Answer: 9.7%
Explanation:
Given Data
Rf = Risk free return = 6%,
Rpm = Risk premium = 4%,
Beta = 0.9
Wd = Debt = 20%
rd = cost of debt = 8%
We = equity = 80%
Re = Rf + Beta (Rpm)
= 0.06 +0.9 (0.04)
= 0.096 * 100
= 9.6%
Unlevered Equity Cost ;
ReU= Wd × rd + We × re
= 0.20 × 8% + 0.80 × 9.6%
= 9.28%
Levered Equity Cost:
New Debt = 60%,
New Equity = 40%,
New rd = 9%
ReL = ReU + (ReU - rd) (D ÷ E)
= 9.28% + (9.28% - 9%) (0.60 ÷ 0.40)
= 0.097 * 100
= 9.7%
<span>25 years: No Payment, but total is 250000
6 months earlier. Payment of "P". It's value 1/2 year later is P(1+0.03)
6 months earlier. Payment of "P". It's value 1 year later is P(1+0.03)^2
6 months earlier. Payment of "P". It's value 1½ years later is P(1+0.03)^3
6 months earlier. Payment of "P". It's value 2 years later is P(1+0.03)^4
</span><span>We need to recognize these patterns. Similarly, we can identify the accumulated value of all 50 payments of "P". Starting from the last payment normally is most clear.
</span>
<span>P(1.03) + P(1.03)^2 + P(1.03)^3 + ... + P(1.03)^50
That needs to make sense. After that, it's an algebra problem.
P[(1.03) + (1.03)^2 + (1.03)^3 + ... + (1.03)^50]
</span>
P(<span><span>1.03−<span>1.03^51)/(</span></span><span>1−1.03) </span></span>= <span>250000</span>
Answer:
b) 2 only
Explanation:
The Social Security Act set up the Old Age and Survivors Insurance Trust Fund (OASI), from which retired individuals receive their payments. These benefits are subject to taxes, and can be withheld if a debt is incurred or an over-payment occurs.
Answer:
option I: When evaluating a capital budgeting decision, we generally include interest expense.
Explanation:
Capital budgeting can simply be defined as the process by which a company evaluates prospective expenditures or investments that will be of a lucrative deal to the company. they are any project undergo by firms or companies that will bring a great deal of money and value to the company.
capital budgeting decisions usually are of different kinds as it ranges from mutually exclusive projects,accept-reject decision or acceptance rule and the capital rationing decision
capital budgeting covers the process of investing money for the company with the view that or of generating positive returns and does not include interest expense.
Answer:
D. capital
Explanation:
because its only capital and has nothing to do.. we just can spell it.. but not to provide all of the household provide