Answer:
The WACC is 8.75%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure is made up of debt, preferred stock and common stock.
The formula for WACC is,
WACC = wD * rD * (1 - tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component in the capital structure or value of each component as a proportion of total assets
- r represents the cost of each component
- we take after tax cost of debt. So we multiply cost of debt by (1 - tax rate)
The weight of common equity = 1 - (0.53 + 0.15) = 0.32 or 32%
The WACC is:
WACC = 0.53 * 0.0712 * (1 - 0.29) + 0.15 * 0.109 + 0.32 * 0.1387
WACC = 0.0875 or 8.75%
Answer:
A source document should generally contain the following: 1 The business name and logo 2 The date of the transaction 3 A description of the transaction 4 The specific value of the transaction
Explanation:
Answer:
A
Explanation:
The quantitative theory of money states that MV=PT.
M: money supply
V: velocity of circulation (number of times that a dollar changes of holder in a period)
P : price of a typical transaction
T: total number of transactions.
We can also write the equation as MV=PY, because the value of transactions is equal to the GDP (Y).
If M has a constant growth but there are fluctuations in V, then P, Y or both change.
U.S export of goods and services are about 14 PERCENT OF USA GDP. GDP is the abbreviated form of Gross Domestic Product. GDP is a primary indicator that is used to measure the wellness of an economy. It stands for the total dollar value of all goods and services produced in that economy in a specified period of time.
