Answer:
Answer:
$
Market value of shares (3,000,000 x $15) = 45,000,000
Market value of bonds (30,000,000 x $101/100) = 30,300,000
Market value of the firm 75,300,000
The correct answer is D
Explanation:
Market value of the firm is the sum total of market value of shares and market value of bond. The market value of each stock is equal to number of stocks issued multiplied by current market price of each stock.
Explanation:
<span>To keep the tulips from bending as they often do, you tie them with raffia, a technique known as B. skeletonizing
This type of technique helps the flowers be tied together. The raffia is used like a skeleton for the flowers to stand straight. It supports the tulips, preventing them from bending. </span>
Answer:
20,000 units
Explanation:
Number of units in inventory at the end of quarter 3
= 3(42,500)
=127,500
Hence:
127,500- 37,500-45,000-25,000
= 20,000 units
Therefore if production strategy is used the number of units in inventory at the end of quarter 3 is 20,000 units
Answer:
value of the firm = 21.20 million
value of the firm = 20.80 million
Explanation:
given data
current profits = $400,000
annual rate = 4 percent
opportunity cost = 6 percent
solution
we get here value of the firm before pays out current profits as dividend is express as
value of the firm = current profits ( 1+opportunity cost ) ÷ ( opportunity cost - annual rate ) ................1
put here value
value of the firm =
value of the firm = 21.20 million
and
value of the firm after pays is
value of the firm = current profits ( 1+annual rate ) ÷ ( opportunity cost - annual rate ) ................2
value of the firm =
value of the firm = 20.80 million
Answer:
b. The capital structure that minimizes the firm's weighted average cost of capital is also the capital structure that maximizes its earnings per share.
Explanation:
The optimal capital structure is estimated by calculating the mix of debt and equity that minimizes the weighted average cost of capital (WACC) while maximizing its market value. The lower the cost of capital, the greater the present value of the firm’s future cash flows, discounted by the WACC. Thus, the chief goal of any corporate finance department should be to find the optimal capital structure that will result in the lowest WACC and the maximum value of the company (shareholder wealth).