Answer:
The answer is: $200
Explanation:
Jacob's total expenses (current and expected) are:
- rent and utilities $700
- food $350
- student loan $350
- personal expenses $200
- expected auto insurance and repairs $200
Total expenses = $1,800
If Jacob's take away salary is $2,000, he will only have $200 (= $2,000 - $1,800) for a car loan or lease monthly payment.
Answer:
- Retire Long Term debt at $0
- Issue Long Term Debt at $6,000
Explanation:
If you elect to both retire the $6,000 in long term debt and also issue long term debt of the same amount, your cash balance would be -$3,000 which is unhealthy.
What you should do therefore, is to retire no long term debt while still issuing the long term debt of $6,000 to pay for the investment in plant improvement. This will leave you with a cash balance of $3,000 which is healthy enough.
Answer:
$53.11
Explanation:
The computation of the current value of the common stock is shown below
Year Cash flow Discount rate at 8% Present Value
1 $2.5 0.92593 $2.31
2 $2.5 0.85734 $2.14
3 $2.5 0.79383 $1.98
4 $2.5 0.73503 $1.84
4 $61 0.73503 $44.84
Total $53.11
The discount is come from
= 1 ÷ 1 + 0.08^1
The same is applied for other years
We simply multiplies the dividend with its discount rate so that the present value or the current value could arrive
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.