Answer:
$278,000
Explanation:
Data provided:
Total invested capital or assets = $695,000
Total debt to total capital ratio = 40%
now,
= 
or
Total debt = 0.4 × Total capital
or
Total debt = 0.4 × $695,000
or
Total debt = $278,000
Hence,
The firm must borrow $278,000 to achieve the desired ratio
Answer:
Word of mouth promotion is a marketing tacnique
Explanation:
Word of mouth promotion is considered as an important advertising technique that helps to increase customers and attract more on the way. When customers are happy, they will steer dozens of other people, and this is how word of mouth works. According to a study, 28% of people consider word of mouth as an important marketing strategy.
Answer:
EPS = $4.50
diluted EPS = $2.46
Explanation:
no option is correct since EPS = $4.50, and the rest of the options are all higher amounts. Diluted EPS are always smaller than EPS.
common stock outstanding = 1,000 stocks
bonds shares (diluted) = 1,000 stocks
net income = $4,500
bond interest = $10,000 x 6% x (1 - 30%) = $420
diluted earnings per share = ($4,500 + $420) / (1,000 shares + 1,000 shares) = $4,920 / 2,000 shares = $2.46
Answer:
$25.15
Explanation:
The price the stock would be sold at the end of the three-year holding period can be computed using excel FV formula stated below:
=fv(rate,nper,pmt,-pv)
rate is the semiannual cost of capital i.e 14%/2=7%
nper is the number of dividend payments over three-year period which is 6
pmt is the amount of semiannual dividend payment
pv is the current stock price
=fv(7%,6,1.1,-22)=$25.15
Answer:
0.75
Explanation:
Four firm concentration: Share of four firms / Total market share
Four firm share: 40 + 20+10+5
= 75
CR = 75/100
= 0.75 or 75 %
