Answer:
Task a:
The answer is $24,500.
Task b:
The answer is 17%
Explanation:
<h2>Task a:</h2><h3>What is the maximum amount of new capital that can be raised at the LOWEST component cost of EQUITY?</h3><h3>Solution:</h3>
We already know the following:
Projected net income = $21,000
Payout ratio = 30%
Retention ratio = 70%
Debt share = 40%
Equity share = 60%
Maximum amount of capital to be raised at the lowest component cost of equity = Projected net income ×
= $21,000 × 
= $24,500
<h3>Answer:</h3>
The maximum amount of new capital that can be raised at the lowest component of equity is $24,500.
<h2>Task b:</h2><h3>What is the component cost of equity by selling new common stock?</h3><h3>Solution:</h3>
k(e) (component cost of external equity) = [Dividend (D0)(1 + growth) / stock price(1 - flotation cost)] + growth
Formula:
k(e) = 
+ 0.05
Where
Do = $2.00
G = 0.05
P = $21/88
= ($2.00(1 + 0.05) / $21.88(1-.20)) + 0.05
= ($2.10/$21.88(1-.20)) + 0.05
= ($2.10/$21.88(0.80) + 0.05
= 0.17 or 17%
<h3>Answer: </h3>
The component cost of equity by selling new common stock = 17%
Question Completion:
Production outputs
Luxland Leanderland
Chips 10 4
Pretzels 10 8
Total output 20 12
Answer:
Assuming that Luxland and Leanderland specialize and trade in a way that is advantageous for both of them, the number of pretzels that Leanderland can produce will be 16.
Explanation:
a) Data and Calculations:
Specialization Output:
Luxland Leanderland
Chips 20 0
Pretzels 0 16
Total output 20 16
b) While it is acknowledged that Luxland has absolute advantage in the production of both chips and pretzels when compared to Leanderland, the total output for both economies, without specialization, remains 32 units (of both chips and pretzels). When they specialize, Leanderland's output increases to 16 units from 12. This results in total output of 36 units instead of 32 for both economies.
I disagree because you should never change the truth just a little because if you do your lying to yourself and everybody else.
Answer:
The correct answer is letter "C": conducting business in a way that protects the natural environment while making economic progress.
Explanation:
Sustainable development is the capacity an institution has to satisfy individuals' needs without damaging the environment neither harming the atmosphere. To reach this stage there must be an equilibrium between the <em>economy, society, </em>and <em>the environment.</em> Sustainable development is difficult to be obtained with high poverty rates, habitats destruction, or indiscriminately resources exploitation.
Answer: The correct answer is "S corporation, to gain some tax advantages and also to obtain limited liability.
".
Explanation: S corporation is the legal form of business organization that probably adapts best to her needs because it would be a great advantage to have tax benefits and in turn limit the liability only to the capital contributed, this means that to meet your obligations you only respond with capital from the company and not with Jane's own assets.
