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3 years ago

8

holdup bank has an issue of prefered stock witha standard deviation of $7 that just sold for $87 per share. What is the banks co

st of prefered

1 answer:

alisha [4.7K]3 years ago

6 0

Answer: 8.05%

Explanation:

From the question, we are informed that Holdup bank has an issue of prefered stock witha stated dividend of $7 that just sold for $87 per share.

The banks cost of prefered will be:

= Dividend / Stock value

= 7/87

= 0.0805

= 8.05%

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Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for each depends partly on the price

Kipish [7]

Answer:

p1 = $259.53 p2 = $381.20

Explanation:

1. Find the revenue function.

This is a typical income maximization problem. Therefore, the first thing we should know is what are the revenues for each product.

Recall that the revenue is given by P * Q

1.a Find the revenue of the Ultra Mini (product 1):

$R_{1} = P_{1} Q_{1}$

$R_{1} =P_{1} (100,000 - 200P_{1} + 10P_{2} )$

$R_{1} =100,000P_{1} -200P_{1} ^{2} +10P_{2}P_{1}$

1.b Find the revenue of the Big Stack (product 2):

$R_{2} = P_{2} Q_{2}$

$R_{2} =P_{2} (150,000 + 10P_{1} - 200P_{2} )$

$R_{2} = 150,000P_{1+2} +10P_{1}P_{2} -200P_{2}^{2}$

2. Find the marginal revenues.

The revenue function must be derived from the price.

For product 1, we derive from P1:

$MR_{1} = 100,000 -400P_{1} +10P_{2}$

For product 2, we derive from P2:

$MR_{2} = 150,000 + 10P_{1} - 400P_{2}$

3. Create a system of linear equations in two unknowns

With the marginal revenue functions we create a system of linear equations in two unknowns (p1 and p2) and equal 0.

$100,000 - 400P_{1} +10P_{2} = 0\\150,000 + 10P_{1} -400P_{2} = 0$

4. Resolve the previous system

4.a. To make it easier, we can rethink the terms of the system like this:

$100,000 - 400P_{1} +10P_{2} = 0$ is the same as saying:

$P_{2} = \frac{-100,000 + 400P_{1} }{10}$

And $150,000 + 10P_{1} -400P_{2} = 0$ is the same as saying:

$P_{2}=\frac{150,000+10P_{1} }{400}$

Therefore:

$\frac{-100,000 + 400P_{1} }{10} =\frac{150,000+10P_{1} }{400}$

Notice that now we only have one unknown (P1).

4.b. In order to eliminate fractionals, we can multiply both terms by 400:

$\frac{400}{10} (-100,000 + 400P_{1} ) = \frac{400}{400} (150,000 + 10P_{1} )$

$(40)(-100,000+400P_{1}) =150,000+10P_{1}$

$-4,000,000+16,000P_{1} =150,000+10P_{1}$

4.c. We solve the equation, putting numbers on one side and unknowns on the other:

$-4,000,000-150,000=10P_{1} -16,000P_{1}$

$-4,150,000=-15,990P_{1}$

$\frac{-4,150,000}{-15,990} =P_{1}$

$P_{1} = $ 259.53$

4.d. Once P1 has been identified, we replace it in any of the terms of the original system of equations (those established in 4.a).

$P_{2}= \frac{-100,000+400(259.53)}{10}$

$P_{2} = 381.20$

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3 years ago

Manchester Company sells equipment on June 1, 2021, for $222,400 cash. Manchester incurred $1,280 of removal and selling costs o

drek231 [11]

Answer and Explanation:

The journal entries are as follows:

But before that the accumulated depreciation for 3 years is as follows:

Cost $400,000

Less: Residual value $64,000

Depreciable cost $336,000

Divide by Useful life 10

Annual Depreciation $33,600

Accumulated depreciation for 3 years $100,800 ($33,600 × 3 years)

Now the journal entries are as follows:

a.

