Answer :
True required initial investment = $26,954,178
Explanation :
As per the data given in the question, we need to do following calculations
Weighted average flotation cost = ( % flotation cost of debt × weight of debt) + (% flotation cost of preferred equity × weight of preferred equity) + (% flotation cost of common equity × weight of common equity)
= (3% × 35%) + (7% × 10%) + (10% × 55%)
= 0.0725
=7.25%
It means out of total capital which is raised 7.25%, would be the flotation cost.
Let total capital raised be X
So X × (1 - 7.25%) = $25 million
X = $25 million ÷ (1- 7.25%)
X = $26,954,178
Answer:
<u>Amplified word of mouth.</u>
Explanation:
Word of mouth marketing refers to using customer recommendations for the purpose of advertising so as to accomplish marketing goals.
Usually this form of marketing is spread from one customer to another in the form of recommendations.
For instance, a customer who uses a product and liked it, posts a favorable review on the product site, praising the product. Such a review would influence other prospective buyer and their purchases.
There are two kinds of word of mouth namely, organic and amplified. In the case of former, the review and praises arise out of natural tendency of the customer to recommend the product.
In case of the latter, the marketers launch such campaigns that encourage word of mouth in both existing as well as new communities.
In the given case, the company distributes free samples and seeks feedback of the target customers on the company's blog, which would be visible to prospective customers. The goal being to stimulate positive word of mouth, this method refers to amplified word of mouth.
Answer: $2.60
Explanation:
Based on the information given in the question, the maximum amount that the Cologne Division would be willing to pay for each bottle transferred would be the amount that the company can purchase the containers in the external market which is given in the question as $2.60.
That's the highest amount that they can but the containers for. Therefore, the answer is $2.60
Answer:
$14,400
Explanation:
The computation of the amount of bad debt expense is shown below:
= Ending balance of Allowance for Doubtful Accounts - the Beginning balance of Allowance for Doubtful Accounts
= $79,000 - $64,600
= $14,400
Since there is no write-off balance, so we consider the opening and ending balance of Allowance for Doubtful Accounts
All other information which is given is not relevant. Hence, ignored it