Answer:
Plan A = 8.55%
Plan A =8.57%
Plan A =7.9%
Plan A =6.58%
Explanation:
The weighted average cost of capital can be computed by multiplying the Cost of capital (after tax) with the weights. The weighted average cost for four plans are as follows
WACC = Cost of capital x Weights
PLAN A
Weights Cost of capital WACC
Debt 3.0 % 15 % 0.45%
Preferred stock 6.0 10% 0.6%
Common equity 10.0 75% 7.5%
WACC 8.55%
PLAN B
Weights Cost of capital WACC
Debt 3.2 % 25% 0.8%
Preferred stock 6.2 10% 0.62%
Common equity 11.0 65% 7.15%
WACC 8.57%
PLAN C
Weights Cost of capital WACC
Debt 4.0 % 35 % 1.4%
Preferred stock 6.7 10% 0.67%
Common equity 10.6 55% 5.83%
WACC 7.90%
PLAN D
Weights Cost of capital WACC
Debt 7.0 % 45 % 3.15%
Preferred stock 7.6 10% 0.76%
Common equity 12.6 45% 5.67%
WACC 6.58%
Answer:
$6,542,660.43
Explanation:
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow each year from year 0 to 19 = $500,000
I = 5%
PV = $6,542,660.43
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
Answer:
Earnings per share 2016 = $0.00073
Earnings per share 2017 = $0.00095
Explanation:
Earnings per share relates to a period and not for a particular date, therefore, it is computed based on the average number of shares for the period.
Net income for each year
2017 = $62,000
2016 = $50,700
Shares at the end of year
2017 = 64,507,000
2016 = 66,282,000
2015 = 73,139,000
Average shares of 2016 = 
Average shares of 2017 = 
= 65,394,500
Earning per share for 2016 = 
Earnings per share for 2017 = 
The relative absence of enterprises engaged in manufacturing and finance prior to the Civil War in the Southern states is most likely due to the South's over reliance on agricultural production in its economy. Prior to the Civil War the majority of the South's economy was dependent on the production of agricultural crops like cotton. Because of this the South did not develop other industries nor a major financial sector like the North had in the diversifying of its economy.
