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erica [24]
3 years ago
6

Peter owns 100 shares of a company. He receives a fixed rate of dividend from these shares. Which type of share has Peter purcha

sed?
A. equity shares
B. preference shares
C. ordinary shares
D. priority shares
E. investment security
Business
1 answer:
EastWind [94]3 years ago
5 0

Answer:

B. preference shares

Explanation:

Preference shares are issued by corporate to raise additional capital. They are considered hybrid securities because they combine elements of debts and equity. Preference shareholders have a priority claim in dividends over ordinary shares. They enjoy fixed dividends payments but have no voting rights.

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Answer:

Option D

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3 years ago
Aspen's Distributors has a levered cost of equity of 13.84 percent and an unlevered cost of capital of 12.5 percent. The company
Reptile [31]

Answer:

8.60%

Explanation:

We use the MM proposition II with taxes

r_e = r_a + \frac{D}{E} (r_a-r_d)(1-t)

ra 0.125

D 5000

E 9600 (14,600 assets = 5,000 liab + equity)

rd ??

taxes 0.34

re 0.1384

We set p the formula and solve:

0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)

0.1384 = 0.125 + \frac{5,000}{9,600} (.125-r_d)(1-.34)

0.1384 - 0.125 = 0.34375 (.125-r_d)

0.0134 = 0.34375\times 0.125 - 0.34375\times r_d

r_d = (0.34375\times 0.125 - 0.0134)\div 0.34375

rd = 0.860181818 = 8.60%

6 0
3 years ago
Your team is consulting with a local manufacturing company that has 1,200 employees and is the third largest employer in the are
Vedmedyk [2.9K]

Answer:

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Explanation:

8 0
3 years ago
Juniper Enterprises sells handmade clocks. Its variable cost per clock is $16.80, and each clock sells for $28. Calculate Junipe
Soloha48 [4]

Answer:

For Juniper Enterprises to breakeven it must sell 607 units

Explanation:

To break-even means making sales where the proceeds from sales transactions equal the amount of total costs incurred,hence no gain no loss situation.

Break-even point in units=fixed cost/contribution per unit

fixed costs incurred is $8,400

contribution per unit=selling price per unit -variable cost per unit

selling price is $28

variable cost is $16.80

contribution per unit=$28-$16.80=$11.2 0

break-even in units =$6,800/$11.2 0=607 units

8 0
3 years ago
In its 20X3 financial statements, Cris Co. reported interest expense of $85,000 in its income statement and cash paid for intere
IgorLugansk [536]

Answer:

The answer is: D) $32,000

Explanation:

In 20x3, Cris. Co. paid in cash $68,000 for interest, including $15,000 of interest from 20x2.

The amount of cash paid for 20x3 interests = $68,000 - $15,000 = $53,000

Interest payable = interest expense 20x3 - cash paid for 20x3 interests

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3 0
3 years ago
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