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Dmitrij [34]
4 years ago
6

Kim's Bridal Shoppe has 15,000 shares of common stock outstanding at a price of $11 a share. It also has 2,000 shares of preferr

ed stock outstanding at a price of $34 a share.
There are 50 bonds outstanding that have a 7.5 percent semiannual coupon. The bonds mature in six years, have a face value of $1,000, and sell at 96 percent of par.

What is the capital structure weight of the common stock?A. 24.20B. 31.68C. 53.15D. 58.72E. 66.23
Business
1 answer:
AURORKA [14]4 years ago
5 0

Answer:

Market value of common stocks (15,000 x $11)     165,000

Market value of preferred stocks  (2,000 x $34)   68,000

Market value of bonds  (50 x $960)                        48,000

Market value of the firm                                           281,000

The capital structure weight of common stocks

= $165,000/$281,000 x 100

= 58.72%

Explanation:

In this case, there is need to determine the market value of the company, which is the aggregate of market value of common stocks, market value of preferred stocks and market value of bonds. The capital structure weight of common stocks is the ratio of market value of common stocks to market value of the company multiplied by 100.

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Expenses and glide path are just two factors that investors should consider

Explanation:

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3 years ago
The attractiveness test for evaluating whether diversification into a particular industry is likely to build shareholder value i
vodka [1.7K]

Answer:

<u>A) conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).</u>

<u>Explanation</u>:

Remember, the key word here is about whether diversification into a particular industry would likely increase shareholders value.

Thus, any company wanting to test this out would consider whether conditions in the target industry allow for profits and return on investment that is equal to or better than that of the company's present business(es).

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3 years ago
According to liquidity preference theory, the money-supply curve would shift rightward a. if the Federal Reserve chose to increa
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According to liquidity preference theory, there is a rightward shift in the money supply curve when the federal reserve decides to raise the money supply.

Option A is the correct answer.

<h3>What is a federal reserve?</h3>

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When the federal reserves increase the money supply then the money supply curve moves in the right direction and when the federal reserve decreases the money supply then the money supply moves toward the left. This shows a direct relationship between the federal reserve and the money supply curve.

Therefore, there is a rise in money supply by the Federal reserve causing the money supply curve to shift in the right direction.

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4 0
2 years ago
On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bou
MA_775_DIABLO [31]

Answer:

Ceremony

Explanation:

Ceremony which can as well be reffered to as Rites and Rituals in an organization can be regarded as a pre-planned events which has social, formalities as well as latents purposes. This manifest purpose have effect on how the organization is working and in aiding the acheiving the organizational goals. It involves motivation of employee in the organization by giving bout award to the outstanding among them. For instance, On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bouquet and a plaque at a banquet every year is an example of a ceremony.

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3 years ago
People-based services are ___________ in today’s world. increasing staying about the same varying from day to day decreasing
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<u>Answer:</u>

<em>People-based services are Increasing in today’s world.</em>

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Services in which individuals, <em>instead of hardware or apparatus</em>, assume the significant job in conveyance; for instance, individuals assume the significant job in the <em>conveyance of monetary arranging administrations. </em>

People based services are increasing in today's world as there is need to handle and control the <em>software's and machines</em> that are used to carry out functions.

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