Answer:
A certificate of deposit; a time deposit
Explanation:
Answer:
MASTER
Explanation:
Apparently it says to write it so that's is what I did is there anything wrong about that bye
Answer:
You are given the following information for Watson Power Co. Assume the company’s tax rate is 22 percent. Debt: 12,000 6.1 percent coupon bonds outstanding, $1,000 par value, 27 years to maturity, selling for 109 percent of par; the bonds make semiannual payments. Common stock: 450,000 shares outstanding, selling for $63 per share; the beta is 1.14. Preferred stock: 19,500 shares of 3.9 percent preferred stock outstanding, currently selling for $84 per share. The par value is $100 per share. Market: 5 percent market risk premium and 4.9 percent risk-free rate.What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Answer:
Risk-free rate decreases
Explanation:
The CAPM formula for calculating cost of equity requires one to know the value of 3 pieces of information only:
1. the market rate of return,
2. the beta value
3. the risk-free rate.
Ra = Rrf + [Ba∗(Rm−Rrf)]
where:
Ra=Cost of Equity
Rrf = Risk-Free Rate
Ba = Beta
Rm=Market Rate of Return
From the formula
Ra = Rrf + [1.2∗(Rm−Rrf)]
Ra = Rrf + 1.2Rm - 1.2Rrf
From Ra = 1.2Rm -0.2Rrf
From the expression above, it can be seen that the lower the value of Rrf (Risk-Free rate), the higher the value of Ra.
Answer:
Depreciation Expense = $5800
Explanation:
As per the data given in the question,
Initial cost = $52,800
Freight cost = $300
Non-refundable tax = $6,400
Installation = $500
Estimated residual value = $2,000
Rate = 10%
So total cost of assets = $52,800 + $300 + $6,400 + $500
= $60,000
As per the following formula,
The straight line depreciation expense = (Cost- Residual value) × Straight line depreciation rate
=($60,000 - $2,000) × 10%
=$58,000 × 10%
=$5,800
