The Classic Car Co. Has a before-tax cost of debt capital of 9%, a cost of preferred stock of 10%, a cost of equity capital of 14%, and a marginal tax rate of 40%. The market values of its debt, preferred stock and common stock are $40 million, $20 million, and $60 million respectively. Therefore, for evaluating average risk projects, the manager should use a discount rate of _____. (Do not round intermediate calculations. Round final answer to two decimal places. )

Answers

Answer 1

The manager should use a discount rate of 12.56% for evaluating average risk projects.

To calculate the discount rate for evaluating average risk projects, we need to find the weighted average cost of capital (WACC). The WACC is a combination of the costs of debt, preferred stock, and equity capital, each weighted by its respective proportion in the company's capital structure. Here's a step-by-step explanation:

1. Calculate the after-tax cost of debt: Before-tax cost of debt (9%) * (1 - marginal tax rate (40%)) = 9% * (1 - 0.4) = 5.4%.

2. Calculate the proportion of each component in the capital structure:
- Debt: $40 million / ($40 million + $20 million + $60 million) = 0.4
- Preferred stock: $20 million / ($40 million + $20 million + $60 million) = 0.2
- Common stock: $60 million / ($40 million + $20 million + $60 million) = 0.6

3. Multiply the cost of each component by its proportion:
- Debt: 5.4% * 0.4 = 2.16%
- Preferred stock: 10% * 0.2 = 2%
- Equity capital: 14% * 0.6 = 8.4%

4. Add the weighted costs together to get the WACC:
WACC = 2.16% + 2% + 8.4% = 12.56%

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Related Questions

when the federal funds rate increases, banks make:

Answers

When the Federal Funds Rate increases, banks make more money on the loans they lend to customers. This is because an increase in the federal funds rate typically leads to an increase in the Prime Rate.  

What is the federal funds rate? The federal funds rate is the interest rate at which depository institutions lend and borrow funds held at the Federal Reserve Bank overnight. The Federal Reserve, through the Federal Open Market Committee (FOMC), controls this rate. It is one of the most critical monetary policy tools used by the Fed to achieve its goals of price stability, maximum employment, and moderate long-term interest rates.How do banks make money from an increase in the Federal Funds Rate?When the Federal Reserve raises the Federal Funds Rate, it becomes more expensive for banks to borrow money overnight. This increase in cost for borrowing overnight loans affects other rates like the Prime Rate, which is used as a benchmark for many loans such as mortgages, home equity loans, credit cards, and car loans.

When the Prime Rate increases, the interest rates on these loans will increase, which means that banks will make more money on the loans they lend to customers.To put it in numbers, if the Prime Rate is 3.25% and the Federal Funds Rate increases by 0.25%, the new Prime Rate would be 3.50%. This might not seem like a significant increase, but if a customer has a loan of $150,000 with an interest rate of the Prime Rate plus 2.5%, the interest rate on the loan would increase from 5.75% to 6.00%. On a $150,000 loan, the extra 0.25% would result in an additional $12.50 per month in interest payments.

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Outline TWO benefits of using the FIFO system for Mcdonald’s

Answers

There are several benefits for McDonald's by using FIFO methods. Here we will discuss some of them: better food hygiene, which gives more customers satisfaction; easier to reduce products near their end-date—resulting in more sales and less waste;

What is FIFO?

FIFO is a measuring tool for inventory valuation or management. In this, we have sold the goods which come first. This is called a FIFO, which is known as First In First Out.

Thus, McDonald's using the FIFO method gets such benefits as better food hygiene, which gives more customer satisfaction; easier to reduce products near their end-date – therefore more sales and less waste.

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Use this graphic to answer the question.

A member of the security team works on site to protect the corporation’s payment-card data.

If the perimeter firewall fails, what additional barrier can protect the cyber security of the corporation’s networks?

a web-content filter
a switch at the center of the network
antivirus software as host security
a second firewall in the data center

Use this graphic to answer the question.A member of the security team works on site to protect the corporations

Answers

A second firewall in the data center can act as an additional barrier to safeguard the corporate network cyber security if the perimeter firewall fails. As a result, choice (D) is accurate.

What is a Data Center ?

A building, a specific area within a building, or a collection of buildings used to house computer systems and related components, such as telecommunications and storage systems, is referred to as a data center (American English) or a data center (British English).

