Answer:
total market value is $812.05 million
WACC project discount rate is 8.77%
Explanation:
The firm's market value is the sum of the market values of equity,debt and preferred stock.
Equity=10.1*$49=$494.9 million
debt=235,000*$1000*116%=$272.6 million
preferred stock=450,000*$99=$44.55 million
Total market value $812.05 million
WACC=Ke*E/V+Kd*D/V*(1-t)+Kp*P/V
Ke is the cost of equity=4%+1.55(8.9%-4%)=11.60%
Kd= rate(30,$1000*8.9%/2,-$1000*116%,1000)=3.57% semiannually
kd=3.57%*2=7.14%
Kp=5%
WACC=(11.50%*494.9/812.05)+(7.14%*272.6/812.05*(1-0.38)+(5%*44.55/812.05)=8.77%
Answer: D. The movement of funds from the lender to the borrower and back to the lender
Explanation: Money is regarded as a means of measuring economic value; our present society is centre's around money and how it changes hands from one individual to another while creating value. This results in the money cycle, where money for goods/services, it generates more wealth and thus fuels overall economic growth as it moves from lender (an individual or institution) through a direct investment to the borrower and back to the lender.
Answer:
Part 1. Unemployment due to recession is Cyclical Unemployment.
Part 2. Mushashi recently lost her job because of Structural Unemployment.
Part 3. Rina is unemployed due to Frictional unemployment in the economy.
Explanation:
Part 1. A cyclical unemployment is the unemployment for a specific time duration and is inevitable due to serious issues across the country. Like nowadays, countries are suffering from great recession of all times recorded due to Corona-virus pandemic. One can assume that we will get rid of it sooner, so it is cyclical.
Part 2. Musashi is unemployed due to lower jobs demand of the skills that she possesses in the economy. Such type of unemployment that resulted because of the changes in the demand of the skills required is often referred to as structural unemployment.
Part 3. The frictional unemployment is the type of unemployment which exists in every economy because it occurs due to the process of employees shifting to other jobs by moving from one to another which is the case of Rina. She is now trying to shift to full-time position as she has graduated from college.
<span>Yes, it would be a natural progression for Silven Industries to diversify by entering into the production of seasonal products.They already have the expertise in the summer production line, so it just follows suit to now go in the direction of winter products.</span>