Answer:
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Explanation:
The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a firm can be made up of one or more of the following components namely debt, preferred stock and common equity. The WACC is normally calculated using the market value of these components. The formula for WACC is,
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- wD, wP and wE represents the weight of debt, preferred stock and common equity in the capital structure based on the market value
- rD, rP and rE are the cost of debt, preferred stock and common equity respectively.
To calculate the weight that should be assigned to the preferred stock in the calculation of WACC, we need to determine the market value of preferred stock and the market value of the capital structure.
Market Value - Debt = 10000 * 1000 * 1.01 = $10.1 million
Market Value - Preferred stock = 1 * 114.50 = $114.5 million
Market Value - Common equity = 26 * 15 = $390 million
Total MV of capital structure = 10.1 + 114.5 + 390 = $514.6
wP = 114.5 / 514.6 = 0.2225 or 22.25%
Answer:
Noodlecake
On its statement of cash flows, Cash Provided by Operating Activities equals $__1,000____ Cash from Investing Activities equals $__(3,000)______ Cash from Financing Activities equals $_7,000______ and the Change in Cash equals $_5,000______ Be sure to use parentheses around the amount if it is a cash outflow, e.g. $(1,000)
Explanation:
a) Data and Calculations:
Financing activities:
Common stock $5,000
Bank loan 2,000
Net cash $7,000
Operating activities:
Cash from customer $3,000
Cash to employees (2,000)
Net cash $1,000
Investing activities:
Equipment ($3,000)
Net cash from cash flows = $5,000
The net cash from cash flows or the change in cash flows is the summation of the changes in the operating, investing, and financing activities of Noodlecake during the period under review. It shows by how much the cash has increased or decreased when compared to the beginning balance, which can be zero as in this case.
Answer:
Agent Armstrong needs to be licensed and appointed in every state in which beneficiaries to whom he markets ABC MA plans are located.
Explanation:
In the given scenario XYZ Agency maintains a website marketing the MA plans with which it has contracts. So they are not in one location.
Clients from multiple states can subscribe to their services via website.
Agent Armstrong follows up with individuals who request more information about ABC MA plans via the website and tries to persuade them to enroll in ABC plans.
Since clients enroll in different locations there is a need for Armstrong to be licensed and appointed in every state in which beneficiaries to whom he markets ABC MA plans are located.
This will satisfy the varying compliance rules that each state of operation may have. Thereby providing seamless service delivery to customers of XYZ agency.
Answer:
C. NTB's have increased and tariffs have decreased in importance and use
Explanation:
If the consumers are further confident they will expend additional dollars at entirely earnings stage and the consumption function moves upward. This increase in expenditure reasons the aggregate demand curve to move to the right. The ceteris paribus is known as a alteration in interest rates reasons a movement alongside the investment demand curve.
