Answer:
McDonald's Corp
The cost of capital for the preferred stock is:
10.67%
Explanation:
a) Data and Calculations:
Market price of preferred stock = $178
Preferred stock dividend = $19
Cost of capital = Preferred stock dividend/Market price of preferred stock * 100
= $19/$178 * 100
= 10.67%
b) The cost of capital for McDonald's preferred stock is the finance cost or interest cost that it must incur for financing its projects using preferred stock. This represents the 10% of the preferred stock value that is paid out to preferred stockholders.
Answer:
B. Unfavorable
Explanation:
Variance is use to know the difference between the standard cost which is the budgeted cost and the cost actually incurred and this amount of difference can either be favorable or unfavorable.
The variable overhead efficiency variance is the difference between standard hours for actual output and the actual hours taken at the standard variable overhead rate.
If the direct labor efficiency variance is unfavorable, then variable overhead efficiency variance will also unfavorable because the difference of standard hours for actual production and actual hours will remains the same for both.
Answer: Average realized stock = 21.59%,
The preceding data series represents a sample
Standard deviation = 0.7522
Explanation:
Average realized stock = 21.25% + 14.45% + 25.50% + 35.70% + 11.05% = 1.07595/5 = 21.95%
Standard deviation =
21.25% - 21.95% = -7.14% (-7.14%)^2 = 0.509
25.50% - 21.95% = 3.91% (3.91%)^2 = 0.512
35.70% - 21.95% = 14.11% (14.11%)^2 = 1.990
11.05% - 21.95% = -10.54% (-10.54%)^2 = 1.110
_____
Sum = 3.761/5 = 0.7522
Answer:
The correct answer is (C)
Explanation:
Economics is all about allocating limited resources to attain maximum utility. In that regard, efficiency can be achieved by giving contracts to companies with higher productivity. These companies are all about attaining maximum productivity by investing limited resource. More productivity will increase the utility, and that will improve economic efficiency. So it is critical to give projects and contracts to certain companies which can increase the overall productivity.
Answer:
12.53%
Explanation:
Since there are only two assets in the portfolio, its standard deviation can be determined using the two-asset portfolio standard deviation provided below;
σP = (wA2 * σA2 + wB2 * σB2 + 2 * wA * wB * σA * σB * ρAB)^(1/2)
wA=proportion of the portfolio invested in X=60%
σA=standard deviation of return on X= 10%
wB=proportion of the portfolio invested in Y=40%
σB=standard deviation of return on Y =21%
ρAB= correlation between X and Y=.5
σP=(60%^2*10%^2+40%^2*21%^2+2*60%*40%*10%*21%*.5)^(1/2)
σP=12.53%