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Answer:
A. 8.15
Explanation:
WACC is the firm's weighted average cost for the capital that is employed from different sources which includes common equity, preferred equity and debt.
In order to calculate WACC, the weighted average cost of each capital is added, so the formula becomes:
WACC = (E x %E) + (D x (1 - Tax) x %D) + (PE x %PE)
E = Common equity
D = Debt
PE = Preferred equity
%E = Common equity / total capital
%D = Debt / total capital
%PE = Preferred equity / total capital
Tax = Tax rate
<em>Interest on debt is a tax deductible expense therefore the interest rate is taken after accounting for tax in order to calculate WACC.</em>
<u>Calculation:</u>
Using the above formula we can calculate WACC
WACC = (11.25% x 55%) + (6.5% x (1-40%) x 35%) + (6% x 10%)
WACC = 0.0815 or 8.15%
People either get hired to balance out how much a company is paying their employees, or the price of their priduuct increases to balance out how much money their employees are getting paid
Answer:
A) The current supply will shift to the left
Explanation:
The supply curve shifts to the left when the total quantity supplied decreases, which results in a price increase at any given quantity.
If everyone expects that the football team will have a great season, the quantity demanded for tickets will increase, which will increase their price. But the suppliers will also hold to their tickets until a day or two before the games to increase expectations and fans' anxieties. That way the price will increase even more, and they will make a higher profit.
Answer:
hope this help u
Explanation:
Transferring energy into or out of a substance changes its temperature, which changes the molecules' freedom of movement. Claim 2: Transferring energy into or out of a substance changes the molecules' kinetic energy, which changes their freedom of movement.