Answer:
5. They are all neccessary
Answer and Explanation:
a. The computation of the weighted average number of shares is shown in the attachment below:
b. Now the earning per share i.e EPS
= (Net Income - Preferred Dividend) ÷ (Weighted average number of shares
)
= ($9,850,000 - $10,000) ÷ (8,720,000 shares)
= $1.13
The preference dividend is
= (2,000 × $100 × 5%)
= $10,000
Answer:
$28,483.4
Explanation:
The computation of the net cash flow is shown below;
Asset cost $43,800
MACRS Rate 0.2 0.32
8760 14016
So total depreciation is
= $8,760 + $14,016
= $22,776
Now
Book Value of the company is
= oriignal value - depreication
= $43,800 - $22,776
= $21,024
And,
Sale price = 32500
So,
Gain is
= $32,500 - $21,024
= $11,476
So,
Tax = 0.35% of 11476
= $4,016
And, finally
Net cashflows is
= Sale price - tax
= $28,483.4
Answer:
a. Cost of Equity is 4.50%
b. Cost of Equity is 15.55%
Explanation:
a.
The formula for price of a stock using the constant growth model of the DDM approach is,
P0 = D0 * (1+g) / r - g
Plugging in the available values,
62 = 0.3 * (1+0.04) / (r - 0.04)
62 * (r - 0.04) = 0.312
62r - 2.48 = 0.312
62r = 0.312 + 2.48
r = 2.792 / 62
r = 0.045 or 4.5%
b.
SML (r) = rRF + β * (rM - rRF)
Plugging in the values,
r = 0.045 + 1.3 * ( 0.13 - 0.045)
r = 0.1555 or 15.55%
Answer: Decentralized
Explanation: In a decentralized organisation, the seniors in the organisation transfers the authority and responsibility to their subordinates.
This is done by the seniors with the objective of effective running of operations within. The employees in such organisations usually remain more motivated than others.
In the given case, Infososft is encouraging their employees to take their own decisions while dealing with customers. Hence the transfer of authority for decision making is evident.
From the above we can conclude that the correct option is A.
