The firms Cost of Debt is 9.62%.
Data and Calculations:
Weighted average cost of capital = 11.68%
Cost of equity = 15.5%
Debt-Equity Ratio = 0.65
Without taxes, the firm's Weighted Cost of Debt (WACC) = WACC - Weighted Cost of Equity
= 11.68% - (15.5% (1 - 0.65)
= 11.68% - 5.425%
= 6.255%
Unweighted cost of debt = 6.255%/0.65
= 9.62%
Thus, the firm's cost of debt is 9.62% while the weighted cost of debt is 6.255%.
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Answer:
The actual unemployment rate was higher during the recession of 1990−1991, while cyclical unemployment was higher in 2001.
Explanation:
Given data in the question
In the year 1990-1991
The natural rate of unemployment = 5.9%
The rate of the actual unemployment = 7.0%
In the year 2001
The natural rate of unemployment = 4.8%
The actual unemployment rate = 6.0%
As we can see that
The actual unemployment is high in the year 1990-1991 i.e 7.0% as compare to the year 2001 i.e 6.0%
While the cyclical unemployment rate is high in 2001 i.e 1.2% (6.0 - 4.8%) as compare to the year 1990-1191 i.e 1.1% (7.0% - 5.9%)
Answer:
D. differentiation.
Explanation:
Option A - Low-cost leadership refers to the strategy in which the customers are getting the products at a low cost. Companies seek to achieve cost leadership, but with efficient manufacturing and productive employees cannot help them to achieve that.
Options B and C - With local employees, it is challenging to achieve global operation, and focused differentiation is the selling of unique products to the customers. So, those are wrong answers.
Option D - With the help of differentiation strategy, companies seek effective manufacturing and productive employees to attract customers to take their products from the thousands of products in the market. Therefore, it is the correct answer.
The total annual dividend received is $60.
The computation of the total annual dividend is as follows:
Given that
There are 75 shares.
And, the quarterly dividend is $0.20.
So,
The annual dividend should be
= $0.20 × 4 quarters
= $0.80
Now the annual dividend is
= 75 shares × $0.80
= $60
Therefore we can conclude that the total annual dividend received is $60.
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