Answer:
26.65
Explanation:
The computation of the book value of an ordinary share is shown below
But before that the following calculations to be done
Balance for equity shares is
= Total shareholder equity - dividend paid to preference shareholders - redemption of preference shares
= 8,250,000 - (20,000 × 100 × 12% ×3) - (20,000 × 110)
= 8,250,000 - 720,000 - 2,200,000
= 5,330,000
And, the number of shares is 200,000
So, the book value of the ordinary share is
= 5,330,000 ÷ 200,000
= 26.65
Accounting profits for the month = $4,000.
<h3>
What is production?</h3>
- In order to create anything for consumption, several material and immaterial inputs are combined during the production process.
- It is the process of producing output, a good or service that has value and enhances people's usefulness.
<h3>What are profits?</h3>
- The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit.
- It is equivalent to total income less total expenses, which includes both direct and indirect expenses.
<h3>
Solution -</h3>
Production happens 7 days a week.
Let,s tale 28 days in a month (4 weeks in a month)
50 items are produced every day and each costs $10.
50 × 10 = $500 (Daily sale)
Monthly sale = 500 × 28 = $14,000 (Monthly revenue)
Cost of production per month = $10,000.
Profit = 14,000 - 10,000 = $4,000.
Therefore, accounting profits for the month = $4,000.
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Answer:
Cost of preferred stock = 12%
correct option is A. 12 percent
Explanation:
given data
preferred stock = $125 per share
annual dividend = $15
cost of issuing and selling = $4 per share
to find out
cost of the preferred stock
solution
we know that Cost of preferred stock is express as
Cost of preferred stock = Annual dividend ÷ (Stock price-Flotation cost) ...........................1
and we know Flotation cost will be here =
= 3.20 %
so
from equation 1 we get
Cost of preferred stock = Annual dividend ÷ (Stock price-Flotation cost)
Cost of preferred stock = $15 ÷ ($125 - 3.20 % )
Cost of preferred stock = 0.120030
Cost of preferred stock = 12%
correct option is A. 12 percent
Answer:
Sarah's cheapest repayment plan is:
The standard repayment plan.
Explanation:
With the standard repayment plan, Sarah repays 120 fixed monthly installments, assuming a repayment term of 10 years. She will pay minimal interests since the standard repayment plan also offers the shortest repayment period. To minimize interest expense, Sarah should repay the unsubsidized loans before the subsidized loans. The reason is that the unsubsidized loans accrue more interest expense over their terms than the subsidized loans.