Unemployment that arises as a result of the time it takes for unemployed people to locate a job utilizing their transferable skills is called 
unemployment.
Answer:
a. Weighted average flotation cost
= FCE(E/V) + FCD(D/V)
= 7(100/170) + 4(70/170)
= 4.12 + 1.65
= 5.77%
V = E + D
V = 100 + 70 = 170
b. Flotation cost of debt financing
= 4% x $18 million
= $0.72 million
True cost of the building after taking flotation cost into account
= $18 million + $0.72
= $18.72
Explanation:
The weighted average flotation cost is the flotation cost of equity multiplied by the proportion of equity in the capital structure plus flotation cost of debt multiplied by proportion of debt in the capital structure. The total market value is 100 + 70 = 170. Since the debt-equity ratio is 0.7. Debt takes 70 while equity takes 100. The proportion of equity in the capital structure is 100/170 while the proportion of debt in the capital structure is 70/170.
I think the answer is A. Homes have the potential to appreciate in value over time.
The bond that has a face value of $1,000 has a duration of 10 years.
<h3>
What is a bond?</h3>
A bond is a type of security in the financial world where the issuer (debtor) owes the holder (creditor) a debt and is required, depending on the terms, to repay the bond's principal (i.e., the amount borrowed) at the bond's maturity date as well as interest (referred to as the coupon) over a predetermined period of time. The interest is typically due at regular intervals, such as every six months, once a year, and less frequently at other times. To finance long-term investments or, in the case of government bonds, to finance immediate expenses, the borrower can obtain external funds through the sale of bonds. Both bonds and stocks are considered to be forms of security, but the main distinction between the two is that (capital) stockholders have an equity stake in a company, whereas bondholders have a creditor stake.
To learn more about bond, visit:
brainly.com/question/28362992
#SPJ4
