1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
NeTakaya
3 years ago
15

Saint Nick Enterprises has 17,500 shares of common stock outstanding at a price of $69 per share. The company has two bond issue

s outstanding. The first issue has 7 years to maturity, a par value of $1,000 per bond, and sells for 101.5 percent of par. The second issue matures in 21 years, has a par value of $2,000 per bond, and sells for 106.5 percent of par. The total face value of the first issue is $250,000, while the total face value of the second issue is $350,000. What is the capital structure weight of debt
Business
1 answer:
mihalych1998 [28]3 years ago
8 0

Answer:

total weight of debt = 0.343 or 34.3%

Explanation:

stock's market value = 17,500 x $69 = $1,207,500

bond₁'s market value = $250,000 x 101.5% = $256,750

bond₂'s market value = $350,000 x 106.5% = $372,750

total market value of the firm = $1,837,000

weighted capital structure:

                                       market value            weight

stocks                             $1,207,500               0.657

bond₁                              $256,750                  0.140

bond₂                              $372,750                  0.203

total                                $1,837,000                 1

total weight of debt = 0.343 or 34.3%

You might be interested in
Dennis sells short 100 shares of ARC stock at $152 per share on January 15, 2020. He buys 200 shares of ARC stock on April 1, 20
makkiz [27]

Answer: See explanation

Explanation:

a. What are the amount and nature of Dennis’s loss upon closing the short sale?

Sales consideration = $100 × $152 = $15200

Less: Closing Value of Short sales = 100 × $190 = $19000

Short term capital loss = $3800

b. When does the holding period for the remaining 100 shares begin?

The holding period for the remaining 100 shares begin on May 2, 2020, which was when the short sale was closed.

c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?

Sales consideration = 100 × $27 = $2700

Less: Base value = $19000

Short term capital loss = $16300

4 0
3 years ago
You observe the 12-month and 18-month zero coupon rates for U.S. Treasury securities are 1.95% and 2.25%, respectively. Assuming
borishaifa [10]

Answer:

semiannual 1.42%

yearly          2.85%

Explanation:

Those are annual rate so we need to determinate the 6-month rate

The annual rate times the semiannual rate will be equal to the 18 months rate

(1+0.0195)(1+r)=(1.0225)^{3/2}

\frac{1.0225^{3/2} }{1.0195} - 1 = r

r = 0.01416296  = 1.42%

If we want to express it annually:

1.0142^2 - 1 = r  = 2.85%

<em />

6 0
3 years ago
Priorities are important in making financial decisions because they _____.
aivan3 [116]
The answer to your question is the letter d.
6 0
3 years ago
The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the margi
alexdok [17]

The true statement about this natural monopoly is that It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.

  • Also, it is a true statement that natural monopolies can earn positive profit in the long run without the government regulation.

<h3>What is a natural monopolies?</h3>

This refers to the type of monopoly that exists in a particular market if a single firm can serve that market at lower cost than any combination of two or more firms.

It mostly occurs when when the most efficient number of firms in the industry is one. Also, a natural monopoly will ideally have very high fixed costs implying that it is impractical to have multiple firms producing the good.

A very good example of a natural monopoly is the case of tap water.

Hence, the true statement about this natural monopoly is that It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers and it is a true statement that natural monopolies can earn positive profit in the long run without the government regulation.

Therefore, the answers are Option B and True.

Read more about natural monopoly

brainly.com/question/13113415

#SPJ1

5 0
1 year ago
Includes all the activities in selling goods or services directly to final consumers for personal, non-business use.
Inga [223]

Answer:  Option B

                                       

Explanation: In simple words, retailing refers to the process in which an organisation makes their produced goods or serve to the end consumer efficiently. The retailing adds the value of the commodity by providing it to the end consumer more easily as everyone would not be able to collect the desired commodity directly from supplier.

Any business unit that is involved in the activity of purchasing the goods and selling the goods further for a margin is involved in retailing process. Retailer usually collects its inventory from the whole seller appointed by the producer.

7 0
3 years ago
Other questions:
  • Identical products is a characteristic of a(n) ______ .
    5·1 answer
  • The ______ operator always follows the cin object, and the ______ operator follows the cout 44 object.
    11·1 answer
  • On January 2, 2016, Alpha Company acquired a new machine by signing a 5 year note for $62,000. The estimated service life is eig
    9·1 answer
  • The following information is available for Ivanhoe Company for 2017. Cash used to purchase treasury stock $ 167,388 Cash dividen
    11·1 answer
  • Zappos, the online shoe and clothing marketer, promises free shipping and free returns on any of its products, no questions aske
    13·1 answer
  • ___________ is/are associated with collecting, storing, and distributing the product or service to buyers. They consist of wareh
    5·1 answer
  • At the heart of operations management is the transformation process through which inputs (resources such as labor, money, materi
    14·1 answer
  • Buying and selling products online is called ____________. A. Information systems B. Browsing the web C. E-commerce D. E-mailing
    14·1 answer
  • PLEASE HELP ASAP::::
    15·1 answer
  • Spindler, Inc. (a U.S.-based company), imports surfboards from a supplier in Brazil and sells them in the United States. Purchas
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!