Answer:
Option "C" is the correct answer to the following statement.
Explanation:
The income statement is a type of financial account that shows a firm's profit or loss for a particular period.
An investor wanted to invest in a firm that has higher profitability than the other firm or organization, Income statements help him to know about the profitability of a firm.
- Income statement describes how to profit generated and how much profit or dividend distributed by firm.
An emergency fund is an account that is used to set aside funds that will be needed in the event of a personal financial dilemma. The size of one emergency fund depends on one's income, dependants and lifestyle. It is recommended that one put aside at least three months worth of expenses.In the question given above, the monthly expenses is $2000.00, so the person has to put away at least $2000 * 3 months, which is equal to $6000.00.
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Answer:
the issuing firm received is $9,000,000 or $9 million
Explanation:
The computation of the issuing firm received is shown below;
= Number of shares sold × (sale price per share - spread)
= 500,000 shares × ($20 - $2)
= $500,000 shares × $18
= $9,000,000 or $9 million
Hence, the issuing firm received is $9,000,000 or $9 million
We simply applied the above formula so that the accurate value could come
And, the same is to be considered
Answer:
cost of equity = 9.68 %
Explanation:
given data
cost of capital = 9.2%
average debt to value ratio = 13%
cost of debt = 6%
to find out
cost of equity
solution
we will apply here cost of equity formula that is
cost of equity = Cc + × ( Cc - Cd ) ........1
here Cc is cost of capital and Cd is cost of debt and D is debt-to-value ratio i.e 0.13 and E is Equity to Value ratio that is 1 - 0.13 = 0.87
put here all value in equation 1
cost of equity = Cc + × ( Cc - Cd )
cost of equity = 0.092 + × ( 0.092 - 0.06 )
cost of equity = 9.68 %