Hollis industries produces flash drives for computers, which it sells for $20 each. each flash drive costs $13 of variable costs
1 answer:
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Based on the correlational analysis of X and Y that is given, we can infer that there is a linear relationship between X and Y.
<h3>What does the correlation analysis show?</h3>The Pearson correlation coefficient shows if there is a linear relationship between given variables.
In the given table, the Pearson Correlation coefficient is not 0 for either variable which means that a linear relationship does in fact exist between the variables.
Find out more on the Pearson correlation coefficient at brainly.com/question/24084533.
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Answer:
= 0.3274 or, 32.74%
Explanation:
We know,
Capital Structure = Debt + Common Stock + Preferred stock
Given,
Common Stock = 4,000,000 shares
Share price = $21
Total common stock = No. of shares x share price
Total common stock = 4,000,000 shares × $21 = $84,000,000
Preferred Stock = 3,000,000 shares
Share price = $10
Total preferred stock = $10 x 3,000,000 shares
Total preferred stock = $30,000,000
Debt rate = 111% = 1.11
Debt = 50,000 bonds x $1000 par x 1.11
Debt = $55,500,000
Total Capital = $(55,500,000 + 84,000,000 + 30,000,000)
Total capital structure = $169,500,000
The weight for debt in the computation of OMG's WACC
=
=
= 0.3274
or, 32.74%