Answer:
The cash flow mark to market proceeds = $754.45
Explanation:
The current index value after 12 months = current stock index * (1 + risk free - dividend yield)^12
= 1800 * (1 + 0.50% - 0.20%)^12
The current index value after 12 months = 1865.88
The future index value after 12 months = future stock index * (1 + risk free - dividend yield)^12
= 1820 * (1 + 0.50% - 0.20%)^11
The future index value after 12 months= 1880.97
The cash flow mark to market proceeds = (future index future value - current index future value) * multiplier
= (1880.97 - 1865.88) * 50
The cash flow mark to market proceeds = $754.45
Answer:
Check the answer and explanations below
Explanation:
The Public Relations Officer is the mouthpiece (spokesman) of any organization. His duty is to defend the organization.
As the PR of the Multinational Enterprise, I will ensure that I speak to the public on the policies of environmental safety that are formulated and practised in all our branches across the world. I will let them know the previous accreditations that have been given to our enterprise previously by environmental agencies based on our strict adherence to environmental laws. I will tell them that no environmental hazard is caused by any of our companies, both parent and subsidiaries, simply because of the effort we have put in place to deal with environmental pollutions that may arise from our products. Our company is not aware of any death due to environmental hazards in our environment and if there are, the cause should be traced elsewhere. A lawsuit will be filed if there is any continuance of such act of defamation and blackmailing by the press.
An advantage of a sole proprietorship form of business is C. THE OWNER MAKES ALL THE DECISIONS.
Sole proprietorship is business owned by an individual. It is easy to establish because its requirements are simple compared to forming a partnership or corporation.
All the decision-making process are made by the owner. The profits of the business are all for the benefit of the owner. However, once the business is losing, even the personal assets of the owner is affected when he or she tries to maintain the business and stop it from going under.
Answer:
Raising the Funds through Retained Earnings
WACC = Ke(E/V) + Kp(P/V) + Kd(D/v)(1-T)
WACC = 14.7(0.36) + 12.2(0.06) + 11.1(0.58)(1-0.40)
WACC = 5.292 + 0.732 + 3.8628
WACC = 9.89%
Raising New Equity
WACC = Ke(E/V) + Kp(P/V) + Kd(D/v)(1-T)
WACC = 16.8(0.36) + 12.2(0.06) + 11.1(0.58)(1-0.40)
WACC = 6.048 + 0.732 + 3.8628
WACC = 10.64%
Difference in WACC = 10.64% - 9.89%
= 0.75%
Explanation:
WACC equals cost of equity multiplied by proportion of equity in the capital structure plus cost of preferred stock multiplied by proportion of preferred stock in the capital structure plus after-tax cost of debt multiplied by proportion of debt in the capital structure.
In this case, there is need to calculate WACC if funds were raised through retained earnings and WACC if funds were raised through new common stock. Then, we will determine the difference in WACC.
Answer:
d. preemptive right
Explanation:
Preemptive rights refers to the clause that is included in a merger agreement or security that allows an investor to buy a proportionate number of shares to be issued in the future in order to protects him from losing his percentage ownership of a company.
The aim a preemptive right is to avoid a situation whereby the management of the company take over the control of the company by issuing and buying extra shares of the corporation to themselves. It basically aims to prevent the dilution of the value of stockholders.
