Answer:
its weighted cost of capital for the coming year is 9.64%
Explanation:
WACC is the minimum return expected from a project. It shows the risk of the company.
<u>Calculation of WACC.</u>
Capital Source Weight Cost Total
Debt 40% 6.60% 2.64%
Common Equity 60% 11.67% 7.00%
Total 100% 9.64%
Cost of Debt = Market Interest Rate × ( 1 - tax rate)
= 11%×(1-0.40)
= 6.60%
Cost of Equity = (Next year`s dividend/Current Market Price of a share)+Expected growth rate
= ($1.40/$30)+0.07
= 11.67%
Re-stocking: restock <span>(redirected from restocking)</span>
<span>Also found in: </span>Thesaurus<span>, </span>Legal.<span>re·stock (rē-stŏk′)tr.v. re·stocked, re·stock·ing, re·stocksTo furnish new stock for; stock <span>again.
-the free dictionary by farlex.
</span>LINK: https://www.thefreedictionary.com/restocking<span>
</span></span>
Answer: In a market with positive externalities, <u>"C. the efficient level of production is more than what competition will obtain.".</u>
<u />
Explanation: An externality is a situation in which the costs or benefits of production or consumption of some good or service are not reflected in its market price. A positive externality is the positive effect of an activity imposed by an unrelated third party.
Answer:
False
Explanation:
A partnership is when 2 parties come together to invest in a business.
Profit sharing from the business is usually based on the percentage invested by the partners.
For example if A invested 20% and B invested 80%, B will receive a higher share.
So in this case the amount they will be entitled to is a function of their investment unless otherwise stated in the agreement.
Since the agreement is silent on this their contribution will be used as the basis for sharing and not responsiblity in the business.
Answer:
$100,000
$350,000
Explanation:
The bond sale be reported as debt service expenditures for 2020 and 2021 can be calculated as follows
The Amount would be reported as debt service expenditures for 2020
= $5,000,000 x 4% x 1/2 year
= $100,000
The amount would be reported as debt service expenditures for 2021
= $5,000,000 x 4% + $250,000
= $350,000