Think of a catchy slogan to go with it
Answer:
Market value of the stocks $
Market value of common stocks (3 shares x $40) 120
Market value of preferred stock ( 1 share x $100) 100
Total market value of the stocks 220
Total value of 50 packages of securities
= 50 x $154
= $7,700
The total value of preferred stocks
= $100/$220 x $7,700
= $3,500
The correct answer is A
Explanation:
There is need to calculate the market value of the two stocks by multiplying the units of each stock by their respective current market price. Then, we will determine the total value of the 50 packages of securities, Finally, we will determine the total value to be assigned to preferred stock, which is the market value of preferred stock divided by the total market value multiplied by the total value of 50 packages of securities.
Answer:
The correct answer is . d. none of the above.
Explanation:
Gini coefficient is a measure of the inequality devised by the Italian statistician Corrado Gini. It is normally used to measure income inequality, within a country, but it can be used to measure any form of unequal distribution. The Gini coefficient is a number between 0 and 1, where 0 corresponds to perfect equality (all have the same income) and where the value 1 corresponds to perfect inequality (one person has all income and none others ). The Gini index is the Gini coefficient expressed in reference to a maximum of 100, instead of 1, and is equal to the Gini coefficient multiplied by 100. A variation of two cents of the Gini coefficient (or two units of the index) is equivalent to a distribution of 7% of wealth from the poorest sector of the population (below the median) to the richest (above the median).
Answer:
a) 13.18%
b) 9.06%
c-1) 14.55%
c.2) 11.805%
c.3) 9.06%
Explanation:
debt = 60%, cost of debt = 5.4% x 0.75 = 4.05%
equity = 40%, Re = ?
WACC = 7.7%
7.7% = (40% x Re) + (60% x 4.05%)
7.7% = (40% x Re) + 2.43%
(40% x Re) = 5.27%
Re = 5.27% / 40% = 13.175 = 13.18%
13.18% = ReU + (ReU - 0.054) x 1.5 x (1 - 25%)
13.18% = ReU + (ReU - 0.054) x 1.125
0.1318 = ReU + 1.125Reu - 0.06075
0.19255 = 2.125ReU
ReU = 0.19255 / 2.125 = 9.06%
ReL = 9.06% + (9.06% - 5.4%) x 2 x 0.75
ReL = 14.55%
ReL = 9.06% + (9.06% - 5.4%) x 1 x 0.75
ReL = 11.805%