Since IT operations are essential for business continuity, they typically contain redundant or backup parts and infrastructure for power supply, data connectivity, environmental controls (such air conditioning, fire suppression), and different security systems.

Using as much electricity as a small town, a huge data center is an industrial-scale activity.

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Define ''limited in stock''

Answers

Answer:

Explanation:

it means that the product wont be around aymore since its limited to retailer?

If you invested $250 at 16% how much will have after 4.5 years

Answers

Answer:

$180

Explanation:

$250 * 0.16 * 4.5 = $180

Answer:

it depends on how often it's compounded

yearly:

The final balance is $487.53.

The total compound interest is $237.53.

semi-annually:

The final balance is $499.75.

The total compound interest is $249.75.

quarterly:

The final balance is $506.45.

The total compound interest is $256.45.

bi-monthly:

The final balance is $508.79.

The total compound interest is $258.79.

monthly:

The final balance is $511.17.

The total compound interest is $261.17

bi-weekly:

The final balance is $512.48.

The total compound interest is $262.48.

weekly:

The final balance is $513.04.

The total compound interest is $263.04.

daily:

The final balance is $513.53.

The total compound interest is $263.53.

continuous:

The final balance is $513.61.

The total compound interest is $263.61.

Explanation:

hope this helps:)

drop the name of a person you want a follow back from on Instagram .

drop names and keep it going of the person of your choice and you get a follow back at the strike of midnight .

Answers

Answer:

addison rae lol because i need a bad bleep hahaha

Explanation:

Answer:

cardi b because I want to know how to get the Wap lol

an economist would say that the benefits of regional integration are determined by:

Answers

An economist would say that the benefits of regional integration are determined by the amount of trade creation.

Regional integration is when two or more countries come together in order to agree to work together for the benefit of all countries involved in the integration.

Forms of regional integration

Free trade area: this is when countries agree to remove the barriers to trade. Customs union: this when restrictions to trade are removed for both member countries and non member countries. Common market: in addition to the removal of restrictions to trade, there is also free movement of labour among member countries. Economic union: member countries adopt similar economic policies.

Benefits of regional integration

It increases market efficiency. It enhances global integration.

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Which of the following is not a fixed cost? *
O monthly gym membership
car payment
O rent
O vacation/recreation/fun expenses

Answers

vacation/recreation/fun expenses is not a fixed cost

An animator needs a laptop for audio/video editing and can pay $2600 for a Dell XPS laptop or lease from the manufacturer for monthly payments of $75 each for four years. The animator can borrow at an interest rate of 14% APR compounded monthly. What is the cost of leasing the laptop over buying it outright

Answers

If the animator chooses to borrow the $2600 needed to buy the laptop outright, they will need to pay $66.28 in interest each month, which amounts to a total cost of $3181.12 over four years.

Buying the laptop outright for $2600 means the animator will pay the full cost upfront. However, if they choose to lease the laptop, they will pay $75 per month for four years, which amounts to a total cost of $3600.
To compare the two options, we need to calculate the cost of borrowing the money needed to buy the laptop outright. At an interest rate of 14% APR compounded monthly, the effective monthly interest rate is 1.17%. Therefore, if the animator chooses to borrow the $2600 needed to buy the laptop outright, they will need to pay $66.28 in interest each month, which amounts to a total cost of $3181.12 over four years.
Comparing the total costs of buying and leasing, we see that buying the laptop outright costs $2600 + $3181.12 = $5781.12, while leasing the laptop costs $3600. Therefore, leasing the laptop is more cost-effective than buying it outright, saving the animator $2181.12 over four years.
However, it is important to note that leasing the laptop may come with restrictions or additional fees, such as early termination fees or restrictions on customization. Additionally, if the animator plans to use the laptop for longer than four years, buying it outright may be a more cost-effective option in the long run.

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PLEASE HELP! IN A TEST! A salesperson may sell from a distance except when it involves _____.
A. contacting people through email messages
B. contacting people who have opted
out of receiving sales messages
C. letting customers place orders on a company's website
D. contacting people through telemarketing

Answers

Answer:

b

Explanation:

A salesperson may sell from a distance except when it involves contacting people who have opted out of receiving sales messages. Thus option (b) is correct.

Who is a salesperson?

