What are the statements to the question?
Answer:
The market value of shareholders’ equity is $16,367
Explanation:
In this question, we are asked to calculate the residual value owed to shareholders.
We proceed as follows:
Firstly, we identify the following;
Amount payable to creditors = $33,333
Market value of assets = $49,700
Mathematically,
Market value of shareholders equity = Market value of assets - Amount payable to creditors = $49,700 - $33,333 = $16,367
Answer:
E) standard deviation of the company's common stock
Explanation:
The weighted average cost of capital (WACC) is dependent on cost of equity and cost of debt. Cost of Equity depends on company's beta (CAPM Model), growth rate of dividends (constant growth dividend discount model), so option A and C are not the answer. Cost of debt depends on coupon rate (for yield) as well as marginal tax rate (for post tax cost of debt) so option B and D are incorrect. So, answer is E. Standard deviation is the least probable factor that may cause change in WACC.
Answer:
C. Bank interest payment
Explanation:
Lynette will not compute the interests earned on his amount in his checkbook.
A banking fee will reduce the amount in the statement to the checkbook
A penalty exceeding transaction limit will also reduce the amount in the statement to the checkbook
ATM withdrawal not logged in the checkbook could also increase the check book figure and reduce the bank statement instead.
Thus the answer is C. Bank interest payment.
