Answer: d) $8750
Explanation:
The Cash buffer is also the margin of the total value of the stock.
= Initial margin * Investment value
= 70% * (125 * 100)
= 70% * 12,500
= $8,750
Since Margo purchase her optimal consumption bundle, the
marginal utility per dollar consumed on dance lessons must be equivalent to the
marginal utility per dollar paid on dance shoes. The marginal utility per
dollar spent on dance lessons is 100 utils per lesson, where $50 per lesson is equivalent
to 2 utils per dollar. The marginal utility per dollar expended on dance shoes
therefore has to equal 2 utils per dollar. Since the marginal utility of a pair
of dance shoes cost 300 utils per pair, the value of a pair of shoes should be
$150 per pair, so that 300 utils per pair/$150 per pair is equal to: 2 utils
per dollar.
Answer and Explanation:
The journal entries are shown below;
On March 1
Cash A/c $303,500
To Common Stock $3 Par value (44,500 × $3) $133,500
To Paid in capital in excess of par value $170,000
(Being the common stock issued is recorded)
On April 1
Cash $74,000
To Common Stock, no par value $74,000
(Being the common stock issued is recorded)
On April 6
Inventory $43,000
Machinery $155,000
To Common Stock (2,400 ×$20) $48,000
To Notes payable $93,000
To Paid in capital in excess of par value $57,000
(Being the shares are issued)
Answer:
10.12 %
Explanation:
Weighted Average Cost of Capital (WACC) is the cost of permanent sources of capital pooled together. It shows the risk of the business and is used to evaluate projects.
WACC = Cost of equity x Weight of Equity + Cost of Debt x Weight of Debt + Cost of Preference Stock x Weight of Preference Stock
<u>Remember to use the After tax cost of debt :</u>
After tax cost of debt = Interest x (1 - tax rate)
= 10% x ( 1 - 0.40)
= 6.00 %
<u>Cost of equity :</u>
Cost of equity = Return from Risk free security + Beta x Risk Premium
= 4.00 % + 1.8 x 8.00%
= 18.40 %
<u>Cost of Preference Stock :</u>
Cost of Preference Stock = Dividend / Market return x 100
= $2.50 / $ 25 x 100
= 10%
therefore,
WACC = 18.40 % x 30 % + 6.00 % x 60 % + 10.00% x 10%
= 10.12 %
thus,
Ford's weighted average cost of capital is 10.12 %
The communication barrier Yessica is likely to face as an exchange student from Spain is language.
<h3>What is a communication barrier?</h3>
Communication barrier is a thing or a factor that stands in the way of effective communication. Yessica is from Spain and she is studying in Maryland. In Spain, Spanish is spoken and in Mayland, English is spoken, thus there is a difference in language and this would stand in the way of effective communciation.
To learn more about communication barrier, please check: brainly.com/question/25709466
