The answer is True. Hope that helps!
Answer:
10.34%
Explanation:
Calculation to determine what will Nantucket's new WACC be
New Firm Value= $640,000 + (.34) ($300,000)
New Firm Value= $742,000
Capital Structure = $300,000 + $442,000
($742,000-$300,000=$442,000)
rs = .12 + (300/442) * (.12 - .08) * (1 - .34)
rs= .12 + .0179
rs = .1379*100
rs = 13.79%
Now let calculate the New WACC
New WACC = (300/742) * (.08) * (1 - .34) + (442/742) * (.1379)
New WACC= .0213 + .0821
New WACC= .1034*100
New WACC= 10.34%
Therefore what will Nantucket's new WACC be is 10.34%
Answer:
The person is NOT spending her income for both goods in a manner that maximizes her satisfaction.
Explanation:
Based on the information given The person is NOT spending her income for both goods in a manner that maximizes her satisfaction which means that she would have to INCREASE baseball games consumption and DECREASE movies consumption reason been that we were told that an individual enjoys going to baseball game three times compare to seeing new movie which therefore means The price of the ticket for a baseball game which is the amount of $30 should be increase while the price of a ticket for a movie which is the amount of $15 should be decrease.
Answer:
Instructions are below.
Explanation:
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 162,000 / (90 - 36)
Break-even point in units= 3,000
<u>The break-even point in units is the number of units required to cover for the fixed costs.</u> At this point, the net income is zero. When cost increase, there are necessary more units to break even.
Fixed cost increase= break-even point in units increases
Unitary variable cost increase= contribution margin decreases. Break-even point in units increases
Selling price increase= break-even point in units decreases.