Answer:
C. $43.33
Explanation:
FCF1 = $75.00
Constant growth rate = 5%
WACC = 10%
Total firm value = FCF1/(WACC-g) =$1,500
Value of debt & preferred=$200
Value of equity = $1,300
# of shares = 30
Value per share = equity value /shares =$43.33
Answer:
Correct answer is (B) consumption and investment both decrease.
Explanation:
when government spending increases and taxes increase by an equal amount there will be decrease in both consumption and investment.
Answer:
d. Equity
Explanation:
Equity involves the implementation of the appropriate act to achieve fairness. This makes it possible to ensue that the right of an individual is not jeopardized. Thus, equity treat everyone with all fairness and ensure compensation where necessary.
Since the resources are distributed across the society, then this relates to equity. Equity means equality.
Answer:
383,000
Explanation:
Calculation to determine How many units were transferred to the next processing department during the month
Work in process, beginning 83,000
Add Units started into production during the month 334,000
Less Work in process, ending (34,000)
Units completed and transferred out during the month 383,000
(+83,000+334,000-34,000)
Therefore How many units were transferred to the next processing department during the month is 383,000
Answer: 2%
Explanation:
As the coupon payments are semi-annual, you need to convert the other measures to semi-annual measures as well.
Coupon rate = 6%/2 = 3% per semi annum
Coupon payment = 3% * 1,000 which is par value = $30
Time to maturity = 12 * 2 = 24 semi annual periods
Price is still the same = $1,189.14
You can use an Excel worksheet to solve for the Yield:
Number of periods = 24
Payment = $30
PV = 1,189.14
FV is par value of $1,000
Periodic rate is 0.019999
= 2%
