Answer:
WACC = 11.45 %
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund
WACC = (Wd×Kd) + (We×Ke) + (Wp × Kp)
After-tax cost of debt = Before tax cost of debt× (1-tax rate)
Kd-After-tax cost of debt = 11.1%(1-0.4) =6.66%
Ke-Cost of equity = 14.7%
Kp= Cost of preferred stock = 12.2%
Wd-Weight of debt =100/270=0.370
We-Weight of equity = 140/270=0.518
Wp= weight of preferred stock = 30/270=0.111
WACC = (0.518× 14.7%) + (0.370 × 6.7%) + (0.111×12.2) = 11.447%
WACC = 11.45 %
Answer:
Classification of Goods
a. Intermediate good; Investment
b. Final Good = Consumption
c. Intermediate good; Investment
d. Intermediate good = Investment
Explanation:
An intermediate good produces a final good for consumption. Intermediate goods are used for investment to generate more resources that can be consumed in the future. A final good, in most cases, does not require further processing. It is consumed immediately by the buyer.
Star Workers and Star Athletes share a high need for achievement.
A need for achievement, also know as N-Ach, describes <u>how an individual has a desire to attain either one of these or a combination: skill mastery, great accomplishments, or high standards</u>.
Star workers and athletes are usually individuals who have a high need to become the best or reach great accomplishments in their field, thus it is accurate to say that both groups will have a high need for achievement.
