Answer:
a. Weighted average flotation cost
= FCE(E/V) + FCD(D/V)
= 7(100/170) + 4(70/170)
= 4.12 + 1.65
= 5.77%
V = E + D
V = 100 + 70 = 170
b. Flotation cost of debt financing
= 4% x $18 million
= $0.72 million
True cost of the building after taking flotation cost into account
= $18 million + $0.72
= $18.72
Explanation:
The weighted average flotation cost is the flotation cost of equity multiplied by the proportion of equity in the capital structure plus flotation cost of debt multiplied by proportion of debt in the capital structure. The total market value is 100 + 70 = 170. Since the debt-equity ratio is 0.7. Debt takes 70 while equity takes 100. The proportion of equity in the capital structure is 100/170 while the proportion of debt in the capital structure is 70/170.
Answer:
The right answer is "$907.30".
Explanation:
Given that:
Currency,
= $620.00
Two checks,
= $113.30
and,
= $174.00
Now,
The total deposit shown will be:
= 
By substituting the values, we get
= 
= 
= 
($)
Answer:
$685
Explanation:
<u>Workings</u>
Cost of new automobile = $33,000
Financing rate = 9%/ annual or 0.75 / month
Period of payment = 60 months
1st month payment = (33000/60 ) + (33000*0.75%)
550+247.5 = 797.5
Closest amount here is $685
Answer:
C All of the answers are correct
Explanation:
A market structure is termed as oligopoly when there are very few suppliers in a market of so many buyers. For oligopoly, the profit is maximized where the marginal cost equals the marginal revenue. If the marginal cost curve shifts upwards, it means that it increases. In an attempt to increase the cost in one firm, all the consumers will shift to the other firms, in an attempt to increase output, a company will make lesser profit. In this case, it means that the company will have to make use of non-price methods to compete. Therefore, the correct answer is C as the above given answers are all correct.
The marketer should select target markets once she has developed a market-product grid and estimated the size of markets.
<h3>What is a target market?</h3>
A target market being a group of customers that a business decides to aim its marketing efforts and ultimately products on. They are potential customers that one wish to sell products or services to.
Target market are the group of people in which the products are made for. The products are specifically tailored to certain set of people.
Hence, the marketer should select target markets once she has developed a market-product grid and estimated the size of markets.
Learn more about target market here : brainly.com/question/20812603
