Answer:
B. 100 shares of ABC preferred stock
Explanation:
Shares are ownership stakes of a company that are given out to individuals who contribute to capital base of a company.
Preference shares are those whose owners recieve preference in payment of dividends, a fixed dividend is paid to them.
Ordinary shares recieve less preference when dividend is paid, usually coming last in divedend payment.
In this scenario ABC has decided to pay 10% stock dividend. This will be paid to ordinary share holders.
So the person with 100 preference shares will have 100 preference shares
10% of par value of $100 is 0.1 * 100= $10
Number of shares are 100 so the value is now 100 * $10 = $1,000
Since the conversion rate of preference to ordinary shares is 10:1
Number of preference shares= 1,000 ÷ 10= 100 preference shares
Answer:
- 5,000 watches : $150,000 loss
- 20,000 watches: $60,000 (Loss)
- Break-even point = 30,000 units
- if the selling price rises to 32 = break even points descends to 10,588 units
- If the selling price rises to $32 but variable costs rises to $26 , the break even point goes back to 30,000units.
Explanation:
Hi, to answer this question we have to apply the next formula:
Profit = Revenue -cost
Where the revenue is equal to the units sold (x) multiplied by the selling price,
R = 21 x
And cost is equal to the sum of the fixed and variable costs.
C = 15x + 1800
So:
P = 21x-(15x +180,000)
P = x ( 21-15)- 180,000
P = 5000(21-15)-180,000
P = 5000(6) -180,000
P= 30,000-180,000
P=-$150,000 (loss , since is negative )
P = 20,000(6) -180,000
P = 120,000-180,000
P=-$60,000 (Loss)
- To find the break even point:
R = C
21x = 15x + 180,000
21x-15x =180,000
6 x = 180,000
x = 180,000/6
x =30,000 units
- if the selling price rises to 32
32x = 15x + 180,000
32x-15x = 180,000
17x =180,000
x = 180,000/17
x = 10,588 units
It descends,
- If the selling price rises to $32 but variable costs rises to $26
32x = 26x+180,000
32x-26x = 180,000
6x = 180,000
x = 180,000/6
x =30,000
The break-even point comes back to 30,000 units.
Answer:
D)the research and development costs to produce the current winter footwear samples.
Explanation:
Research and development costs associated with the current winter footwear samples will not impact the performance of the proposed new line.
When analyzing the viability of the new product line up, the company should only consider the projected expenses and revenues arising from the project. A project is viable if its benefits outweigh its shortcomings. One way of establishing viability is by doing a cost-benefit analysis.
For the Shoe Box company, the new project line may have some effects on the sales of current products. The new projects will demand new counters. The company must also consider expected revenues and taxes. All these have elements of cost and benefits directly associated with the proposed product line.
Answer:
The company's cost of equity capital is 0.056
Explanation:
cost of equity capital
= risk free rate + beta*(expected return on market - risk free rate)
= 0.01 + 0.92*(0.06 - 0.01)
= 0.056
Therefore, The company's cost of equity capital is 0.056
