All of the given questions are part of the critical questions that
entrepreneurs need to ask themselves. Being an entrepreneur needs a lot
of thinking and planning and these questions should be taken into
account. Running a business would include the location fit for the type
of business you have, the structure of your business, how you recruit
workers and the incentives you give them, and most importantly, your
capital.
A disturbance, a noise, a distraction, or the message is unclear.
Answer:
$172,215,844 is the cost when flotation costs are considered
Explanation:
<em>flotation</em>
Weighted average flotation cost = {(Flotation cost debt * Weight debt) + (Flotation cost equity * Weight equity)
= (8% * 0.30) + (15% * 0.70)
=0.024 + 0.105
= 0.129
= 12.9%
Calculation of the cost of funds
Cost of funds = Amount raised / (1 - Weighted average floatation cost)
= $150,000,000 / (1-0.129)
= $150,000,000 / (0.871)
=$172,215,844
Therefore, the cost of raising fund is $172,215,844
Answer:
Net present Value (NPV)
Explanation:
The net present value (NPV) is one of the tools used in business for appraising the desirability or otherwise of projects or investments. It compares the present value (PV) of cash inflows with the present value of cash outflows over a period of time. It is the difference between the present value of the future cash inflows from an investment and the amount of initial capital outlay that gives either profit or loss.
Answer:
$40,000
Explanation:
Calculation to determine the amount of dividends received by the common stockholders in 2017
First step is to calculate the preferred stock
Preferred stock=(5,000 shares*$400)*6%
Preferred stock=$2,000,000*6%
Preferred stock=$120,000
Now let calculate the amount of dividends received by the common stockholders in 2017
Dividend Received=($200,000-$120,000)/2
Dividend Received=$80,000/2
Dividend Received=$40,000
Therefore the amount of dividends received by the common stockholders in 2017 will be$40,000
