Answer:
The correct option is D,$42,000
Explanation:
The balance on Maxwell capital account=market value of building contributed less the mortgage on the building
market value of the building is $89,000
Mortgage on the building is $47,000
balance on Maxwell capital account=$89,000-$47,000
balance on Maxwell capital account=$42000
The correct option is D.
Care must taken so that one does include the cash of $38,000 contributed by Smart in Maxwell's capital account balance calculation,otherwise one would have concluded that option E,$80,000($42,000+$38,000)
Answer: 8.23%
Explanation:
Firstly, we will calculate the cost of debt which will be:
= Yield (1-Tax rate)
= 9% × (1-0.34)
= 9% × 0.66
= 5.94%
Then, the Cmcost of preferred stock will be:
= 7/(104-9.40)
= 7/(94.6)
= 7.39%
We will also get the value of the cost of equity which will be:
= (Dividend expected common/Price common) + growth rate
= (2.50/76) + 8%
= 3.29% + 8%
= 11.29%
For Debt:
Cost after tax: 5.94
Weight = 50%
Weighted cost = 5.94 × 50% = 2.97
For Preferred stock:
Cost after tax: 7.39
Weight = 1%
Weighted cost = 7.39 × 10% = 0.74
For Common equity
Cost after tax: 11.29
Weight = 40%
Weighted cost = 11.29 × 40% = 4.52
Weighted average cost of capital = 2.97 + 0.74 + 4.52 = 8.23%
Answer:
Value of treasury note = 738000
Explanation:
Value of treasury note = Interest * PVAF(9.9%,5Years) + Maturity Value * PVF(9.9%,5year)
= 30000 * 3.800 + 1000000 * 0.624
= 738000
<span>Brittani is in an ethical dilemma because she does not want to disrespect the president written article but she must provide him with accurate feedback for the company. Brittani must approach the situation with respect and facts. The best way for Brittani to do this is to call the president and ask for a face to face meeting and to gently point out not only the flaws in the article but also the strong points.</span>
The CEO was most likely referring to the following efforts : <u>d) a distribution center established in London to preempt the growth of a British car manufacturer</u>.
<u>Explanation</u>:
The company establishing its trade and investment activities across the national borders is known as international business.
The following are some of the factors of production:
i) Manufacturing infrastructure
ii) Technology
iii) Managerial talent
It is important for a company to take more effort and establish its distribution center overseas to confront the international competitors. In the above scenario, the CEO decided to establish his distribution center in London to block the growth of a British car manufacturer.
