A) standardized product I think
Answer:
a) 2.40 dollars
b) 0.60 dollars
c) 2.40 dollars
Explanation:
$30 dollars x 8% = $2.40
quarterly dividend:_ $2.40 / 4 = $ 0.60
When the dividends ar cummulative, they will keep at arrear until the company declares cash dividend. The firm will not be able to pay common stock unless there are no arrear dividends to preferred stock.
Only once all the preferred dividends in arrear and current period dividends are paid, the ocvmany can distribute among their common stock.
It's b. i can promise this to you, i think.
Answer:
Difference = 2.36% (Option e)
Explanation:
Formula:
WACC = Re*(E/V) + Rd*(D/V)*(1-t)
<u>Data (In Million) Book Value Market Value
</u>
E = Equity $65.00 $225.00 ($22.50 x 10)
D = Debt $45.00 $50.00
V = Value = E + D $110.00 $275.00
Re = Equity Rate 14% 14%
Rd = Debt Rate 6% 6%
T = Tax Rate 40% 40%
WACC Book Value:
WACC = 14%*(65/110) + 6%*(45/110)*(1-0.40)
WACC = 8.27273% + 1.47273%
WACC = 9.75%
WACC Market Value:
WACC = 14%*(225/275) + 6%*(50/275)*(1-0.40)
WACC = 11.45455% + 0.65455
%
WACC = 12.11%
Difference = 12.11% - 9.75 = 2.36% (Option e)
The correct answer to this question is "the responsibility for the business is shared." A major advantage of a business that is a partnership rather than a sole proprietorship is that the responsibility for <span>the business is shared. </span>
The correct answer to this question is "<span>conglomerate </span>." the term for the joining of two or more firms involved in different stages of producing the same good or service is <span>conglomerate </span>
