The first company to introduce a new product has an advantage in acquiring customers and in building brand loyalty.

On December 31, 2020, Berclair Inc. had 400 million shares of common stock and 6 million shares of 9%, $100 par value cumulative

natulia [17]

Answer: $1.51 per share

Explanation:

Here's the question:

Compute Berclair's earnings per share for the year ended December 31, 2021.

Firstly, we.calculate the weighted average number of shares outstanding which will be:

= ( 400 × 12/12 × 1.05 ) - ( 30 × 10/12 × 1.05 ) + ( 5 × 3/12 )

= 420 - 26.25 + 1.25

= 395 million

Then, we calculate the preferred dividend which will be:

= 6 × 100 × 9%

= 6 × 100 × 0.09

= 54 million

Earnings per share will be:

= ( Net income - Preferrred dividend ) / Weighted average number of shares outstanding

= ( 650 - 54 ) / 395

= 596 / 395

= $1.51 per share

Berclair's earnings per share is $1.51 per share

8 0

3 years ago

Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its befor

Eva8 [605]

Answer:

(A) Cost of equity= 15.74%

(B) WACC = 12.86%

Explanation:

Palencia paint corporation has a 35% debt from it's target capital structure and 65% common equity

The before-tax cost debt is 10%

Marginal tax rate is 25%

Po is $22.00

Do is $2.25

Constant rate(g) is 5%

(A) The cost of common equity can be calculated as follows

= [Do(1+g)/Po] + g

=[2.25(1+0.05)/22] + 5%

= [2.25(1.05)/22] + 5%

= 2.3625/22 + 5%

= 0.1074+5%

= 0.1074×100+5%

= 10.74%+5%

Cost of equity = 15.74%

(B) The WACC can be calculated as follows

= weight of debt×after-tax cost of debt + weight of equity×cost of equity

= (35%)(10%)(1-25%) + (65%)(15.74%)

= (35%)(10%)(1-0.25) + (65%)(15.74%)

=(35%)(10%)(0.75) + (65%)(15.74%)

= 2.63% + 10.23%

= 12.86%

Hence the cost of equity is 15.74% and the WACC is 12.86%

4 0

4 years ago

Your great aunt left you $15,000 when she died. You can invest the money to earn 6.5% per year. If you spend $2,100 per year out

lisabon 2012 [21]

Answer:

The money will last for <u>approximately 10 years</u>.

Explanation:

Assuming the withdrawal to spend $2,100 is made at the end of each year, the relevant formula to use is therefore the formula for calculating the present value (PV) of an ordinary annuity as follows:

PV = P * [{1 - [1 / (1 + r)]^n} / r] …………………………………. (1)

Where;

PV = Present value of the inheritance left by your great aunt = $15,000

P = yearly withdrawal = $2,100

r = interest rate = 6.5%, or 0.065

n = number of years the money will last = ?

Substitute the values into equation (1) and solve for n as follows:

15,000 = 2,100 * [{1 - [1 / (1 + 0.065)]^n} / 0.065]

15,000 / 2,100 = {1 - [1 / 1.065]^n} / 0.065

7.14285714285714 = [1 - 0.938967136150235^n] / 0.065

7.14285714285714 * 0.065 = 1 - 0.938967136150235^n

0.464285714285714 = 1 - 0.938967136150235^n

0.938967136150235^n = 1 - 0.464285714285714

0.938967136150235^n = 0.535714285714286

Loglinearize both sides, we have:

n * log 0.938967136150235 = log 0.535714285714286

n = log 0.535714285714286 / log 0.938967136150235

n = -0.271066772286538 / -0.0273496077747564

n = 9.9112 years, or approximately 10 years

Therefore, the money will last for <u>approximately 10 years</u>.

3 0

3 years ago

U.S. advertisements contain more ________ information, and are more likely to include comparative appeals than Arabic ads.

posledela

U.S. advertisements contain more <u>price</u> information, and are more likely to include comparative appeals than Arabic ads.

The correct option is C.

<h3>What is advertisements?</h3>

A marketing communication known as advertising uses an openly sponsored, impersonal message to sell or promote a good, service, or concept. Typically, companies that want to advertise their goods or services are the sponsors of advertising.

<h3>What is advertisement and its importance?</h3>

A product, service, or concept is promoted for a fee when it is intended to persuade one or more people. Print, radio, television, and digital media are just a few of the different media that it might appear in. Persuading someone to purchase a product or take an action is the primary objective of advertising.

To know more about advertisements visit:

brainly.com/question/3163475

#SPJ4

I understand that the question you are looking for is:

U.S. advertisements contain more ________ information, and are more likely to include comparative appeals than Arabic ads.

A) people

B) process

C) price

D) sex

E) context

7 0

2 years ago

Which titles fits this Venn diagram best? A Venn diagram with 2 circles. The left circle is titled Title 1 with entries a group

Dennis_Churaev [7]

Answer:

b

Explanation:

gimme likes \(◕ヮ◕)/

6 0

4 years ago

Read 2 more answers