Answer:
The company's WACC is closest to 11.8%
Explanation:
Weighted Average Cost of Capital (WACC) is the Cost to the Company arising from the sources of finance. It shows the return required by holders of permanent capital in the company.
WACC = Cost of Equity x Market Weight of Equity + After Tax Cost of Debt x Market Weight of Debt
where,
Cost of Equity = 16.0 %
Market Weight of Equity = 3,000 ÷ 5,000 = 0.60
Market Weight of Debt = 2,000 ÷ 5,000 = 0.40
After Tax Cost of Debt = interest x ( 1 - tax rate) = 8.0% x (1 - 0.30) = 5.60%
therefore,
WACC = 16.0% x 0.60 + 5.60% x 0.40 = 11.84 %
Answer:
$0
Explanation:
According to US GAAP the reduction in the value of the asset due to a decrease in the fair value. It means when fair value of the asset is reduced than the book value of the asset.
Amortized Cost / Book value = $50,000
Market Value = $53,000
Discounted Value = $51,000
There is no Impairment loss on this asset as the fair market value is more than the book value of the asset.
U.S. demand conditions.
Answer: Option B.
<u>Explanation:</u>
Since the question is about the domestic demand and the demand of the citizens who are living in the country, the demand of the people who are living in the United States of America should not affect the domestic demand of Indian citizens.
The demand of every good and service is affected by some factors which increase or decrease the demand of these goods and the services. But the demand of the international consumers or customers will not affect the demand of the national goods and services.
Answer and Explanation:
In the given situation, it is mentioned that while travelling to another country you have two choices for paying at the time of booking or at the time of checking out. Now at Jan the person made a reservation for staying at Italy and completed the stay as on April 30th so here the change in inflation would be matters whether it is increasing or decreasing. It is better to pay off at advances as there is a chances that the price could rise in near future
Answer:
5.7
Explanation:
The contribution margin characterizes the marginal profit per unit of sales. The indicator is useful in various calculations, and can be used as a measure of operational leverage. As a rule, low values of the indicator are characteristic in labor-intensive sectors, high - in capital-intensive industry.
We have these data:
-contribution margin (CM) : $78,090
-net income (NI) :$13,700
-the degree of operating leverage (DoL) : ?
DoL=CM/NI= 78090/13700=5.7
