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baherus [9]
2 years ago
11

. What is Coleman’s cost for up to $300,000 of newly issued common stock, re1? What happens to the cost of equity if Coleman sel

ls more than $300,000 of new common stock? i. Explain in words why new common stock has a higher percentage cost than retained earnings. j. (1) What is Coleman’s overall, or weighted average, cost of capital (WACC) when retained earnings are used as the equity component?
Business
1 answer:
Svetlanka [38]2 years ago
7 0

Explanation:

with only one chain and one pendant per necklace.write an expression that shows how much it will cost ronnie to make s short necklaces and n long necklaces. then find the cost for 3 short necklaces 2 long necklaceswith only one chain and one pendant per necklace.wr ronnie to make s short

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Ms. Langley is 30 years old and has begun a retirement plan that permits he r to place monthly amounts of $400 into a retirement
elena-14-01-66 [18.8K]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Ms. Langley is 30 years old and has begun a retirement plan that permits her to place monthly amounts of $400 into a retirement vehicle, beginning one month from now, for 30 consecutive years.

When Ms. Langley reaches her retirement at age 60, she expects to live for 25 more years. The interest rate is 6%.

First, we need to calculate the amount of money that she will have at age 60, using the following formula.

FV= {A*[(1+i)^n-1]}/i

A= monthly deposit= 400

n= 30*12= 360

i= 0.06/12= 0.005

FV= {400[(1.005^360)-1]}/0.005= $401,806.02

Months= 25years*12= 300 months

Monthly= 401,806.02/300= $1,339.35

4 0
2 years ago
For some reason, the seller of a home at 123 Mulberry Lane decided not to close on a sale transaction on closing day. The seller
Mumz [18]

Answer:

The buyer can sue for specific performance of the contract. In real estate, in order for the buyer to be able to sue for specific performance, he/she must have all the money (or mortgage) ready to finish the transaction. It is very difficult for someone to sue for damages for not wanting to complete the sale of a house because houses are unique in a way that similar houses in different neighborhoods or even streets might be worth a lot more or less.

When you sue for specific performance, the non-breaching party will request that the other party performs their side of the contract.

3 0
2 years ago
First Simple Bank pays 6.4 percent simple interest on its investment accounts. If First Complex Bank pays interest on its accoun
weqwewe [10]

Answer:

rate set by first complex bank is  = 5.07 %

Explanation:

given data

simple interest = 6.4 %

investment time = 10 year

solution

we consider here first total interest on the amount $100  paid as simple interest is for 10 year will be

interest = $100 × 6.4% × 10

interest = $64

so future value will be = $100 + $64 = $164

so now we consider rate of interest = r

so that now we apply here future value formula

future value = investment × (1+r)^{t}   ...............1

$164 = $100 × (1+r)^{10}  

1.64 =   (1+r)^{10}

solve it we get

r =  0.05071

so rate set by first complex bank is  = 5.07 %

7 0
2 years ago
Kathy is a financial analyst in BTR Warehousing’s. As part of her analysis of the annual distribution policy and its impact on t
olya-2409 [2.1K]

Answer and Explanation:

The computation is shown below.

1. Value of the firm operations is

= Free Cash Flow × (1 + Growth Rate) ÷ (WACC - Growth Rate)

= $87 million  × (1 + 8%) ÷ (13% - 8%)

= $1,879.20

This is the answer but the same is not provided in the given options

2.  The intrinsic value of equity immediately prior to stock repurchase is

= Value of Firm's Operations + Value of Non Operating Assets - Value of Debt - Value of Preferred Stock

= $1,879.20 + $120 - $232 - $145

= $1,622.20

This is the answer but the same is not provided in the given options

3.  The intrinsic stock price immediately prior to stock repurchase is

= Intrinsic Value of Equity Prior to Stock Repurchase ÷ Number of Outstanding Shares

= ($1,622.20) ÷ (21.75 million shares)

= $74.58

This is the answer but the same is not provided in the given options

4. The number of shares repurchased is

= Cash Used for Repurchase ÷ Intrinsic stock price

= $120  ÷ $74.58

= 1.61

This is the answer but the same is not provided in the given options

5. The intrinsic value of equity immediately after stock repurchase is

 = Value of Firm's Operations - Value of Debt - Value of Preferred Stock

= $1,879.20 - $232 - $145

= $1,502.20

This is the answer but the same is not provided in the given options

6. The intrinsic stock price immediately after stock repurchase is

= Intrinsic Value of Equity After Stock Repurchase ÷ Number of Outstanding Shares after Repurchase

= ($1,502.20)  ÷ (21.75 million shares - 1.61 million shares)

= $74.59

This is the answer but the same is not provided in the given options

This statement is false because if the stock price changes after a firm conducts its share repurchase, then there are arbitrage opportunities. Thus, the price of the stock remains the same after a repurchase

6 0
2 years ago
American Bank quotes a bid rate of $0.026 and an ask rate of $0.028 for the Indian rupee (INR); National Bank quotes a bid rate
Vinvika [58]

Answer:

c. buying rupees from National Bank at the ask rate and selling them to American Bank at the bid rate.

Explanation:

  • Locational arbitrage is a strategy in which one seeks profits from the difference in exchange rates for the same currency at different banks.
  • In our case for locational arbitrage one will have to buy Indian rupee from National bank at the ask rate and then sell them to American bank at the bid rate to make profit.
3 0
2 years ago
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