Answer:
a. The cost of the marble will be expensive because of the bargaining power of the supplier.
Explanation:
Answer:
$17.27
Explanation:
The stock intrinsic value is calculated using dividend discounted model (DDM). The DDM is stated as below:
Stock intrinsic value = [This year dividend x (1 + Dividend growth)]/[Equity cost of capital - Dividend growth]
= [1.9 x (1 + 0%)]/[11% - 0%] = $17.27
So vlaue of NoGrowth's stock is estimated at $17.27
Answer:
8%
Explanation:
Data provided in the question
Current selling price of the preferred stock = $28
Annual dividend = $2 per share
Flotation cost = $3 per share
Firm tax rate = 40%
So by considering the above information, the cost of new preferred stock is
= Annual dividend per share ÷ (Current selling price of the preferred stock - Flotation cost)
= $2 ÷ ($28 - $3)
= $2 ÷ $25
= 8%
We simply applied the above formula so that the cost of preferred stock could arrive
Answer:
The cost of the 28 units sold is $548
Explanation:
In the given question,
On March 1 it purchase 12 units for $15 = 12 units × $15 = $180
On March 2 it purchase 12 units for $24 = 12 units × $24 = $288
On March 6 it purchase 7 units for $20 = 7 units × $20 = $140
And, on march it sold 28 units for $63 each
The 28 units could be taken from
12 × $15 = $180
12 × $24 = $288
And remaining 4 units × $20 = $80
So, the total cost of units sold = $180 +$288 +$80 = $548
Answer:
Explanation:
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