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yanalaym [24]
3 years ago
15

J&J Foods wants to issue 5.4 percent preferred stock with a stated liquidating value of $100 a share. The company has determ

ined that stocks with similar characteristics provide a return of 8.2 percent. What should the offer price be?
Business
1 answer:
Studentka2010 [4]3 years ago
3 0

Answer:

$65.85

Explanation:

Calculation for What should the offer price be

Using this formula

Offer price=(Preferred stock× Liquidating value)/Return

Let plug in the formula

Offer price = (0.054 × $100) / 0.082

Offer price=5.4/0.082

Offer price = $65.85

Therefore the offer price should be $65.85

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The income statement of Benning Co. for the month of July shows net income of $1,400 based on Service Revenue $5,500, Wages Expe
Rom4ik [11]

Answer:

Net Income = $1,250

Explanation:

Benning Co.

Income Statement

For the Month Ended July 31, 2010

Particulars                             $                     $

Revenues                                                6,000 (1)

Expenses:

Wages Expense               2,600 (2)

Supplies Expense            1,000 (3)

Utilities Expense                600

Insurance Expense            400

Depreciation Expense       150

<em>Total expenses                                 </em><u><em>      4,750   </em></u>

Net Income                                            $1,250

<u><em>Note:</em></u>

1. Revenues = 5,500 + 500 (Adjustment 5) = $6,000

Performed services not recorded will add.

2. Wages expense = $2,300 + 300 (Adjustment 3) = $2,600

Accrued wages not paid will add to the wages expense.

3. Supplies Expense = $1,200 - 200 (Adjustment 2) = $1,000

Supplies expense includes supplies on hand will decrease the supplies expense.

3 0
3 years ago
Stinehelfer Beet Processors, Inc., processes sugar beets in batches.
babunello [35]

Answer:

$19

Explanation:

The computation of the financial advantage or disadvantage is shown below:

= Sale value after processed further - cost of processed further - sale value without processed further

= $91 - $29 - $43

= $19

Simply we deducted the cost of processed further and the sale value without processed further from the Sale value after processed further so that the correct amount can come

All other information which is given is not relevant. Hence, ignored it

5 0
4 years ago
When calculating the afterminustax weighted average cost of capital​ (WACC), which of the following costs is adjusted for taxes
sergey [27]

Answer:

The before-tax cost of debt is adjusted for tax in the computation of weighted average cost of capital.

The correct answer is  D

Explanation:

In the calculation of weighted average cost of capital, the before tax cost of debt is adjusted for tax so as to obtain the after-tax cost of debt. Cost of equity and cost of preferred stocks will not be adjusted for tax.

6 0
3 years ago
FLASH Delivery has EPS of $6.00 per share and has a payout ratio of 40%. Its dividend is expected to grow at a rate of 5.25%. If
beks73 [17]

Answer:

The answer is "Option c"

Explanation:

The Dividend payout ratio is 40% so that EPS* is the dividend payout ratio of the company:

= 6 \times 40 \% \\\\= \$ \ 2.40

Inventory market value:

= Dividend \times \frac{(1+g)}{(r-g)}

Where r = return rate is needed

g= growth = 5.25\% = \frac{5.25}{100} = 0.0525

\to 22.86 = \frac{(2.4 \times (1+g))}{ r-0.0525}\\\\\to 22.86 = \frac{(2.4 \times (1+0.0525))}{r-0.0525}\\\\\to (22.86 \times r)-(22.86 \times 0.0525)=2.526\\\\\to (22.86  \times r)-1.20015=2.526\\\\\to 22.86r=3.72615\\\\\to r=0.1630\\\\\to r=16.30 \%

6 0
3 years ago
When using a bcg matrix, a business that currently holds a large market share in a rapidly growing market and has minimal or neg
SCORPION-xisa [38]

When using a bcg matrix, a business that currently holds a large market share in a rapidly growing market and has minimal or negative cash flow would be known as a Star.

An astronomical object known as a star is made up of a bright plasma spheroid that is held together by gravity. The Sun is the star that is closest to Earth. Other stars are also visible at night with the unaided eye, but because to their great distances from Earth, they appear as stationary points of light. Many of the brightest stars have names, and the most notable stars have been grouped into constellations and asterisms. Star catalogues have been put out by astronomers that list the known stars and offer standardized stellar labels. An estimated 1022–1024 stars are present in the observable cosmos. Even so, the majority—including all individual stars outside our galaxy, the Milky Way—are invisible to the human eye from Earth.

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