Wher do we choose the communication planning and resource?
Answer:
A) interest rate
Explanation:
Interest rate risk refers to the risk of purchasing a bond that offers a certain coupon and then the price of that bond changes due to changes in the market interest rate.
This can work in your favor, if the market interest rate decreases, you will have a bond that pays above market coupon, which will increase the market value of the bond. But if the market interest rate increases, the market value of your bond will decrease, and you will lose money. This is what happened to Albert, since the market interest rate increased, the value of Albert's bond decreased.
Answer:
It is not efficiently using all of its resources.
Explanation:
PPC is the graphical representation of product combinations that an economy can produce, given resources & technology.
- Points on PPC reflect the best potential production of economy, by best efficient utilisation of available resources & technology.
- Any point under PPC reflects production under best potential of economy, by inefficient utilisation of resources.
- Points beyond PPC are unattainable, unless growth in either resources/ technology shifts the PPC curve outwards.
Answer:
Plan A = 8.55%
Plan A =8.57%
Plan A =7.9%
Plan A =6.58%
Explanation:
The weighted average cost of capital can be computed by multiplying the Cost of capital (after tax) with the weights. The weighted average cost for four plans are as follows
WACC = Cost of capital x Weights
PLAN A
Weights Cost of capital WACC
Debt 3.0 % 15 % 0.45%
Preferred stock 6.0 10% 0.6%
Common equity 10.0 75% 7.5%
WACC 8.55%
PLAN B
Weights Cost of capital WACC
Debt 3.2 % 25% 0.8%
Preferred stock 6.2 10% 0.62%
Common equity 11.0 65% 7.15%
WACC 8.57%
PLAN C
Weights Cost of capital WACC
Debt 4.0 % 35 % 1.4%
Preferred stock 6.7 10% 0.67%
Common equity 10.6 55% 5.83%
WACC 7.90%
PLAN D
Weights Cost of capital WACC
Debt 7.0 % 45 % 3.15%
Preferred stock 7.6 10% 0.76%
Common equity 12.6 45% 5.67%
WACC 6.58%