Answer:
WACC = Ke(E/V) + Kd(D/V)(1-T)
WACC = 16(100/155) + 10(55/155)(1-0.33)
WACC = 10.3226 + 2.3774
WACC = 12.7%
Explanation:
WACC is a function of cost of equity and proportion of equity in the capital structure plus after-tax cost of debt and proportion of debt in the capital structure. Since debt-equity ratio is 0.55(55/100), it implies that the total value of the firm is 55 + 100 = 155. Thus, debt proportion will be 55/155 while equity proportion is 100/155.
Answer: Stimulating the aggregate demand in the economy.
Explanation:
When former President Obama took over the governing of the nation in 2009, the country was in the midst of one of the worst global depressions that it had ever been through. Employment was high and aggregate demand was low.
President Obama therefore embarked on an expansionary fiscal policy by passing the American Recovery and Reinvestment Act which was to target certain sectors of the economy with the view of increasing investment in those sectors and consumption so that Aggregate demand can be stimulated in the economy as those two things are components of Aggregate demand.
Answer:
D) negativity, positively
Explanation:
Equilibrium levels of income and interest rates are negatively related in the goods and services market because an equilibrium in interest and income will mean less goods and services and equilibrium levels of income and interest rates are positively related in the market for real money balances because an equilibrium in income and interest will lead to an increase in real money balances
The correct answer is choice c, changes in the price level.
Aggregate supply is only affected by capital, labor, and technology in the long run because everything in the economy is assumed to be used optimally. Of the options that are presented, the only option that is not capital, labor or technology is the change in price level, which makes it the correct answer.
A typical registration statement filed with the SEC does not include -(a) Any pending lawsuits or special risk factors (b) Any past settlement offers
Explanation:
A typical registration statement filed with the SEC includes:
1. The securities offered for sale
2. The corporation's properties and business
3. The management of the corporation, including managerial compensation, stock options, pensions, and other benefits
4. how the corporation intends to use the proceeds of the sale
5. any pending lawsuits or special risk factors
A typical registration statement filed with the SEC does not include -(a) Any pending lawsuits or special risk factors (b) Any past settlement offers
