Answer:
Dividend yield is 2.91 %.
Explanation:
Dividend yield = Annual Dividend per Share / Stock Price per Share × 100
<em>where,</em>
Annual Dividend per Share = Total Dividends ÷ Total Number of Shares
= $835 ÷ 500
= $1.67
<em>then,</em>
Dividend yield = $1.67 / $57.48 × 100
= 2.905 or 2.91 %
Diversifying. It is so that they can tap into other markets.
The correct option is B. Participative leaders take steps to ensure that their employees take part in making decisions that affect the company. This type of leadership is especially effective when the employees have high degree of ability and when the decisions are personally relevant to them.
Answer: 5.36%
Explanation:
The after-tax cost of debt refers to the interest that is paid on debt which is then less the income tax savings as a result of the deductible interest expenses.
When calculating the after-tax cost of debt, the effective tax rate of a company should be subtracted from 1, after which the difference will be multiplied by the cost of debt. This will therefore be:
= Rate (10,8% × 1000, -960 + 20, 1000) × (1-40%)
=5.36%
Answer:
12,552 shares
Explanation:
Data provided:
Initial outstanding shares of the firm = 16,000 shares
Value of each share = $14.50
Debt issued = $50,000
Now,
the number of shares used for issuing for $50,000 debt
= Debt issued / value of each share
on substituting the respective values, we have
the number of shares used for issuing for $50,000 debt
= $50,000 / $14.50
= 3448.27 ≈ 3448 shares
Now,
The shares of stock that are outstanding once the debt is issued =
= Initial outstanding shares - shares used for issuing for $50,000 debt
= 16,000 - 3448
= 12,552 shares
