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Katena32 [7]
3 years ago
10

A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of th

e loan will be less.
Business
1 answer:
Artist 52 [7]3 years ago
7 0
<span>Suppose you have $100 in a savings account earning 2 percent interest a year. ... True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less.</span>
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The basic WACC equation The calculation of WACC involves calculating the weighted average of the required rates of return on deb
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Answer:

R{_s} is the symbol of cost of raising capital from retained earnings.

Weight of common equity = c) 0.32

Explanation:

R{_s}  is the symbol that represents the cost of raising capital through retained earnings in weighted average cost of capital.

Wyle Co.

Total of capital structure = Debt + Preferred Stock + Common Equity

= $3.9 million + $3 million + $3.3 million = $10.2 million

Weight on common equity = Equity/Capital structure

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R{_s}

C) 0.32

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Keeping your _____and _____in mind will dictate what you say and how you say it.
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15. Hallmark Inc. has dividend per share of $2.10, $2.65, $3.03 and $3.22 for the next four years. The company believes that the
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Answer:

P0 = $94.36658 rounded off to $94.37

Explanation:

To calculate the value per share of Hallmark Inc. we will use the dividend discount model or DDM, DDM values the price of a stock based on the present value of the expected future dividends from the stock. The formula for price under DDM of this stock is,

P0 = D1 / (1+r)  +  D2 / (1+r)^2  +  D3 / (1+r)^3  +  D4 / (1+r)^4  +  

[(D4 * (1+g)) / (r - g)] / (1+r)^4

Where,

  • r is the required rate of return
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3.22 / (1+0.07)^4  +  [(3.22 * (1+0.04)) / (0.07 - 0.04)] / (1+0.07)^4

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