Finance. Another aspect of capitalization refers to the company's capital structure. Capitalization can refer to the book value cost of capital, which is the sum of a company's long-term debt, stock, and retained earnings. ... Companies with a high market capitalization are referred to as large caps.
Answer:
C. Resource limited scheduling
Explanation:
Resource limited scheduling is a method for developing the shortest schedule when the number or amount of available resources is fixed. It is a project schedule which defines that when when activities are going to start, their finish dates and directly reflects and manifests the availability of all the resources needed for that project. This method is most appropriate when the resources for the project are scarce and limited and those resources can not be exceeded in any case.
Answer:
D. Capital market instruments include both long-term debt and common stocks.
Explanation:
Capital market is financial market where long term instruments are traded. These instruments include bond, common stocks and debenture. With this background, statement in option D is correct.
Option A is not correct because reverse is the case: investment banks raise large blocks of capital from investors while commercial banks specialize in lending money.
Option B and E are not correct, too. Transaction under them are examples of a secondary market transaction.
Option C is wrong, as well. NYSE has a physical location where trading activities happen.
So option D is the only correct statement because capital market instruments are long-term debt and common stocks.
Answer:
see explaination
Explanation:
1. A low-quality producer will not provide any warranty, because he knows there will be more warranty claims.
He will choose option B.
Example:
Option B:
Toaster sell 100
Price $10
Sales = $1000
Profit = $100 (let's say it costs him $9 to make it).
Toaster sell 35 (as 5 times high price).
Price $49
Sales = $1725
Warranty Expense (let's say, due to multiple times claims) = $1500
Profit = -$90 (let's say it costs him $9 to make it).
2. A high-quality producer will provide any warranty because he knows there will be very very few warranty claims.
He will choose option B.
3. Yes, the act of offering free warranty will go a long way in conveying a positive signal to customers that the brand is providing quality product & it trusts its product.
Answer: 6%
Explanation:
Based on the information given, when the flotation costs is ignored, the company's cost of preferred stock will be calculated thus:
Cost of preferred stock = Dividend on preferred stock / Price of preferred stock
Cost of preferred stock = 4.5/75 = 0.06 = 6%
Therefore, the cost of preferred stock is 6%.
