Answer: Nothing
Explanation:
When Anastasia sells her Tesla common stock at the same time that Roman buys the same amount of Tesla stock, then Tesla will receive nothing.
Forur example, let's assume that Anastasia sells her Tesla common stock which was worth $2000 and Roman buys the same amount of Tesla stock, which was $2000. Then Tesla will get: $2000 - $2000 = 0. Therefore, the answer is nothing.
Answer: Simple capital structure
Explanation: A company that does not have potentially dilutive or convertible securities in its capital structure, is said to have a simple capital structure. In a simple capital structure, the corporation finance its operation with common stock or non convertible preferred stock.
Hence , from the above we can conclude the right option is C.
Answer and Explanation:
The computation of the expected return and the standard deviation is given below:
the expected return is
= $90,000 × 13% + $60,000 × 6.6%
= $15,660.00
And,
standard deviation of return is
= $90,000 × 13% × 44% + $60,000 × 6.6%
= $5,148 + $3,960
= $9,108.00
In this way it should be calculated
Answer:Yield to maturity is 9.59%; After tax cost of debt =7.672%
Explanation:
A) Yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}
Where C – Interest payment = $90
FV – Face value of the security
= $1000
PV – Present value/curent market value = $960
t – years it takes the security to reach maturity= 10 years
imputing the values and calculating,
yield to maturity ={ C + (FV-PV)/t} / {(FV +PV)/2}
= $90 + (1000-960)/10} / 1000 + 960 /2
$90 + 4= $94 /980= 0.0959
therefore Yield to maturity is 9.59%
B) After tax cost of debt = Yield To Maturity x (1 - tax rate)
=9.59% x (1-20%)= 9.59% x (1-0.2 )= 9.59% x 0.8 =
9.59 % x 80%=7.672%
Answer:
200 units
Explanation:
For computing the number of units produced each time we need to applied the economic order quantity formula which is shown below:
where,
Annual demand is 1,600 units
Ordering cost per order is $25
And, the carrying cost or holding cost per unit per year is $2
Now placing these values to the above formula
So, the economic order quantity is
= 200 units
