Complex Numbers May Be Applied to Electrical Circuits

question 195

Short Answer

Complex numbers may be applied to electrical circuits. Electrical engineers use the fact that resistance to electrical flow of the electrical current and the voltage are related by the formula . (Voltage is measured in volts, resistance in ohms, and current in amperes). Find the resistance to electrical flow in a circuit that has a voltage volts and current amps.

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, usually with fixed dividends.

After-Tax Cost of Debt

The interest expense on debt adjusted for taxes, showing the actual cost of debt financing after considering the tax shield.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Component Cost of Debt

The effective rate that a company pays on its current debt, incorporating tax effects.