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Zigmanuir [339]
3 years ago
5

A firm is considering a project and plan to obtain a target capital structure with $64,519 of debt at a before-tax cost of 9.6%,

$17,673 of preferred stock at a cost of 10.7% and $70,938 of equity at a cost of 13.5%. The firm faces a tax rate of 40%. What will be the firm’s weight on preferred stock?
Business
1 answer:
bazaltina [42]3 years ago
3 0

Answer:

Weight on preferred stock =   0.1154 or 11.54%

Explanation:

The capital structure of a firm can be made up of one, two or all of the following components namely Debt, preferred stock and common equity. To calculate the firm's weight on the preferred stock, we need to calculate the total value of the firm's target capital structure and divide the value of preferred stock in the capital structure by the total value of the target capital structure.

Total value of capital structure = 64519  +  17673  +  70938  = 153130

Weight on preferred stock = 17673 / 153130  =  0.1154 or 11.54%

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$64 million

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4 years ago
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What is the diference between a conflict based on a power struggle and a conflict based on a personality difference?
saul85 [17]

Answer:

Explanation:

A conflict is said to be power-based struggle when two or more individuals are fighting for control. For example, when two countries are fighting for superiority or when two men are fighting over a political post which leads to power struggle.  on the other hand, a conflict is said to be personality difference based when two or more people  conflict based on incompatible individual attitudes. For example, imagine two people in a room living together one takes care of the house , sweep , clean , and the other doesn't care about the tidiness of the room there will be a personality difference based conflict.

in a nut-shell

conflict based on a power struggle implies a power struggle while conflict based on a personality difference involves individual habits or attitude.

8 0
3 years ago
In the u.s. surgeons earn a median salary of $365,885, which puts them at the ________ of all income.
nataly862011 [7]
<span>This answer should be "c" the top 20%. The income is clearly not middle income level, which would be d or a. It is definitely not b- bottom 20%. Therefore we are left with c- top 20% and this jives with my own experience. 1% would include millionaires and above, therefore we are left with a relatively small group of high income earners who aren't necessarily millionaires- in the sense that they earn a million or more per year.</span>
6 0
4 years ago
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guajiro [1.7K]

Answer:

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Explanation:

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3 years ago
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Evgen [1.6K]

Answer:

debit to the Allowance account.

Explanation:

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3 years ago
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