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KATRIN_1 [288]
3 years ago
12

Jeremy can't decide whether he should ask people whether they "very strongly agree," "agree," "disagree," "very" strongly disagr

ee" or whether they simply "agree" or "disagree" with statements about the war in iraq. jeremy is dealing with the problem of:
Business
1 answer:
AlladinOne [14]3 years ago
3 0

Determining the <u>range of variation.</u>

The range of variance is the difference between the high and low response options in the survey, for example rating something on a scale from 1 to 10 or from agree to disagree

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15-10 A firm has 60,000 shares whose current price is $45.90. Those stockholders expect a return of 14%. The firm has a 3-year l
krek1111 [17]

Answer:

<u><em>before taxes:</em></u>

WACC 8.74959%

<u><em>after a 21% tax-rate:</em></u>

WACC 7.23587%

Explanation:

Equity:       60,000 x $45.90 = 2,754,000

Liabilities:   1,900,000 + 22,000 x 925 = 22,250,000

Value:      25,004,000

<u>We solve for weights:</u>

Ew =    2,754,000 / 25,004,000 =  0,1101423772196449

Lw = 22,250,000 / 25,004,000 =   0,8898576227803551

Cost of debt will be the market value rate of the bond That is the rate at which the future coupon payment and maturity matches the market price of the bond

we solve this using excel goal seek:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 35.00

time 20

rate 0.040545327

35 \times \frac{1-(1+0.0405453269606019)^{-20} }{0.0405453269606019} = PV\\

PV $473.3728

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity  $1,000.00

time  20.00

rate  0.04055

\frac{1000}{(1 + 0.0405453269606019)^{20} } = PV  

PV   451.6270

PV c $473.3728

PV m  $451.6270

Total $924.9998

a semiannual rate of 0.04055 is the market rate thus, cost of debt is

0.04055 x 2 = 0.081

Now we can solve for the WACC without taxes:

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.14000

Equity weight 0.1101

Kd 0.081

Debt Weight 0.8899

t 0

WACC = 0.14(0.1101) + 0.081(1-0)(0.8899)

WACC 8.74959%

wiht taxes of 21%

t 0.21

WACC = 0.14(0.1101) + 0.081(1-0.21)(0.8899)

WACC 7.23587%

4 0
4 years ago
__________ unemployment refers to loss of jobs due to a recession or a similar downturn in the economy.
Eva8 [605]

Answer:

Cyclical unemployment is the loss of jobs due to a recession or downturn in an economy.

Explanation:

Cyclical unemployment is a type of unemployment. It is also known as Keynesian or deficient-demand unemployment. This type of unemployment occurs when the overall demand in an economy is not enough to provide jobs to the people who want to work. Cyclical unemployment is observed during the periods of slow economic growth or recession.

4 0
3 years ago
Davis and Thompson have earnings of $850 each. The social security tax rate is 6% and the Medicare tax rate is 1.5%. Assuming th
Phoenix [80]

Answer:

127.50

Explanation:

850x2 employees=1700

1700x.075(7.5%)=127.50

8 0
3 years ago
A preferred stock sells for $54.20 a share and has a market return of 9.68 percent. What is the dividend amount
kolbaska11 [484]

Answer:

$5.25

Explanation:

A preferred stock is sold at $54.20

The market return is 9.68%

Therefore the dividend amount can be calculated as follows

= 54.20 × 9.68/100

= 54.20 × 0.0968

= $5.25

Hence the dividend amount is $5.25

6 0
3 years ago
The rate of return earned on a U.S. Treasury bill is frequently used as a proxy for the:A. risk premium.B. deflated rate of retu
IceJOKER [234]

Answer:

The correct answer is letter "C": risk-free rate.

Explanation:

The United States government issues a variety of debt obligations to finance its operations. Those with the shortest maturity are called Treasury Bills or T-Bills. One of the unique features of T-Bills is that the government does not make regular interest payments to the holder. Instead, the securities are sold at a price below its face value resulting in a profit at the maturity date.  

T-Bills are seen as low-risk investments compared to other securities being <em>the closest to risk-free return</em> in the market.

5 0
3 years ago
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