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77julia77 [94]
3 years ago
12

JKL has 3 million shares of common stock outstanding and 80,000 bonds outstanding. The bonds pay semi-annual coupons at an annua

l rate of 9.05%, have 6 years to maturity and a face value of $1,000 each. The common stock currently sells for $30 a share and has a beta of 1. The bonds sell for 94% of face value and have a 10.42% yield to maturity. The market risk premium is 5.5%, T-bills are yielding 5% and the tax rate is 30%. What is the firm's capital structure weight for equity
Business
1 answer:
mylen [45]3 years ago
8 0

Answer:

54.48%

Explanation:

The computation of the weight of equity is given below;

But before that we need to do the following calculations

Total Equity

= 3 million shares × $30

= $90 million

The Value of Debt,

Total Debt = 80,000 (1,000)(0.94)

= $75.2 million

Now the weight of equity is

= $90 million ÷ ($90 million + $75.2 million)

= 54.48%

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exis [7]

Answer:

2) CLTV

Explanation:

Customer lifetime value (CLTV) is simply how much profit do you expect to earn from a specific customer, or group of customers. There are several ways of calculating CLTV, but I believe this is the easiest one.

CLV = T x AOV x AGM x ALT

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  • AOV = average order value
  • AGM = average gross margin
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6 0
3 years ago
Balance of payments
NemiM [27]

Answer:

Option (D) is correct.

Explanation:

Balance of payment is defined as the difference between the total value of payments to the rest of the world and total value of receipts from the rest of the world over a period of time.

Balance of payments includes all the transactions take place between a nation with the rest of world.

Balance of trade is a sub-part of balance of payments which includes all the transactions of goods and services between the nations.

A country has either a negative balance of payment, balanced balance of payment or positive balance of payment.

8 0
3 years ago
Fois Company has two divisions, Division X and Division Y. Division X has a production capacity of 5,000 units of a particular p
kogti [31]

Answer:

Lost contribution per unit = $56 per unit

Explanation:

The Division X is operating at less than full capacity, hence it has excess capacity   of  600 units i.e (5000- 4,400)

This implies that it can only produce to meet the external and a portion of  Division Y demand  

Since Division X can only accommodate a portion of the internal demand, an opportunity would arise if it decides to meet all the request of Division Y.

Therefore, the minimum transfer price

minimum transfer price= Variable cost + a lost contribution from internal supply

The lost contribution represent the amount Division X would have made had sold the units to external buyers

Lost contribution per unit = $56 per unit

8 0
3 years ago
Which NIMS Management Characteristic includes developing and issuing assignments, plans, procedures, and protocols to accomplish
Naya [18.7K]

Management by objectives includes developing and issuing assignments, plans, procedures and protocols to accomplish tasks.

<u>Explanation:</u>

NIMS is a comprehensive national approach to the incident management that is applicable at all the jurisdictional levels and across all the functional disciplines. The major purpose of NIMS is to improve the coordination of the public and the private enterprises in a variety of incident management activities.

There are certain management characteristics of NIMS. Some of them are common terminology, modular organisation, management by objectives, incident action planning and many more.

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3 years ago
hey guys im sry for the miss of me not being here i got busy so i wanna catch up with yall so tell me everything tahts gonnin on
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I’m sick :( i feel so weak i’m going to the gym later tho i always need to workout feels weird not doing it Imaoo
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