$$\begin{array} { c r } \text { Disposable Income } & \text { Saving } \\\$ 25,000 & \$ 3,000 \\37,000 & 5,000\end{array}$$

question 66

Short Answer

$$\begin{array} { c r } \text { Disposable Income } & \text { Saving } \\\$ 25,000 & \$ 3,000 \\37,000 & 5,000\end{array}$$
-Calculate the MPS.

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Definitions:

Cost of Equity

The return a company requires to decide if an investment meets capital return requirements, often estimated using the Capital Asset Pricing Model (CAPM).

Pre-Tax Cost of Debt

The rate of return that a company pays on its debt, before taking into account tax deductions.

Face Value

The nominal value printed on a bond or security which indicates its worth at maturity but does not necessarily reflect its market value.

Weighted Average Cost of Capital (WACC)

The average rate of return a company is expected to pay its shareholders and debt holders, weighted according to the proportion of equity and debt in the company's capital structure.