The Upper Tier has a current debt-equity ratio of .52 and a target debt-equity ratio of .45. The cost of floating equity is 9.5 percent and the flotation cost of debt is 6.6 percent. What should the firm use as their weighted average flotation cost?

Answers

Answer 1

Answer: 8.60%

Explanation:

Given the following :

Current debt-equity ratio = 0.52

Target debt-equity ratio = 0.45

Cost of floating equity = 9.5%

Floatation cost of debt = 6.6%

The Weighted average cost is calculated by finding the Weighted average cost of both debt and equity.

1 + 0.45 = 1.45

Weight of debt= 0.45/ 1.45 =0.31034

Weight * cost of debt

0.31034 × 6.6% = 2.0482758

Weight of equity = 1/1.45 = 0.6896551

Weight * cost of equity

0.6896551 × 9.5% = 6.5517241

Sum of both

(6.55 + 2.05) % = 8.60%


Related Questions

Discuss how a minor change in demand at the retail level can significantly impact supply chain variation at distributors, manufacturers, and suppliers.

Answers

Answer:

The changes in the demand do mean that the demand could be increased or decrease for the need for the product and the services by the suppliers.

Explanation:

The minor changes in retail development can cause the bullwhip effect at the entire chain supply. The demand for the forecast at the retail level does not seem accurate always.

Thus all the organizations used some safety tools for some of the stock because of the fluctuation in the demand of the product. When demands get fluctuate, the capabilities of the safety stock that is reserved for the distributors to get offset to the manufacturer.

This burden is shared with the suppliers. But at each stage of the process, the demand exponentially increased.

A minor change in demand at the retail level can significantly impact

supply chain variation at distributors, manufacturers, and suppliers.

The number of goods produced by industries are as a result of the market

survey ,speculations and demand .

When there is a change such as low demand then the goods produced will

be reduced to avoid spoilage and when demand increases, goods produced also increases.

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Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. The portfolio's beta is 1.25. Now suppose you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.55. What would the portfolio's new beta be? Do not round your intermediate calculations.

Answers

Answer:

1.31

Explanation:

Portfolio's new beta.

New beta = weight * change in beta

Weight = 0.125

Change in beta=(1.55-1)

Hence:

=.125 * (1.55 – 1)

=.125*0.55

= 0.06875

Hence:

1.25 + .06875

= 1.31

Liabilities are the amounts of money due to others that need to be paid now.True or False

Answers

Answer:

True

A liability is defined as somehing that a person or a company owes someone else.

The answer to your answer is true

American Gas Products manufactures a device called a Can-Emitor that empties the contents of old aerosol cans in 2 to 3 seconds. This eliminates having to dispose of the cans as hazardous wastes. If a certain paint company can save $75,000 per year in waste disposal costs, how much could the company afford to spend now on the Can-Emitor if it wants to recover its investment in 3 years at an interest rate of 20% per year?

Answers

Answer:

$157,986.11

Explanation:

Given that

Amount = $75,000

Number of years = 3

Interest rate = 20%

The computation of the present value is shown below:-

Here we will use the P/A factor which is here

Present value = Amount × (1 + Interest rate)^number of years - 1 ÷ (Interest rate × (1 + Interest rate)^Number of years

= $75,000 × ((1 + 20%)^3 - 1) ÷ (0.20 × (1 + 0.20)^3)

= $75,000 × (0.728  ÷ 0.3456)

= $75,000 × 2.106481481

= $157,986.1111

or

= $157,986.11

Therefore for computing the present value we simply applied the above formula.

A private university charges the same tuition for both in-state and out-of-state students, and it notices that in-state and out-of-state students seem to respond differently to tuition changes. The quantity demanded for in-state and out-of-state students at different tuition levels is provided below. Tuition Quantity demanded (in-state applicants) Quantity demanded (out-of-state applicants) $10,000 6,000 12,000 $15,000 5,000 9,000 $20,000 4,000 6,000 $30,000 3,000 3,000 As the price of tuition rises from $20000 to $30000, the price elasticity of demand for tuition for out-of-state applicants is _____ elastic than it is for in-state applicants. Choose one: A. more B. less Part 2 (2 points) What is the in-state elasticity and the out-of-state elasticity? Give your answer to two decimals. In state:

Answers

Answer:

1.) As the price of tuition rises from $20000 to $30000, the price elasticity of demand for tuition for out-of-state applicants is more elastic than for in-state applicants.

