The opportunity cost of capital, used to calculate the base-case for adjusted present value analyses, can be thought of as Multiple Choice the promised yield rather than the expected yield of an investment. the WACC of an all-equity financed version of the firm. the return on the opportunities exploited by a firm's competitors. the rate corresponding to an average debt level among firms in the industry.

Answers

Answer 1

Answer:

the WACC of an all-equity financed version of the firm.

Explanation:

WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate)

for a project to be accepted, the internal rate of return should be higher than the WACC


Related Questions

Suppose a stock had an initial price of $91 per share, paid a dividend of $1.80 per share during the year, and had an ending share price of $108. a. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield

Answers

Answer:

A. 31.65%

B. 1.98

Explanation:

A. Calculation to determine the percentage total return

Using this formula

Percentage total return= Increase in price+ Dividends÷ Initial price

Let plug in the formula

R = [($118 - 91) + 1.80] / $91

R=$28.8/$91

R = .3165*100

R=31.65%

Therefore the percentage total return is 31.65%

B. Calculation to determine the Dividend yield

Using this formula

Dividend yield= Dvidend / initial price

Let plug in the formula

Dividend yield = $1.80 / $91

Dividend yield = .0198*100

Dividend yield = 1.98%

Therefore Dividend yield is 1.98%

Marigold Corporation had net income of $170000 and paid dividends to common stockholders of $51000 in 2019. The weighted average number of shares outstanding in 2019 was 34000 shares. Marigold Corporation's common stock is selling for $32 per share on the New York Stock Exchange. Marigold Corporation's price-earnings ratio is :__________

a. 4.92 times.
b. 9.14 times.
c. 6.40 times.
d. 5.00 times.

Answers

Answer:

P/E ratio = 6.40 times

Option c is the correct answer.

Explanation:

The P/E ratio or price earnings ratio measures the price that the investors are willing to pay for each $1 of earnings of the company. It is calculated as follows,

P/E ratio = Price per share / Earnings per share

We can calculate the earnings per share by dividing the net income by the number of shares outstanding.

P/E ratio = 32 / (170000 / 34000)

P/E ratio = 6.40 times

I NEED HELP ASAP

Type the correct answer in the box. Spell all words correctly.
What is the advantage of employing more than one sales channel?
Employing more than one sales channel is useful to lessen the ______ that arise from dependence on specific clients or markets.

Answers

Answer:

The risks

Explanation:

That is what goes in the blank

Answer:

risks

Explanation:

correct on edmentum

cuáles son las tres partes de una fracción​

Answers

No Espanol English please?

Kensington Corp. reports net income of $280,000 for the year ended December 31, 2020. The company recorded an unrealized loss on available-for-sale debt securities of $15,000 (after tax) for the year ended December 31, 2020 and deferred the loss. The company declared dividends of $40,000 for the year and its tax rate is 25%. The December 31, 2019, balance in accumulated other comprehensive income is $18,000 (debit balance) and the balance in retained earnings is $100,000 (credit balance). What is the ending balance in accumulated other comprehensive income and retained earnings on December 31, 2020

Answers

Answer:

Kensington Corp.

                                         Accumulated other              Retained Earnings

                                       comprehensive income

December 31, 2020                $33,000 (DR)                  $340,000 (CR)

Explanation:

a) Data and Calculations:

Tax rate = 25%

                                         Accumulated other              Retained Earnings

                                       comprehensive income

December 31, 2019                   $18,000  (DR)                  $100,000 (CR)

Net income for 2020                                                          280,000

Unrealized loss  for 2020          15,000

Dividends for 2020                                                             (40,000)

December 31, 2020                $33,000 (DR)                  $340,000 (CR)

Waterway Industries is planning to sell 1000 boxes of ceramic tile, with production estimated at 670 boxes during May. Each box of tile requires 44 pounds of clay mix and a 0.75 hour of direct labor. Clay mix costs $0.40 per pound and employees of the company are paid $16 per hour. Manufacturing overhead is applied at a rate of 110% of direct labor costs. Waterway has 4200 pounds of clay mix in beginning inventory and wants to have 3900 pounds in ending inventory. What is the total amount to be budgeted for manufacturing overhead for the month

Answers

Answer:

Allocated MOH= $8,844

Explanation:

Giving the following information:

Production= 670 boxes

Each box of tile requires 0.75 hours of direct labor.