A salesperson is a person who is employed by a company or organization to sell products or services to customers. The primary role of a salesperson is to identify potential customers, establish relationships with them, and persuade them to purchase the company's products or services.

They may use a range of techniques to sell, including advertising, direct marketing, and personal selling. Successful salespeople typically have strong communication, interpersonal, and negotiation skills, and are able to build trust and rapport with customers.

If a person has opted out of receiving sales messages, the salesperson is not allowed to contact them for marketing purposes. Therefore, option (b) is correct.

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Guero brought his proposal to poté before the meeting saying, "i’m sure you have some ideas on this, and we could try to get them incorporated upfront. " which influence tactic is guero using?.

Answers

The influence tactic that Guero is using, when he takes his proposal to Pote before the meeting started and asked for their ideas, is called the Consultation influence tactic.

What are influence tactics?

Influence tactics refer to the various ways that a leader can use to influence the beliefs, and behavior of their employees and subordinates. In other words, influence tactics allow for a leader to be able to change the values and attitudes that their employees hold, ideally for the better of the organization and to make the employees more driven.

There are three main types of influence tactics which include:

inspirational appealconsultation appeal rational appeal

With consultation appeal, the leader seeks input from their employees and then adds this input into what they are doing. This is what Guero did with Pote when he asked for ideas and for incorporating those ideas.

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The duration of an 11-year, $1,000 Treasury bond paying a 10 percent semiannual coupon and selling at par has been estimated at 6.9106 years.
a. What is the modified duration of the bond? What is the dollar duration of the bond?
b. What will be the estimated price change on the bond if interest rates increase by 0.10 percent (10 basis points)? If rates decrease by 0.20 percent (20 basis points)?
c. What would the actual price of the bond be under each rate change situation in part (b) using the traditional present value bond pricing techniques? What is the amount of error in each case?

Answers

a. The bond's adjusted duration, which takes into account its cash flows and yield to maturity, is 6.5810 years. By dividing the updated duration by the bond's price, $6,581.00 is the result, or the duration in dollars.

b. The adjusted duration and the altered yield can be used to compute the expected change in bond price. The expected price change is -$6.58 for a 0.10 percent rise in yield. The expected price change for a 0.20 percent decline in yield is $13.16. c. We require other data, such as the new yield to maturity and remaining cash flows, to calculate the actual price of the bond under each rate change. It is impossible to assess the true price or estimate the value without this information.

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Question 7 of 10
Which of the following is a tax-advantaged savings plan designed to
encourage savings for future college costs?
A. University plan
B. 529 plan
C. Scholarship plan
D. 592 plan

Answers

It is the 529 plan to save money for college.

Answer:

It is the 529 plan to save money for college.

Explanation:

Which of the following should NOT appear on a resume?
age
work experience
education
references

Answers

Answer:

Age

Explanation:

Age should not appear on a resume.

Extra : -

These also should not appear on a resume

Too much informationA solid wall of text.Spelling mistakes and grammatical errors.Inaccuracies about your qualifications or experience.Unnecessary personal information.Your age.Negative comments about a former employer.Details about your hobbies and interests.

If ΔS/ΔY equals 0.20, then the marginal propensity to consume
must be equal to …
Select one:
a.
0
b.
0.5
c.
0.8
d.
1
e.
the marginal propensity to save

Answers

The marginal propensity to consume (MPC) is 0.80, or option c.The marginal propensity to consume (MPC) represents the change in consumption resulting from a change in income.

If ΔS/ΔY equals 0.20, it means that the change in savings (ΔS) divided by the change in income (ΔY) is equal to 0.20. Since MPC + MPS (marginal propensity to save) must equal 1 (representing the entire change in income being allocated either towards consumption or saving), we can deduce that the MPC is 1 - MPS.

Given that ΔS/ΔY is 0.20, we can subtract 0.20 from 1 to find the MPC: MPC = 1 - MPS; 0.20 = 1 - MPS. Solving for MPS, we get: MPS = 1 - 0.20 = 0.80. Therefore, the marginal propensity to consume (MPC) is 0.80, or option c.

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What are personal loans?

Answers

Answer:

personal loan is a specific amount of money you can borrow from the bank, with a fixed interest rate and you pay it back within a predetermined amount of time. 

The _____ is a production period long enough for the firm to adjust the
quantities of all its ________, including capital.

