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.
Answer:
$8,000
Explanation:
Given the following:
Interest rate on notes receivable = 8%
Original principal balance = $150,000
Amount due by July 1 = $50,000
Therefore, in the June 30, 20X4 balance sheet, the original principal balance that has been outstanding will be :
$150,000 - $50000 = $100,000
Therefore, only $100,000 has been outstanding and is due for calculation in the interest on accounts receivable on June 30.
Interest rate * principal balance due at the date
8% * $100,000
0.08 * $100,000
= $8,000
Answer:
a Value-Chain Analysis
Explanation:
A value-chain analysis is a model that helps to describe the full range of activities needed to create a product from the conception i.e. the procurement of raw materials, manufacturing functions, marketing and the distribution of the products which leads to an increase in production efficiency so that a company can deliver maximum value for the least possible cost.
Answer:
A. Mr. Fudd to pay Mr. Leghorn between $500 and $900 to continue hunting.
Explanation:
Answer:
11.13%
Explanation:
Calculation to determine the required rate of return on the stock
Using this formula
Required rate of return=Last EPS*Payout*(1+RoE*(1-payout rate))/Current Price+RoE*(1-payout rate)
Let plug in the formula
Required rate of return=29/2.6*30%*(1+11%*(1-30%))/105+11%*(1-30%)
Required rate of return=11.13%
Therefore the required rate of return on the stock will be 11.13%
