Accurate measurement is VERY important in banking because banking is all about exact calculations. If one balance measure is off, the entire bank report will not be acurate. One little mess up and the entire calculation goes wrong.
Answer: a. The merged firm will operate at higher capacity and may be able to reduce costs through economies of scale and perhaps learning-by-doing, which will benefit U.S. consumers.
Explanation:
A merger occurs when two companies comes together and becomes one. This is done in order to expand the recah of a company, gain a market share, and also expand into new segments.
The plausible reasons for the limited impact of the merger will be because the merger will lead to the operation at a higher capacity which will ensure that there's cost reduction through economies of scale which will be beneficial to the consumers.
Answer:
was it a passage u had to read?
Explanation:
Answer:
10.25%
Explanation:
Data provided in the question:
Long-term debt = 45%, after-tax cost = 7%
Preferred stock = 15%, after-tax cost = 10%
Common stock equity = 40%, after-tax cost = 14%
Now,
The weighted average cost of capital for this firm will be calculated as:
= Long term debt × after-tax cost + Preferred stock × after-tax cost + Common stock equity × after-tax cost
or
= 0.45 × 0.07 + 0.15 × 0.10 + 0.40 × 0.14
or
= 0.0315 + 0.015 + 0.056
= 0.1025
or
= 0.1025 × 100%
= 10.25%
Answer:
True
Explanation:
For a stock to be in equilibrium, two conditions are necessary:
(1) The stock's market price must equal its intrinsic value as seen by the marginal investor;
(2) the expected return as seen by the marginal investor must equal his or her required return.
