... to protects consumers(D)"
A-Dodd Frank Act
B-Patriot act
C-identity theft and assumptions
D-Credit card act
Answer:
125%
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Let x = percentage change in price
o.4 = 50 / x
x = 125
