A company's $100, 8% preferred is currently selling for $85. What is the company's cost of preferred equity?

Consider this scenario. During the early 2000s, the Midwestern United States experienced a drought, or lack of rainfall. This ru

Nikitich [7]

A. increase the price of tortillas

3 0

2 years ago

Read 2 more answers

Which of the following statements is false concerning the use of ABC in service industries?

ELEN [110]

Answer:

b. When using ABC for service industries, special methods must be used to identify cost pools and cost drivers due to the unique nature of the services offered.

Explanation:

The cost pool method are the same we should look for activities which add value to the product to provide a more accurate product costing.

In cases of services the company will also determinate activities considering this premise therefore, there is no especial nature to offer to the client.

6 0

3 years ago

You are considering the purchase of a certain stock. You expect to own the stock for the next four years. The current market pri

murzikaleks [220]

Answer:

The answer is: The expected rate of return from this investment is 26.68%

Explanation:

We are given the following cash flows for this operation:

Initial investment = -$24.50
Cash flow 1 = $1.25 (dividend year 1)
Cash flow 2 = $1.35 (dividend year 2)
Cash flow 3 = $1.45 (dividend year 3)
Cash flow 4 = $56.55 ($1.55 dividend year 4 + $55 stock's sales price)

Using an excel spreadsheet and the IRR function:

=IRR(value 1: value 5) =26.68%

where

value 1 = -24.50
value 2 = 1.25
value 3 = 1.35
value 4 = 1.45
value 5 = 56.55

7 0

3 years ago

"We chose this plan because it would benefit the majority of you, and harm the fewest" would be an example of using this perspec

Alborosie

Answer:

utilitarian perspective

Explanation:

In simple words, utilitarian approach refers to a method for making decisions in case of ethical dilemmas. Under this approach, the decision making authority makes judgement by focusing on the greater good, that is, making judgement that benefits the most of the individuals and harm the least.

This theory states that every party's interest should be taken into consideration equally as every related individual to the judgement is capable of suffering . However this approach is used when it is not possible to benefit all the stakeholders equally.

6 0

3 years ago

Spartan systems reported total sales of $430,000, at a price of $25 and per unit variable expenses of $16, for the sales of thei

jek_recluse [69]

We are told the company had total sales of $430,000 and sold each product for $25. We can conclude that they sold 17,200 units of their product by dividing 430000 by 25.

As we are selling a single product in the problem's text, and because we told both per-unit contribution margin and net operating income, we have enough information to build a contribution based income statement. In a contribution based (or internal) statement, Revenue - Total Variable Expenses = Contribution Margin and Contribution Margin - Total Fixed Expenses = Operating Income.

$430,000 Total Sales Revenue

(275,200) Total Variable Expenses

$154,800 Total Contribution Margin

(113,000) Total Fixed Expenses

$41,800 Net Income

Think of our above statement as the BEFORE. Now we are going to make the AFTER and increase the volume. Since the selling price is $25 and we sold 17,200 units, we multiply 17,200 times 20% to find the new units sold. 17200 * 20% is 3440 units. We add that to the 17.200 units to find our new sales volume, which is 20,640 units. Since each product sells for $25 each, we can calculate our new contribution margin.

$516,000 Sales Revenue AFTER 20% increase

(330,240) Variable Expenses AFTER 20 % increase; 16 * 20640

$185,760 Contribution Margin AFTER 20% increase

Thus the new contribution margin is $185,760.

3 0

3 years ago