1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
il63 [147K]
3 years ago
14

Kim's Bridal Shoppe has 10,200 shares of common stock outstanding at a price of $36 per share. It also has 215 shares of preferr

ed stock outstanding at a price of $87 per share. There are 520 bonds outstanding that have a coupon rate of 5.5 percent paid semiannually. The bonds mature in 17 years, have a face value of $1,000, and sell at 93 percent of par (price equals to percent times face value). What is the capital structure weight of the common stock?
a.4223
b.3474
c.4053
d.5562
e.5056
Business
1 answer:
iVinArrow [24]3 years ago
6 0

Answer:

a. .4223

Explanation:

Kim's Bridal shoppe has common stock, bonds and preferred stock in its capital. To identify capital structure weight of common stock we calculate value of each capital.  

Common Stock : 10200 shares * $36  = $367,200

Preferred Stock : 215 shares * $87 = $18,705

Bonds Outstanding : 520 Bonds * $1,000 * 93% of par = $483,600

Total capital : $367,200 + $18,705 + $483600 = 869,505

Common stock share : $367,200 / $869,505 = 0.4223

You might be interested in
Suppose Ike’s Bikes is currently producing 100 bikes per month in its only factory. Its short-run average total cost is
Naddika [18.5K]

The short-run average total cost of Ike's Bikes of producing 100 bikes is $360.

<h3>What is the short-run average total cost ?</h3>

The short-run is a production period where some of the factors used in the production process are fixed and others are variable. The  short-run average total cost is the total cost divided by total output. Total cost is the sum of fixed cost and variable cost.

Please find attached the complete question. To learn more about average cost, please check: brainly.com/question/26959638

6 0
2 years ago
small income-producing property is priced at $600,000 and is expected to generate the following after-tax cash flows: Year 1: $4
Lyrx [107]

Answer:

$-148,867.17

Explanation:

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period)

=42000/1.15+44000/1.15^2+45000/1.15^3+50000/1.15^4+650,000/1.15^5

=$451132.83

NPV=Present value of inflows-Present value of outflows

=$451132.83-$600,000

=($148867.17)(Approx)(Negative figure)

Hence since NPV is negative;investment must not be made.

4 0
3 years ago
Potential advantages to initiating, continuing, or expanding international operations is that foreign operations can absorb exce
Daniel [21]

Answer:

<em>True:)</em>

Explanation:

<em>The given statement is very</em> TRUE.

Yes, as we know that in international operations the companies are given the freedom to find new consumers for their goods and as well as products. And foreign operations have the power to absorb as the demand is less than the stock, and also reduces the unit cost as their is no more production because of the less demand.

4 0
3 years ago
On the income statement, a merchandising company reports the cost of merchandise inventory that had been sold to customers. TRUE
Alja [10]

Answer:

True

Explanation:

The correct answer is - True

Reason -

Cost of goods sold is the inventory cost to the seller of the goods sold to customers. It Expense item with a normal debit balance.

The word expense is not written there but it is an expense item on the income statement as a reduction to Revenue.

5 0
3 years ago
1. The highest risk for the exporter is in a. Letter of credit c. Advance payment b. Bill of exchange d. Consignment sales ​
Sergeu [11.5K]

Answer:

1. The highest risk for the exporter is in

d. Consignment sales.

Explanation:

a) A consignment sale is not an actual sale.  The risk remains with the exporter until the consignee has sold the goods and remitted the required amount to the consignor (exporter).  With a letter of credit, the exporter has made an actual sale guaranteed for payment by the importer's bank.  With advance payment, the exporter has received some payment for the goods before the importer receives them.  With a bill of exchange, there is a formal instrument acknowledging the sale.  Therefore, a bill of exchange, letter of credit, and advance payment are used for actual sales, while consignment sale is for transfers of goods for sale.

5 0
3 years ago
Other questions:
  • Which one of the following is a good way to deal with frustration?
    7·2 answers
  • Page Up and Page down fall in the _______ keys category
    12·1 answer
  • Wallyworld Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: Di
    8·1 answer
  • Identify whether or not each of the following scenarios describes a competitive market, along with the correct explanation of wh
    5·1 answer
  • Which of the following items should be included in a company's inventory at the balance sheet date? A) Goods sold to a customer
    6·2 answers
  • A company acquires a rather large investment in another corporation. What criteria determine whether the investor should apply t
    9·1 answer
  • Hours of labor or number of workers are commons ways of measuring a comapany's?
    8·1 answer
  • WILL GIVE BRAINLIETS, NEED HELP ASAP
    13·1 answer
  • BK Books is an online book retailer that also has 10,000 "bricks and mortar" outlets worldwide. You are a risk-neutral manager w
    8·1 answer
  • Following are account balances (in millions of dollars) from a recent FedEx annual report, followed by several typical transacti
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!