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Mars2501 [29]
3 years ago
11

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:
VARVARA [1.3K]3 years ago
5 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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Suppose you own 5% of Coastal Corporation's 400,000 outstanding common shares. The stock was trading for $135 per share before C
Elan Coil [88]

Answer:

number of share 30,000 share

price per share = $90

Explanation:

given data:

investor's share = 5%

outstanding share =400,000

stock split = 3/2

number of share after spliting = investor share* outstanding share* stock split

                                                  = 5%*400,000*(3/2)

                                                   = 30,000 share

per share price can be determined by using following relation:

price\  per\  share =\frac{ outstanding\  share*\  trading\ price * investor's\  share}{ number\  of \ share\  after \ splittg}

                             = \frac{40000 *135*0.05}{30000}

                               = $90

3 0
4 years ago
Branch-circuit conductors supplying a single motor compressor shall have an ampacity not less than 125% of either the motor-comp
Lady_Fox [76]

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Explanation:

A branch circuit consists of the conductors between the final over current safety equipment and the exhaust system(s).It consists of drivers between the final over current protection equipment (OCPD) and the receptacle outlets, the illumination outlet(s).

The OCPDs must produce an ampacity of not under 125% of the continuous loads plus 100% of the non-continuous loading.

You must not exceed 125% of the continuous charges, plus 100% of the non-consistent charges

8 0
4 years ago
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Ahat [919]

Answer: $329.75

Explanation:

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= 78 - 38

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Evans Ltd  average interest rate on long-term debt is 12% so this means that we can use that 12% as a discount rate for the cash-flow expected.

I have attached a Present Value Interest Factor of an Annuity table to this question. It helps calculate annuities faster.

The above can be treated as an annuity because the $40 is constant every year.

The present value of the $40 over 40 years can be calculated by,

= $40 * present value Interest Factor of an Annuity for 40 years at 12% (look at the table for where 40 years on the y axis intersects with 12% on the x axis)

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3 0
3 years ago
An owner of land may involuntarily and unknowingly give up the rights to land. When a fee simple interest is conveyed to a new o
alexdok [17]

Answer:

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Explanation:

Adverse possession is the process by which a person who does not have legal rights to a certain real estate property (usually land) acquires legal ownership based on continuous occupation of the land without the consent of its legal owner.

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8 0
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Wewaii [24]

Answer:

Private brands tend to be cheaper than name brand goods

Explanation:

5 0
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