Answer:
Option D The Clayton Act.
Explanation:
This legislation says that the unethical business practices are forbidden. This means if the Nitro dealer is asking for $500 extra for no reason then he is following an unethical business practice. So the Nitro Dealer is violating Clayton Antitrust act by fixing a price and then enforcing Sandra for purchase. So the violation is of provision of Clayton Act which prohibits price fixing.
Answer:
a.
The WACC is 9.4875%
b.
The after tax cost of debt is 3.25%
Explanation:
The WACC or Weighted average cost of capital is the cost to a firm of its capital structure based on the weighted average of costs of all the components that form up its capital structure. The components in a firm's capital structure are debt, preferred stock and common stock.
WACC = wD * rD * (1-tax rate) + wP * rP + wE * rE
Where,
- w represents the weight of each component in the overall capital structure
- r represents the cost of each component
- we multiply the cost of debt by (1 - tax rate) to take the after tax cost of debt
a.
WACC = 0.15 * 0.05 * (1-0.35) + 0.15 * 0.04 + 0.7 * 0.12
WACC = 0.094875 or 9.4875%
b.
The after tax cost of debt is calculated by multiplying the cost of debt or rD by (1 - tax rate).
After tax cost of debt = 0.05 * (1 - 0.35) = 0.0325 or 3.25%
Answer:
budget enough money for attractive pay levels.
Explanation:
Answer:
The basic earnings per share is $10.77
Explanation:
Basic earnings per share is the earnings specifically for common stockholders.
This is computed by dividing earnings after preferred dividends with weighted average number of common stock which is the same as the common stock outstanding of 67,000 shares.
Earnings after preferred dividends=$755,000-(6700*5%*$100)
=$755,000-$33,500
=$721,500
Basic earnings per share=$721,500/67000=$10.77
The correct option is first one of the multiple choices provided
Answer:
$1,500
Explanation:
Relevant data provided
Annual cash flow = $150
Current Stock percentage = 10%
The computation of today value of Dynamo is shown below:-
Today value of Dynamo = Annual cash flow ÷ Current Stock percentage
= $150 ÷ 10%
= $150 ÷ 0.10
= $1,500
Therefore for computing the today value of Dynamo we simply divide the annual cash flow by current stock percentage.
