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3 years ago

11

Joy is taking out a car loan which she’ll pay back with interest. Which option will require her to pay the lowest amount in inte

rest?

1 answer:

Mice21 [21]3 years ago

6 0

Lowest amount of interest would be annual compounding.

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Paper Exchange has 80 million shares of common stock outstanding, 60 million shares of preferred stock outstanding, and 50 thous

Dmitriy789 [7]

Answer:

26.64%

Explanation:

Common stocks outstanding (C) = 80 million

Preffered stock outstanding (P) = 60 million

Number of bonds (B) = 50,000

Cost of common stock (Cc) = $20 per share

Cost of Preffered stock (Cp) = $10 per share

Cost of bond (Cb) = 105% of par

Weight of preferred stock :

(P * Cp) / [(P*Cp) + (C*Cc) + (B * Cb * par value)]

(60mill * $10) / [(60mill * $10) + (80mill * $20) + (50000 * 1.05 * 1000)]

600mill / (600 mill + 1600mill + 52.5mill)

600,000,000 / 2252500000

= 0.2663706

= 26.64%

7 0

4 years ago

15-10 A firm has 60,000 shares whose current price is $45.90. Those stockholders expect a return of 14%. The firm has a 3-year l

krek1111 [17]

Answer:

<u><em>before taxes:</em></u>

WACC 8.74959%

<u><em>after a 21% tax-rate:</em></u>

WACC 7.23587%

Explanation:

Equity: 60,000 x $45.90 = 2,754,000

Liabilities: 1,900,000 + 22,000 x 925 = 22,250,000

Value: 25,004,000

<u>We solve for weights:</u>

Ew = 2,754,000 / 25,004,000 = 0,1101423772196449

Lw = 22,250,000 / 25,004,000 = 0,8898576227803551

Cost of debt will be the market value rate of the bond That is the rate at which the future coupon payment and maturity matches the market price of the bond

we solve this using excel goal seek:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 35.00

time 20

rate 0.040545327

$35 \times \frac{1-(1+0.0405453269606019)^{-20} }{0.0405453269606019} = PV\\$

PV $473.3728

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $1,000.00

time 20.00

rate 0.04055

$\frac{1000}{(1 + 0.0405453269606019)^{20} } = PV$

PV 451.6270

PV c $473.3728

PV m $451.6270

Total $924.9998

a semiannual rate of 0.04055 is the market rate thus, cost of debt is

0.04055 x 2 = 0.081

Now we can solve for the WACC without taxes:

$WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})$

Ke 0.14000

Equity weight 0.1101

Kd 0.081

Debt Weight 0.8899

t 0

$WACC = 0.14(0.1101) + 0.081(1-0)(0.8899)$

WACC 8.74959%

wiht taxes of 21%

t 0.21

$WACC = 0.14(0.1101) + 0.081(1-0.21)(0.8899)$

WACC 7.23587%

4 0

4 years ago

Although it is not known whether you have to buy 1, 10, or 100 lottery tickets to get a winning ticket, it is highly probable th

Effectus [21]

Answer:

variable-ratio

Explanation:

According to my research on studies conducted by various psychologists, I can say that based on the information provided within the question the type of schedule being used is called variable-ratio schedule. This refers to when a response is reinforced after a completely random amount of responses. Since positive results from gambling are completely random, this type of scheduling is mostly used in these situations.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

5 0

3 years ago

Pool line is the manufacturer of a pool cleaning system that has been called by the pool construction industry, "the miracle we

attashe74 [19]

The answer is Pool Cleaning Systems. The relevant market product is Pool Cleaning System. It is engineered to clean the entire pool, including floors, steps, benches, even spas. Nozzles pop up consecutively to direct a power jet of water to direct debris towards the MDX-R3 drain.

8 0

4 years ago

2. In order to expedite basic performance improvement team functioning, the team should: A. Establish ground rules. B. Perform f

olya-2409 [2.1K]

Answer:

2- A. Establish ground rules

3- D. Top management’s requirements.

Explanation:

2- An effective team is a well-integrated team, where the flow of information occurs effectively and where each member feels equally respected and an important part of the team, being able to contribute with ideas and feedback.

Therefore, for there to be cohesion and improvement of the team's performance, it is necessary to establish basic rules, to guide the behavior and actions of members and for there to be equality among all, in order to avoid conflicts and organize work.

3- to guide the process of the performance improvement team, the most important alternative is the requirements of senior management.

It is the managers who will coordinate, monitor and guide the action plans and develop the fundamental requirements for the execution of the business actions that will lead to the fulfillment of the objectives and goals.

8 0

3 years ago