Answer:
Issuing convertible bonds
Explanation:
Convertible bonds are corporate bonds that can be exchanged for common stock in the issuing company. Companies issue convertible bonds to lower the coupon rate on debt and to delay dilution. A bond's conversion ratio determines how many shares an investor will get for it.
Answer:
$9.687
Explanation:
Given:
Year 3 dividend = $1.00
Year4&5 growth rate = 17%
Constant rate = 7%
Required return rate = 16%
Year 4 dividend wil be:
D4 = 1.00 * 1+growth rate
= 1.00 * (1+0.17)
= $1.17
Year 5 dividend=
D5 = $1.17 * (1+0.17)
= $1.3689
Value of stock after year 5 will be given as:
![\frac{D5 * (1+growth rate)}{required return - growth rate}](https://tex.z-dn.net/?f=%20%5Cfrac%7BD5%20%2A%20%281%2Bgrowth%20rate%29%7D%7Brequired%20return%20-%20growth%20rate%7D%20)
![= \frac{1.3689*(1+0.07)}{0.16-0.07}](https://tex.z-dn.net/?f=%20%3D%20%5Cfrac%7B1.3689%2A%281%2B0.07%29%7D%7B0.16-0.07%7D)
= $16.2747
For the current value of stock, we have:
Cv= Fd* Pv of discounting factor
Where Cv = current value of stock
Fd = future dividend
Pv = Present value of discounting factor
Therefore,
![C_v = \frac{1.00}{1.16^3} + \frac{1.17}{1.16^4} + \frac{1.3689}{1.16^5} + \frac{16.2746}{1.16^5}](https://tex.z-dn.net/?f=%20C_v%20%3D%20%5Cfrac%7B1.00%7D%7B1.16%5E3%7D%20%2B%20%5Cfrac%7B1.17%7D%7B1.16%5E4%7D%20%2B%20%5Cfrac%7B1.3689%7D%7B1.16%5E5%7D%20%2B%20%5Cfrac%7B16.2746%7D%7B1.16%5E5%7D%20)
=$9.6871382455
≈ $9.687
The value of stock today =
$9.687
At the Montell Company, since the functions are divided into areas of specialization such as production, marketing, accounting, and finance, it reflects Fayol's principle of <u>division of labor. </u>
Max Weber used the term <u>bureaucrats</u> to describe middle managers. Their job is usually to implement the orders that they get from top management.
It should be noted that division of labor is when the roles that'll be performed in an organization are divided into various departments. This is done in order to make the job easier and faster.
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Answer:
$36,602.5
Explanation:
Your profit each year of saving $7,300 at 8.5% return each year is $620.5
In that case you earn $7,920.5 each. Multiply by 5 years which is the fifth year you made the last deposit, and you will arrive at $36,602.5
Answer:
The depreciation for the first year is $75,000
Explanation:
In working hours method the depreciation on a fixed asset is charged using the ratio of numbers of hours utilized by the asset in a period and lifetime working capacity in hours.
First, we need to calculate the Depreciable value
Depreciable value = Cost of Asset - Salvage value = $315,000 - $15,000 = $300,000
Depreciation = Depreciable value x Numbers of hours worked / Total working capacity of Asset = $300,000 x 25,000 / 100,000 = $75,000