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3 years ago

How are wealth and savings related?

Business

1 answer:

galben [10]3 years ago

5 0

Answer:

Wealth is an abundance of money and if you are good with your savings are a way you can get wealth

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Calvert Corporation expects an EBIT of $23,300 every year forever. The company currently has no debt, and its cost of equity is

Gnesinka [82]

Answer:

Missing <em>"b-1. What will the value of the firm be if the company takes on debt equal to 50 percent of its unlevered value? b-2. What will the value of the firm be if the company takes on debt equal to 100 percent of its unlevered value?"</em>

a. Current value of the company = EBIT*(1-t) / Ke

Current value of the company = $23,300*(1-0.25) / 0.143

Current value of the company = $23,300*0.75 / 0.143

Current value of the company = $17,475 / 0.143

Current value of the company = $122202.7972027972

Current value of the company = $122,202.80

So, the current value of the company is $122,202.80.

bi. Value of the company = $122,202.80 + (0.25*$122,202.80*0.5)

Value of the company = $122,202.80 + $15,275.35

Value of the company = $137,478.15

bii Value of the company = $122,202.80 + (0.25*$122,202.80*1)

Value of the company = $122,202.80 + $30,550.7

Value of the company = $152,753.5

7 0

3 years ago

The bank pay for the use of money in the form of

Snowcat [4.5K]

Answer:

see below

Explanation:

Banks pay interest on customer deposits. It means that a customer's deposit will grow if left at the banks for some period. When a customer deposits, the bank retains only a small fraction of the money in its custody. The bigger portion is loaned out to other customers. Therefore, a bank uses customer deposits to create loans. In return, the banks will pay customers interest for the use of their deposits. Banks also charge interest when they loan out money.

6 0

3 years ago

"Sydney has a portfolio with 50 shares of AAA with a current value of $20 per share, a return of 12%, and a beta of 1.30. She al

Nezavi [6.7K]

Answer: 12.72%

Explanation:

Given the following information ;

50 Shares of AAA at $20 and expected returns of 12%

25 Shares of BBB at $60 and expected returns of 10%

75 Shares of CCC at $50 and expected returns of 14%

Total value of the portfolio ;

Total Portfolio Value = ( 50×20 ) + ( 25×60 ) + ( 75×50 )

= 1000 + 1500 + 3750 = $6,250

Weight of each share in the portfolio;

Weight of Stock AAA = ( 50×20 ) / 6250 = 0.16

Weight of Stock BBB = ( 25×60 ) / 6250 = 0.24

Weight of Stock CCC = ( 75×50 ) / 6250 = 0.60

Expected return on portfolio is calculated thus;

Expected Portfolio Return = ( Weight of AAA×Expected Returns ) + ( Weight of BBB×Expected Returns ) + ( Weight of CCC×Expected Returns )

Expected Portfolio Return = ( 0.16×0.12 ) + ( 0.24×0.10 ) + ( 0.60×0.14 )

Expected portfolio return = (0.0192+0.024+0.084) = 0.1272

0.1272 = 12.72%

6 0

3 years ago

Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices. T

rodikova [14]

Answer:

The correct answer is (a)- Integrated cost leadership/differentiation.

Explanation:

Companies that integrate strategies instead of relying solely on a generic strategy are able to adapt quickly and learn new technologies. Products manufactured under the leadership of integrated costs-differentiation strategy are less distinctive than differentiators and the costs are not as low as the cost-leader, but combine the advantages of both approaches. A somewhat distinctive product that is mid-range in price can be a big attraction for customers than a cheap generic product or an especially expensive one.

8 0

3 years ago

International Imports (I2) pays an annual dividend rate of 10.40% on its preferred stock that currently returns 13.94% and has a

dangina [55]

Answer:

$74.61

Explanation:

The computation of the value of preferred stock is shown below:

Value of preferred stock = Annual dividend ÷ return of preferred stock per share

= 10.40% × 100 ÷ 13.94%

= $74.61

Simply we divide the annual dividend by the value of preferred stock per share so that the correct value of preferred stock can be computed

7 0

4 years ago