Answer:
C
Explanation:
A rain barrel is a container that captures and stores rainwater for landscape and garden use during dry periods. Rain barrels provide an external benefit to the community through water conservation. If the government offers a per unit subsidy on rain barrels equal to the per-unit externality, then the after-subsidy equilibrium quantity of rain barrels will be more than the socially optimal quantity of rain barrels.
Answer:
Divestment
Explanation:
Divestment is the opposite to investment: consists in selling off, or giving up on some business operations, with the goal of increasing focus on a smaller subset of activities.
Divestment can also occur when a company is going through financial difficulties, and needs to sell off part of its operation in order to pay off debts, or obtain much needed cash.
Bayne Crop likely found out that the pork market was difficult, and decided to abandon it, focusing instead on other divisions in which the firm is likely to be more competitive.
B. Ordinal is the Equal Employment Opportunity Act which requires employers to classify their employees by gender and national origin
Cost of equity capital is closest to: 16 percent
Solution:
WACC is covered on page 120 Corporate Finance, under Capital Structure.
Using the standard equation for WACC = %wt Equity x cost of equity (re) + %wt Debt x cost of debt (rd).
Since there is a 20% tax rate for the firm, the cost of borrowing is reduced by that amount. So the cost of debt is 4%, not 5%.
Plug the formula: 10% = 50% x re + 50% x 4%
The formula ( i.e. 0.1+(0.1-0.05)(1)(1-0.2)) in CFAI reading is questionable.
The calculation is 0.1+(0.1-0.05*(1-0.2))*(1)=16%
Answer:
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