Direct labor rate= $16 per hour.

Manufacturing overhead is applied at a rate of 110% of direct labor costs.

First, we need to determine the total direct labor costs:

Direct labor hours= 670*0.75= 502.5

Direct labor costs= 502.5*16= $8,040

To calculate the applied overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 1.1*8,040

Allocated MOH= $8,844

g One of the major advantages that market economies have over command economies is that a. They are more able to quickly and efficiently deal with situations that require coordination among consumers and producers. b. Market economies make better use of available information about the efficient allocation of resources and goods. c. Markets do not always work efficiently, which can lead to a misallocation of resources. d. All of the above.

Answers

Answer: They are more able to quickly and efficiently deal with situations that require coordination among consumers and producers

Explanation:

A market economy simply refers to the economy that's being regulated through the forces of demand and supply. It should also be noted that government plays a limited role in such economy.

On the other hand, command economy is one whereby the government is in charge of the production, distribution and allocation regarding goods and services.

An advantage of the market economy over the command economy is Tlyhst they are more able to quickly and efficiently deal with situations that require coordination among consumers and producers. This is because the producers and the consumers generally control the market thereby coordination is easier.

Aubrae Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following:

a. A two-year insurance premium of $4,560 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1.
b. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents.

Shipping on hand, January I of the current year $13,000
Purchases of shipping supplies during the current year 75,000
Shipping hand, counted on December 31 of the current year 20,000

Required:
a. Using the process illustrated in the chapter, record the adjusting entry for insurance at December 31 of the current year.
b. Using the process illustrated in the chapter, record the adjusting entry for supplies at December 31 of the current year, assuming that the shipping supplies purchased during the current year were debited in full to the account Shipping Supplies.
c. What amount should be reported on the current year’s income statement for Insurance Expense? For Shipping Supplies Expense?
d. What amount should be reported on the current year’s balance sheet for Prepaid Insurance? For Shipping Supplies?

Answers

Answer:

Aubrae Company

Adjusting Journal Entries:

a. Insurance:

Debit Insurance expense $570

Credit Prepaid Insurance $570

To record insurance expense for 3 months.

b. Shipping supplies:

Debit Shipping supplies expense $68,000

Credit Shipping supplies $68,000

To record shipping supplies expense for the year.

Explanation:

a) Data and Analysis of Adjusting Entries:

a. Insurance expense $570 Prepaid Insurance $570

($4,560/24 * 3)

b. Shipping supplies expense $68,000 Shipping supplies $68,000

Insurance Expense:

Prepaid insurance = $4,560 for 24 months

Each month equals $190

Expense for October to December = $570 ($190 * 3)

Shipping expense:

Shipping on hand, January I of the current year             $13,000

Purchases of shipping supplies during the current year 75,000

Shipping hand, December 31 of the current year           (20,000)

Shipping supplies used during the current year =        $68,000

Why did bank runs cause banks to fail?

Answers

Answer:

Another phenomenon that compounded the nation's economic woes during the Great Depression was a wave of banking panics or “bank runs,” during which large numbers of anxious people withdrew their deposits in cash, forcing banks to liquidate loans and often leading to bank failure.

Explanation:

Answer:

It caused them to fail becuase people withdrew their deposits in cash, t o liquidate loans.

Explanation:

“Bank runs” was when  large numbers of anxious people withdrew their deposits in cash, forcing banks to liquidate loans , leading to bank failure.

3. You have Birr 1,500 to invest today at 7% interest compounded annually. Find how much you will have accumulated in the account at the end of (1) 3 years, (2) 6 years, and (3) 9 years.

