The optimal capital structure can be realized if : Debt-equity ratio selected results in the lowest possible weighted average cost of capital.
- An optimal capital structure can be regarded as best mix of debt as well as equity financing which maximizes a company's market value.
- And as well minimizing its cost of capital, it can be realized when Debt-equity ratio that is been selected, gives the lowest possible weighted average cost of capital.
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Answer:
$55.134
Explanation:
Given
dividend paid on its stock = $8.25
Duration is next 13 years
P0 = dividend on its stock × (PVIFA of return on this stock,years)
Remember PVIF = (1 - (1 + r)^-n)/r
Where PVIFA = present value interest factor of annuity
r = interest rate per period
n = number of periods
Therefore
P0 = $8.25 × (PVIFA11.2%,13)
P0 = $55.134
Answer:
The net present value of this investment is $989.32
Explanation:
The Net Present Value is calculated by taking the Present Day (discounted) value of all future net cash flows based on the business cost of capital and subtracting the initial cost of investment.
Input Value Cash flow
CF0 ($21,705)
CF1 $6,700
CF2 $6,700
CF3 $6,700
CF4 $6,700
Cost of Capital = 7%
Input the values in a financial calculator we get the result;
Net present value = $989.3154
= $989.32
Conclusion :
The net present value of this investment is $989.32
Boeing and Airbus both had to make difficult decisions to address ethical missteps. Airbus’ decision to dismiss over 100 employees due to ethics and compliance reasons is tied to Decision making as a managerial role.
The role stated in Decision Making as a managerial role in the given question is Disturbance Handler.
Disturbance Handler: In this position, managers must make decisions on uncontrollable, stressful, and unpredictable circumstances that are unsettling. For instance, managers must mediate disputes between subordinates as well as between their departments and other departments.
The role stated in Decision Making as a managerial role in the given question is Disturbance Handler.
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Answer:
Oct 1 Cash $37000 Dr
Common Stock $37000 Cr
Oct 3 Equipment Account $4400 Dr
Accounts Payable $4400 Cr
Oct 6 Accounts Receivable $10500 Dr
Commission Revenue $10500 Cr
Oct 10 Cash $190 Dr
Commission Revenue $190 Cr
Oct 27 Accounts Payable $880 Dr
Cash $880 Cr
Oct 30 Salary Expense $3000 Dr
Cash $3000 Cr
Explanation:
The event on October 2 of hiring an administravtive assistant is not a financial event so it will not be recoreded and journalized. All the other transactions are recorded and journalized.
