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Butoxors [25]
3 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]3 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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Ratio Calculations Assume the following relationships for the Caulder Corp.: Sales/Total assets 2.2x Return on assets (ROA) 5% R
Valentin [98]

Answer:

2.27% ; 61.54%

Explanation:

Given that,

Sales/Total assets = 2.2x

Return on assets (ROA) = 5%

Return on equity (ROE) = 13%

Therefore,

Return on assets = Profit margin × Assets turnover

0.05 = Profit margin × 2.2

Profit margin = 0.05 ÷ 2.2

Profit margin = 0.0227 or 2.27%

Percent of total assets is from equity:

= Return on assets ÷ Return on equity

= 0.05 ÷ 0.13

= 0.3846 or 38.46%

Hence, the debt is as follows:

Debt = Assets - equity

        = 1 - 0.3846

        = 0.6154 or 61.54%

7 0
3 years ago
Assume that three identical units of merchandise were purchased during October, as follows: Units Cost October 5 Purchase 1 $5 1
den301095 [7]

Answer:

Cost of merchandise sold = $ 28

Gross profit = $ 13

The ending inventory under the LIFO method = $ 18

Explanation:

Given:

October 5,

Purchased units =  1

Unit cost = $5

on October  12,

Purchased units = 1

Unit cost = $ 13

On October 28,

Purchased unit = 1

Unit cost = $ 15

Total cost of the 3 units purchased = $33

Now, the unit sold on October 31 will be the unit purchased in the end i.e on October 28

thus,

Cost of merchandise sold = $ 28

Gross profit = Selling price of the unit - Unit price of purchase

or

Gross profit = $ 28 - $ 15 = $ 13

now, the ending inventory under the LIFO method = $ 5 + $ 13 = $ 18

4 0
3 years ago
Read 2 more answers
A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month,
olga nikolaevna [1]

Answer:

Direct Material Price Variance = $300 Favorable

Explanation:

Direct Material Price Variance = (Standard Price - Actual Price) \times Actual Quantity

Standard Price = $4 per pound

Actual Price = \frac{Actual\ Cost}{Actual\ Units} = \frac{5,700}{1,500} = 3.8

Since the actual price is less than the standard price the variance will be favorable as the amount paid for actual use is less then the estimated standard cost.

Thus, direct material price variance = ($4 - $3.8) \times 1,500

= $300 Favorable

7 0
3 years ago
Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs a
KiRa [710]

Answer:

$8.20/Direct Labor hours

Explanation:

Cost of performing engine repair work = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies

Cost of performing engine repair work = $40,000 + $133,000  + $22,000 + $10,000

Cost of performing engine repair work = $205,000

Direct Labor Hours = Direct Labor/Direct Labor rate

Direct Labor Hours = 500,000/$20 per hour

Direct Labor Hours = 25,000 hours

Predetermined shop overhead rate per direct labor hour = $205,000 / 25,000 Hours = $8.20/Direct Labor hours

5 0
3 years ago
A shift in the demand curve can be caused by a change in one of the determinants of demand.
Dominik [7]

Answer:

A- A change in the technology used by firms.

Explanation:

A change in technology can affect the demand of products and services.  It can lead to the increased demand for a certain product, reducing the demand for an older product.

With the use of technology to upgrade products and services, demand curves will continually shift, according to preferences of customers.

Technology could be used by firms to produce upgrades and newer variations of products at more favorable prices for customers  than existing products. This leads to competition and the demand for the newer device goes up since people see the new product as 'getting more for less'. A good example is computers and tablets. Tablets which could match up with the work of computers were produced at lower prices. This shifted the demand towards tablets, making computers more obsolete.

3 0
3 years ago
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