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3 years ago

Can somebody help me figure out what he means by this assignment. Don't actually do it but like explain it to me

Business

1 answer:

Minchanka [31]3 years ago

3 0

Answer:

It seems like u have to see what companies did to help out like did they raise how much the get paid in hour I hope this helps.

Explanation:

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Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because t

dimulka [17.4K]

Answer:

$51.25

Explanation:

P9 = Next dividend / Required rate r - Growth rate g

P9 = $15 / 14% - 5%

P9 = $15 / 9%

P9 = $166.67

Po = P9 / (1 - Required rate of return)^9

Po = $166.67 / (1 + 0.14)^9

Po = $166.67 / 3.2519

Po = $51.25

So, the current stock price is $51.25.

8 0

3 years ago

PAW Industries has 5 million shares of common stock outstanding with a market price of $8.00 per share. The company also has out

AlladinOne [14]

Answer:

A. 10.14%

Explanation:

1.Market value of PAW common stock:5,000,000*8=$40,000,000

2.Market value of PAW outstanding preferred stock=$10,000,000

3.Market value of PAW bonds outstanding=96,000,000(100,000*1000*96%)

Total Market value(1+2+3)=146,000,000

4.Cost of equity amount on common stock(19%*40,000,000)=7,600,000

5.Cost of preferred stock amount (15%*10,000,000)=$1,500,000

6.After tax cost of Debt amount(9%*66%*96,000,000)=$5,702,400

Total cost amount(4+5+6)=14,802,400

The WACC can be calcualted as: Total cost amount/Total market value

14,802,400/146,000,000=10.14%

The answer should be A. 10.14%

3 0

3 years ago

DeLong Corporation was organized on January 1, 2017. It is authorized to issue 14,500 shares of 8%, $100 par value preferred sto

DanielleElmas [232]

Answer:

Jan. 10

Cash $507,00 (debit)

Common Stock $507,00 (credit)

Mar 1

Cash $566,500 (debit)

Preferred Sock $515,000 (credit)

Share Premium : Preferred Stock $51,500 (credit)

April 1

Land $91,000 (debit)

Common Stock $91,000 (credit)

May 1

Cash $420,000 (debit)

Common Stock $420,000 (credit)

Aug 1

Legal Expenses : Attorneys bill $39,500 (debit)

Common Stock $39,500 (credit)

Sept 1

Cash $80,500 (debit)

Common Stock $80,500 (credit)

Nov 1

Cash $222,000 (debit)

Preferred Sock $200,000 (credit)

Share Premium : Preferred Stock $22,000 (credit)

Explanation:

<u>Common Stocks are at no par value:</u>

This means that ,

1.When Common Stocks are Issued, the value is the issue price there is no share premium reserve on it.

2. For consideration paid in Common Stocks, value of stocks would be the same as the cost at initial recognition. For example the Purchase of Land on April 1. Initial recognition is at Asking Price of $91,000. Hence common stocks are issued at $91,000.

<u>Preference Stocks are at $100 par</u>

This means that,

1.Any issue of Preference Stock made in excess of par value is accounted in the Preference Share Premium Reserve.

5 0

3 years ago

When managers of firms in a competitive market observe falling profits, they may infer that the market is experiencing a. a viol

Oliga [24]

Answer:

c. the entry of new firms

Explanation:

The entry of the new firms in the market creating a market supply curves to shift to the right side and as the curve shifts the markets price then starts to decline with it

This declines the economic profits in the new and the existing firms as long as the profits exists in the markets and entry will continue to shift to supply to the right.

The diversification of the melt and the fall in the monopoly of the firms start to take place.

They take up resource ownership and technological developments. In short, they increase the competitiveness and bring rivalry into the market.

7 0

3 years ago

What is the difference between birthrate and death rate

Schach [20]

Birthrate is the number of births while deaerate is the number of deaths

4 0

3 years ago