Answers

1-The amount accumulated at the end of 3 years is Birr 1,837.56

2-The amount accumulated at the end of 6 years is Birr 2,251.10

3-The amount accumulated at the end of 9 years is Birr 2,757.69

The formula to calculate compound interest is

A=P(1+r/n)∧nt

Where, A=  final amount

P= initial Principal

r= rate of interest

t= time period

n= number of times interest applied(annually, quarterly etc)

1- P=1500   r=7%   t=3   n=1

Amount=1500(1+0.07/1)∧3

=1837.56

2- P=1500   r=7%  t=6 years  n=1

Amount = 1500(1+0.07/1)∧6

=2251.10

3- P=1500   rate=7% time t=9 years  n=1

Amount= 1500(1+0.07/1)∧9

=2757.69

Therefore Amount at the end of 3 years is 1837.56

6 years is 2251.10 and at the end of 9 years is 2757.69

To learn more about compound interest visit:

https://brainly.com/question/28020457

Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities using the indirect method?
A. An increase in wages payable will be added to net income.
B. An increase in prepaid expenses will be subtracted from net income.
C. An increase in income taxes payable will be subtracted from net income.
D. A gain on the sale of a depreciable asset will be subtracted from net income.

Answers

Answer:

C. An increase in income taxes payable will be subtracted from net income.

Explanation:

First and foremost, an increase in current assets such as prepaid expenses means that the company parted with cash since it has made payment in advance prior to the expenses being incurred, hence, it is a cash outflow while a decrease in the current asset has an opposite impact.

However, an increase in current liabilities means the company is owing more and has avoided a cash outflow, in essence, it is treated as cash inflow, in other words, the increase in income taxes payable is an inflow not deducted as if it is an outflow

A truck acquired at a cost of $285,000 has an estimated residual value of $14,100, has an estimated useful life of 43,000 miles, and was driven 3,900 miles during the year. Determine the following. If required, round your answer for the depreciation rate to two decimal places. (a) The depreciable cost $fill in the blank 1 (b) The depreciation rate $fill in the blank 2 per mile (c) The units-of-activity depreciation for the year

Answers

Answer:

a. $270,900

b. $6.30

c. $24,570

Explanation:

(a) The depreciable cost = $270,900

(b) The depreciation rate = $6.30

(c) The units-of-activity depreciation for the year =- $24,570

Hedge funds report average returns in December that are higher than their average returns in other months. This phenomenon __________. I. is called the Santa effect II. often results from over generous valuation of illiquid assets III. appears stronger for lower-liquidity funds IV. can be explained by managers' attempts to inflate assets to collect higher performance bonuses Group of answer choices g

Answers

Answer:

I, II, III, and IV

Explanation:

A hedge fund is made up of relatively liquid assets that are used to improve performance though short selling, leverage and derivatives.

There is use of complex trading techniques, risk management, and portfolio construction.

Usually a spike in returns occurs during December, this is called the Santa effect.

Managers receive an incentive fee when there is a good past performance of hedge funds.

So during December they tend to inflate the value of hedge funds.

This results in stronger valuation for low liquidity funds

What’s the maximum number of conditions that can be set for a bank rule?

Answers

The maximum number of conditions that can be set for a bank rule is 5.

What is a bank rule?

A bank rule is one that has been set up by the bank that will be followed in that branch. This could be with the relation of the payment, cheques, deposits, or bank charges.

There can be various numbers of charges that can be set by the bank. The central bank will be the one that will set the rate or will decrease the rate of the changes. This was to impact the bank.

As different banks may have different types of rules as well as regulations that they will use to help form the rules but the maximum number will be five.

Learn more about bank rules, Here:

https://brainly.com/question/30011538

#SPJ1

Fitz Company reports the following information.
Selected Annual Income Statement Data
Net income $373,000
Depreciation expense 45,200
Amortization expense 8,800
Gain on sale of plant assets 6,300
Selected Year-End Balance Sheet Data
Accounts receivable decrease $ 140,100
Inventory decrease 51,500
Prepaid expenses increase 6,800
Accounts payable decrease 9,700
Salaries payable increase 2,300
Use the indirect method to prepare the operating activities section of its statement of cash flows for the year ended December 31.

