Answer:
a. Weighted average flotation cost
= FCE(E/V) + FCD(D/V)
= 7(100/170) + 4(70/170)
= 4.12 + 1.65
= 5.77%
V = E + D
V = 100 + 70 = 170
b. Flotation cost of debt financing
= 4% x $18 million
= $0.72 million
True cost of the building after taking flotation cost into account
= $18 million + $0.72
= $18.72
Explanation:
The weighted average flotation cost is the flotation cost of equity multiplied by the proportion of equity in the capital structure plus flotation cost of debt multiplied by proportion of debt in the capital structure. The total market value is 100 + 70 = 170. Since the debt-equity ratio is 0.7. Debt takes 70 while equity takes 100. The proportion of equity in the capital structure is 100/170 while the proportion of debt in the capital structure is 70/170.
Answer:
D: "Track his expenses for a month"
Explanation:
If he ends up tracking his expenses for a month he'll know what to spend his money on and what not to. (Need or Want)
Answer:
Predetermined overhead rate= $21 per hour
Applied overhead= $1,890,000
Explanation:
Overhead absorption rate (OAR)= Budgeted Overhead/Budgeted computer hours
= $2,100,000/100,000 computer hours= $21 per hour
Predetermined overhead rate= $21 per hour
Applied overhead= OAR × Actual hours
Overhead applied = $21 per hour × 90,000 = $1,890,000
Applied overhead= $1,890,000
Answer:
leadership
Explanation:
The ability to influence employees to voluntarily pursue organizational goals is referred to as leadership.
Yes, licensees may utilize templates that were designed or approved by lawyers. If Roberto, a licensee, filled out the boxes on a typical form used by his brokerage company.
In order to complete a transaction for stock shares, bonds, options, and other financial instruments, a brokerage firm or brokerage company acts as a middleman between buyers and sellers.
Following the completion of the transaction, commissions or fees are levied as payment to the broker.
The majority of discount brokerages now provide zero-commission stock trading to its clients. The businesses compensate for this revenue loss from other sources, such as compensation from the exchanges for large orders and trading commissions for other goods like mutual funds and bonds.
- A brokerage firm typically serves as a middleman, bringing together buyers and sellers to streamline a transaction.
- A set annual charge or fees per transaction are used to pay full-service brokerage firms.
Learn more about brokerage firms here
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