Answers

Answer:

long run, productive resources

Pilar Perez makes time and a half for hours over 40. How much additional pay
would she earn if she worked 65 hours?

Answers

Based on the amount that Pilar Perez makes in 40 hours, the additional pay she would earn if she worked 65 hours is $1,367.88.

How much would Pilar Perez earn?

The amount that Pilar Perez earns per hour for 40 hours is:

= 17.65 x 40

= $706

Every hour over 40 hours is a time and a half so Pilar Perez makes:

= (65 - 40) x (17.65 x 1.5)

= 25 x 26.475

= $661.88

Total amount Pilar Perez makes is:

= 661.88 + 706

= $1,367.88

First part of the question is:

Pilar Perez is a truck driver. she earns $17.65 per hour

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explain economics in your own words​

Answers

Economics is how people interact with value, concerning how wealth is transferred, and how goods are consumed/produced

1. Who is an Antagonist?

Answers

Answer:

It's the person in the story who is kind of the 'bad guy'

Explanation:

They oppose the main character

Answer:

Hope it helps

Explanation:

a person who actively opposes or is hostile to someone or something; an adversary.

prepare a differential analysis to show whether best video should drop the dvd product line. begin by preparing a differential analysis to show whether best video should drop the dvds product line

Answers

Based on the differential analysis, Best Video should carefully consider the financial implications of dropping the DVD product line. It is important to evaluate revenue, costs, potential replacement revenue, and customer demand to make an informed decision.

In order to determine whether Best Video should drop the DVD product line, a differential analysis can be conducted to assess the financial implications. Here's a summary of the analysis:

Revenue: Compare the revenue generated from DVD sales with the associated costs, including production, distribution, and marketing expenses. Evaluate the trend in DVD sales over the past few years and project future sales based on market trends and customer preferences.

Costs: Identify the fixed and variable costs specifically related to the DVD product line, such as manufacturing, inventory, and packaging costs. Consider any cost-saving measures that could be implemented by discontinuing the product line.

Replacement Revenue: Analyze potential revenue streams that could replace DVD sales, such as digital streaming, online rentals, or other emerging technologies. Estimate the revenue potential from these alternatives and evaluate their growth prospects.

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The Toyota Mirai is a hydrogen fuel cell vehicle which has zero emissions and a 300 mile driving range. Furthermore, the Mirai creates no greenhouse gas emissions in the break down of the vehicle which makes the Mirai an excellent example of___ a) Planet marketing. b) Green marketing. c) Partner marketing. d) Cause marketing. e) Profit marketing

Answers

The Mirai creates no greenhouse gas emissions in the break down of the vehicle which makes the Mirai an excellent example of Green marketing.

What is Green marketing?

Green marketing is the promotion of products that are thought to be safe for the environment. It encompasses a wide range of actions, including product modification, production process adjustments, sustainable packaging, and altered promotion.

The existence of several social, environmental, and retail connotations related to this term is an illustration of how difficult it is to define green marketing because several meanings overlap and conflict with one another. Environmental marketing and ecological marketing are two other phrases with comparable meanings.

Green, environmental, and eco-marketing are examples of modern marketing strategies that aim to challenge conventional wisdom and offer a vastly different viewpoint rather than merely refocus, alter, or enhance it.

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how do digital factories and lean manufacturing differ from other manufacturing technologies? why are these new approaches needed in today’s environment?

Answers

Digital factories and lean manufacturing differ from other manufacturing technologies in that they are designed to increase efficiency and productivity while reducing waste.

They rely on automation, robotics, and data analytics to streamline processes and eliminate manual labor. Additionally, they allow for shorter lead times and faster delivery of goods.

These new approaches are needed because of the increased competition in the global market and the need for businesses to remain competitive.

With digital factories and lean manufacturing, businesses can better track their production, reduce costs, and quickly deliver products while still maintaining high quality. Additionally, they can improve customer satisfaction by reducing wait times and offering more customization options.

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Mark bought a house 200 m from an apparently abandoned railway that passes through the salt flats of Salar de Uyuni in Bolivia. One evening a small locomotive (with no carriages) passed along the track at approximately 10 kilometres per hour. At Mark’s house the decibel level resulting from the passing locomotive reached a maximum of 60 dB. A short time later the locomotive passed Mark’s neighbours house which is one kilometre down the track. If John’s house is 400 m from the railway – i.e. twice as far away as Mark’s house – calculate the sound level in decibels as the locomotive passed by it.