Answers

Answer:

operating activities section

Net income                                                               373,000

Adjustment for non cash items :

Depreciation expense                                               45,200

Amortization expense                                                 8,800

Gain on sale of plant assets                                      (6,300)

Adjustment for Changes in Working Capital :

Accounts receivable decrease                                140,100

Inventory decrease                                                    51,500

Prepaid expenses increase                                      (6,800)

Accounts payable decrease                                     (9,700)

Salaries payable increase                                          2,300

Net Cash Provided by Operating Activities           598,100

Explanation:

The operating activities section of its statement of cash flows for the year ended December 31 has been prepared above using indirect method.

Describe four ways in which the government creates an enabling business environment.
(4 mks)

Answers

Answer:

Provision of credit facilities at favourable rates.

Ensuring political stability and good will.

Training and educating the population to create a pool of skilled manpower.

Marketing of final products for producers.

The decision to start a business and the decision to attend college:___________
a. are the same in that each decision involves the same costs and benefits and the same opportunity costs
b. are different in that in starting a business, you should mainly consider the cost-benefit principle, whereas in attending college, you should mainly consider the opportunity cost principle
c. are similar in that in both cases, you will want to consider the cost-benefit principle and the opportunity cost principle
d. are different in that in starting a business, you should mainly consider the opportunity cost principle, whereas in attending college, you should mainly consider the cost-benefit principle

Answers

Answer:

c. are similar in that in both cases, you will want to consider the cost-benefit principle and the opportunity cost principle.

Explanation:

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

Similarly, cost-benefit analysis is used to examine and compare the cost associated with a project or task and the benefits derived from it.

Hence, the decision to start a business and the decision to attend college are similar in that in both cases, you will want to consider the cost-benefit principle and the opportunity cost principle

The decision to start a business and the decision to attend college is  similar in that in both cases, you will want to consider the cost-benefit principle and the opportunity cost principle.

The following information should be considered:

In the case of cost-benefit principle, the additional benefit that received should be more than the extra cost i.e. incurred. While on the other hand, the opportunity cost is considered as the benefit but not received due to not choosing the next best alternative.

Therefore we can conclude that the correct option is c.

Learn more: brainly.com/question/6201432

The Feline Company has been having some difficulties estimating its manufacturing overhead costs. In the past, manufacturing overhead costs have been related to production levels. However, some production managers have indicated that the size of their production lots might also be having an impact on the amount of their monthly manufacturing overhead costs. In order to investigate this possibility, the company collected information on its monthly manufacturing overhead costs, production in units, and average production lot size for 2020.
Month Production (Units) Manufacturing Overhead Cost Average Monthly Production Lot Size
1 75,000 $ 925,800 20
2 90,000 843,875 19
3 65,000 910,125 24
4 80,000 946,000 19
5 55,000 879,000 24
6 50,000 825,000 18
7 85,000 960,000 22
8 105,000 1,053,500 25
9 102,000 1,020,000 23
10 68,000 905,000 20
11 75,000 938,000 22
12 95,000 995,000 24
Required:
(a.) Use the high-low method to estimate next month's manufacturing overhead costs, assuming the company is planning to produce 92,000 units.
(b.) Use the high-low method to estimate next month's manufacturing overhead costs, assuming the company is planning to run a 21-lot size.

Answers

Answer:

A

Explanation:

What forces in the external environment have created opportunities or challenges for Michelle Phan? Explain.

Answers

Answer :

1. Social Media Platforms:

2. Beauty Industry Trends:

3. Economic Conditions:

4. Competition:

In the Basic Solow Model without exogenous growth, if the population, and therefore the labor supply, doubles:_______

a. Steady state output per worker will fall by half.
b. Steady state output per worker will fall by more than half.
c. Steady state output per worker will fall by less than half.
d. Steady state output per worker will be unchanged.

