Answer:
6.20%
Explanation:
Calculation for the cost of the preferred stock
First step is to calculate the Annual Dividend Payment on Preferred Stock
Annual Dividend Payment on Preferred Stock = [7% * $80]
Annual Dividend Payment on Preferred Stock = $5.60
Now let calculate the Cost of Preferred Stock using this formula
Cost of Preferred Stock = [Preferred Stock dividend / Market Price of
Preferred Stock (1-Flotation cost)]
Let plug in the formula
Cost of Preferred Stock = [($80 * 7%) / $95(1-0.05)]
Cost of Preferred Stock = [$5.60 / $95 (0.95)]
Cost of Preferred Stock = [$5.60 / $90.25]
Cost of Preferred Stock = 0.0620*100
Cost of Preferred Stock = 6.20%
Therefore the cost of the preferred stock is 6.20%
The amount of utilities cost for July that appears on the flexible budget is12,500*$0.33 = $4.
<h3>Flexible budget </h3>
A flexible budget is one based on different volumes of sales. A flexible budget flexes the static budget for each anticipated level of production. This flexibility allows management to estimate what the budgeted numbers would look like at various levels of sales.
<h3>How do you calculate flexible budget?</h3>
To do this, multiply the total production output by the variable cost of each unit produced. For example, if the total production output is 1,000 products and the variable cost for each unit is $25, the total variable cost is $25,000. You can also calculate average variable costs that are not related to production.
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Answer:
(a) $61.11
(b) $54.44
Explanation:
1)
Value of Stock = Benchmark price-sales ratio × Stock's sales
= 5.5 × 1,500,000
= $8,250,000
Thus,
Price of stock = Value of Stock ÷ shares outstanding
= 8,250,000 ÷ 135,000
= $61.11
Thus, I would pay $61.11 for the stock.
2)
Value of Stock = Benchmark price-sales ratio × Stock's sales
= 4.9 × 1,500,000
= $7,350,000
Thus,
Price of stock = Value of Stock ÷ shares outstanding
= $7,350,000 ÷ 135,000
= $54.44
Thus, I would pay $54.44 for the stock.
Answer:
The break-even point is $25,900 units
Explanation:
In this question we use the formula of break-even point in unit sales which is shown below:
= (Fixed expenses) ÷ (Contribution margin per unit)
where,
Contribution margin per unit for product A = (Selling price per unit - Variable cost per unit) ×product mix
= ($13.50 - $6.15) × 40%
= $2.94
Contribution margin per unit for product B = (Selling price per unit - Variable cost per unit) ×product mix
= ($16.75 - $6.85) × 60%
= $5.94
So, the total contribution margin would be equal to
= $2.94 + $5.94
= $8.88
And, the fixed cost is $230,000
Now put these values to the above formula
So, the value would be equal to
= $230,000 ÷ $8.88
= $25,900 units
Strategic alliances are generally meant to increase the business strength. Most of the cooperative strategies aim at drawing upon the individual strengths of partners to be more competitive as a single unified unit.
There are a lot of challenges in getting cooperative strategies to work as envisaged during the planning phases. When corporate companies seek cooperation strategies, the hindsight which comes is that most of them compete against each other).
Hence, it is natural that such companies will seek to fulfill their interests first before considering the interests of their partnerships. Then, some companies seek cooperative partnerships with partners who are already having other collaborators.
It also follows that such cooperation lacks commitment. There is also a lack of detailing the operational structure by which operational strategy will be a great success.
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