Answer:
New-Task.
Explanation:
New-task purchase is that purchase made by a business of which need has not arisen before. The business didn't made decision to make purchase for this new product or purchase before. The new-task purchase decision is made by the business when a need to purchase is perceived internally or by the clients.
In the given scenario, the need to purchase 'cars as part of its sales compensation' defines the criteria of new-task purchase. In this case, Capitol's need to buy or add 'cars' into its sales compensation represents need to make 'New-task purchase.'
Therefore, the correct answer is new-task purchase.
I think is D
Is the most obvious out of the others
Answer:
Cost of preferred stock=7.41
%
Explanation:
<em>A preferred stock entitles its investor to a fixed amount of dividend for the foreseeable future. The dividend payable by a preferred stock is similar to a perpetuity. Hence, the price of the stock would be the same as the present value of the dividend payable for the foreseeable future.
</em>
<em>A preferred stock entitles its owner to a fixed amount of dividend. It is calculated as follows: </em>
Cost of preferred stock = D/P(1-f) × 100
D- Preference dividend
P- stock price
F- flotation cost
Preference dividend = Coupon rate × Nominal value
DATA
Nominal value = $65
Stock price = $58.63
Dividend rate=6.25%
Flotation cost = 6.5%
Preference dividend = 6.25%× 65 = 4.063
Cost of preferred stock =(4.063
/58.63×(1-0.065) × 100 = 7.41 %
Cost of preferred stock=7.41
%
Answer:
Debt = 83.19%
Equity = 16.81%
Explanation:
Given that
Market value of the equity = $4 billion
Market value of debt = $19.8 billion
Total firm capital would be
= Market value of the equity + Market value of the debt
= $4 billion + $19.8 billion
= $23.8 billion
So, the weightage of debt would be
= Market value of debt ÷ Total firm capital
= $19.8 billion ÷ $23.8 billion
= 83.19%
And, the weightage of equity is
= Market value of equity ÷ Total firm capital
= $4 billion ÷ $23.8 billion
= 16.81%
Answer:
The correct answer is letter "C": Likely to fluctuate when sales change.
Explanation:
Interest Expense is the cost of borrowing money. Usually, interest is paid on a credit card for some form of debt through a bank loan, mortgage, credit line or outstanding balance. The amount charged is equal to the interest rate times the outstanding balance. Interest payments are reported on an income statement as non-operating expenses.
<em>Sales changes do not influence the interest expense.</em>