2) in-state = 0.5; out-of -state = 1

Explanation:

Given the following :

Tuition Quantity demanded (in-state applicants) Quantity demanded (out-of-state applicants) $10,000 6,000 12,000 $15,000 5,000 9,000 $20,000 4,000 6,000 $30,000 3,000 3,000

Elasticity of demand = (percentage change in quantity demanded / percentage change in price)

% change in quantity demanded :

(Quantity change / Initial quantity) × 100%

[(Q2 - Q1) / Q1] × 100%

%change in price :

[(P2 - P1) / P1] × 100%

As tuition rises from $20000 to $30000

In state applicants :

%change in price :

[(P2 - P1) / P1] × 100%

[ (30000 - 20000) / 20000) × 100%

((10000)/ 20000) × 100%

= 50%

% change in quantity demanded :

(Quantity change / Initial quantity) × 100%

[(Q2 - Q1) / Q1] × 100%

Decrease in quantity demanded

[(3000 - 4000) / 4000] × 100%

(-1000/4000) × 100% = 25%

Elasticity of demand = 25% / 50% = 0.5

Out - Of - State applicants :

% change in price from $20,000 to $50,000 = 50%

% change in quantity demanded :

Demand decrease from 6000 to 3000

[(3000 - 6000) / 6000) × 100%

(3000 / 6000) × 100%

(1/2) × 100% = 50%

Elasticity of demand = 50% / 50% = 1

You have set a goal of saving $4,000 every year, beginning the year you finish school and start working and lasting until you retire. You are considering these three investment instruments: an IRA, stocks, and certificates of deposit. Which will likely produce the best long-term returns? Explain your answer.

Answers

Answer:

IRA ( Individual retirement account)

Explanation:

An IRA is a type of account set up purposely to encourage savings towards retirement , and as a result some benefits are inculcated into it.

One key advantage of IRA over the other options of savings is that it has a higher rate compared to the certificate of deposit , meanwhile the  effect of the macro economic factors on the stocks could lead to its instability . This interest can even be be compounded over the savings period , yielding a cumulatively higher interest.

Another benefit of IRA is that the interest earned until retirement are exempted from taxes.

5. Find an example of a video ad either on TV or on the Internet, and then answer the
following questions about it.
a. Describe the ad. (1-3 sentences. 1.0 points)

Answers

Answer:

4. Find an example of a print or Internet ad that includes images and text, and then answer the following questions about it.

          a. Describe the ad. (1-3 sentences. 1.0 points)

Mcdonald's all day breakfast. It shows their breakfast items, with high-quality images.

b. What do you think this ad's marketing message is? (1-5 sentences. 2.0 points) TIP: Does it use a specific desire or fear, or does it try to show how the product is a need or how it solves a problem?

They use desire because they show their delicious looking food, and the customers are wanting it.

c. Is the ad trying to get people to do something? If so, what is it trying to get people to do? If it isn't trying to get people to do something, what do you think the point of the ad is? (1-5 sentences. 2.0 points)

The ad is trying to get people to stop at Mcdonalds and buy their breakfast items

          d. Do you think this ad is effective? Why or why not? (1-5 sentences. 2.0 points)

Yes I think this ad is effective because it is showing high quality images of their breakfast items that encourage people to stop by and try their products.

You can buy life insurance for anyone. True or false

Answers

Answer:

False

Explanation:

Answer: False

Explanation:

Adam plans to invest $1500 today in a mutual fund. If he earns 12 percent interest compounded monthly, to what amount will his investment grow in 20 years? Use a financial calculator to make the calculation.​ a. ​$12,450 b. $17,289​ c. ​$15,897 d. ​$18,546 e. ​$16,339

Answers

Answer:

e. $16,339

Explanation:

Effective Annual rate = {(1 + r / m)^m - 1}

Where r= 12%, m=20

=[(1 + 12% / 12) ^ 12 ] - 1

= [(1 + 1%) ^ 12] - 1

= 1.1268 - 1

= 0.1268

= 12.68%

Value of investment after 20 year = $1,500 × (1 + 12.68%) ^ 20

= $1,500 × 10.8926

= $16,339

. A quadratic polynomial whose one zero is 6 and the sum of the zeroes is 0, is x*2-6


True

False

pls tell fast ​

Answers

Answer:

False

Explanation:

From the question, we can see that a quadratic polynomial is made up of two elements or variables called zeros in this question

From the question, we are told that one variable (zero) = 6

The second variable (zero) = unknown , therefore we can represent the second variable as Y

We are told that the sum of the variables = 0

This means:

6 + Y = 0

Therefore, Y = 0 - 6

Y = -6.

