An avant- garde clothing manufacturer runs a series of high- profile, risque ads on a billboard on Highway 101 and regularly col
lects protest calls from people who are offended by them. The company has no idea how many people in total see the ads, but it has been collecting statistics on the number of phone calls from irate viewers:Type Description Number of ComplaintsR Offensive racially/ ethnically 10M Demeaning to men 4W Demeaning to women 14I Ad is incomprehensible 6O Other 2a) Depict this data with a Pareto chart. Also depict the cumula-tive complaint line.b) What percent of the total complaints can be attributed to the most prevalent complaint?
1 answer:
You might be interested in
Answer:
Weight of debt = 57.83 %
Explanation:
given data
number of shares = 7,100
price = $94 per share
number of bonds = 600
mature time = 30 year s
coupon rate = 6.8 percent
bonds par value = $2,000
sell = 108.5 percent
stock outstanding = 6,000 shares
stock outstanding price = $47 per share
to find out
capital structure weight of the debt
solution
first we get here Equity market value that is express as
Equity market value = number of shares × price per share
Equity market value = 7100 × $94
Equity market value = $667,400
and
current debt value will be here as
current debt value = number of bonds × price per bond
current debt value = 600 × (1.085 × 2000)
current debt value = $1,302,000
and now Preferred stock value will be
Preferred stock value = stock outstanding × stock outstanding price
Preferred stock value = 6,000 × $47
Preferred stock value = $282000
and total capital will be as
Total capital = Equity market value + current debt value + preferred stock value ..................1
put here value
Total capital = $667,400 + $1,302,000 + $282000
total capital = $2251400
so here Weight of debt will be
Weight of debt = debt value ÷ total capital ..............2
Weight of debt =
Weight of debt = 0.578306
Weight of debt = 57.83 %