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ludmilkaskok [199]
3 years ago
9

Kim's Bridal Shoppe has 12,200 shares of common stock outstanding at a price of $56 per share. It also has 315 shares of preferr

ed stock outstanding at a price of $90 per share. There are 380 bonds outstanding that have a coupon rate of 7.5 percent paid semiannually. The bonds mature in 37 years, have a face value of $2,000, and sell at 112 percent of par. What is the capital structure weight of the common stock?
Business
1 answer:
blagie [28]3 years ago
3 0

Answer:

Total weight is calculated as follows:

Common stock (12,200 x $56) = 683,200

Preferred stock (315 x $90)      = 28,350

Bond (380 x $2,240)                 =  851,200

Total market value                       1,562,750

The capital structure weight of common stock = 683,200/1.562,750 x 100

                                                                             = 43.72%

Explanation:

In this case, we need to determine the total market value of the company and then divide the market value of common stock by the market value of the company.

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Answer:

D

Explanation:

they ban mandatory union memberships

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He slope of the _________________ is determined by the relative price of the two goods, which is calculated by taking the price
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<span> The term budget constraint denotes the consumption  limitation because of a certain income.</span><span>
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4 years ago
When a firm perceives that a foreign currency is _______, the firm may attempt direct foreign investment in that country, as the
Nataly [62]

Answer:

The correct sentence is: When a firm perceives that a foreign currency is <u>undervalued</u>, the firm may attempt direct foreign investment in that country, as the initial outlay should be relatively <u>low</u>.

Explanation:

Whenever a currency loses its value against the dollar or another currency (euro, pounds), it will be an excellent opportunity to invest. In the short term that investment can create benefits for the entity.

7 0
3 years ago
rick's pawn shop issued 11% bonds, dated january 1, with a face amount of $400,000 on january 1, 2022. the bonds sold for $370,0
geniusboy [140]

An unrealized gain of $5,412 from the change in the fair value of the debt.

<h3>How does general interest rate risk work?</h3>

Interest-rate risk (IRR) is the exposure of a financial institution to unfavorable changes in interest rates. Accepting this risk is common practice in the banking industry and can be a key driver of profitability and shareholder value.

Explanation:

Given that the bond's face value is $400 000

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yield until maturity equals 12%

Bond has a fair value of $365,000.

Value shifted = $2,000

Net income and OCI are both included in comprehensive income.

To learn more about Interest-rate risk (IRR) refer to:

brainly.com/question/20715710

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6 0
1 year ago
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Medical breakthroughs enable people to enjoy better healthcare nowadays.

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An increase in living standard means that the lives of people are better off.

Advances in medicine have made it possible to find cure to various diseases. This improves standard of living.

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Pollution affects human health negatively and can cause diseases which negatively affect standard of living. Also, pollution can cause floods and other environmental disasters. Floods can displace people from their homes and this affects standard of living negatively.

Decrease in dollar value has made items more expensive.

I hope my answer helps you

7 0
3 years ago
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