The second variable ( zero) = - 6

Since it is a quadratic polynomial,

The roots of the polynomials are the variables 6 and -6

Hence, we have:

(x + 6) (x - 6) = 0

Expanding the brackets

x² - 6x + 6x - 36 = 0

= x² - 36 = 0

Therefore, a quadratic polynomial whose one zero is 6 and sum of the zero is 0 is x² - 36 = 0

This means the statement made in the question above "A quadratic polynomial whose one zero is 6 and sum of the zero is 0 is x²-6" is false

Akwamba made this statement ‘organisations cannot be successful if managers fail to pay attention to the forces in the external environment'. Do you agree or not? Justify using practical examples (9 marks)

Answers

Answer:

Yes, I agree

Explanation:

As managers in an organization, proper attention must be paid to the forces in the external environment because these forces are dynamic and business cannot exist without them hence must align with these changes inorder to be successful.

Some of theses forces have direct impact with an organization such as customer's reaction to a company's product, how well the company stays ahead of it's competitors , suppliers and creditors. External forces in the environment that have indirect impact to a company are compliance with local laws, socio cultural forces, religion etc.

Practical examples

• Customer's reaction to a product speaks to what measures are taken by a company to improving the quality of products produced and sold. Favourable reaction would make the company succeed while unfavourable reaction could mar the company's performance.

• Level of compliance with local laws is also an important force in the external environment that must be adhered to. If a company must succeed, it must comply with local laws and order, failure to do so could result to fine or expulsion from the community.

How can a good credit score help you?

Answers

. By maintaining a strong credit rating you will usually qualify for the most competitive interest rate and you will also pay a decreased finance fee on loans and credit balances. Having a great credit score will also give you a much higher chance for loan and credit card approval.

Smart phones are very expensive. You can purchase a protection plan that lets you risk with the phone carrier. Choosing to buy a case for your phone and being careful are ways to risk.

Answers

Answer:

share risk

reduce risk

Explanation:

just did edge

Smartphones are now almost inextricably linked to everyday modern life, serving as both a consumer and a corporate tool.

Smart phones are very expensive. You can purchase a protection plan that let's you share risk with phone carrier. Choosing to buy a case for your phone and being careful are ways to reduce risk.If you have ever lost your grasp on your gadget and watched helplessly as it crashed to the ground, you know how crucial it is to keep it safe.

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Allied Industries, Inc. has 250,000 shares of $7-par common stock outstanding. They've declared a 7% stock dividend. The current market price of the common stock is $11/share. What amount that will be credited to Paid-in Capital in Excess of Par Common Stock on the date of declaration?

Answers

Answer: $70,000

Explanation:

Given the following :

Outstanding stock = 250,000

Par value of common stock = $7

Market price of common stock = $11

Stock Dividend = 7% = 0.07

Excess of par = $(11 - 7) = $4

Paid in capital in excess of par :

Number of outstanding stock × excess par value × stock Dividend

250,000 × $4 × 0.07 = $70,000

Paid-in capital in excess of par = $70,000

When Randy, a general manager of a national retailer, moved to a different store in his company that was having difficulty, he knew that sales were low and after talking to his employees, he found morale was also low. At first Randy thought attitudes were poor due to low sales, but after working closely with employees, he realized that the poor attitudes were actually the cause of poor sales. Randy was able to discover the cause of the problem by utilizing ______ skills.

Answers

Answer:

Conceptual skills

Explanation:

Conceptual skills are inmate skills that enables one to have an understanding of complex problems or situations and also able to proper solutions to them in a creative manner. It is a skill that enables one to think creatively and proffer solutions to problems in a dynamic way.

When difficult situations arises, conceptual skills creates an initiative approach to those scenarios with a view to solving them hence needed by individuals and managers to effectively guide a business.

As in the above scenario, Randy was able to discover that poor attitude was actually the cause of poor sales among the employees due to the conceptual skill he possesed.

