Answer:
3.02%
Explanation:
The computation of the weightage of debt is shown below:
= Debt value ÷ total firm value
where,
Debt value would be
= 10,000 × $1,000 × 0.97
= $9.7 million
We assume the par value is $1,000
Equity value
= 10 million shares × $28
= $280 million
And, the preferred shares would be
= 2 million shares × $15.50
= $31 million
So, the total firm value would be
= $9.7 million + $280 million + $31 million
= $320.70 million
Now the weightage would be
= $9.7 million ÷ $320.70 million
= 3.02%
Answer:
Wang Min's situation:
Boston: 151
San Francisco: 135
If Wang Min wishes to consider a similar offer in Boston, the offer should be for at least = ($25,000/135) x 151 = <u>$27,963</u>. Since San Francisco is "cheaper" than Boston, she should earn more money in Boston in order to consider a comparable offer.
Roger's situation:
Cleveland: 99
San Francisco: 135
If Roger wishes to consider a similar offer in Cleveland, the offer should be for at least = ($30,000/135) x 99 = <u>$22,000</u>. Since San Francisco is "more expensive" than Cleveland, he should earn less money in Cleveland in order to consider a comparable offer.
Answer:
Internships help students master professional soft skills such as communication, punctuality and time management. These are skills that are key for success at a job and college and are highly sought after by companies. Many employers complain that there are few candidates with excellent soft skills.
Answer:
A) according to put call parity:
price of put option = call option - stock price + [future value / (1 + risk free rate)ⁿ]
put = $6.93 - $125 + [$140 / (1 + 5%)¹/⁴] = $6.93 - $125 +$138.30 = $20.23
B)
you have to purchase both a put and call option ⇒ straddle
the total cost of the investment = $6.93 + $20.23 = $27.16, this way you can make a profit if the stock price increases higher than $125 + $20.23 = $145.23 or decreases below than $125 - $20.23 = $104.77
Answer and Explanation:
The preparation of net cash provided by operating activities is shown below:-
Blue Spruce Corp.’s
Partial Statement of Cash Flows
For the Year Ended December 31, 2020
Particulars Amount
Net cash flow from operating
activities
Net income $151,700
Adjustments to reconcile
net income to net cash
provided by operating activities
Depreciation expense $24,300
Increase in Accrued
Expense payable $6,300
($15,400 - $9,100)
Decrease in inventory $13,400
($157,700 - $171,100)
Increase in prepaid insurance ($1,400)
($26,500 - $25,100)
Increase in accounts receivable ($30,500)
($108,400 - $77,900)
Decrease in accounts payable ($10,100) $2,000
($85,200 - $95,300)
Net cash provided by
operating activities $153,700