posted by Stacy .
Is this how I would do this problem?
What is the percent increase in the population for all six inhabited continents,
excluding Asia, from 1950 to 2000?
Add all of the 1950 populations together, add all the 2000 populations together, subtract years total for 2000 from 1950
would I get the difference of each country in 200 from 1950 and then add all the totals together and divide by 6?
Well you are excluding Asia. So you add all 5 from 1950 and subtract it from all 5 in 2000. That number is the increase for those 5 continents. So now you need to see what % this increase is. To do this you take your 1950 figure and divide it into the increase. Now move the decomal 2 places to the right and it is percent.
Sort of like this:
5 grows to
increase is 3
so 3/5=0.60 or 60%
Unless i did something wrong with my decimal it would be 207%?
Calculate the componentof debt,preferred, and equity, and calculate the WACC
Debt: bond interest expense: 12% Tax rate: 36%
Perferred dividend:$4.50 preferred stock price:$50
Equity: common dividend $2.50 common stock price $40 div. growth rate 5%
risk free rt=3% expected rtn 13% beta 0.8