En algunos países es obligatorio que los automóviles de determinado consumo sean aptos para surtirse de gasolina sin plomo..." ¿Qué secuencia de hechos viene inmediatamente después de ésta?

Answers

Explanation:

Como el plomo es altamente contaminante la union europea establecio algunas leyes para que no se siguiera permitiendo el uso de gasolina con plomo, pero tendria que hacersen algunos cambios en cuanto a la constitucion de algunos automoviles,y en sus catalizadores,pero todo ello depende de la gama del vehiculo,el modelo y el motor,,por lo tanto los vehiculos que se utilicen para determinado consumo deben cumplir con los requisitos previos para funcionar de acuerdo con la norma de gasolina sin plomo,pues de no acatar las normas establecidas,podrian ser sancionados.

Raman is a Government servant, his wife Radha is an advocate and their son Amit is engaged in retailing of electronic goods. Identify the type of activities they are engaged in. Also differentiate between the identified activities on any three parameters.

Answers

Answer:

Kindly see Explanation

Explanation:

Raman is described above as being a government servant, this means Raman is an employee of the Federal or State Government. In other words, Raman works in a government runned establishment. Raman is in the civil service.

Radha who is described as an advocate could be explained as an individual who lends his or her voice in other to make others get heard or a protagonist of a certain course.Radha could be described as being into Law or judicial activities.

Amit who retails electronic goods could be described as being self-employed who is into buying and selling.

Difference between activities of Raman, Radha and Amit.

1.) Engagement sector:

Raman works in the civil service, while Radha work is inclined with the legal and activism process and Amit is into commerce.

EMPLOYER:

2.) Raman is clearly a government employee, Radha could work for Non-governmental or Volunteer organizations, while Amit is Self-employed.

DECISION-MAKING :

3.) Raman works based on defined government framework and rules, Radha as an advocate is more inclined towards promoting morality, While Amit will make decisions based on what is best for his business as an entrepreneur.

Type the correct answer in the box. Spell all words correctly.
Samantha is part of a project management team working on the initiation phase of a project. What is her team expected to do in this phase?
In the initiation phase, Samantha's team needs to clarify the project's _____
and justify it.

Answers

Answer:

Explanation:

Initiation phase is the first phase of a project management where  the project is evaluated to know the purposes it has to be done , how it will be done and the resources needed to execute it.

At this stage , Samantha's team has to clarify and justify the project's purposes and feasibility in order to know why it has to be done and also how it will be completed and its purpose achieved.

Sasha buys a warm soda and a slice of cold pizza. The marginal utility from a soda is 40, and the price of the soda is $1. The marginal utility from a slice of pizza is 80. Since Sasha always chooses the utility-maximizing choice, we know the price of a slice of pizza must be:


A) $0.50.

B) $1.

C) $20.

D) $2.

Answers

The answer I think is c because it’s most accurate to me

prove that the points (- 6 - 8) (- 16 12) and( - 26 - 18) are the vertices of an isosceles right angled triangle​

Answers

Answer:

The answer is "True".

Explanation:

Given points:

[tex]A= (-6,-8)\\B=(-16, 12)\\C=(-26, -18)\\[/tex]

Condition of the right-angle triangle is: [tex]\bold{AC^2= AB^2+BC^2}[/tex]

Formula to find length:

[tex]Length= \sqrt{(x_2-x_1)^2+(y_2-y_1)^2}[/tex]

[tex]AC = (-6,-8)(-26,-18)\\\\x_1= -6 \ \ y_1=-8 \ \ \ and \ \ \ x_2=-26 \ \ y_2=-18\\[/tex]

[tex]\Rightarrow AC= \sqrt{(-26-(-6))^2+(-18-(-8))^2}\\\\\Rightarrow AC= \sqrt{(-26+6))^2+(-18+8))^2}\\\\\Rightarrow AC= \sqrt{(-20))^2+(-10))^2}\\\\\Rightarrow AC= \sqrt{400+100}\\\\\Rightarrow AC= \sqrt{500}\\\\[/tex]

[tex]AB = (-6,-8)(-16,12)\\\\x_1= -6 \ \ y_1=-8 \ \ \ and \ \ \ x_2=-16 \ \ y_2=12\\[/tex]

