Answer:
2.28%
Explanation:
initial outlay = $119,000 + $12,000 = $131,000
cash flows 1 - 5 = $25,000
Re = 12%
rate of reinvestments = 8%
using a financial calculator, the MIRR = 2.28%
if you want to calculate MIRR manually, you must solve the following:
MIRR = ⁿ√(future value of cash flows at reinvested rate / present value of negative values discounted at financing rate) - 1
- n = 5
- future value of cash flows at reinvested rate = $25,000 x 5.8666 (FV annuity factor) = $146,665
- present value of negative cash flows = $131,000
MIRR = ⁵√($146,665 / $131,000) - 1 = 1.0228 - 1 = 0.0228 = 2.28%
Answer:
Investors
Explanation:
Investor is the term which is defined as the person or an individual who allocated the capital or the fund with the expectation for gaining an advantage or the financial return in future.
The investor is someone who provides the business with the capital or funds and someone who bought the stock. Under this situation, the banks are those who channels the money from the savers to borrowers to the investors.
Answer:
Bounded Rationality
Explanation:
To begin with, it is essential to understand the concept of departmentalization.
Departmentalization centers on the idea that departments/divisions within an organization are grouped and/or sectioned, using some identified benchmarks. In extension, Departmentalizing, is simply the acts of engaging in departmentalization.
Bounded rationality, is a phenomenon that states that human reasoning and extension, logic could be threatened by a number of constraints. The constraints here could be human, material and physical resources. The implication is that an individual is not in possession of full details and information that could influence or shape his position.
Hence, by departmentalizing, an organization has placed a constraint on the amount of information accessible to that department, under the bigger context of an organization. Thus, the departments' rationality has been bounded and this could ultimately spiral into poor decision making, principally because of lack of detailed information.
Answer:
The firm's cost of preferred stock is 9.10%
Explanation:
The cost of preferred stock with the flotation of 5% would be the dividend payable by the preferred stock divided by the adjusted current market price(adjusted for flotation cost)
The dividend per year is $8
The adjusted price of the stock=$92.50*(1-f)
where f is the flotation cost in percentage terms i.e 5%
adjusted price of the stock is =$92.50*(1-5%)=$ 87.88
Cost of preferred stock=$8/$87.88*100 = 9.10%
