This answer is FALSE - FUN FACT - Liquidity of money refers to the ease with which the owner of an asset can convert it into cash it is easier to convert common stocks into cash rather than attempt to raise cash from sale or mortgage of real estate assets
Answer:
WACC = 0.16637 OR 16.637%
Explanation:
WACC or weighted average cost of capital is the cost of a firm's capital structure which can comprise of debt, preferred stock and common equity. The WACC for a firm with only debt and common equity can be calculated as follows,
WACC = wD * rD * (1-tax rate) + wE * rE
Where,
- w represents the weight of each component based on market value in the capital structure
- r represents the cost of each component
- D and E represents debt and equity respectively
To calculate WACC, we first need to calculate the Market value an cost of equity.
The market value of equity = 30 million shares * $40 per share
MV of equity = $1200 million
The cost of equity can be found using the formula for Price today (P0) under constant growth model of DDM.
P0 = D1 / (r - g)
40 = 4 / (r - 0.07)
40 * (r - 0.07) = 4
40r - 2.8 = 4
40r = 4+2.8
r = 6.8 / 40
r = 0.17 or 17%
MV of debt = 40 million * 96.5% => $38.6 million
Total MV of capital structure = 38.6 + 1200 = 1238.6 million
WACC = 38.6/1238.6 * 0.08 * (1-0.33) + 1200/1238.6 * 0.17
WACC = 0.16637 OR 16.637%
Answer:
False
Explanation:
' Once a business has sold a service, it no longer needs to be concerned with customer satisfaction' is a False statement.
Customers are the pillars on which every business stands & their satisfaction should be a supreme priority for a business.
There is need of 'After Sale Services' after selling a service. This is important to ensure customer's expectations from the product are met, & they are satisfied with the business' services.
After sale services make customers feel valued. This generates customer retention, customers' loyalty towards business. Such customers are also likely to do word marketing & build a business' reputation in front of other customers.
When brokers serve as intermediaries who bring buyers and sellers together in the real estate market, they get paid what is commonly known as a Commission.
<h3>How are real estate brokers paid?</h3><h3 />
In the real estate market, brokers are paid based on commission. This commission is charged on the selling price of the house which means that it is the buyer that pays the commission. The reason real estate brokers get paid a commission is because of their service of bringing the buyers of real estate, to those who want to sell their property in the real estate market.
There can be different rates paid for commission to real estate brokers depending on the services rendered, the location, or how well known the real estate agent is. However, commission paid often ranges between 5% of the selling price to 6%. This means that if a real estate broker sells a property worth $100,000, they can expect between $5,000 and $6,000.
Find out more on real estate commission at brainly.com/question/13094656
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