Answer:
The order has not yet been executed which means you still own 500 share
Explanation:
The status of your order is that the order has not yet been executed which means you still own 500 share because despite that you own the 500 shares of ABC stock in which the stock has been declining in price but now sells for $30 per share in which you wanted to sell all the shares thereby placing a limit sell order at a price of $30 per share but the shares continue to decline from $30 per share to $29 per share to $18 per share, their wont be any cause for alarm because the order has not yet been executed which means that the 500 shares is still in your custody.
Answer:
D. dealing with multiple topics per question
Explanation:
Cost of equity capital is closest to: 16 percent
Solution:
WACC is covered on page 120 Corporate Finance, under Capital Structure.
Using the standard equation for WACC = %wt Equity x cost of equity (re) + %wt Debt x cost of debt (rd).
Since there is a 20% tax rate for the firm, the cost of borrowing is reduced by that amount. So the cost of debt is 4%, not 5%.
Plug the formula: 10% = 50% x re + 50% x 4%
The formula ( i.e. 0.1+(0.1-0.05)(1)(1-0.2)) in CFAI reading is questionable.
The calculation is 0.1+(0.1-0.05*(1-0.2))*(1)=16%
Answer:
a) The return on stockholders’ equity = 15%
b) The return on common stockholders’ equity = 16%
Explanation:
a) Return on Stockholders’ Equity = (Net income)/(Average stockholders' equity)
= ($375,000)/$2,500,000
= 15%
b) Return on Common Stockholders’ Equity = (Net income - Preferred dividends) /(Average return on common stockholders' equity)
= ($375,000 - $75,000) / $1,875,000
= 16%
Answer:
the current total contribution margin = 100 x 60% x ($80 - $20) = $3,600 per day
scenario 1: $10 discount
$3,600 = 100 x ?% x ($70 - $20)
$3,600 = $5,000 x ?%
$3,600 / $5,000 = ?%
occupancy rate = 72%
scenario 2: 10% discount
$3,600 = 100 x ?% x ($72 - $20)
$3,600 = $5,200 x ?%
$3,600 / $5,200 = ?%
occupancy rate = 69.23%
