Answer:
C. 11.05%
Explanation:
The computation of the cost of capital under the proposed leveraging is shown below;
cost of capital is
=Debt÷ value of leverged firm × ((unlevered cost of capital × (1 - tax rate))
=800 ÷ 1600 × ((13% + (13%) × (1 - 30%)))
= 11.0500%
hence, the cost of capital is 11.05%
Answer: The advertising strategy used is product placement.
Explanation:
Product placement also called embedded marketing, is a form of advertising technique which involves referencing a specific brand/product done by incorporating it into another work, such as a movie or television show, with specific intent to promote the product.
product placement is the intentional incorporation of references to a product/brand in exchange for compensation or cash payment .
Product placements may range from appearances not attracting attention within an environment, to major integration and acknowledgement of the product within a program or a show.
Common categories of products placed on product placements include automobiles, consumer electronics, beverages(in the case of the example), drinks, clothing.
Answer:
Expected value of X = -11.09
Explanation:
Expected profit:
= Probability of winning × Amount she wins
= 0.03 × $180
= 5.4
Expected loss:
= Probability of loosing × Amount she paid
= 0.97 × $17
= 16.49
Let X be amount of money Mary wins or loses.
E(X) = Expected profit - Expected loss
= 5.4 - 16.49
= -11.09
Expected value of X = -11.09
That is expected value of loss of $11.09
Answer: £ 250,000
Explanation:
Given: Fixed costs = £50,000
Number of units=2000
Variable cost per unit = £100
Since Total variable cost = (Number of units) x (Variable cost per unit)
=2000 x ( £100)
= £200,000
We know that,
Total cost = Total fixed cost +Total Variable cost
= £ (50,000 + 200,000)
= £ 250,000
Hence, the total costs = £ 250,000
<span>$1,347,472.70 is the correct answer</span>