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Dima020 [189]
3 years ago
15

If common equity financing is 60% of the optimal capital structure and the existing limit of internal equity is $500,000. Solve

for the equity break point.
Business
1 answer:
Damm [24]3 years ago
5 0

Answer:

$833,333

Explanation:

The computation of the equity break point would be

= Existing limit of internal equity ÷ common equity financing percentage

= $500,000 ÷  60%

= $833,333

Simply we divide the existing limit of internal equity by the common equity financing percentage so that the equity break point can be calculated

Hence, we consider the both the items values which are given in the question.

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e. Planning and budgeting purposes.

Explanation:

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You consider that when organizing as a corporation, you will pay taxes at the corporate level (21% tax rate) and when dividends
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Answer:

9%

Explanation:

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3 years ago
You would like to hold a protective put position on the stock of Ximera Corp to lock in a guaranteed minimum value of $50 at yea
Luba_88 [7]

Answer: C)  -0.5

Explanation:

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lets say

x = 50

SO = 50

therefore

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SO

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Pu = (x - uSO) = 50 - 55 = (-5) because its negative, its = 0

now to get the HEDGE RATIO

we say HEDGE RATIO = (Pu - Pd) / ( uSO - dSO)

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