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Dmitrij [34]
2 years ago
12

Little LampLighter Inc has a book value of $10 million in debt; its bonds are trading at $900 and there are 11,000 outstanding.

It also has a market value of equity of $25 million. Shareholders require a 14% return on their shares and creditors require an 8% before-tax return on their investment. The weighted average return required by investors in Spock Enterprises is Blank______%.
Business
1 answer:
kumpel [21]2 years ago
7 0

Based on the amount of debt and equity that Little LampLighter has, the weighted average rate of return would be 12.3%.

<h3>What is the weighted average rate of return?</h3>

First find the total value of debt and equity:
= 10 + 25

= $35 million

The weighted average return is:

= (10 / 35 x 8%) + (25 / 35 x 14%)

= 2.286% + 10%

= 12.3%

Find out more on weighted average rate of return at brainly.com/question/17284158.

#SPJ12

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Steve Smith will receive $82,870 on 5 years from now, from a trust fund established by his father. Assuming the appropriate inte
sweet-ann [11.9K]

Answer:

$50,875

Explanation:

The computation of the present value is shown below:

Given that

NPER = 5 × 2 = 10

RATE = 10% ÷ 2 = 5%

PMt = $0

FV = $82,870

The formula is shown below:

= -PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $50,875

Hence, the present value is $50,875

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0
3 years ago
Looking at the bottom of her tea cup, Prof. Trelawney suddenly has a revelation! She knows one of the previous exam questions! S
viva [34]

Answer : The molecular formula of the sample is, X_4Y_6Z_4

Solution :

If percentage are given then we are taking total mass is 100 grams.

So, the mass of each element is equal to the percentage given.

Mass of X = 15.0 g

Mass of Y = 75.0 g

Mass of Z = 10.0 g

Molar mass of X = 45.0 g/mole

Molar mass of Y = 150  g/mole

Molar mass of Z = 30.0 g/mole

Step 1 : convert given masses into moles.

Moles of X = \frac{\text{ given mass of X}}{\text{ molar mass of X}}= \frac{15.0g}{45.0g/mole}=0.33moles

Moles of Y = \frac{\text{ given mass of Y}}{\text{ molar mass of Y}}= \frac{75.0g}{150g/mole}=0.5moles

Moles of Z = \frac{\text{ given mass of Z}}{\text{ molar mass of Z}}= \frac{10.0g}{30.0g/mole}=0.33moles

Step 2 : For the mole ratio, divide each value of moles by the smallest number of moles calculated.

For X = \frac{0.33}{0.33}=1

For Y = \frac{0.5}{0.33}=1.5

For Z = \frac{0.33}{0.33}=1

The ratio of X : Y : Z = 1 : 1.5 : 1

To make in the whole number we multiply the ratio by 2, we get:

The ratio of X : Y : Z = 2 : 3 : 2

The mole ratio of the element is represented by subscripts in empirical formula.

The Empirical formula = X_2Y_3Z_9

The empirical formula weight = 2(45.0) + 3(150) + 2(30.0) = 600 gram/eq

Now we have to calculate the molecular formula of the compound.

Formula used :

n=\frac{\text{Molecular formula}}{\text{Empirical formula weight}}

n=\frac{1200}{600}=2

Molecular formula = (X_2Y_3Z_2)_n=(X_2Y_3Z_2)_2=X_4Y_6Z_4

Therefore, the molecular of the sample is, X_4Y_6Z_4

3 0
4 years ago
Analyze the impact of business transactions on accounts) The following selected events were experienced by either Smith Eldercar
viva [34]

Answer:

Eldercare Services, Inc.

Analysis of the impact of business transactions on accounts:

Stating whether each event (1) increased, (2) decreased, or (3) had no effect on the total assets of the business:

a. Cash decreased by $400.

b. Cash decreased by $89,000 and Land increased by $89,000.

c. Cash increased by $69,000 and Land decreased by $69,000.

d. Cash increased by $15,400 and Accounts Receivable decreased by $15,400.

e. Equipment increased by $90,000.

f. Not a business transaction (no effect on the total assets of the business).

g. Cash decreased by $4,000.

h. Office Supplies increased by $1,200.

i. Cash increased by $62,000.

j. Cash increased by $12,000.

Explanation:

Eldercare Services, Inc.'s assets are impacted by the above transactions except transaction "f" which concerns the major stockholder, Tony Smith.  The impact has to do with either an increase or a decrease in the total assets.  The specific asset affected has been stated in each transaction with the corresponding amount involved.

7 0
3 years ago
Milano worked for twentieth television. she developed the concept for a reality television series called "from fat to phat," whi
romanna [79]
<span>NBC and the other companies were likely to win in this case. This is because Milano's ideas were too vague (losing weight as a basis for a television show is not specific enough) and physical evidence is required that the network actually lifted her ideas in the creation of the program.</span>
6 0
3 years ago
Green Caterpillar Garden Supplies Inc. just reported earnings after tax (also called net income) of $9,750,000, and a current st
astra-53 [7]

Answer:

a. $12.08 per share

Explanation:

For computing the next year stock we have to do the following calculations  

Current Earning per share  = Net Income ÷ Number of Common Shares Outstanding

= $9,750,000 ÷ 5,500,000 shares  

= $1.77

Current Price Earning ratio = Current stock price ÷  Current EPS

= $14.74 ÷ $1.77

= 8.33

Now Next year earning per share = $9,750,000 ×  1.25 ÷ 8,400,000 shares = $1.45

So, the next year stock price = $1.45 x 8.33

= $12.08 per share

3 0
3 years ago
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