<span>results. The conclusion proves to be a reliable source of information considering that the intelligence test gave accurate answers both times. This is especially true if both attempts Dora gave a genuine attempt to do her best. The fact that there were two separate times when the test gave the same result makes it more reliable.</span>
Answer:
The company's cost of preferred stock for use in calculating the WACC is 9.65%
Explanation:
For computing the cost of preferred stock, the following formula should be used which is shown below
= Annual dividend based on preferred stock ÷ (Price per share × Flotation cost)
where,
Flotation cost = 1- rate
= 1- 4% = 0.96
= $9.50 ÷ ($102.50 × 0.96)
= $9.50 ÷ $98.4
= 9.65%
The flotation cost should be deducted because it is a one time expense. Thus, it would be minus from price per share.
Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%
Answer:
Your task is to take this <u>demand schedule</u> and construct a graphical representation of the data. In doing so, you determine that as the price of soda rises, the quantity of soda demanded decreases. This confirms the <u>law of supply and demand
.</u>
Explanation:
A demand schedule basically shows us the quantity demanded for a good or service at different price levels.
As the price of a good or service increases, the consumers will be less willing to purchase the good or service, therefore the quantity demanded will decrease. When the price of a good or service increases, this results in a higher opportunity cost for the consumer and a lower consumer surplus.
Inversely, when the price of the good or service increases, the suppliers will be more willing to produce the good or service, therefore the quantity supplied will increase.
Answer:
WACC is 9.26%
Explanation:
WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.
According to WACC formula
WACC = ( Cost of common share x Weightage of common share ) + ( Cost of Preferred share x Weightage of Preferred share ) + ( Cost of debt x Weightage of debt )
Cost of debt is already given as after tax cost of debt.
WACC = ( 12.75% x 45% ) + ( 7.5% x 15% ) + ( 6% x 40% )
WACC = 5.7375% + 1.125% + 2.4% = 9.2625 % = 9.26%
Answer:
the $500,000 that the old production line costed must be treated as a sunk cost. Sunk costs are costs that have already been incurred and the firm cannot recover them no matter what they do. in this case, since ankle-length skirts are out of fashion, the production is useless and is worth $0.
Explanation: