<span>Your debt to income ratio determines how likely you are able to make your payments. When a high percentage of your available credit is been used, this can indicate that your money is overextended, and you may be more likely to make late and or missed payments.</span>
Answer:
b. 13.63%
Explanation:
Multiple choice <em>"(a) 1.01% (b) 1.37% (c) 0.50% (d) -0.50%"</em>
<em />
Spot rate = future rate /(1 + interest rate differential)
1.0796 = (1.0796 + 0.007356)/(1 + interest rate differential)
1.0796 = 1.086956 / (1 + interest rate differential)
1.0796 * (1 + interest rate differential) = 1.086956
(1 + interest rate differential) = 1.086956/1.0796
(1 + interest rate differential) = 1.006813634679511
Interest rate differential = 1.006813634679511 - 1
Interest rate differential = 0.006813634679511
interest rate differential = 0.006813634679511*2
interest rate differential = 0.013627269359022
interest rate differential = 13.63%
So, the difference between interest rate of Europe and US is 13.63%.
Bob has an autocratic buying center culture
Reason: Here we refer to "hands on" management style which means Bob has supreme power on all his employees. Everything in the organization has to be done as per his terms. Hence we can say that this is an autocratic form of culture
Answer:
The WACC before bond issuance is 3.9% and the WACC after bond issuance is 3.71%
Explanation:
In order to calculate the WACC before bond issuance
, we would have to calculate first the cost of equity using capital asset pricing model
.
So Using CAPM we have Rf + Beta x Market risk premium
=
0.5% + 0.85 * 4%
= 3.9%
. cost of equity
Therefore WACC before bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= 3.9%
. WACC before bond issuance will be equal to cost of equity in this case as there is no debt issue.
In order to calculate the WACC after bond issuance we make the following calculation:
WACC after bond issuance = (Cost of equity x weight of equity + cost of debt (1-tax) x weight of debt)
= (3.9% x 0.9) + (2% x 0.1)
= 3.51% + 0.2%
= 3.71%
Consumer price index is correct hope i am brainliest i need it
