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Romashka-Z-Leto [24]
3 years ago
5

Further From Center has 12,100 shares of common stock outstanding at a price of $55 per share. It also has 310 shares of preferr

ed stock outstanding at a price of $91 per share. There are 370 bonds outstanding that have a coupon rate of 7.4 percent paid semiannually. The bonds mature in 36 years, have a face value of $2,000, and sell at 111.5 percent of par. What is the capital structure weight of the preferred stock?
a. 0.0186
b. 0.5433
c. 0.4382
d. 0.0953
e. 0.0639
Business
1 answer:
Molodets [167]3 years ago
3 0

Answer:

Market value of common stocks = 12,100 x $55 = $665,500

Market value of preferred stock = 310 x $91       = $28,210

Market value of bonds                = 370 x $2,230 = $825,100

Market value of the company                                   $1,518,810

Capital structure weight of preferred stocks

= $28,210/$1,518,810

= 0.0186

The correct answer is A

Explanation:

In this question, we need to calculate the market value of the company, which is the aggregate of market value of equity, market value of preferred stocks and market value of bond. The capital structure weight of preferred stock is the ratio of market value of preferred stock to market value of the company.

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Kim Jordan says that she believes that "to whom much is given, much is expected." This statement speaks of her personal convicti
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Answer:

Instrumental values.

Explanation:

The two types of values that exist are terminal values and instrumental values. Terminal values are the ones people consider of the greatest importance and desire the most. These consist of goals sought after by individuals during their whole life, such as happiness, recognition, professional success, and more. On the other hand, instrumental values relate to beliefs about what are right means to fulfilling the terminal values, such as honesty, sincerity, ethics, etc. These values have more relation to the characteristics of their personality and character.

6 0
3 years ago
Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s recor
ahrayia [7]

Answer:

Equity at August 1st                                       0

adds: Carmen Camry Investment    101,4000

Net Income                                               5,410

Subtotal                                                106,810

Withdrawals                                           -5,950

Carmen Camry capital account at the end of August 31th  100,860

Explanation:

We have to calculae the net income

Fees earned                            26,960

office                           5,200

rent expense                   9,500

salaries expense           5,560

telephone expense      820

miscellaneous expenses    470

Total Expenses         21,550

Net Income                            5,410

Then we do the equity stamtent:

beginning + investment + net income - withdrawals = ending

Equity at August 1st                                       0

adds: Carmen Camry Investment    101,4000

Net Income                                               5,410

Subtotal                                                106,810

Withdrawals                                           -5,950

Carmen Camry capital account at the end of August 31th  100,860

7 0
3 years ago
Read 2 more answers
A credit card issuer charges an apr of 13.50%, and its billing cycle is 30 days long. what is its periodic interest rate?
Serga [27]
Let’s just say that the entire year is 365 days. So, we need to divide the APR (13.50%) to 365. This gives us a value of 0.037% and since the the billing cycle is 30 days, we need to multiply 0.037% to 30 to get it’s periodic interest rate. Therefore, the periodic interest rate is 1.11%.
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Norwegian Cruises is a company that owns and manages a large fleet of ships used primarily for cruises along Norwegian fjords. F
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Answer:

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4 0
2 years ago
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During a company's first year, the asset account, Office Supplies, was debited for $3,900 for the purchases of supplies. At year
fiasKO [112]

Answer:

The adjusting entry will be shown below:

Explanation:

The adjusting journal which is to be recorded in the following case will be:

Office Supplies expense A/c..............................Dr  $2,275

          Office Supplies A/c.........................................Cr   $2,275

As the amount $3,900 is already debited and at the year end, the remaining amount of office will be posted to the account of the office supplies expense against the office supplies account.

Working Note:

Amount = Debited amount of office supplies - Offices supplies on hand

= $3,900 - $1,625

= $2,275

5 0
2 years ago
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