On June 1, 2021

Depreciation expense $14,000 ($33,600 × 5 months ÷ 12 months)

To Accumulated Depreciation $14,000

(Being depreciation expense is recorded)

On June 1,2021

Accumulated Depreciation $114,800 ($100,800 + $14,000)

Cash $221,120 ($222,400 - $1,280)

Loss on Disposal $64,080

To Equipment $400,000

(Being the disposal of an asset is recorded)

b.

On June 1, 2021

Depreciation expense $14,000 ($33,600 × 5 months ÷ 12 months)

To Accumulated Depreciation $14,000

(Being depreciation expense is recorded)

On June 1,2021

Accumulated Depreciation $114,800 ($100,800 + $14,000)

Loss on Disposal $285,200 ($221,120 + $64,080)

To Equipment $400,000

(Being the disposal of an asset is recorded)

7 0

3 years ago

Gerwin’s daughter Mary was seeking a position as an associate attorney with Baker, Charles & Dixon, a large metropolitan law

Alex777 [14]

The case filed by Gerwin against Baker will be null and void, as thee is no existence of any legal contract between the parties as such.

<h3>What is a legal contract?</h3>

A contract is said to be a legal one when the party who is presented with such an offer accepts on the terms and with a condition that the offer must be for legal activities.

In case when any of the criterion mentioned above are not followed by the offeror or the offeree, then in such case, any lawsuit filed against the plaintiff will be considered as null and void.

Hence, it can be concluded that there is no legal contract between Gerwin and Baker, and thus their cases are null and void.

Learn more about a legal contract here:

brainly.com/question/3208041

#SPJ1

5 0

2 years ago

Question 12 Which answer illustrates "compound interest"?

Ber [7]

Answer:D

Explanation:

7 0

3 years ago

Stanley-Morgan Industries adopted a defined benefit pension plan on April 12, 2021. The provisions of the plan were not made ret

Valentin [98]

Answer:

1. Projected Benefit Obligation 2021 $260,000

Projected Benefit Obligation 2022 $623,000

2.Plan assets 2021 $270,000

Plan assets 2022 $577,000

3. Pension expense 2021 $260,000

Pension expense 2022 $336,000

4.Net pension asset 2021 $ 10,000

Net pension liability2022 $46,000

Explanation:

1. Computation for Projected benefit obligation

for 2021 and 2022

Projected Benefit Obligation 2021

($)

Balance, January 1, 2021 $0

Service cost $260,000

Interest cost (5% x $0) $0

Benefits paid ($0)

Balance, December 31, 2021 $260,000

Projected Benefit Obligation 2022

Balance, December 31, 2021 $260,000

Service cost $350,000

Interest cost $13,000

(5% x $260,000)

Benefits paid($0)

Balance, December 31, 2022 $623,000

2. Computation for 2021 and 2022 Plan assets

Plan assets 2021

Balance, January 1, 2021 $ 0

Actual return on plan assets (10% x $0) $0

Contributions, 2021 $$270,000

Benefits paid ($0)

Balance, December 31, 2021 $270,000

Plan assets 2022

Balance, December 31, 2021 $270,000

Actual return on plan assets $27,000

(10% x $270,000)

Contributions, 2022 $280,000

Benefits paid (0)

Balance, December 31, 2022 $577,000

3. Computation for Pension expense for 2021 and 2022

Pension expense – 2021

Service cost $260,000

Interest cost (5% x $0) $0

Expected return on the plan assets $0

(10% x $0)

Pension expense $260,000

Pension Expense – 2022

Service cost $350,000

Interest cost $13,000

(5% x $260,000)

Expected return on the plan assets($27,000)

(10% x $270,000)

Pension expense $336,000

4. Computation for Net pension asset/liability for 2021 and 2022

2021

PBO $260,000

Less Plan assets $270,000

Net pension asset, Dec. 31, 2021 $ 10,000

2022

PBO $623,000

Less Plan assets $577,000

Net pension liability, Dec. 31, 2022 $ 46,000

3 0

3 years ago