Answer:
a. 8.79%
Explanation:
WACC = Weight of debt * Pretax cost * (1 - Tax) + Weight of Equity * Cost of Equity
Value of Equity = 10,700 * $63 = $674,100
Value of debt = 320 * $1000 * 93.6% = $299,520
Weight of Debt = $299,520/($299,520 + $674,000) = 30.76%
Weight of Equity = $674,000/($299,520 + $674,000) = 69.24%
WACC = 30.76% * 5.89% * (1 - 40%) + 69.24% * 11.13%
WACC = 30.76% * 5.89% * 0.60 + 69.24% * 11.13%
WACC = 0.010870584 + 0.07706412
WACC = 0.087934704
WACC = 8.79%
Answer: True, unless you're on your own it kinda does, considering bills, financial stuff, etc.
Answer:
The main advantage of the discounted payback period method is that it can give some clue about liquidity and uncertainly risk. Other things being equal, the shorter the payback period, the greater the liquidity of the project. Also, the longer the project, the greater the uncertainty risk of future cash flows.
Answer:
Bond, Treasury and Risk are the correct words that can satisfy the statements given.
Explanation:
A(n) bond is a long-term agreement under which a borrower allows to make installments of interest as well as principal on particular dates as we know this is a definition of bound. So the word bond satisfies the statement requirement.
There are four main types reflecting who the issuers are: treasury, corporate, municipal, and foreign. Each type differs with respect to risk and expected return. All have some common characteristics even though they may have different contractual features. Here in the second statement, the word treasury satisfies the statement requirement as we know that (Treasury Securities. Bonds, notes as well as bills announced by the United Statement government are frequently known as “Treasuries” and are the maximum-quality securities accessible.)
Correct words complete the sentences and we can understand the statements easily.
Fiona signed an agreement to either buy or not buy nick’s vacant lot for $310,000 by a specific date. This agreement is called a bilateral contract.
<h3>What is bilateral contact?</h3>
A bilateral contract is a contract which is made between two parties. Under this contract, both parties make promises to each other on the terms and conditions. In this contract, the promise of one party turns into a consideration of the other party. It is the most common kind of contract which is binding in nature.
Fiona signed a contract promising to either purchase Nick's vacant lot for $310,000 by a certain date or not. It's referred to as a bilateral contract.
Learn more about the bilateral contracts from here:
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