Answers

Answer:

In the Basic Solow Model without exogenous growth, if the population, and therefore the labor supply, doubles steady state output per worker will be unchanged.

Explanation:

According to the given scenario options A, B and C are ruled out. Hence, the answer to the above question is option D. Steady state output per worker will be unchanged.

Hope this helps.

 

Sardi Incorporated is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 13,600 of the components each year. The unit product cost of the component according to the company's cost accounting system is given as follows: Direct materials $ 9.40 Direct labor 6.40 Variable manufacturing overhead 2.20 Fixed manufacturing overhead 4.20 Unit product cost $ 22.20 Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 30% is avoidable if the component were bought from the outside supplier. In addition, making the component uses 3 minutes on the machine that is the company's current constraint. If the component were bought, time would be freed up for use on another product that requires 6 minutes on this machine and that has a contribution margin of $5.80 per unit. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component

Answers

Answer:

See below

Explanation:

Sardi Inc.

Cost of making components

Direct materials = $9.40

Direct labor = $6.40

Variable manufacturing overhead = $2.20

Fixed manufacturing overhead = (30% × $4.20 is avoidable) = $1.26

Opportunity cost = ($5.80 per unit ÷ 6 minutes per unit) × 3 minutes = $2.90

Total cost

= $9.40 + $6.40 + $2.20 + $1.26 + $2.90

= $22.16

Therefore, the cost of making the component should be compared to the price of buying the component at $22.16

4. What was the strengths and weakness of each contributors/authors theory/principles?​

Answers

Answer:In the modern world, every firm needs to create a successful management strategy. This procedure combines planning, organisation, incentive, and control to create a productive business function that will aid in the accomplishment of goals and objectives. Scientific management, which can be observed in the operational strategies of Toyota and Apple enterprises, is one of the practical and tested methods of controlling the work of the organisation. To sustain a competitive position, it is beneficial to design a specific strategy while adhering to individual values, viewpoints, and activity techniques.

Explanation:

Your assignment is to research the various types of financing deals currently being offered for a hypothetical condominium you plan to buy. The following assumptions apply to this project: The purchase price of the condo you plan to buy is $200,000. The condo was recently appraised for $220,000. You plan to make a 25% down payment ($50,000) and are seeking a $150,000 mortgage. You have a job that qualifies you for that size mortgage. Your assignment is to compare the current interest rates, costs, and features associated with a 15-year fixed-rate mortgage, a 30-year fixed-rate mortgage, and an adjustable-rate mortgage. What are the current interest rates and discount points of the 15- and 30-year fixed rate mortgages

Answers

Answer:

?????

Explanation:

Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $18,700. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,600, outstanding checks of $2,200, a NSF check of $900, bank service charges of $40 and the EFT from a customer in payment of the customer's account of $1,700. What is the up-to-date ending Cash balance

Answers

Answer:

Up-to-date cash balance $18,100

Explanation:

The computation of the up to date ending cash balance is shown below:

Cash balance as per bank statement $18,700

Add: Deposit-in-transit $1,600

Less: Outstanding checks -$2,200

Up-to-date cash balance $18,100

Here we add the deposits and subtracted the outstanding checks so that the up to date cash balance could come

The same would be considered

1. Gross margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 2. Net profit margin percentage. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 3. Return on total assets. (Round your percentage answer to 1 decimal place (i.e., 0.1234 should be entered as 12.3).) 4. Return on equity. (Round your percentage answer to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

Answers

Answer:

A. 34.2%

B. 4.5%

C. 8.1%

D.10.64%

Explanation:

a) Calculation to determine Gross margin percentage

Using this formula

Gross margin percentage = Gross profit/Net Sales

Let plug in the formula

Gross margin percentage= 27000/79000

Gross margin percentage = 34.2%

b) Calculation to determine Net profit margin

Using this formula

Net profit margin = Net income/Net Sales

Let plug in the formula

Net profit margin = 3540/79000

Net profit margin = 4.5%

c) Calculation to determine Return on assets

Using this formula

Return on assets = (Net income+Interest expense)/Average total assets

Let plug in the formula

Return on assets = (3540+360)/48120

Return on assets= 8.1%

d) Calculation to determine Return on equity

Using this formula

Return on equity

= Net income/Average equity

Let plug in the formula

Return on equity = 3540/33270

Return on equity =10.64%

2. Start by creating a list of 5-10 local and remote businesses currently operating that you think would hire project
managers?

