Answer: New debt is preferable to new equity
Explanation: In simple words, pecking order theory refers to the corporate finance phenomenon which states that managers of a company finance their company on the basis of three sources and always prefers one over the other.
As per this theory the first preference for the manager is retained earnings, second option should be debt and the last resort should be equity. A manager following pecking order theory focuses on decreasing the risk of financing rather than the cost of capital.
Answer:
Weak because of proximate cause is difficult to prove in absence of other similarly affected individuals
Explanation:
Since in the question it is mentioned that the 60 year old man have a lung cancer so he sues the asbestos manufacturer also he trust that it is unsafe as her friend who use the alternative material has not have a lung cancer so here the case would be weak as of proximate cause as it is difficult for proving it
Therefore the same is to be considered
Answer:
You should pay a stock price of $33.33
Explanation:
We can use the formula below to calculate the price per share that you would be willing to pay;
RRR=(EDP/SP)+EDGR
where;
RRR-required rate of return
EDP-expected dividend payments
SP-share price
EDGR-expected dividend growth rate
This can also be written as;
Required rate of return=(Expected dividend payments/share price)+expected dividend growth rate
In our case;
RRR=12%=12/100=0.12
EDP=$2
SP=unknown
EDGR=6%=6/100=0.06
replacing;
0.12=(2/SP)+(0.06)
0.12-0.06=(2/SP)
0.06=(2/SP)
0.06 SP=2
SP=2/0.06
SP=33.33
You should pay a stock price of $33.33
Answer:
$21,000
Explanation:
NOL, Phillis and Trey's taxable income must be adjusted by:
= Standard deduction - (Interest income + Net non business capital gain)
= $24,000 - [$500 + ($4,800 - $2,300)]
= $24,000 - ($500 + $2,500)
= $24,000 - $3,000
= $21,000
Therefore, the NOL, Phillis and Trey's taxable income must be adjusted by $21,000.
Answer:
$113,465
Explanation:
Calculation to determine difference in total dollars that will be paid to the lender under each loan
First step is to Calculate the difference in payments on a 30-year mortgage at an interest rate of .75% a month
$100,000 = PMT([1 / (0.0075)] − 1 / {(0.0075)[(1.0075)]^30 × 12})
PMT = $804.62
Second step is to Calculate the difference in payments on a 15-year mortgage at an interest rate of .7% a month
$100,000 = PMT([1 / (0.007)] − 1 / {(0.007 )[ 1.007)]^15 × 12})
PMT = $ 978.87
Now let determine the Total difference
Total difference = ($804.62 × 12 × 30) − ($978.87 × 12 × 15)
Total difference= $113,465
Therefore difference in total dollars that will be paid to the lender under each loan is $113,465
