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MissTica
2 years ago
15

A firm that is considering purchasing a capital budgeting project with a beta coefficient greater than the firm's current beta c

oefficient should evaluate the project using a risk-adjusted required rate of return that is greater than the firm's existing (average) required rate of return. a. True b. False
Business
1 answer:
Mariana [72]2 years ago
5 0

Answer:

True

Explanation:

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Crane Company has 900 shares of 4%, $100 par cumulative preferred stock outstanding at December 31, 2018. No dividends have been
labwork [276]

Answer:

c) $7200

Explanation:

Preference dividends have preference when it comes to payment of dividends.

This means that we pay the Preference Stock holders their dividend (which is fixed) and there after the remainder is paid up to the Common Stockholders

Preference dividend = 900 shares x $100 x 4 % =  $3600

When Preference Stock is Cumulative, it means that all previous dividends in arrears have to be paid up before any current year distributions are made.

<u>2018</u>

Cumulative Preference dividend = $3600 (2017) + $3600 (2018) = $7200

therefore,

Dividends in arrears at December 31, 2018 total $7200

8 0
3 years ago
McConnell Corporation has bonds on the market with 12 years to maturity, a YTM of 10.0 percent, a par value of $1,000, and a cur
PolarNik [594]

Answer:

13.28%

Explanation:

The computation of the coupon rate is shown below

But before that determine the PMT

Given that

NPER = 12 × 2 = 24

RATE = 10% ÷ 2 = 5%

PV = $1,226.50

FV = $1,000;

The formula is shown below

= PMT(RATE;NPER;-PV;FV;TYPE)

After applying the above formula, the monthly payment is

= $66.41 × 2

= $132.82

Now the coupon rate is

= $132.82 ÷ $1,000

= 13.28%

3 0
2 years ago
The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The fini
saveliy_v [14]

Answer:

Production for 2nd Quarter = 15,000  units

Explanation:

given data

ending inventory of finished goods = 25 %

finished goods inventory at year start =  4,000 units

so we consider here Quarter sales in unit  

1 = 12,000

2 = 14,000

3 = 18,000

4 = 16,000

solution

we get here Production for 2nd Quarter  that is

Production for 2nd Quarter = Quarter 2 sale + Desired Q2 ending inventory - Beginning Q2 inventory  ...................1

so it will be as

Production for 2nd Quarter = Quarter 2 sale + (25% of Q3 Sale) - (25% of Q2 sale)

put here value

Production for 2nd Quarter = 14000 + (18000 × 25%) - (14000 × 25%)

Production for 2nd Quarter = 14000 + 4500 - 3500

Production for 2nd Quarter = 15,000  units

3 0
3 years ago
Eric's textbook costs $90, and he can resell it in one year's time for $45. if the annual interest rate is 10%, then the present
Archy [21]
<span>$41 Given a discount rate, the present value (PV) of money you expect to receive in the future (FV) at a specified interest rate (R) for a specified number of periods (N) is PV = FV/(1+R)^N So let's plug in the known values and solve. PV = 45/(1+0.10)^1 PV = 45/(1.10)^1 PV = 45/1.10 PV = 40.90909091 Rounding to the nearest dollar gives $41</span>
7 0
2 years ago
Orlando has a bank statement balance of $414.25 and $5.90 service charge. His check register shows $374.16 and he has two outsta
laiz [17]

Answer:

$365.93

Explanation:

The computation of the checkbook balance is shown below:

= Balance of bank statement - first outstanding check amount - second outstanding check amount          

= $414.25 - $26.54 - $21.78

= $365.93

In order to determine the check book balance, we deducted the two outstanding checks from the bank statement balance

6 0
2 years ago
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