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vodomira [7]
3 years ago
10

The hyrbrid automobile grew out of automobile designers' realization that there were changes in the legal environment regarding

automobile emissions to which they need not comply.
a. True
b. False
Business
1 answer:
MrRa [10]3 years ago
5 0

Answer: True

Explanation:

Hybrid cars use both electricity and gasoline motors and engines. The concept behind this is that the electricity gives the car better acceleration and the gasoline then maintains it.

Developed countries tax gasoline due to its emissions but don't really tax electricity. On realizing this, designers recognized that they could combine both gasoline and electricity to create hybrids that would decrease the cost of taxation of using gasoline.

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The following market information was gathered for the corporation. The firm has 1,000 bonds outstanding, each selling for $1,100
Nana76 [90]

Answer:

9.127%

Explanation:

For calculating the WACC we need to do following calculations which are shown below:

value of debt = 1,000 ×  $1,100 = $1,100,000

cost of debt = 8% ×  (1 - 0.3) = 4.8%

value of equity = 50,000 shares × $18 = $900,000

value of preferred stock = 5,000 × $40 = $200,000

Now

Market value of firm = $1,100,000 + $900,000 + $200,000 = $2,200,000

The formula is shown below:

= Weightage of debt × cost of debt + (Weightage of common stock) × (cost of common stock) + (Weightage of preferred stock) × (cost of preferred stock)

WACC = ($1,100,000 ÷ $2,200,000) × 4.8% + ($900,000 ÷ $2,200,000) × 14% + ($200,000 ÷ $2,200,000) × 11%

= 9.127%

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