[tex]\Rightarrow AB= \sqrt{(-16-(-6))^2+(12-(-8))^2}\\\\\Rightarrow AB= \sqrt{(-16+6))^2+(12+8))^2}\\\\\Rightarrow AB= \sqrt{(-10))^2+(20))^2}\\\\\Rightarrow AB= \sqrt{100+400}\\\\\Rightarrow AB= \sqrt{500}\\\\[/tex]

[tex]BC = (-16,12)(-26,-18)\\\\x_1= -16 \ \ y_1=12 \ \ \ and \ \ \ x_2=-26 \ \ y_2=-18\\[/tex]

[tex]\Rightarrow BC= \sqrt{(-26-(-16))^2+(-18-12)^2}\\\\\Rightarrow BC= \sqrt{(-26+16))^2+(-30)^2}\\\\\Rightarrow BC= \sqrt{(-10)^2+(-30)^2}\\\\\Rightarrow BC= \sqrt{100+900}\\\\\Rightarrow BC= \sqrt{1000}\\\\[/tex]

[tex]\Rightarrow {AC^2= AB^2+BC^2}\\\\\Rightarrow (\sqrt{1000})^2= (\sqrt{500+500})^2\\\\\Rightarrow 1000=1000\\[/tex]

The angle is right-angled triangle

What are the positive and negative aspects of taxation?

Answers

Answer:

Explanation:

For negative

But all taxes adversely affect ability to save. Since rich people save more than the poor, progressive rate of taxation reduces savings potentiality. This means low level of investment. Lower rate of investment has a dampening effect on economic growth of a country.

Positive

The positive effects of tax rate cuts on the size of the economy arise because lower tax rates raise the after-tax reward to working, saving, and investing. ... But pure rate cuts may also provide positive income (or wealth) effects, which reduce the need to work, save, and invest.

how do you find tax liability?

Answers

Answer:

Find answer in the explanation below

Explanation:

Tax liability can be defined as the total amount of taxes an individual, corporation, company, etc owes a tax authority or service at a given period of time.

The Internal Revenue Service is responsible for the taxation and collection of taxes from individuals to multinationals.

tax liability can also simply be said to be the amount in taxes that is owed the government individuals downs to multinationals.

Tax liability can be found or derived from taxable incomes. This is started by deducting taxable income - tax deductions = gross tax liability

gross tax liabilty - tax credits = tax liability.

Cheers.

HELP!
Mary wants to open her own tattoo parlor. She will hire several tattoo artists.
She knows that tattoo parlors can sometimes be sued when people are
unhappy with their tattoos. What kind of business structure would provide
Mary with an appropriate level of legal support?
A. Partnership
B. Sole proprietorship
C. Corporation
D. Limited liability company

Answers

Corporations have many of the same legal rights and duties as humans. They have the legal authority to enter into agreements, give and receive loans, file lawsuits, employ people, own property, and file taxes. A "legal person" can also refer to a corporation.

Thus, for legal support Option C is correct.

What are a corporation's liabilities and obligations?

A corporation also referred to as a C corp, is a separate legal entity from its owners. Corporations are able to generate revenue, pay taxes, and face legal consequences. The strongest protection against personal liability is provided to owners by corporations, although forming a corporation is more expensive than creating other types of entities.

Corporate obligations may be of the financial, accounting, or legal variety. Corporate liabilities can result from bribery, false claims, embezzlement, insider trading, and breaking environmental regulations, among other things.

For more information about the corporation refer to the link:

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#SPJ2

Answer:

C. Corporation

Explanation:

The U.S. is going through a period of economic difficulty; many people are out of work and buying has decreased dramatically. Place a checkmark next to each strategy the Fed might use to help stimulate the economy. The Fed increases the discount rate. The Fed decreases the discount rate. The Fed encourages government spending and lowering taxes. The Fed follows a tight monetary policy. The Fed follows an easy monetary policy. The Fed discourages spending.

Answers

Answer:

• The Fed decreases the discount rate

•The Fed encourages government spending and lowering taxes

•The Fed follows an easy monetary policy

Explanation:

The Fed uses the following to stimulate an economy;

• The Fed decreases the discount rate. Discount rate is a measurement of credit conditions in an economy. If the Fed decreases the discount rate, the excess reserves of the commercial banks with the regulatory agency increases hence enable them to charge lower rates on loan given to people which also expands money supply.

