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Vikentia [17]
2 years ago
13

Carrie D's has 6 million shares of common stock outstanding, 2 million shares of preferred stock outstanding, and 10 thousand bo

nds. If the common shares are selling for $15 per share, the preferred shares are selling for $28 per share, and the bonds are selling for 109 percent of par, what would be the weight used for equity in the computation of Carrie D's WACC?
(A) 33.33 percent

(B) 57.36 percent

(C) 61.64 percent

(D) 75.00 percent
Business
1 answer:
Sloan [31]2 years ago
4 0

Answer:

(B) 57.36 percent

Explanation:

Common Stock = 60,00,000x$15

                           = $9,00,00,000

Preferred Stock = 20,00,000x$28

                           = $5,60,00,000

Debt = 10,000x$1,000x109%

         = $1,09,00,000

Total Market Value = $5,60,00,000 + $1,09,00,000

                                 = $15,69,00,000

Weight of Equity = [Market Value of Equity/Total Market Value]x100  

                            = [$9,00,00,000/$15,60,00,000]x100

                            = 57.36%

Therefore, The weight used for equity in the computation of Carrie D's WACC would be 57.36%

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An account option which features a note that is issued by a bank to a depositor for funds placed for a set period of time is; A. certificate of deposit.

<h3>What is a certificate of deposit (CD)?</h3>

A certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account that is typically issued by a financial institution (bank) to its customers, wherein an amount of money (lump-sum) are left with the bank for a specific period of time, in exchange for an interest rate premium.

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Additionally, a bank's certificate of deposit (CD) is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000, so it's somewhat safer than other investment options.

In this context, we can reasonably infer and logically deduce that a savings account option which features a note that is issued by a financial institution (bank) to a depositor for funds that are placed for a set period of time is referred to as a certificate of deposit.

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6 0
10 months ago
Four candidates with the same qualification are interviewed for the position of sales representative. looking at the given chara
Tamiku [17]

A sales representative is a person who works for a particular brand or company and helps in selling the products or services of a company while at the same time representing the brand. The sales representative basically works by contacting the customer until the time the product is sold or the customer had made use of the service.

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1 year ago
The three common types of checking accounts are basic, interest-bearing, and lifeline?
otez555 [7]

Answer:

True

Explanation:

Quizlet: Name three common types of checking account? basic checking account, interest-banking checking account, and Lifeline checking accounts.

3 0
2 years ago
A local restaurant, Farm Fresh Ingredients, has become highly successful through its menu, based solely on organically raised ch
Blizzard [7]

Answer:

d. temporary

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Competitive advantage results out of a unique or specific methods of production which is more efficient than the competitors and most importantly which cannot be imitated by competitors.

In the given case, the advantage which has accrued is on account of organic method of raising chickens and organic seasonal produce. These advantages are momentarily as, soon other restaurants shall follow suit and gradually these shall disappear.

8 0
2 years ago
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skad [1K]

Answer:

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= $(10000 - 10000)

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