Answer:
WACC = 12.040%
Explanation:
WACC represents weighted average cost of all sources of financing. In the question there are three sources of finance 1) Equity 2) Preferred Stock 3) Debt.
1) Equity: The firm intends to raise $ 320,000 from equity out of total financing of $ 570,000 e.g. 56% of total financing comes from Equity. Thus multiplying the cost of equity 14.7% (given) with ratio of equity financing, we get to weighted average cost of equity of 8.253%.
2) Debt: The firm is raising $ 230,000 from debt e.g. 40% of total financing. The proportion of debt is multiplied by post tax cost of debt as the interest expense is deductible expense for tax purposes in most of the jurisdiction. Therefore we reduce the cost of debt with element of (1 - tax rate), thus we get to 8.325% = 11.1 (1 - 25%) as total cost of debt. In order to get weighted average cost of debt we multiply this post tax cost of debt with ratio of debt financing 40%, thus weighted average cost of debt is 8.325 * 40% = 3.359%
3) Preferred Stock: The firm is also raising finance from preferred stock having cost of 12.2%. Proportion of financing from preferred stock is 4% in total mix of financing, thus weighted average cost of preferred stock is 12.2% * 4% = 0.428%.
Now adding weighted average cost of all three sources of funding, we get WACC: 8.253% + 3.359% + 0.428% = 12.040%
The right answer for the question that is being asked and shown above is that: "b. Personal financial management software" Among the choices that would not be used to create a personal balance sheet is that <span>b. Personal financial management software</span>
Answer:
a. 1, and total revenue and price move in the same direction
Explanation:
Unit elasticity of demand is when a change in price leads to a proportional change in quantity demanded.
A good has a unit elastic demand when its coefficient of elasticity is equal to one.
If price increases by 20% , quantity demanded falls by 20%.
If price falls by 20%, quantity demanded increases by 20%.
I hope my answer helps you.
Answer:
O Downsizing
Explanation:
A lay off happens when the employer has closed down, has changed locations, or when there is not sufficient work for all the employees. A layoff is not caused by an employee's fault.
Downsizing refers to scaling down of operation. When a company downsizes, some of the employees will be laid off. Theodosia should mention she was laid off in her next application. The potential employer will realize that she wasn't at fault at her previous workplace.
