Answer:
The correct answer to the following question is option E) 9.06% .
Explanation:
Here the cost of equity given is - 11.8%
Pre tax cost of debt- 6.9%
Tax rate- 35%
So the after tax cost of debt - 6.9% x 65%
= 4.485%
The debt to equity ratio - .6
So the weight of debt - .6 / ( 1 + .06 )
= .375
Weight of equity - 1 / ( 1 + .06 )
= .625
Weighted average cost of capital =
Debts cost x weight of debt + Equity cost x weight of equity
= 4.485 x .375 + 11.8 x .625
= 1.681875 + 7.735
= 9.06%
Opportunity cost is computed as the difference between the present worth and the cost. present worth is the product of $12 and 10 hours * 15 weeks while the cost includes the tuition cost, books cost and the board cost. The cost has a total of <span>$2,000 + $400 + $4000 equal to $6400. The difference is equal to $4600</span>
Answer: Households and corporations, via their transactions.
Explanation: An economic agent is a major influencer of the economy, they are major determining factors, to which the direction of a country's economy would swing.
The economic agents influence the economy through their transactions of regular buying and selling of products, shares, stocks, and Services.
Examples of economic agents are regular household members, companies, businesses.
Answer: <u><em>You need more information to answer this question correctly. </em></u>
Explanation:
Based on the 1 part of the question I would say 10%. Moreover, You wouldn't want to invest in Brazil because their average amount compared to others is low.
Answer:
9.50%
Explanation:
There are the conditions in which the bond will sold at par, premium or even discount
When the bond will sold at par the yield to maturity and the coupon rate is equal plus the present value of the bond is equal to the face value of the bond
When the bond will sold at premium, the coupon rate is higher than yield to maturity
And, if the bond will sold at discount, the coupon rate is less than the yield to maturity
Since in the given situation, the companies wants to sell its bond at par i.e means the yield to maturity should be equal to the coupon rate i.e 9.50%
