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2 years ago

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1. Most financial crises in the United States have begun with A. a steep stock market decline. B. an increase in uncertainty res

ulting from the failure of a major firm. C. a steep decline in interest rates. D. all of the above. E. only A and B of the above.

1 answer:

irina1246 [14]2 years ago

7 0

Answer:

d

Explanation:

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Maloney's, Inc. has found that its cost of common equity capital is 17 percent and its cost of debt capital is 6 percent. The fi

Gwar [14]

Answer:

11.64%

Explanation:

The formula to compute WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

where,

Weighted of debt = Debt ÷ total firm

The total firm includes debt, preferred stock, and the equity which equals to

= $3,000,000 + $2,000,000 = $5,000,000

So, Weighted of debt = ($2,000,000 ÷ $5,000,000) = 0.40

And, the weighted of common stock = (Common stock ÷ total firm)

= $3,000,000 ÷ $5,000,0000

= 0.60

Now put these values to the above formula

So, the value would equal to

= (0.40 × 6%) × ( 1 - 40%) + (0.60 × 17%)

= 1.44% + 10.2%

= 11.64%

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3 years ago

Cuba is a command economy that suffered a decline in economic growth because of a cut in the aid provided by the former Soviet U

katen-ka-za [31]

Answer:

Experience an inward shift of its production possiblity curve.

Explanation:

Production possiblity curve is a graphical representation of the maximum number of products that a company can produce, if it produce only two product using all the resources efficiently. The maximum production possiblity of one product is shown on one side graph and another product on other side to compare which product can be produced to reduce cost and wastage while maximizing the profit. This also help the management to know the effecient use of resources or factor of production; Land, labour, capital and entrepreneurship. Therefore, lack of resources to Cuba have lead it´s economy to decline.

4 0

3 years ago

Which of the following falls outside of the classification of business expenditures that fall into the category of variable cost

yuradex [85]

The option that falls outside of the classification of business expenditures that fall into the category of variable costs is option C. costs of research and development. Read below about costs of research and development.

<h3>What is a costs of research and development?</h3>

These are costs taken to develop new products or processes that may or may not result in commercially viable items. The general rule is that research and development costs are to be expensed immediately when the costs are incurred.

Therefore, the correct answer is as given above.

learn more about costs of research and development: brainly.com/question/18685415

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4 0

1 year ago

If there are two identical companies, one financed 100% equity and the other 50% equity and 50% debt, which would be worth more

Umnica [9.8K]

The one with 100% equity?

5 0

3 years ago

Keenan Industries has a bond outstanding with 15 years to maturity, an 8.75% coupon paid semiannually, and a $1,000 par value. T

mixas84 [53]

Answer:

b. 5.27%

Explanation:

First, find the PV of the bond today. With a financial calculator, input the following and adjust the variables to semi-annual basis;

Face value; FV = 1000

Maturity of bond; N = 15*2 = 30

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Semi annual interest rate; I/Y = 3.25%

then compute Price; CPT PV= 1,213.547

Next, with the PV , compute the yield to call (I/Y) given 6 years;

Maturity of bond; N = 6*2 = 12

Semiannual coupon payment = (8.75%/2)*1000 = 43.75

Price; PV= -1,213.547

Face value; FV = 1,050

then compute Semiannual interest rate; CPT I/Y = 2.636%

Convert the semiannual rate to annual yield to call = 2.636*2 = 5.27%

7 0

3 years ago