Answers

Amazon, Coinbase, HubSpot, IQVIA, PRA Health Sciences, Robert Half International, Thermo Fisher Scientific, and UnitedHealth Group are among the organizations that allow project managers to work remotely.

By decreasing risk and giving precise timings and decision points that assist guarantee projects are delivered on-time and within budget, project planning helps avoid the disappointment of failed and delayed projects. Project managers work with teams to divide a project into smaller, more manageable chunks. Project managers can better manage their teams and respond to problems by dividing the project down into a defined procedure with assigned tasks, dates, and milestones.

A local business could be a small shop, a food truck, or an office building. Because the local business owner owns the building where it is located, it differs from a chain store in another way. The majority of local businesses are often modest, family-run enterprises. Even though your business or client's office is in the same location as yours, working remotely can simply mean doing so. Working from home is hardly a glamourous lifestyle option. It's a decision to increase effectiveness and balance.

Learn more about remote businesses

https://brainly.com/question/28360381

Which option best describes financial well-being?
OA. Making the most money in the shortest amount of time
B. Using money wisely in order to support a lifestyle that can be
enjoyed for a long time
OC. Making money in order to feel morally superior to those with less
D. Amassing the most money in order to become rich and famous

Answers

B.

Answer: using money wisely so that you can support a lifestyle that can be enjoyed for a long time is a sustainable way of lifestyle and good for your financial well being. Sorry I suck at explaining.

Answer:

B. Using money wisely in order to support a lifestyle that can be enjoyed for a long time.

Explanation:

A is incorrect because it isn't practical. Making the most amount of money in a short time only helps you in the short run. It doesn't necessarily ensure that you have a lot of money in the long run. B is correct because it is the most practical, responsible, and wise choice. By using your money wisely, you can save up for something you really want, like a car or laptop. This also gives you security in the future because you know you have money and can dip into it in an emergency situation. C is incorrect because it's only trying to satisfy an impractical feeling. Making money just to feel morally superior to those with less doesn't mean that you're good at your job or will continue to make the same amount all the time. It mainly means that you are satisfying the need to feel better or higher up in the wealth ladder than others. D is incorrect because making money just to be rich and famous doesn't mean you're going to make smart and wise decisions using it. It also doesn't assure you that it will stay that way forever. You may need to pay rent on a mansion and lose a ton of money, therefore, dropping your rich status.

Hope this helps! :)

Pinkin Inc. needs to determine a price for a new phone model. Pinkin desires a 25% markup on the total cost of the phone. Pinkin expects to sell 30,000 phones. Additional information is as follows: Variable product cost per unit$75 Variable administrative cost per unit 50 Total fixed overhead 85,000 Total fixed administrative 65,000 Using the total cost method what price should Pinkin charge

Answers

Answer:

See below

Explanation:

Total costs = Product costs + Administrative costs

= ($75 × 30,000) + $85,000 - ($50 × 30,000) + $65,000 = $3,900,000

Total cost per unit =Total cost / Units expected to be sold= $3,900,000 /30,000 = $130

Markup per unit = Total cost per unit × Markup percentage = $130.00 × 25% = $32.5

Assume you just purchased 100 shares of Apple stocks at $300. You are worrying that the competition from other tablet PC and smart phone producers will have a negative impact on Apple stock prices in 1 month. Generally speaking, you are still quite bullish on Apple stock. In order to hedge against this downside risk, you establish a protective put position by buying a put option contract with around 1-month maturity on Apple stock. However, the premium of the put option with strike price at $300 is $12, which is quite expensive. If you feel purchasing the put option with strike price at $300 and $12 premium is too expensive, what else can we do to reduce the cost of protective put position

Answers

Answer:

If you believe that the premium is too expensive, then you should try to purchase another put option with a lower strike price. This will probably reduce your potential profits, but it will also decrease the amount of money that you will pay for the put options. For example, a put option with a strike price of $290 might be worth $5.