•The Fed encourages government spending and lowering taxes. When government spends, such will stimulate the demand for goods and services, which will bring about employment and increase output. Lowering taxes will enable people have higher disposable income which will enable them to spend more.

•The Fed allows an easy monetary policy. Monetary policy is a policy used by the government of a country to control the supply of money in an economy. To stimulate growth in an economy, the Fed allows an easy monetary policy thereby increasing the volume of money in circulation. Tools of monetary policies are Open market operation, bank reserve requirements, lending directly to banks etc.

1. Which of the following is an impact of increase in income tax of an individual?
A. Rise in disposable income
B. Increase in the ability to invest
C. Increase in the level of savings
D. Decrease in the purchasing power​

Answers

Answer:

A

Explanation:

the answer is a because you get more free money with your income taxes therefore making more money that you can use on personal things

Rise in disposable income

What is savings?, How can you save in a bank? And why is it important?

Answers

Explanation:

Savings are the money one has saved, especially through a bank or official scheme.

You can save in a bank by frequently depositing money into a bank account.

Savings are important for the availability of money during emergencies or to avoid going into debt to pay for your necessities.

In case of normal goods, demand curve shows a) Negative slopes b) positive slopes c) Zero slopes d) none of these

Answers

Answer:

a. Negative slopes

Explanation:

A negative slopes indicate that there exist a negative relationship between price and quantity demanded of a particular good. This means that when price falls, more units of goods will be purchased by the consumer and vice versa.

A normal good is a type of good whose demand increases as a result of increase in consumer's income. In other words, the higher the income, the higher the quantity demanded of such good by the consumer and vice versa.

It follows that when there is an increase in wage or income of a consumer , more goods will be purchased by them except if there is an increase in the price of such good . When there is price increase for such good, consumer will switch to a substitute good.

Carolina Insurance Company is considering the purchase of a fire insurance company. The fire insurance company has a beta of 2.5. If the risk-free rate is 8 percent and the market risk premium is 6 percent, the required rate of return that should be used to evaluate the insurance company is _____.

Answers

Answer: 23%

Explanation:

Given the following :

Risk free rate = 8%

Market risk premium = 6%

Beta value of fore insurance company = 2.5

Required rate of return that should be used in evaluating the company can be calculated thus :

Risk-free rate + [Beta × market risk premium]

8% + [2.5 × 6%]

8% + (15%)

8% + 15%

= 23%

Therefore, the required rate of return that should be used in evaluating the insurance company is 23%.

.. If two variables have a direct relationship on a graph, it indicates that
A. both variables are not related.
B. as one variable rises, the other variable falls.
C. both variables are moving in the same direction.
D. as one variable rises, the other variable is constant.

Answers

Answer:

Option C. Both variables are moving in the same direction.

Explanation:

The reason is that in the direct relationship, the variables move in the same direction which means if one of the variable increases then the other will also increase and vice versa. So the only option that satisfies this condition is option C.

Mario was surprised that the box that was supposed to tell him how many words he used in his document did not appear after the spelling and grammar check of his document was complete. Which step did Mario forget to do in Word’s Options dialog box?

Answers

Answer:

He forgot to tick 'Show readability statistics' in the Word's Option dialog box

Explanation:

Mario did a typing work using Microsoft word; he typed in the Word interface. Having finished typing the document, Mario used the 'spelling and grammar check' tool to ensure his document had no errors; the 'spelling and grammar' tool ensures that the document obeys the rules of lexis and structure of the language used in typing the document. The tool corrects typographical, grammatical & lexical errors. After having run the error check for spelling and grammar, a dialog box ought to open in the Word interface giving a summary of the corrections made. However, Mario did not  get this dialog box. Herein is his dilemma.

Mario omitted a step in his proofreading work and that's why the dialog box did not pop-up. Mario can rectify his omission by following these steps:

I. Click on the 'File' tab from the menu bar

II. Click on 'Options' under the File tab

III. An interface opens, click on 'Proofing' menu

IV. Navigate to the heading 'When correcting spelling and grammar in Word'

V. Tick the box 'Show readability statistics'

When Mario follows this procedure, the box will open up after the spelling and grammar check giving him the summary of his document (the number of words used etc.). Mario forgot to enable/tick the 'Show readability statistics' in the Word's Option dialog box

Answer: D

Click the show the readability statistics option.

Explanation:

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