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tensa zangetsu [6.8K]
3 years ago
13

LUVFINANCE, Inc. is estimating its WACC. The firm could sell, at par, $100 preferred stock that pays a 10 percent annual dividen

d and incurs 4.72% flotation costs. What is the cost of new preferred stock financing?
Business
1 answer:
Nikolay [14]3 years ago
8 0

Answer:

The answer is "10.49%".

Explanation:

Preference inventory values are incurred as described below:

Using formula:

= \frac{Annual \ \ dividend}{ Price \times  (1 - flotation\ cost) ]}

= \frac{\$ 10}{[ \$ 100 \times (1 - 0.0472) ]}\\\\= \frac{\$ 10}{ \$ 100 \times (0.9528) }\\\\= \frac{\$ 10}{ \$ 95.28}\\\\=0.10495\\\\=10.49\%

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musickatia [10]

Answer:

$34,200

Explanation:

Step 1 : Cost of Equipment

<em>Cost of Equipment include Purchase Price plus other costs directly incurred to put the asset in location and condition intended for use by management</em>

Cost of Equipment = $110,500

Step 2 : Depreciation

Depreciation = (Cost - Residual Value)/ Useful Life

                       = $17,100

Step 3 : Accumulated Depreciation

Accumulated Depreciation =  $17,100 x 2 = $34,200

Therefore,

the amount of accumulated depreciation at December 31, 2022 is $34,200

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3 years ago
A regression line is the line that best fits the data, but this does not mean that the fit is good. In other words, there can st
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Larger-sq and small Se.

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An analyst can forecast future behaviors of the dependent variable by making use of the equation gotten the regression line. This is done by inputting different values for the independent ones. Regression lines are frequently employed in the financial sector.

Financial analysts make use of linear regressions to forecast stock prices, commodity prices and also to carry out valuations for many different securities. Companies use regressions for the purpose of forecasting sales, inventories and a lot of other variables that are needed for strategy and planning. The regression line formula is represented below:

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6 0
3 years ago
American expansionism after the 1890s:
lisabon 2012 [21]

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Explanation:

5 0
3 years ago
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The Incident Action Plan is prepared by General Staff from which section? A. Planning B. Operations C. Logistics D. Finance/Admi
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Answer:

The correct answer is A

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3 years ago
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