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3 years ago

You are given the following information concerning Parrothead Enterprises:

Business

1 answer:

Alenkinab [10]3 years ago

3 0

Answer:

7.85%

Explanation:

Face value of bond =$2000

Price of current bond= face value× 106.5% = $2130

Term= 25 years×2= 50 period

Coupon rate= 7%×1/2= 3.5%

Coupon amount= coupon rate×face value = $2000×3.5/100

=$70 for a period

YTM of bond= [coupon amount+ (maturity value-current price)/Term]/0.6×current price+0.4×maturity value]

YTM of bond= 6.487% per annum

Total market value of bond= 8,400bonds× $2130= $17,892,000

Market value of common stock= 275,000shares × 62.50= $18012500

Weight of common stock= 0.490009385

Weight of preferred stock= 0.023259294

WACC= Wd* Kd + Wc*Kc + Wp*Kp

= 0.486731321× 4.86525% +

0.490009385× 10.9624275+

0.023259294× 4.7368421%

=7.849%

= 7.85%(rounded)

Thus, WACC is 7.85%

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SHAPE magazine is targeted at young women seeking healthier lifestyles. At a price of $3 per copy, 1.25 million copies are sold.

Lerok [7]

Answer:

A. $ 3,750,000

Explanation:

Given that

At lower price

A copy is $3

Copies sold = 1.25 million

Recall that

Total revenue = Price of good × quantity of goods sold.

That is, the total amount of money a seller obtains by selling goods or/and services to a buyer(s)

Thus

Total revenue at low cost

= 3 × 1.25 million

= 3.75 million

= $3,750,000

3 0

3 years ago

The parents of a child diagnosed with Tay-Sachs inquire about progression of the disorder. Which statement by the nurse is accur

Anit [1.1K]

Answer:

The correct answer is <em>The child will experince decreased muscular and neurologic functioning until death occurs</em>.

Explanation:

Tay-Sachs disease is a rare degenerative disease that affects the brain and central nervous system and is hereditary, autosomal recessive (more common in descendants of Hebrews).

It is one of the diseases by lysosomal deposition. Individuals who suffer from it are unable to produce a lysosomal enzyme called hexosaminidase-A that participates in the degradation of gangliosides, a type of sphingolipid, that accumulate and degenerate to the central nervous system. It is included within lipidosis or lipid storage diseases.

5 0

2 years ago

WWhich of the following methods provides the easiest way to quickly share files and folders with other users on the network just

BlackZzzverrR [31]

Answer:

C. Public folders

Explanation:

A public folder is a folder that is a way that information and files can be shared quickly and easily with multiple users and groups.

In using public folder, the user simply has to move or copy a file into a public folder to make it accessible.

It is designed for shared access and to provide an easy and effective way of sharing information with other people especially in a workgroup.

6 0

3 years ago

The actual inventory holding cost incurred by an item depends on how long it actually spends in inventory.

svlad2 [7]

True. <span>The actual inventory holding cost incurred by an item depends on how long it actually spends in inventory. Holding costs are costs that happen when the inventory stays put and does not sell. The costs are calculated into the inventory costs along side of ordering and shortage costs. Holding costs can include the goods being damaged or spoiling due to the length of being held. Since they can be held for 5 days or 100 days (example) the total cost that is held depends on the length the items were held for. </span>

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3 years ago

If the liabilities of a business increased $75,000 during a period of time and the owner's equity in the business decreased $30,

GrogVix [38]

Answer:

D. Increased $45,00

Explanation:

Assume that the total assets of the business was $100,000 and the liabilities was $50,000 and the equity was also $50,000.These figures can be expressed in terms of the accounting equation as follows:

Total assets=Total liabilities+Total equity

100,000=50,000+50,000

Now consider that the above mentioned liabilities are increased by $75,000 as stated in question and above mentioned equity is decreased by $30,000 as stated in question, then the assets as per accounting equation can be determined as follows:

Total liabilities=50,000+75,000=$125,000

Total equity=50,000-30,000=$20,000

Assets=$125,000+$20,000=145,000

Total increase in assets=$145,000-$100,000=$45,000

So the answer is D. Increased $45,000

6 0

3 years ago