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lesya692 [45]
3 years ago
7

A company has 800 bonds outstanding with a par value of $1,000 and priced at 95% of par. It also has 40,000 shares of common sto

ck outstanding with a book value per share of $50 and market price per share of $60. Calculate the capital-structure weights for the firm (as if you were calculating the firm’s Weighted Average Cost of Capital).
Business
1 answer:
alisha [4.7K]3 years ago
7 0

Answer:

Bonds   = 24%

Shares  = 76%

Explanation:

The weight of each of the finance sources is the proportion that their market value bears to the total market value.

This is computed as follows:

                                                                               $

Market value of bonds= 95%× 1,000× 800= 760,000

Market value of shares = 60× 40,000=        <u>2,400,000</u>

Total market value                                        <u>  3,160,000</u>

Bonds             = 760,000/3,160,000× 100= 24%

Shares             = 2400000/3,160,000×  100= 76%

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Project managers should try to limit and decrease the size of teams or subteams to avoid making communications too complex.

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3 0
1 year ago
A producer of fixed proportion goods X and Y (Q = Qx = Qy) has marginal costs and revenues of MC = 10 Q, MRX = 150 - 6 QX, MRy =
sammy [17]

Answer:

a. Qx =9, Qy=9

Explanation:

As per the given data

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7 0
3 years ago
67 people of 350 surveyed gave your company five stars. Of men, 40 out of 175 gave your company five stars. Was your company rat
marishachu [46]

Answer:

The company was rated 5 stars more by Men

Explanation:

Given that

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b. Men population

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2 years ago
The perimeter of a rectangle is 42cm and its area is 68cm2. Find its length and breadth.​
raketka [301]
<h2>Length = 4cm breadth = 17cm</h2>

Explanation:

Given P = 42 cm and Area = 68cm^2

<em>So we apply the above values to its formula to find length and breadth</em>

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If the market price of a good is more than the opportunity cost of producing it, a. the market price of the product will increas
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Answer:

B.

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