Answer:
8.43 %
Explanation:
Weighted Average Cost of Capital (WAAC) is the Cost of long term permanent sources of finance. We consider WACC on the Market Weight of sources of Finance.
WACC = ke × E/V + kd × D/V
where,
ke = cost of equity
= 11.08 %
E/V = Market Weight of Equity
= 100 % - 34 %
= 0.66
kd = cost of debt
= interest × ( 1 - tax rate)
= 5.38 % × (1 - 0.39)
= 3.2818 %
D/V = Market Weight of Debt
= 0.34
Therefore,
WACC = 11.08 % × 0.66 + 3.2818 % × 0.34
= 8.43 %
Answer & Explanation:
The fair value of our asset is $20000 and what we receive is a truck with $15000 market value and $5000 cash. So the transaction possesses commercial substance as the fair value and value received are same.
So assume if the transaction lacks the commercial substance (according to question) then the truck received must be recorded at fair value and must be offset against the truck which is exchanged for. The entry would be:
Dr Truck received @ Fair Value $15000
Cr Truck Sold $12000
Cr Profit on Disposal $8000
The above entry makes it clear that the entry to recognize the truck would be $15000. So the option D is correct.
The coupon rate is 4.29%.
FV = 1000
PMT = ?
N = 8
I = 5.10%
PV = -948
Inputting the above details on the calculator you can find PMT
$42.92 PMT(5.1%,8,-948,1000)
Alternatively, the PMT function in excel can also be used
Coupon Rate = 42.92/1000
= 4.29%
This gives you a coupon rate of 4.29%
Learn more about PMT here: brainly.com/question/24703884
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Answer: 1. A - Describe how the individual pursuit of self-interest works to promote the interest of the public as a whole
2. A- Both Adam Smith and Karl Marx believed that humans are motivated by self-interest
Explanation:
1. According to Adam Smith who is known as the father of modern economics stated in his thesis that individual's self-interest and freedom of production as well as consumption is in the best interest of the society as a whole.
Each Individual's free exchange creates signals about which goods and services are valuable. These signals will spontaneously direct competing consumers, producers, distributors, and intermediaries—each pursuing their individual plans— to fulfill the needs and desires of others.
Smith’s invisible hand became one of the primary justifications for an economic system of free market capitalism.
2. Pairing that best describes Adam Smith's view of human motivation in a market economy and Karl Marx's view of human motivation in a communist economy: Both Adam Smith and Karl Marx believed that humans are motivated by self-interest as they both believe that the economy is a capitalist economy that all its good and services are in the hands of private individuals.
Answer: $3.91
Explanation:
The following information can be gotten from the question:
S = Current stock price = $33
C = Call Price = $2.25
K = Exercise Price = $35
e = 2.71
Rf = Risk free rate = 4% = 0.04
T = Time = = 90 days = 90/365
Put Price will now be calculated as:
= C - S + K × e^(-rt)
= 2.25 - 33 + 35 × 2.71^(-0.04 × 90/365)
= $3.91