Answers

The sound level at John's house would be 54 dB (60 dB - 6 dB) as the locomotive passes by. The sound level in decibels as the locomotive passed by John's house, which is twice as far away from the railway as Mark's house, can be calculated.

The sound level in decibels decreases with increasing distance from the sound source. According to the inverse square law, the sound intensity decreases inversely with the square of the distance. In this case, John's house is twice as far away from the railway as Mark's house.

Since the sound level is measured on a logarithmic scale, a doubling of the distance results in a 6 dB decrease in sound level. Therefore, if the maximum decibel level at Mark's house was 60 dB when the locomotive passed, at John's house, which is twice the distance from the railway, the sound level would be 6 dB lower.

This calculation assumes that there are no other factors significantly affecting the sound propagation, such as obstacles or terrain variations, which could influence the sound level.

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Example metrics of success for usability testing

Answers

Usability testing is a critical aspect of the user-centered design process that aims to evaluate the effectiveness, efficiency, and satisfaction of a product. Some example metrics of success for usability testing include task completion rate, time on task, error rate, user satisfaction, and user retention rate.

To measure the success of usability testing, it is important to define relevant metrics that reflect the goals of the testing process. Task completion rate measures the percentage of users who can complete a specific task successfully, while time on task evaluates the amount of time users take to complete a task.

Error rate measures the number of errors users make while completing a task, and user satisfaction assesses how satisfied users are with the product. Finally, the user retention rate evaluates the percentage of users who continue to use the product after the testing process. By tracking these metrics, usability testers can determine the effectiveness of their design choices and make informed decisions to improve the product.

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a single dwi conviction can cost a driver up to ____.

Answers

It depends which state

price (set by the market in pure competition) always remains the same.

Answers

In a purely competitive market, the price does not always remain the same. It fluctuates based on factors such as supply and demand.

In a pure competition market, numerous buyers and sellers participate with similar products, and none of them individually influences the price. While it's true that the market sets the price, this does not mean that the price always remains constant. Prices in a purely competitive market are determined by supply and demand forces. When supply increases or demand decreases, the price tends to fall.

Conversely, when supply decreases or demand increases, the price tends to rise. These fluctuations are driven by factors such as changing consumer preferences, technological advancements, and changes in production costs. As a result, the price in a purely competitive market will adjust according to these factors and will not remain the same over time.

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the net effect of most of franklin roosevelt's early foreign policy moves was that

Answers

The net effect of most of Franklin Roosevelt's early foreign policy moves was to remove the United States from a position of isolationism and to actively intervene in global affairs.

Franklin D. Roosevelt was the United States' thirty-second president. Before he became president in 1933, the United States had chosen to isolate itself from global events after World War I. Roosevelt was elected to three presidential terms and, with his New Deal and foreign policy interventions, transformed the role of the federal government during the Great Depression.

Roosevelt started taking a number of actions on foreign policy very early in his presidency. In 1933, he announced that the United States would cease participation in the London Economic Conference and seek to increase trade outside of Europe. He also recognized the Soviet Union in 1933 and extended diplomatic recognition to the Communist government.The United States would no longer be a country of isolationism as a result of Roosevelt's early foreign policy actions. As a result of Roosevelt's actions, the US would become increasingly engaged in global affairs, with Roosevelt at the helm.

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A country produces computers and rice. If resources are fully employed and there is technological progress only in the production of rice, the opportunity costs of producing computers and rice will change in which of the following ways? Opportunity Cost of Computers Opportunity Cost of Rice (A) Increase Increase (B) Increase Decrease (C) No change Decrease (D) Decrease Increase (E) Decrease Decrease

Answers

When there is technological progress in the production of rice, it means that the production efficiency of rice increases. As a result, the opportunity cost of producing rice decreases. The Correct option is C

With the same amount of resources, the country can produce more rice without sacrificing the production of computers. Therefore, the opportunity cost of producing rice decreases.

On the other hand, as the resources are fully employed and more resources are allocated to rice production, the resources available for computer production decrease. This leads to an increase in the opportunity cost of producing computers. So, the opportunity cost of rice decreases and the opportunity cost of computers increases.

