Answer:
The firm's cost of preferred stock is 9.10%
Explanation:
The cost of preferred stock with the flotation of 5% would be the dividend payable by the preferred stock divided by the adjusted current market price(adjusted for flotation cost)
The dividend per year is $8
The adjusted price of the stock=$92.50*(1-f)
where f is the flotation cost in percentage terms i.e 5%
adjusted price of the stock is =$92.50*(1-5%)=$ 87.88
Cost of preferred stock=$8/$87.88*100 = 9.10%
Answer:
Inelastic demand, Amputation procedure
Explanation:
The good with no close substitute is likely to experience inelastic demand because the consumer does not any close substitute to change to, this means that even when price is increased, the consumer is not likely to stop buying if the good is a necessary good.
The Amputation procedure will have least elastic demand because the diabetes sufferer does not have close substitute to change to when price increase while Diamond necklace is a luxury good, when the price is increased the consumer stop buying or switch to other luxury goods such as gold, silver that are equally used for decoration purposes.
Answer:
$94 per share
Explanation:
Stockholders Equity Includes the Add-in-capital par value, Add-in-capital excess value of Common and Preferred, Net income accumulated value and dividends.
Equity of the firm = Assets - Liabilities
Equity of the firm = $125 million - $25 million = $100 million
Net Addition in the equity = Net earning for the period - Dividend paid
Net Addition in the equity = $10 million - $4 million - $6 million
Book Value of the equity = Equity of the firm - Additions in the year
Book Value of the equity = $100 - $6 = $94 million
Book value per share = Book Value of the equity / Numbers of Share
Book value per share = $94 million / 1 million
Book value per share = $94 per share
Answer: The Loan Estimate, The Closing Disclosure, and The Notice of the Right to Rescind
Explanation:
Answer:
$1,120
Explanation:
Ending Merchandise Inventory is value of closing inventory in hand, to be valued at lower of cost or net realizable value or replacement value
Here, cost of closing inventory = 7 units X $160 each = $1,120
Since current realizable/ replacement value = $1,155
Cost is less than realizable value, therefore cost will be considered.
Thus ending merchandise inventory will be valued at total of $1,120.
