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Butoxors [25]
2 years ago
6

Landmoon Inc. has 10,800 shares of common stock outstanding at a price of $42 per share. It also has 245 shares of preferred sto

ck outstanding at a price of $93 per share. There are 580 bonds outstanding that have a coupon rate of 6.1 percent paid semiannually. The bonds mature in 23 years, have a face value of $1,000, and sell at 105 percent of par. What is the capital structure weight of the preferred stock?
Business
1 answer:
zhuklara [117]2 years ago
4 0

Answer:

 0.0210

Explanation:

The computation of the weight of the preferred stock is shown below:

Particulars Shares    Price Value ( Shares × Price)   Weight ( Value ÷Total value)

Equity 10,800   $42         $4,53,600                0.4179

Preferred Stock 245 $93         $22,785                        0.0210

Bonds 580           $1,050         $6,09,000                0.5611

Total value                                     $1,085,385

for computing the weight we simply divide the value of the preferred stock with the total value

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Elza [17]

Answer:

-$11

Explanation:

Covered Call involves Buy stocks and Sell call options

Earning $2.89 by selling call. So, at  stock price of $27, the payoff from options is $2.89 per option

Options Profits = $2.89 * 100

Options Profits = $289

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Investor Net Profit = Profit of stock + Options Profits

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6 0
2 years ago
Hal and Gavin are siblings who own a mattress recycling company. Demand has been increasing for their services and the brothers
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3 years ago
According to circus founder p.t. Barnum, what happens without publicity?
Ad libitum [116K]

Answer:

The correct answer would be, Decline in Customers.

Explanation:

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4 0
2 years ago
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The purchase of treasury stock usually restricts the amount of retained earnings available for cash dividends.a. Trueb. False
DerKrebs [107]

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Option a

<u>Explanation: </u>

The stock in the bank is the term for originally sold securities that the issuing firm has retained. If a corporation sells some of its released and outstanding securities, the sale drastically alters its retained profits.  

As the balance sheet show all remaining earnings and the equity fund, sums available to pay dividends drop. The price of the stock in treasury should be reduced by the retained revenues, which reduce the amounts that the business can dividend to shareholders.

Sometimes a business needs the share-earnings ratio to be improved. If a company bought out many of its own shares, it reduces the number of released and outstanding activities raises the earnings per stake in the company and makes the assets more appealing for buyers.

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3 years ago
Which of the following would be a disadvantage of releasing cash flow to buy out an investor?
DedPeter [7]

Explanation:

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