Answer:
A) 10.15%
Explanation:
Cost of equity (Re) = 14.06% or 0.1406
cost of preferred stock (Rp) = 7/65 = 0.10769
cost of bonds (Rb) = 7.5% or 0.075
outstanding shares = 2.5 million shares x $42 = $105 million
bonds outstanding = $1,000 x 80,000 bonds = $80 million
preferred stock = $65 x 750,000 = $48.75 million
corporate tax rate = 38% or 0.38
total market value of equity + debt (in millions) = $105 + $48.75 + $80 = $233.75
WACC = [(outstanding shares / total market value) x Re] + [(preferred stock / total market value) x Rp] + {[(bonds outstanding / total market value) x Rb] x (1 - tax rate)}
WACC = [($105m / $233.75m) x 0.1406] + [($48.75m / $233.75m) x 0.10769] + {[($80m / $233.75m) x 0.075] x (1 - 0.38)}
WACC = 0.06316 + 0.02246 + 0.01591 = 0.10153 or 10.15%
Answer:
5.75%
Explanation:
First, find the coupon payment amount . Using a financial calculator, key in the following inputs for this the bond valuation.
<em>Note: Make adjustment on the rate and time since the coupon payments are made semi-annually i.e 2 times a year</em>.
Maturity of the bond ; N = 14.5*2 = 29
Semi-annual rate ; I/Y = (5.3%/2) = 2.65%
Face value ; FV = 1000
Price of the bond or PV = -1045
then compute semiannual coupon payment ; CPT PMT = $28.743
Annual coupon rate is therefore = $28.743*2 = $57.486
Coupon rate = coupon payment / face value
Coupon rate = $57.486 / 1000
= 0.05749 or 5.75%
Answer:
The correct answer is B) coercive.
Explanation:
A coercive boss is a rigid and inflexible leader. When this style is used, the leader chooses to give many direct orders without offering his subordinates the opportunity to express their ideas and opinions.
This leader not only does not opt for the reward system but also focuses on criticizing and punishing the failures generated by disobedience. Therefore, the motivation of the team suffers greatly from the inability of employees to perceive that thanks to their work, business objectives are being achieved.
It is usually the least effective management style but ... it may be recommended in crisis situations when it is necessary to show authority and employees need clear and direct orders.
Paid in Capital Common Stock in Excess to par = (35-9)*50,000=1,300,000
Paid in Capital Common Stock in Excess to par is the difference between the par value of the share and the market value or fair value it was sold at, in this case the par value per share was 9 and market value was 35 , there fore we multiplied their difference by 50,000 to get the total difference.
Explanation:
Answer: See explanation
Explanation:
From the question, we are given the information that on December 12, the company receives a $540 check from Chad Thomas in settlement of Thomas's $1,280 outstanding accounts receivable, then the journal entry based on the above will be:
December 12:
Debit Cash $540
Debit Allowance for doubtful account $740
Credit Account receivable $1280
Note that the allowance for doubtful account was calculated as:
= Account receivable - Cash
= $1280 - $540
= $740
