Answer:
Capital structure weight of the common stock = 46.43%
Explanation:
To get the capital structure weights, market values should be used.
Weight of common stock = Value Of Common Stock divided by Total Capital
and Total Capital = Value of Common stock+Value of Preferred Stock+Value of bonds
Value of common stock = 4,000 shares *$13 = $52,000
Value of preferred Stock = 500 shares*$22= $11,000
Value of bonds= 50 bonds *98% of par = 50 bonds *$1000*0.98= $49,000
Weight of common stock =
Answer: $4,435,000
Explanation:
The issuance price if the market rate of interest is 12% will be:
Annual interest = 500000 × 5.650(PV factor) = 2825000
Add: Face value = 5000000 × 0.322(PV factor) = 1610000
Total = $4,435,000
Therefore, the the issuance price if the market rate of interest is 12% is $4,435,000.
Answer:
a. - $3,100
b. $17,300
Explanation:
Changes in working capital = (ending balance of current assets - ending balance of current liabilities) - (beginning balance of current assets - beginning balance of current liabilities)
where,
Beginning current assets = Account receivable + inventory
= $25,200 + $12,600
= $37,800
Ending current assets = Account receivable + inventory
= $23,600 + $13,700
= $37,300
And, the current liabilities is given
= ($37,300 - $17,700) - ($37,800 - $15,100)
= $19,600 - $22,700
= - $3,100
b. The computation of the cash flow is shown below:
= Sales - costs + decrease in accounts receivable - increase in inventory + increase in accounts payable
= $36,600 - $24,600 + $1,600 - $1,100 + $2,600
= $17,300
The decrease and increase in current assets and liabilities shows a difference between the beginning and ending year amounts
Answer:
D. Market maturity
Explanation:
Over the past several years, like other auto manufacturers, General Motors (GM) has introduced many new models of sport utility vehicles (SUVs) in all of its major divisions. This proliferation of SUVs and an increase in gasoline prices have caused sales to level off. In response, General Motors offered rebates of up to $5,000, or no-interest financing, on selected models of SUVs. The largest rebates went to current owners of GM vehicles, so that they would replace their current vehicles with a GM model instead of switching to another brand. The rebates have been heavily advertised on national television. Profit margins per vehicle have shrunk as a result of these costly promotions.
General Motors is currently operating in the Market maturity stage of production life cycle.