Answer:
$321,600
Explanation:
debt equity ratio = debt / equity
since the debt to equity is 0.8, that means that for every $ invested from equity, $0.80 will be borrowed. If the new project requires an initial cash outlay of $300,000:
- then $300,000 / $1.80 = $166,667 will be new equity
- and $133,333 will be new debt
total cost of initial outlay including flotation costs = ($166,667 x 1.09) + ($133,333 x 1.0495) = $181,667 + $139,933 = $321,600
flotation costs include all the costs associated with issuing new stocks or taking new debt.
Answer:
Option (A) is correct.
Explanation:
Luxury goods refers to the goods which are having positive income elasticity of demand. Positive income elasticity of demand is defined as the direct relationship between the demand of the goods and the income of the consumers.
If there is an increase in the income level of consumers then as a result there is an increase in the demand for luxury goods by a greater proportion. That's why the income elasticity of demand is relatively larger.
A company issued 115 shares of $100 par value
<span> Common stock value
= $12,500 </span>
Total
amount of paid-in capital = ?
Multiply
the shares with amount par value =
Amount of shares = 115 x 100 = $11,500
Total amount of paid-in capital = common stock
value - total amount of shares = $12,500 - $11,500
= $1000
So, total amount paid in capital is $1000.
Criteria in contracting a vendor are:
<span> Years in business Ability to constantly supply products. Ability to supply complete requirements. Flexibility to allow changes in orders or product lines. Substantial catalogue of products. Has staff that can answer questions you may have. Testimonials and references. Sustainability and financial stability. Prices. Delivery times. Terms of business. Customer service. </span>
<span>The most important factor to consider in contracting a vendor for multiple locations would be delivery times. </span><span>You need assurance that deliveries can be made where and when you want them.</span>
Answer:
bond stated interest rate is below the market rate of interest.
Explanation:
A bond sells at a discount if its face value is below par. For example, if par value is $1000 and the price is $950, the bond is selling at a discount
A bond is selling at a discount if the bond stated interest rate is below the market rate of interest.
A bond is selling at a premium if its interest rate is above the market rate of interest.
