Answer :
True required initial investment = $26,954,178
Explanation :
As per the data given in the question, we need to do following calculations
Weighted average flotation cost = ( % flotation cost of debt × weight of debt) + (% flotation cost of preferred equity × weight of preferred equity) + (% flotation cost of common equity × weight of common equity)
= (3% × 35%) + (7% × 10%) + (10% × 55%)
= 0.0725
=7.25%
It means out of total capital which is raised 7.25%, would be the flotation cost.
Let total capital raised be X
So X × (1 - 7.25%) = $25 million
X = $25 million ÷ (1- 7.25%)
X = $26,954,178
Answer:
$24,000
Explanation:
Given that
Rent of the building per month = $1,000
On that date, the rent value= $36,000
So, the amount of prepaid expenses would be recognized in two ways
As a current asset
= Rent of the building per month × total number of months in a year
= $1,000 × 12 months
= $12,000
As a non-current asset, it would be
= Total rent - prepaid rent
= $36,000 - $12,000
= $24,000
Answer:
Certain regions have specialised in certain industrial production e.g. coal mining in Yorkshire, pottery in Stoke. In Maldives, R.Alifushi is specialised in local boats construction and carpentry.
Explanation:
True because you need a Signature to use it as credit