Bonds = 75,000*1000 = 75 Million
Preferred stock = 750,000*64 = 48 Million
Common stock = 2.5 Million *44 =110 Million
Total capital = 75+48+110 = 233 Million
Weight of debt (Wd) = 75/233 = 0.3219
Weight of preferred stock (Wp)= 78/233 = 0.206
Weight of equity (We) 1-0.3219-0.206 = 0.4721
Cost of debt after tax (Rd)= 7.5%*(1-0.34) = 4.95%
Cost of preferred stock (Rp)=6/64 = 9.375%
Cost of equity(Re) = rf + beta*(rm-rf) = 2.3+1.21*(11.2-2.3) = 13.069%
WACC = Wd *Rd + Wp*Rp + We*Re
WACC = 0.3219*4.95 + 0.206*9.375 + 0.4721*13.069% = 9.69%
Answer: (D.) All of the above are correct.
Explanation: If the factors of production are perfect substitutes then the following will hold true :
A. Isoquants are linear and downward sloping.
B. Cost-minimizing firms will generally use only labor or only capital in production, depending on the relative prices of labor and capital.
C. The elasticity of substitution between the inputs is infinite.
The comparison of different cars and believes that the sedan has a better mix of benefits in relation to price is known as B2B marketing.
<h3 /><h3>What is B2B marketing?</h3>
Business-to-business (B2B) is a form of transaction between businesses, a wholesaler and a retailer.
Business-to-business is conducted between companies, instead of a company and individual consumer.
Hence, the comparison of different cars and believes that the sedan has a better mix of benefits in relation to price is known as B2B marketing.
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The statement "Both interest bearing and noninterest bearing notes bear interest." is true.
An interest-bearing note bears interest. The interest on a non-interest-bearing note is subtracted from the note's principal. So, the statement is true.
An interest-bearing note is a sum of money that a lender lends to a borrower, with interest accruing in line with the conditions of the contract.
A non-interest bearing note is a loan for which the borrower is not legally required "to pay the lender any interest" at all.
Both kinds of notes bear interest, hence the term "noninterest bearing" is misleading. Interest is deducted from a noninterest bearing note at the time the loan is made.
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Answer:
what is the equation? because I can't see it
