Answer:
I go with D looking at the target of the ad might help sorry if it makes no scence
Answer:
0.097 OR 9.7%
Explanation:
Cost of Equity using CAPM-
Re = Rf + Beta (Rpm)
where,
Rf = Risk free return = 6%,
Rpm = Risk premium = 4%,
Beta = 0.9
Therefore,
Re = .06 + .9 (.04)
= 9.6%
Unlevered cost of equity:
ReU = Wd × rd + We × re
where,
ReU = Unlevered cost of equity,
Wd = Debt = 20%
rd = cost of debt = 8%
We = equity = 80%
re = cost of equity = 9.6%
Therefore,
ReU = 0.20 × 8% + .80 × 9.6%
= 9.28%
Levered cost of Equity:
New Debt = 60%,
New Equity = 40%,
New rd = 9%
ReL = ReU + (ReU - rd) (D ÷ E)
= 9.28% + (9.28% - 9%) (0.60 ÷ 0.40)
= 0.097 OR 9.7%
Answer:
The current account deficit will increase from 1% to 31% of GDP.
Explanation:
National saving and investment identity helps in understanding the determinants of trade and current account balance. The current account is in balance when the quantity demanded of financial capital is equal to the quantity supplied of financial capital.
Here, the government saving or surplus and private savings are the supply of financial capital and investment indicates demand for financial capital.
The current account balance is
= Supply of capital - Demand for capital
= (30 + 2)% - 33%
= 32% - 33%
= -1%
So the current account is in deficit by 1% of GDP.
If the private savings becomes zero, the current account balance will be
= Supply of capital - Demand for capital
= 2% - 33%
= -31%
The current account will be in deficit by 31%.
Answer:
that means the firm is very large
Answer:
mary
Explanation:
A rational consumer would consume up to the point that marginal benefit equal marginal cost
Mary paid $20. this means that she places a value of $20 on the meal.
Paul paid $10. this means that he places a value of $10 on the meal
The value Mary places is 20, so she places a higher value and she would consume the most
Peter enters free and thus there is no marginal cost attached to this decision. He should consume the least
