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%
C. A decrease in the money supply
Nearly 700 banks failed in waning months of 1929 and more than 3,000 collapsed in 1930. Federal deposit insurance was as-yet unheard of, so when the banks failed, people lost all their money. Some people panicked, causing bank runs as people desperately withdrew their money, forcing more banks to close. By the end of the decade, more than 9,000 banks had failed. Surviving institutions, unsure of the economic situation and concerned for their own survival, became unwilling to lend money. This exacerbated the situation, leading to less and less spending.
P1 = $27
P0 = $23
To solve:
Capital gain rate = (P1 - P0)/P0
Capital gain rate = ($27.00 - $23.00)/$23.00
Capital gain rate = $4/$23
Capital gain rate = 0.1739
Capital gain rate = (0.1739)(100)
Capital gain rate = 17.39%
Answer:
Option which would likely appear on that budget will be:
Batch level costs: production setup.
Explanation:
Here the company uses activity based budgeting is a management accounting tool which new year budget is only seen by not considering the previous year records.
Activity based budgeting which is a budgeting method in which firstly the overhead costs are being calculated and the the budgets gets created.
Batch-level cost is a cost which is not associated with any given specific individual units but is associated with a group of units.
For example, to set up a production run the cost incurred is associated with the batch of goods that are produced subsequently.
Another example can be be procurement costs. The expenses associated with the procurement costs include the ordering of direct materials, paying suppliers and receiving goods.
Since all of the expenses are related to the orders placed numbers, they must be allocated not to an individual product but to group of unit.
Answer:
a. The party control of government when Congress passed legislation in 2014 to repeal the ACA was when Republicans gained majority seats in both chambers of Congress. This Republican control of Congress was the catalyst for the repeal of the ACA in 2014.
b. The Republican representative who cast a vote in favor of the ACA bill in 2009 followed strictly his constituency mandate.
c. When President Obama vetoed the ACA repeal, the Republicans could proceed to court to try to use the judicial branch of government to implement their legislative goals by requesting for constitutional interpretation of the repealed bill.
If this had happened, it would have seriously hampered the implementation and success of the Affordable Care Act for partisan reasons.
Explanation:
a) Congress is the legislative arm of government that makes the law. The executive implements the law. The judiciary is in charge of the interpretation and application the law to real situations. But when the President vetoes a bill, Congress can override the veto by ensuring that 2/3 of both chambers pass the law. Alternatively, Congress can ask for a judicial interpretation.
