Answer:
The company's cost of preferred stock for use in calculating the WACC is 9.65%
Explanation:
For computing the cost of preferred stock, the following formula should be used which is shown below
= Annual dividend based on preferred stock ÷ (Price per share × Flotation cost)
where,
Flotation cost = 1- rate
= 1- 4% = 0.96
= $9.50 ÷ ($102.50 × 0.96)
= $9.50 ÷ $98.4
= 9.65%
The flotation cost should be deducted because it is a one time expense. Thus, it would be minus from price per share.
Hence, the company's cost of preferred stock for use in calculating the WACC is 9.65%
Answer: b
Explanation:
This strategy and world wide product divisional structure may hinder economy of scale( whish is actually the reduced costs enjoyed by business entities due to the scale of their business) typically, this strategy and organizational structure restricts products to certain region which the demand may not be enough for effective cost management to enhance profit.
Other divisions might have some demand for certain products that are not available in their own division.
A company made a profit of $25,000 over a period of 5 years on an initial investment of $10,000. What is its annualized ROI?
Answer: Out of all the options shown above the one that best represents the annualized ROI is answer choice C) 30%. To solve this you first need to determine the data that will be needed to solve it. In this case the initial investment which is 10,000, the total profit: 25,000, and finally the total number of years: 5. Then we simply use the following formula: Return on Investment = (Gain from Investment - Cost of Investment)/ cost of investment. You then multiply the result by 100% and finally divide by the number of years which in this case is 5.
I hope it helps, Regards.
Answer:
$250
Explanation:
Computation of cash flows from investing activities under GAAP.
The Purchase of used equipment as well as the sale of investments often affect cash flow from operating activities.
Therefore,
Sale of investments $450
Less Purchase of used equipment (Cash outflow) ($200)
Cash flow from investing activity $250
Therefore the cash flows from investing activities under GAAP would be $250
Answer:
pull strategies
Explanation:
A pull tactic is a method used to get one to the consumer. Rather of pressing the company into the client, pull approach includes the use of pull strategies or knowledge exchange to draw the consumer. Such clients would also continue selling the company for you.
The industry words pushing and pulling emerged in manufacturing and business process planning, but are now commonly used in promotions, as well as becoming a concept commonly used in hospitality delivery. Walmart is indeed an example of a corporation employing the push vs. pull technique.