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"In my opinion, we ought to stop making our own drums and accept that outside supplier’s offer," said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. "At a price of $21 per drum, we would be paying $6.25 less than it costs us to manufacture the drums in our own plant. Since we use 75,000 drums a year, that would be an annual cost savings of $468,750." Antilles Refining’s current cost to manufacture one drum is given below (based on 75,000 drums per year):

Answers

Antilles Refining, N.V., of Aruba can save an annual cost of $468,750 if they accept outside suppliers' offer of making drums at $21 per drum.

The company's managing director, Wim Niewindt, stated that the company should stop making its own drums and go with the outside supplier's offer.Therefore, the current cost of manufacturing one drum is $27.25.

Antilles Refining's current cost to manufacture one drum is given as follows: - \(Direct materials = $10.00- Direct labor = $8.00- Variable overhead = $4.00- Fixed overhead = $5.25Total cost = $10.00 + $8.00 + $4.00 + $5.25 = $27.25\)

However, the outside supplier is offering to sell the drums for $21 per drum. It would cost the company $6.25 less to buy from outside. By buying from the outside, the company can save $468,750 annually since they use 75,000 drums per year.

Therefore, in my opinion, it would be a wise decision for Antilles Refining, N.V., of Aruba to accept the offer of the outside supplier and buy the drums from them. This would reduce the company's annual expenses and increase profits.

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The Roosevelt Corollary's goal was to what is 858,655 in english What is the mixed number answer to 13 5/6 + 3 2/6 Which group of protists would be most likely to have cilia as adults and why? The sporozoan protists would, since they have to spread their spores around. The heterotrophic protists would, since they use them to gather food. The parasitic protists would, since they need to find other organisms to attack. The autotrophic protists would, since they need light to make their own food. six decreased by five times a number Solve the system of inequalities and indicate all the integers which are in the solution set: The answer isn't an inequality like -5 FILL THE BLANK.in a data entry screen, such as that shown in the accompanying figure, a(n) _____ is a control feature used to initiate an action such as printing a form or requesting help. Suppose that the cash-generating machine you are considering buying in Question 6 has stopped for improvement. It will resume generating cash flows in two years from now, with an initial cash flow of $10. Cash flows will then grow at a rate of 4% each year thereafter. The discount rate is 12% per year. You are still interested in purchasing this machine, and the current owner of the machine asks you to pay today if you want to buy it. How much would you be willing to pay?Answer (show the steps/calculation toward your results): Can someone please help On a coordinate plane, a curved line, labeled f of x, with minimum values of (negative 1.6, negative 56) and (2, 0), and a maximum value of (0.8, 11.4), crosses the x-axis at (negative 2.5, 0), (0, 0), and (2, 0), and crosses the y-axis at (0, 0). Which intervals show f(x) increasing? Choose two options. [2.5, 1.6) [2, 1] (1.6, 0] [0, 0.8) (0.8, 2) The scenario highlights internal control failures affecting Wells-Fargo bank. Explain how internal audit could assist the bank to improve these The price listed for 4 dinner plates at a home store is $23.88. What amount will Jane need to pay, if she decides to purchase 10 such dinner plates? A function is given by the equation h(x)=5x-3. Write the coordinate pair for the point associated with the given values in function notation Minimum efficient scale is the level of output at which:All economies of scale have been exhausted 3/8 divided by 1 3/5 as a fraction in simplost form meta-analysis combines the results of a number of studies so you can see the size of an effect of a(n) ______________ from multiple studies on an outcome. The Declaration of Independence said that "under absolute Despotism, it is their right, itis their duty, to throw off such Government" - or that if the government wasn't fulfillingits role, people had the right to replace that government. This is an example of whichEnlightenment principle?O Checks and balancesO Freedom of speechO Consent of the governedO Separation of powers A plant uses carbon dioxide and water to form food and oxygen. Why is this a chemical change? if a researcher wants to know the relationship between two variables that they cannot manipulate in laboratory, such as the average temperature and the amount of carbon emitted in a given year, the researcher can: A home has a rectangular kitchen. If listed as ordered pairs, the corners of the kitchen are (8, 4), (3, 4), (8, 8), and (3, 8). What is the area of the kitchen in square feet?A: 20 ft2B: 46 ft2C: 132 ft2D: 144 ft2