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kumpel [21]
3 years ago
9

Sunny Day Manufacturing Company has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $2

.03 at the end of next year. The company's earnings' and dividends' growth rate are expected to grow at the constant rate of 8.70% into the foreseeable future. If Sunny Day expects to incur flotation costs of 5.00% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be Alpha Moose Transporters Co.'s addition to earnings for this year is expected to be $745,000. Its target capital structure consists of 50% debt, 5% preferred, and 45% equity. Determine Alpha Moose Transporters's retained earnings breakpoint
A. $1,903,889
B. $1,655,556
C. $1,738,334
D. $1,986,667
Business
2 answers:
seropon [69]3 years ago
7 0

Answer:

Alpha Moose Transporters's retained earnings breakpoint is B. $1,655,556

Explanation:

Addition to retained earnings = $745,000

Weight of equity = 45%

Retained earnings breakeven = $745,000 / 45%

= $1,655,556.

Retained earnings breakeven is $1,655,556.

Mkey [24]3 years ago
3 0

Answer:

Based on the data provided as 50% is the debt,but 5% is preferred and 45% is the equity,and the foreseeable future rate is 8.7% so the  retained earnings will be $1,738,334,option C is correct.

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Business environment refers to the factors pertaining to internal or external to the organisation that affects the working of the organisation. The environment provides threats and challenges for the business organisations. So the business organisations should know about their environment to smoothly function the business activities.

Economic environment means the economic situation in a country that affects the business and consumer behavior in a country. The performance of the organisation can be affected by the buying pattern of the consumers. Economic environment is an external and macro environment factor which affects the business.

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Answer:

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Explanation:

This journal entry shows the two accounts involved and how they are recorded when a cash dividend is declared (declaration date).

Calculation of cash dividends is based on 48,000 shares of common stock outstanding and not on the issued shares nor the authorized.  Usually, dividends are only payable to shareholders of record, who appear on the register of the company as holders of the shares on the specified date (date of records).

So, the divided equals $40,800 (48,000 x $0.85).

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3 years ago
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Answer:

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. If the Federal Reserve raises interest rates in an autonomous tightening ________. A) the MP curve shifts up, there is an upwa
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"Commodity-like" is the appropriate response.

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