Answer:
c. An account that pays 0.5 %0.5% per month for three years.
Explanation:
We can evaluate all the option using following formula:
EAR = ( 1 + ( r / m ) )^m -1
a.
2.5% every six months for three years
r= 2.5% = 0.025 / 6 =
m = 12/6 = 2
EAR = ( 1 + 0.025 )^2 -1
EAR = 0.050625 = 5.06%
7.5% every 18 months for three years
r= 7.5% for 1.5 years = 7.5% / 18 = 0.4167% per month = 0.004167 per month
EAR = ( 1 + 0.004167 )^12 -1
EAR = 0.051166 = 5.12%
0.5% every month for three years
r= 0.5% = 0.005
EAR = ( 1 + 0.005 )^12 -1
EAR = 0.0616778 = 6.17%
We will prefer an account that pays 0.5 %0.5% per month for three years, it pays the highest return.
Price. It is the sum of all values that buyers exchange for the benefits of having or using a good or service. can be defined very narrowly as the amount of money charged for a product or a service. However, the price is really more than that.
Answer:
9%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
According to WACC formula
WACC = ( Cost of common stock x Weightage of common stock ) + ( Cost of preferred stock x Weightage of preferred stock ) + ( Cost of debt ( 1- t) x Weightage of debt )
As WACC is calculated using Market values.
Company Value = 100%
Value of Debt = 28%
Value of Debt = 100% - 28% = 72%
WACC = ( 10.54% x 72% ) + ( 5.27% x 28% )
WACC = 7.59% + 1.48% = 9.07% = 9% (rounded off)
JOBS ARE THE SOURCE OF INCOME
A(n) blank Business model is a plan that details how a company creates, delivers, and generates revenues.
<h3>What exactly is a business model?</h3>
An organization's conceptual framework, which includes its mission, objectives, and continuing strategies for accomplishing them, is known as a business model.
A business model is essentially a specification outlining how a company achieves its goals.
<h3>A successful business model is what?</h3>
As an illustration, Clay Christensen of Harvard Company School proposes that a business model should include four components: a customer value proposition, a profit formula, essential resources, and key procedures.
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