In the Weighted Average Cost of Capital (WACC) equation, the symbol <u>"Ke" </u>represents the costs of raising capital by issuing new stock.
The full WACC formula is below:
WACC Formula = (E/V * Ke) + (D/V) * Kd * (1 – Tax rate)
One buyer, many sellers and no close substitutes
usually this won't have an exact example to match all the requirement
so, try get those small company as the example of your answer
Answer:
The correct answer is $1,620.45
Explanation:
According to the scenario, the computation of the given data are as follows:
Time period (Nper) = 30 years
Face value (FV) = $1,000
Rate (r) = 7%
Coupon payment = $1,000 × 12% = $120
So, by putting all these in the financial formula, we get
The attachment is attached below.
So, the current price of the bond is $1,620.45.
Answer:
D. Cash flow statement
Explanation:
A cash flow statement refers to a financial statement which is used to record and summarize the amount of liquid assets (cash and cash equivalents) entering and leaving a business entity.
Cash flow can be defined as the net amount of cash and cash-equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
Hence, if you want to make sure a company has enough money available to pay its bills, the financial statement which would be most helpful is the cash flow statement because it is used to measure and analyze how well the company is doing financially in terms of generating revenue to pay its bills and debts.
If Felipe gets his inheritance then he and Mary can clinch their deal successfully and according to the terms they have worked out so that he will owe her $99,000 and she will get this money and he will get presumably a nice house.
