$0 is needed
<u>Explanation:</u>
As per pecking order theory the risks and consequently cost increases in the order of own cash reserves, debt and then fresh equity
. Since own cash reserves and debt could take care of funding requirement, so according to the pecking order theory as studied, the fresh equity needed is $0, which means there is no requirement.
Therefore, there should be no equity capital that should be raised in order to fund the project.
The correct answer is $0 equity.
Answer:
Lloyd needs to increase his witholding tax to $1,560 this year in order to avoid the underpayment penalty .
Explanation:
As a rule, a citizen can maintain a strategic distance from an underpayment of punishment if their retention and evaluated assessment installment measure up to or surpass one of the two safe harbours
90% of current expense risk = 90% × $11,350
= $10,215
100% of past assessment risk = $15,900
Since his(Lloyd) retention is not equal to or exceed $10,215 or $15,900
Llyod should expand retaining or make payment this year in order to stay away from underpayment punishment
= $10,215 - $8,655
= $1,560
Answer:
B $32.50
Explanation:
Book value per common share will be calculated as;
= (Stockholder's equity - Shares × Call price per share) / Shares of common stock outstanding
Given that;
Stockholder's equity = $680,000
Shares = 500
Call price per share = $60
Shares of common stock outstanding = 20,000
Therefore,
Book value per common share
= ($680,000 - 500 × $60) / 20,000
= ($680,000 - $30,000) / 20,000
= $650,000 / 20,000
= $32.5
Answer:
A week later, you browse through the trend reports.
Answer:
8.90%
Explanation:
D = $3.80
P = $42.70
Tax = 21%
R =?
from the given information the dividend model is to be used
P = D1/r-g
42.70 = 3.80/r-0
42.70r =3.80
r =3.80/42.70
r =0.8899/8.90%
