Answer:
The Net Cash <em>used</em> in Financing activities is $30,800
Explanation:
<em>Step 1 Determine the Movement in Cash during the period.</em>
Movement = Ending Cash Balance - Beginning Cash Balance \
= 18,200 - 11,600
= 6,600 (inflow)
<em>Step 2 Determine the Cash flow in Financing Activities </em>
<u>Cash flow statement for the year</u>
Cash flow from Operating Activities $29,000
Net Cash flow from Investing Activities $ 8,400
Net Cash flow from Financing Activities (Balancing figure) ($30,800)
Movement in Cash during the year $6,600
Therefore, The Net Cash used in Financing activities is $30,800
Answer:
McDonald's Corp
The cost of capital for the preferred stock is:
10.67%
Explanation:
a) Data and Calculations:
Market price of preferred stock = $178
Preferred stock dividend = $19
Cost of capital = Preferred stock dividend/Market price of preferred stock * 100
= $19/$178 * 100
= 10.67%
b) The cost of capital for McDonald's preferred stock is the finance cost or interest cost that it must incur for financing its projects using preferred stock. This represents the 10% of the preferred stock value that is paid out to preferred stockholders.
<span>The person who would be best suited to analyze budgets, create reports, explain information to others, and handle internal company procedures and finances is the </span><span>D Business Analyst. He or she is responsible for financial reports in order for the business to maintain its finances. </span>
Answer:
Michael does not experience inflation because he only buys Tennis rackets
Explanation:
Inflation is defined as increases in price per unit price.
It is the prolonged increase in the price of goods and services caused by devaluation of currency , demand -pull or cost - push. While a certain degree of inflation can be beneficial to a thriving economy , it can become a threat if it becomes larger.
One of the direct impact of inflation is rise in price of goods and services.
As the price of rackets was not affected by the inflation , that means that Michael was not affected by the inflation.
Answer:
a) $8
b) $4
c) Decrease
Explanation:
Background.
A call option as you probably know, is an agreement to buy an asset on or before a particular day at a price already determined in the agreement.
a) the Intrinsic value of the option is the market price minus the strike price.
Intrinsic Value = Market Price - Strike price
= $43 - $35
= $8 per share.
It is worthy of note that for an option, of the intrinsic value dips into negative figures it is just said to be 0.
b) To calculate the time value, we subtract the intrinsic value from the call premium
= Call Premium - Intrinsic value
= $12 - $8
= $4
c) The call option has 6 months to maturity and the dividends are to come in 3 months. Share prices usually drop after a dividend has been paid so because the call option matures in 6 months, the price of the call option will DECREASE owing to the Expected drop in stock price.
