kingjames82
16.06.2021 •
Business
ABC Incorporated shares are currently trading for $32 per share. The firm has 1.13 billion shares outstanding. In addition, the market value of the firm’s outstanding debt is $2 billion. The firm has $1 billion in share holders equity.The firm has $1billion in total liabilities. The 10-year Treasury bond rate is 6.25%. ABC has an outstanding credit record and has earned an AAA rating from the major credit rating agencies. The current interest rate on AAA corporate bonds is 6.45%. The historical risk premium for stocks over the risk-free rate of return is 5.5 percentage points. The firm’s beta is estimated to be 1.1 and its marginal tax rate, including federal, state, and local taxes is 40%. What is the WACC?
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Ответ:
The demand curve for steel to shift to the right
Explanation:
The question isn't complete. The full question can be found: https://www.chegg.com/homework-help/questions-and-answers/3-plastic-steel-substitutes-production-body-panels-certain-automobiles-price-plastic-incre-q31436687
Substitutes goods are goods that can be used in place of one another. If the price of plastic increases, consumers shift to steel, its demand increases and the supply curve shifts to the right.
I hope my answer helps you