Answer:
a) WACC = 12.20%
Explanation:
Weighted average cost of capital is computed by allocating weights to different capitals.
Cost of bonds = Cost of debt = 5%
Cost of preferred stock = 9%
Cost of equity = 16%
As it is new issued and not from retained earnings.
With weights cost will be as follows
Bonds = 5% X $5/$20 = 1.25%
Preference share = 9% X $3/$20 = 1.35%
Equity = 16% X $12/$20 = 9.6%
WACC = 1.25 + 1.35 + 9.6 = 12.20%
Answer:
Explanation:price of the commodity
price of related goods
income if the consumer
taste and preference
exceptation of change of price
Answer: Target market
Explanation:
The target market is one of the group of the customers where the various types of firms are targeting for the purpose of selling their products and the services.
For developing the various types of marketing based plans in an organization the target market is one of the initial step in the planning process.
According to the given question, Jeremy is running the shop in mexico where they sell the Scuba diving equipment and he start making the various types of marketing programs for the purpose of attract the diver by using the target market.
Therefore, Target market is the correct answer.
Answer:
Post split Shares: 800,000
Post split par value: $0.25
Explanation:
Stock split seeks to increase the number of shares available for trading on the exchange thus increasing the liquidity. Stock split of 4 for 1 increases the shares by 4 times e.g. every holder of 1 share will receive total of 4 new shares. Thus the shares will increase to 4 times: (200,000 * 4) = 800,000.
Post split share price is calculated by dividing par value to the proposed split.
($1 / 4) = $0.25 per share.
