Answer:
c. 15.8%
Explanation:
The cost of equity is the WACC (weighted average cost of equity)
WACC formula = wE*rE + wD*rD(1-tax) , whereby
wE = weight of equity = 65%
rE = cost of equity = 20%
wD = weight of debt=35%
rD(1-tax ) = after tax cost of debt =8%
WACC = (0.65 *0.20) + (0.35*0.08)
= 0.13 + 0.028
= 0.158 or 15.8%
Therefore, the overall cost of capital is 15.8%
Answer:
B. the lack of discipline of Edgar Allan Poe Academy students
Explanation:
Answer:
1. - $ 80,000
2. - $ 80,000
3. - $ 0 - No effect
Explanation:
1. Assets
- <em>80,000</em> ( pay loan ) - decrease
2. Liabilities
- 80,000 ( loan from <em>+</em><em> 80,000 </em> to <em>0</em> ) - decrease
3. Stockholders Equity: no change, as there was not result ( profit/loss ) nor shareholder contribution/withdrawal
Answer:
C) $77,090
Explanation:
June 69000 (40% in July, 50% in AUgust)
July 80000 (40% in August, 50% in Sepetember)
August 77500 (40% in September, 50% in October)
September 77900 (40% in October)
October 71800 (10% in October)
Total budgeted cash payments in October = 71,800 x 10% + 77,900 x 40% + 77,500 x 50% = 77,090
Answer:
The option E is correct
Explanation:
Solution
Given that:
The output manufactured to Q = 5Lk
Where L= Labor quantity
k=Capital quantity
The price of K= $12
The price of L =$6
Now,
We find the combination of both K and L that will produce 4,000 units of output.
MPL/MPK is defined as the cost minimizing combination = w/r
Thus,
MPL/MPK = D(Q)/dl = 5k
same will be done for L,
MPL/MPK = D(Q)/dk = 5L
We divide 5K and 5L
So,
5k/5L =$6/$12
k/L = 1/2
Thus,
k =L/2
Now, when we substitute the value L = 2k in Q we have the following below:
Q = 5k * (2k)
Given that Q = 4000
So,
4000=10k2
4000=k2
we divide
k =20
L = 2k = 2820
= 40
Therefore, L =40, k = 20