Thank you for posting your question here. To answer the problem, i<span>f the risk-free rate is 5% and expected inflation rate is 16%, that would result in a total rate of 21%. Then divide 1 by 0.79 = 1.266. Therefore, my answer is a yield of 26.6% is required. Mind you, this is not scientific, but rather my best guess, but it can't be all wrong.</span>
Answer:
The required rate of return is 7.20%
Explanation:
The price of the preferred stock share is the dividend which is divided through the required rate of return. It is the same as the model of the constant growth, with the dividend growth rate of the 0%.
This is the special case of the model of the dividend growth where the growth rate is 0 and the level of perpetuity.
So, using the equation, compute the price per share of the preferred stock as:
Rate = Dividend (D) / Price (P0)
where
Dividend is $5.80
Price (P0) is $80.50 per share
So, putting the values above:
Rate = $5.80 / $80.50
Rate = 7.20%
Answer:
c. are incurred regardless of sales volume
Explanation:
Fixed costs are expenditures that do not vary with changes in production level. They are the costs that remain constant throughout a financial period. A business will incur fixed costs as long as it's operational regardless of its output or sales level.
Examples of fixed costs are rent, depreciation, salaries, and insurance costs. The majority of overhead costs and indirect costs make up the fixed costs. Variable cost contrasts fixed costs as they increase or decrease as production level changes.
Answer:
B.
Current Ratio 3.86
Quick Ratio 1.48
NWC to total assets ratio 0.458
C. Debt to asset 0.452
Debt to equity 1.18
Interest Coverage 6 times
D. Net profit margin 5.8%
sales to total asset 2.48 times
return on assets 14.5%
E. Equity multiplier 2.18 times
Explanation:
<u>A.</u>
<u>Income Statement :</u>
Sales $325,000
Operating costs $285,000
Gross profit $40,000
Less Expense :
depreciation $10,000
Earning before Interest and Tax $30,000
Interest Expense $5,000
Earning after Tax $25,000
Tax expense $6,000
Net Income $19,000
<u>Balance Sheet:</u>
Assets:
Cash $1,000
Receivables $30,000
Inventories $50,000
Current Assets $81,000
Fixed Assets $50,000
Total Assets $131,000
Equity:
Stockholder's Equity $60,000
Liabilities:
Payables $11,000
Accruals $10,000
Current Liabilities $21,000
Long term Loan $50,000
Total equity and liabilities $131,000
Answer:
$3,978.00 is the end cash account balance after all monthly transactions have been processed and posted.
Explanation:
$5,690.00-2,380.00-43.00-160.00-500.00+69.00+1,300.00 (if the deposites outstanding have posted for the 1,300.00)=$3,978.00
OR $2,678.00 (without the deposites outstanding being posted to the account. )