11,400 shares of common stock outstanding at a price of $48 per share, It has also issued 300 bonds with a coupon rate of 6.7 percent paid semiannually, and 275 shares of preferred stock that sells a price of $90 per share The bonds mature in 29 years, have a Par value of $1,000, and sell at 108 percent of par. What is the capital structure weight of the common stock

Answers

Answer:

0.4485

Explanation:

Calculation to determine the capital structure weight of the common stock

First step is to calculate the Value of Common Stock

Value of Common Stock = 11,400(48)

Value of Common Stock= $547,200

Second step is to calculate Value of Preferred Stock

Value of Preferred Stock = 275(90)

Value of Preferred Stock = $24,750

Third step is to calculate the Value of Debt

Value of Debt = 1.08(2,000)(300)

Value of Debt= $648,000

Now let calculate the Weight of common stock

Weight of common stock =$547,200 /(547,200 + 24,750 + 648,000)

Weight of common stock=$547,200/$1,219,950

Weight of common stock = 0.4485

Therefore the capital structure weight of the common stock is 0.4485

Other Questions
A letter to municipality department to solve the problem as early as possbile There is a huge water logging in your area which is casuing serious problems for the resident. The amount is credited to the account of the taxpayer and reduces the amount of tax otherwise due to the government on the due date of the return. Two people leave from the same point. One travels 12 meters north. The other travels 9 meters east. How far apart are they? Financial accounting often has challenges with valuation and estimation in all but the following area:- goodwill- accounts payable- accounts receivable- inventory Find the surface area and round to the nearest hundredths place when necessary. Marc's brownie pan, shown below, has a pair of parallel sides. Each day, Marc's family is going to eat 100 square centimeters of brownie from the pan. For how many days does Marc's family have brovnics before they run out? top:29 bottom: 41 side : 20 What do municipal governments do? The value of a new car decreases by 10% in the first year.How much will a car be worth after one year if its an initial value was $40,000? E-20 insert articles wherever they are necessary and rewrite the sentences :-1. While I was rearranging bookshelf, I found old photograph of my parents.2. As soon as our bus crossed traffic light we heard loud explosion.3. The elderly couple were crossing road this morning, when motorcyclist knocked them down.4. The plane was flying at such low altitude that we had clear view of the Ganga.5. As girl of 16, I used to walk up hill very often to find quiet place to study.6 I praised honesty of my servant.7. Apple is a fruit, which eaten daily can keep doctor away.& My meighbours left for Pune week ago9. Rajdhani Express was hour late on the first of May10. Andamans are group of islands in Bay of Bengal. anyone knows it no fke answers Find the sum: (35s 7 +23t) + (212 16t 310s) i have a procrastination problem so um yay points for free #momboss Find the mass of the cone using the triple beam balance. A. 543. 0 g b. 542. 0 g c. 504. 28 g d. 502. 8 g Please select the best answer from the choices provided A B C D Help!! I will give brainlest to the right one! WHO LIKES HAMILTON ONLY ANSWER IF YOU LIKE HAMILTON IF YOU ANSWER Transfers of money, goods, or services that are not reported to the government are indicative ofMultiple ChoiceA.capitalistic profits.B.communism.C. an informal economy.D.socialist sanctions. Please help me with this question!! Solve the system. y = -x + 3 and y = 2xthe solution is (__,__).Explain your choice of method. Do living cells ever run out of energy ? Explain. A girl travels along the circumference of a circle of radius 14 m. What is her total distance travelled and displacement when she has described half a circle, three fourth of a circle and full circle.