Answer:
Scenario 1 has WACC of 7.93%
Scenario 2 has WACC of 10.33%
Step-by-step explanation:
WACC=Ke*E/V+Kp*P/V+Kd(after tax)*D/V
Ke is the cost of equity =13%
Kp is the cost of preferred stock=10%
Kd(after tax) is the cost of debt of 8% adjusted for tax as below:
Kd(after tax )=Kd(before tax)*(1-t)
t is the tax rate of 30% or 0.3
Kd(after tax)=8%*(1-0.3)=5.60%
E is equity value,which is $1.8 million under scenario 1 and $3.8 under scenario 2
P is the value of preferred stock which is $1.2 million and $2.2 million respectively
D is the value of debt which is $5 million and $2 million
V=total value of capital structure=$8 million in both cases.
Scenario 1 WACC
WACC=13%*1.8/8+10%*1.2/8+5.6%*5/8=7.93%
Scenario 2 WACC
WACC=13%*3.8/8+10%*2.2/8+5.6%*2/8=10.33%
Answer:
a different inverse function
Step-by-step explanation:
If 
then 
is a different inverse function.
__
The second (inverse) function is the first reflected over the y-axis.
Given:
2 parallelograms with an area of 9 1/3 yd²
height of each parallelogram is 1 1/3 yd
Area of parallelogram = base * height
We need to divide the combined area into two to get each parallelogram's base.
9 1/3 = ((9*3)+1)/3 = 28/3
28/3 ÷ 2 = 28/3 * 1/2 = 28/6 yd² or 4 4/6 yd² ⇒ 4 2/3 yd²
Area of each parallelogram is 4 2/3 yd²
4 2/3 yd² = base * 1 1/3 yd
14/3 yd² ÷ 4/3 yd = base
14/3 yd² x 3/4 yd = base
14*3 / 3*4 = base
42 / 12 = base
3 6/12 yd = base
or 3 1/2 yd = base
a) the base of each parallelogram is 3 1/2 yards
b) we can assume that the two parallelograms form a rectangle.
area of a rectangle is length times width.
length is 3 1/2 yds * 2 = 7 yds
width is 3 1/2 yds
Area of rectangle = 7 yds * 3 1/2 yds
Area = 7 yd * 7/2 yd
Area = 7*7 / 2 yd²
Area = 49 / 2 yd²
Area = 24 1/2 yd²
Answer:
Check Explanation
Step-by-step explanation:
A) The null hypothesis would be that the proportion of newly hired candidates that are not white is not significantly different from the proportion of the applicants that are not white & there is no significant evidence that the company's hiring practices are discriminatory.
Mathematically,
H₀: μ₀ = 0.53
And the alternative hypothesis would be that there is a significant difference between the proportion of newly hired candidates that are not white is not significantly different from the proportion of the applicants that are not white. More specifically, that the proportion of newly hired candidates that are not white is significantly less than the proportion of applicants that are not white & there is significant evidence that the company's hiring practices are indeed discriminatory.
Mathematically,
Hₐ: μ₀ < 0.53
B) The two errors that can come up in this hypothesis testing include -
Type I error: We reject the null hypothesis because we obtain that the proportion of newly hired candidates that are not white is significantly less than the proportion of applicants that are not white and conclude that there is indeed significant evidence that the company's hiring practices are discriminatory when in reality, there is no significant difference and hence, no discrimination.
Type II error: We accept the null hypothesis (fail to reject the null hypothesis) because we obtained that there is no significant difference between the proportion of newly hired candidates that are not white & th proportion of applicants that are not white and conclude that there is no discrimination in the company's hiring practices when in reality, there is significant difference in the stated proportions above and significant evidence that there is indeed significant evidence that the company's hiring practices are discriminatory.
C) The power of the test increases as the significance level reduces. This is because t-statistic increases as significance level reduces.
D) The standard error of the mean used in computing the t-score is given as
σₓ = (σ/√n)
It is evident that as the value of n increases, the standard error reduces and this widens the effect of the test, hence, the power of the test increases.
Hope this Helps!!!
