Considering the available options, an example of an intermediary is "New car dealership."
This is based on the idea that an intermediary is an organization between the producers and the final consumers in the business chain transaction.
Thus, a new car dealership is considered an intermediary because he is neither a producer nor the final consumer of the automobile product.
Generally, in any industry, there are different types of intermediaries, they include:
agents, wholesalers, distributors, and retailers.
Hence, in this case, it is concluded that the correct answer is option C. "New Car Dealership."
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Answer:
a.
The WACC is 9.4875%
b.
The after tax cost of debt is 3.25%
Explanation:
The WACC or Weighted average cost of capital is the cost to a firm of its capital structure based on the weighted average of costs of all the components that form up its capital structure. The components in a firm's capital structure are debt, preferred stock and common stock.
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component in the overall capital structure
- r represents the cost of each component
- we multiply the cost of debt by (1 - tax rate) to take the after tax cost of debt
a.
WACC = 0.15 * 0.05 * (1-0.35) + 0.15 * 0.04 + 0.7 * 0.12
WACC = 0.094875 or 9.4875%
b.
The after tax cost of debt is calculated by multiplying the cost of debt or rD by (1 - tax rate).
After tax cost of debt = 0.05 * (1 - 0.35) = 0.0325 or 3.25%
Answer:
$357,600
Explanation:
The computation of the patent amortization expense for Year 4 ended December 31 is shown below:
= (Acquired value of patent rights) ÷ (legal life) + (Cost of the patents in a lawsuit) ÷ (Number of years)
= ($2,800,000) ÷ (8 years) + ($38,000) ÷ (4)
= $350,000 + $7,600
= $357,600
We simply considered the both values and according to that we take the number of years given in the question
Answer: D and B
Explanation:
The stock market is where you invest where you want to and hope the money will grow bigger by the company growing bigger. Bonds are you paying a certain amount of money and the government will pay back a little back at a time so if the government doesn't pay which is very unlikely is the reason why bonds are safer.
Answer:
Follows are the solution to this question:
Explanation:
Its console shall be coordinated effort mutual funds which do not grow at all, and in every year they create a corrected degree of interest, that's why Its bond paying a fixed rate of the coupon but not maturing.
It's the price that the government needs to offer shareholders.
