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lubasha [3.4K]
3 years ago
6

ACME Confetti Corporation needs to finance $20 million for a plant expansion building project. They've decided to issue common s

tocks to finance the entire project. How many shares do they need to issue to cover the cost of the project plus all floatation costs (7% of issue price). ASSUMPTION: Issue price is $50 per share. Assets can cover the value of the share price and floatation costs.
a. 379, 940
b. 465,000
c. 430, 108
d. 383, 652
Business
1 answer:
Law Incorporation [45]3 years ago
6 0

Answer:

Option (C) is correct.

Explanation:

The required proceeds:

= Amount need to be finance ÷ (1 - 7%)

= $20 million ÷ (1 - 0.07)

= $215,05,376.34 (approx)

Hence, the number of shares needed to be issued:

= required proceeds ÷ Issue price per share

= $215,05,376.34 ÷ $50 per share

= 430,108 shares (approx)

Therefore, 430,108 shares they need to issue to cover the cost of the project plus all floatation costs.

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Costs that can be eliminated in whole or in part if a particular business segment is discontinued are called:
NemiM [27]

Answer:

Avoidable cost

Explanation:

An avoidable cost can be eliminated in a whole. Such a cost can be explained as an expense that would not happen if the specific activity is not done. These costs are relevant costs. A very good example of such a cost is labour cost. If there is a decision to stop a product line for example, all costs that have a relationship with this product line will also be stopped.

5 0
3 years ago
At Ava's second birthday, her grandparents wanted to pool their money to buy U.S. Treasury bonds that would ultimately provide $
Lelu [443]

Answer:

They would need to buy $64,068.981 in U.S treasury bonds on Ava's second birthday to ultimately provide $120,000 for college expenses in 16 years.

Explanation:

The initial amount to be invested in order to yield $120,000 after 16 years can be expressed as;

F.V=P.V(1+R)^n

where;

F.V=future value of investment

P.V=present value of investment

R=annual interest rate

n=number of years

In our case;

F.V=$120,000

P.V=unknown

R=4%=4/100=0.04

n=16 years

replacing;

120,000=P.V(1+0.04)^(16)

120,000=P.V(1.04)^16

120,000=1.873 P.V

P.V=120,000/1.873

P.V=$64,068.981

They would need to buy $64,068.981 in U.S treasury bonds on Ava's second birthday to ultimately provide $120,000 for college expenses in 16 years.

4 0
3 years ago
Different segments of the project are delegated to respective functional units. this is called?
sweet-ann [11.9K]

Different segments of the project are delegated to respective functional units called as the Functional Organization.

<h3>What is a Functional Organization?</h3>

The notion of specializations based on function or role is used by functional organizations as a sort of organizational structure. For businesses with one or a few product offerings as well as medium-sized and small organizations, an efficient organizational structure is ideal. For instance, the little company AB Company manufactures diapers and employs around one hundred people. A matrix organization is a sort of corporate structure that divides a corporation into various sections according to areas of specialization. Functional managers or heads of departments are responsible for managing these departments, which act as functional units.

To learn more about delegated, visit:

brainly.com/question/11870071

#SPJ4

6 0
1 year ago
FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock outstanding, 1 million shares o
Ulleksa [173]

Answer:

18.52%

Explanation:

Calculation for the what would be the equity weight

Using this formula

Equity weight =E÷E+P+D

Let plug in the formula

Equity weight=$2,000,000×$27÷$2,000,000×$27+$1,000,000×$14.50+$10,000×.98×$1,000

Equity weight=$14,500,000÷$78,300,000

Equity weight=.1852×100

Equity weight=18.52%

Therefore what would be the equity weight is 18.52%

7 0
3 years ago
After purchasing a coffee cup from your local gas station for $5.00, you can always refill your cup for $0.50. The sunk cost of
Law Incorporation [45]

Answer:

$4.50

Explanation:

The sunk cost is the cost that has been incurred and is unrecoverable in the process of taking a financing decision.

If the cost of a coffee cup from a local gas station cost $5.00 and the cost of refill is $0.50, the coffee is the actual element needed and from the refill, it can be estimated that it costs $0.50.

Hence the sunk or unrecoverable cost is the difference between the coffee cup and the refill cost

= $5.00 - $0.50

= $4.50

3 0
3 years ago
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