Answer:
Book Value Per Common Share = $33.80
Explanation:
Book Value Per Common Share = Stockholders' equity - Shares * Call Price per shares) / Shares of common stock outstanding
= ($626,575 - 825*63) / 17000
= ($626,575 - $51,975) / 17,000
= $574,600 / 17,000
= $33.80
Answer:
The lum-sum must equal $5,369,009.59
Explanation:
Giving the following information:
First option:
Annual payment= $420,000
Number of periods= 25 years
Interest rate= 6%
<u>First, we need to calculate the future value of the first option using the following formula:</u>
<u></u>
<u>FV= {A*[(1+i)^n-1]}/i</u>
A= annual deposit
FV= {420,000*[(1.06^25) - 1]} / 0.06
FV= $23,043,095.04
<u>Now, to determine the lump-sum to receive today, we need to determine the present worth of the annuity:</u>
PV= FV / (1 + i)^n
PV= 23,043,095.04 / (1.06^25)
PV= $5,369,009.59
Answer:
D) Beta .98 expected return .107
Explanation:
In CAPM (Capital Asset Pricing Model), expected return = risk-free rate + Beta * market risk premium = 3.4% + Beta * 7.4%
We try every choice consecutively
A) Beta .87 expected return .096
⇒ expected return = 3.4% + 0.87 * 7.4% = 0.098
A is wrong
B) Beta 1.09 expected return .102
⇒ expected return = 3.4% + 1.09 * 7.4% = 0.1147
B is wrong
C) Beta 1.62 expected return .146
⇒ expected return = 3.4% + 1.62 * 7.4% = 0.154
C is wrong
D) Beta .98 expected return .107
⇒ expected return = 3.4% + 0.98 * 7.4% = 0.107
D is TRUE
E) Beta 1.16 expected return .139
⇒ expected return = 3.4% + 1.16* 7.4% = 0.12
E is wrong
The computation of the break-even point (in dollars) is given below:
Break-even (dollars) = Break-even (units) x Selling price
= $10 x 12,000 units
= 120,000
Based on the data given in the problem, compute the revised break-even point (in units) for shop 48 after the payment of the incentive.
The break-even point is the point at which total costs equal total sales, and there is no loss or profit for a small business. This means that we have reached a stage of production where the cost of production equals the revenue of the product.
The break-even point is used in several areas of economics and finance. In accounting terms, it refers to the level of production where the total revenue from production equals the total cost of production.
Learn more about the break-even point at
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Answer:
D. $15,000,000
Explanation:
amount to be raised before 5%cost = $14,000,000 + $250,000
=$14,250,000
then:
100 - 5 = 95% ~~ $14,250,000
100% ~~ $ 15,000000
Therefore, the amount required to be raised is $15,000,000.
