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weqwewe [10]
3 years ago
15

For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at

its target capital structure.a. re > rs > WACC > rd.b. WACC > re > rs > rd.c. rd > re > rs > WACC.d. WACC > rd > rs > re.e. rs > re > rd > WACC.
Business
1 answer:
Varvara68 [4.7K]3 years ago
6 0

Answer:

a. re > rs > WACC > rd.

Explanation:

Re represents cost of equity

Rs represents cost of retained earnings

WACC represents Weighted average cost of capital

Rd represents cost of debt

Basically the cost of equity is highest as there is no assured return on such equity investment.

Cost of retained earnings is less than cost of equity because amount invested is already in hands of company, although belonging to equity holders, thus is higher than total weighted cost of capital.

WACC is the cost after providing weights to every source of capital it is lower then equity, higher than debt because of average.

Cost of debt is lowest because of tax benefit from it.

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Answer:

external secondary data

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5 0
3 years ago
The researcher wants to investigate whether carpet makes a difference in the mean bacterial concentration in air. the null and a
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The researcher wants to investigate whether carpet makes a difference in the mean bacterial concentration in air. the null and alternative hypotheses would be:

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In idea, you could listen to cells through filtration or centrifugation, but likely no greater than a hundredfold. for your case, you're asking to concentrate by 10,000 fold. So you sincerely might want to develop denser cultures of cells. You can centrifuge your modern broth and resuspend the pallet in a clear broth.

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8 0
1 year ago
Price elasticity of demand refers to the ratio of the:
Rudiy27

 

The ratio of the percentage change in the quantity demanded of a good to a percentage change in its price refers to the price elasticity of demand.

 

<span>To add, price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price, ceteris paribus.</span>

8 0
3 years ago
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most bal
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Answer:

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This is why the formula for the GDP deflator is = GDP by year n prices/ GDP by base year prices.

2. However, the CPI reflects only the prices of all goods and services<u> bought by consumers. </u>

<u />

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The Chinese-made car is not made in the US and is included in the basket of goods consumers buy which is used to calculate calculate CPI.

4. Which does a decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine that cuts and stacks trees show up in? - <em><u>A) GDP Deflator</u></em>

This is not part of the goods in the basket and it is assumed to be made domestically so it is part of the GDP Deflator.

4 0
3 years ago
Give the meaning and nature of Foreign direct Investmen.​
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Answer:

foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. ... However, FDIs are distinguished from portfolio investments in which an investor merely purchases equities of foreign-based companies

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