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Anon25 [30]
3 years ago
12

What will be your rate of return if the price of Telecom stock goes up by 10% during the next year? (Ignore the expected dividen

d.)
Business
1 answer:
Ganezh [65]3 years ago
8 0

Answer:

The answer is 12%

Explanation:

Initial investment:

$5,000 in equity + $5,000 in debt

=$10,000

Number of shares bought with the initial investment is:

Initial investment/Stock price

= $10,000/$50 = 200 shares.

The shares increase in value by 10%: $10,000 x 0.10 = $1,000.

Interest on debt = $5,000 x 0.08 = $400.

The rate of return will be:

($1,000 - $400) ÷ $5,000

0.12

Expressed as a percentage:

12%

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Uber’s guidance that if a driver’s "rating over the most recent 100 trips is below a 4.6, your profile may be at risk of deactiv
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Read 2 more answers
Tacit collusion is more likely to be a concern with horizontal alliances. vertical alliances. international alliances of any kin
OLga [1]

Answer:

horizontal alliances

Explanation:

A horizontal alliance is a term that describes a form of arrangements or partnership between businesses that conduct as competitors in the exact area.

In other words, competitors work in unison to enhance their strategy in the market.

On the other hand, Tacit Collusion occurs when firms avoid actions that are likely to require or demand a response from another firm often a competitor. For example, when a firm avoids the opportunity to price cut an opposition due to the fact that, the opposition may retaliate

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6 0
4 years ago
Kay's Bridal Shoppe has 4000 shares of common stock outstanding at a price of $13 a share it also has 500 shares of preferred st
harkovskaia [24]

Answer:

46.43 percent

Explanation:

the capital structure weight of the common stock= Common stock value/

Preferred stock value +Common stock value+debt value

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=(4000 shares of common stock × $13 )

=$52000

Preferred stock value= ( 500 shares of preferred stock × outstanding price of $22)=$11000

50 bonds outstanding

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Debt incurred= 50 bonds outstanding×$980

=$49000

the capital structure weight of the common stock= Common stock value/

Preferred stock value +Common stock value+debt value

= $52,000/(49000+52,000 + 11000) ×100%

=46.43 percent

5 0
4 years ago
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