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inessss [21]
3 years ago
8

Each of the following factors affects the weighted average cost of capital (WACC) equation. Which of the following factors are o

utside a firm’s control? Check all that apply.
The general level of stock prices

The effect of the tax rate on the cost of debt in the weighted average cost of capital equation

The firm’s capital budgeting decision rules
Business
1 answer:
Volgvan3 years ago
7 0

Answer: The correct answers are "The general level of stock prices" and "The effect of the tax rate on the cost of debt in the weighted average cost of capital equation".

Explanation: The general level of stock prices and the effect of the tax rate on the cost of debt in the weighted average cost of capital equation are outside from firm's control because although companies have knowledge of the market, the general level of stock prices is not controlled by them, but by the market. And the effect of the tax rate is not controlled by companies because the tax rate is set by the state.

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James Corporation is planning to issue bonds with a face value of $505,500 and a coupon rate of 6 percent. The bonds mature in 7
mart [117]

Answer:

4%=$566,697.09  

6%=$505,500

8.5%=$ 439,842.50  

Explanation:

The issue price of the bond can be computed using the pv formula in excel spreadsheet as below:

=-pv(rate,nper,pmt,fv)

the rate is the market of 4% divided by 2

nper is the number of semiannual interest the bonds would pay which is 7 years multiplied by 2 i.e 14

pmt is the semiannual coupon interest on the bond,which is $505,500*6%*6/12=$15165

fv is the face  value repayable on redemption which is $505,500

for market rate of 4%

=-pv(2%,14,15165 ,505500)=$566,697.09  

for market rate of 6%

=-pv(3%,14,15165 ,505500)=$ 505,500.00  

for market interest of 8.5%

=-pv(4.25%,14,15165 ,505500)=$ 439,842.50  

5 0
3 years ago
"If the interest rate on a U.S. one-year bond is 2%, the interest rate on a Brazilian one-year bond is 8%, and the currency prem
cluponka [151]

3% is the answer.

<u>Explanation:</u>

The financial matters of market interest direct that when the request is high, costs rise and the cash acknowledges in esteem. Conversely, if a nation imports more than it sends out, there is generally less interest in its money, so costs should decrease.

On account of cash, it deteriorates or loses esteem. The stockpile of money is dictated by the local interest for imports from abroad. The more it imports the more noteworthy the inventory of pounds onto the outside trade advertise. An enormous extent of momentary exchange monetary standards is by sellers who work for money related organizations.

5 0
3 years ago
State a comparison of
Korvikt [17]

Answer:

Ice, liquid water, and water vapor differ in the arrangement and motion of water molecules

Explanation:

3 0
2 years ago
Under what conditions would a nation be viewed as being neither a net borrower nor a net lender in the international economy?.
irakobra [83]

Answer: trade balance of zero

Explanation:Trade deficits can be a good or a bad sign for an economy, and trade surpluses can be a good or a bad sign. Even a trade balance of zero—which just means that a nation is neither a net borrower nor lender in the international economy—can be either a good or bad sign.

7 0
2 years ago
Organisms exhibiting complex multicellularity are large and have cells/tissues that are not in contact with their environment. S
maxonik [38]

Answer:

Explanation: the question should be, Why is bulk flow a necessary condition of complex multicellularity?

Then here is the answer, Multicellular organisms are that have plenty cells and they have s complex units that makes up their functions and makes them to begin to function as one.

Organisms exhibiting complex multicellularity are big and have cells/tissues that are not usually in contact with their environment. They are have systems that can overcome the limits of diffusion (movement from area of higher concentration to that of lower) must evolve for basic physiologic processes to occur.

7 0
3 years ago
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