Answer:
Letter a is correct. Distort incentives and this distortion causes markets to allocate resources inefficiently.
Explanation:
What happens is that when rates rise, it causes an imbalance in supply and demand, because at higher rates companies are forced to raise prices to offset tax costs, so the pass-through of consumer prices discourages consumption and as a consequence of less consumption, production also decreases, causing the inefficient allocation of market resources.
Answer:
274.7%
Explanation:
The total amount that Eric will borrow will be = 43114311+33503350+13391339 = 90009000.
Now to calculate WACC, we will apply the WACC formula:
WACC = (43114311/90009000)*0.66 + (33503350/90009000)*0.88 + (13391339/90009000)*14.14
Hence,
WACC = 274.74%
The solution was very simple, we just applied the WACC formula by taking the total amount of debt in the denominator of each of the loans taken and multiplied it by the interest rate on which it is taken.
Hope this helps, although I think the values in the question are not correct, but nonetheless I have provide the correct solution according to the given values.
Thanks.
Answer:
The conversion cost per equivalent unit is $3.31
Explanation:
The computation of the conversion cost per equivalent unit is shown below:
= Total conversion costs ÷ Total equivalent units
where,
Total conversion cost = completed units + Conversion costs during April
= $6,000 + $35,000
= $41,000
And, the total equivalents units equal to
= Finished good units × percentage of completion + ending work in process units × percentage of completion
= 11,500 units × 100% + 1,500 units × 60%
= 11,500 units + 900 units
= 12,400 units
Now put these values to the above formula
So, the per unit would equal to
= $41,000 ÷ 12,400 units
= $3.31 per unit
Answer:
A.8.85%
Explanation:
Computation to determine the weighted average cost of capital for Zonk based on the new capital structure.
First step is to calculate the Cost of equity capital using this formula
Cost of equity capital = Risk free rate + (Beta*Market premium)
Let plug in the formula
Cost of equity capital = 2.3% + (1.13*5.3%)
Cost of equity capital=8.28%
Now let determine theWeighted average cost capital
Weighted average cost capital = [.70*.14*(1-.35)]+(.30*.0828)
Weighted average cost capital= [.70*.14*.65]+.02484
Weighted average cost capital=0.0637+.02484
Weighted average cost capital= .0885*100
Weighted average cost capital= 8.85%
Therefore the weighted average cost of capital for Zonk based on the new capital structure is 8.85%
Answer:
The statement best describes the role of a credit agency is "It tracks the use of credit for lenders"
