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Tom [10]
1 year ago
13

KHD has 1,500 bonds outstanding that are selling for $1,000 each. The common stock is priced at $26 a share and there are 36,000

shares outstanding. What is the weight of the common stock as it relates to the firm's weighted average cost of capital?
Business
1 answer:
aleksklad [387]1 year ago
4 0

Answer:

38.42%

Explanation:

First, find the market value of debt( bonds in this case);

market value of debt = price of bond * number of bonds

 = $1,000 * 1,500 = $1,500,000

First, find the market value of common stock;

market value of common stock = price per share * number of stock outstanding

 = $26 * 36,000 = $936,000

Since debt and equity make up KHD company's capital ,

total capital = market value of debt + market value of common stock

= $1,500,000 + $936,000

= $2,436,000

Weight of the common stock = market value of common stock / total capital value;

= $936,000/ $2,436,000

= 0.3842 or 38.42% as a percentage

Therefore, What is the weight of the common stock is 38.42%

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Answer:

Allocated MOH= $158,000

Explanation:

Giving the following information:

The standard direct labor quantity is 4 hours per lamp, and the company produced 9,800 lamps in January. This required 39,500 direct labor hours.

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 4*39,500= $158,000

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easynotrcards Under a fixed exchange rate regime, if the domestic currency is initially undervalued, that is, above par, the cen
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Answer:

D) foreign; domestic

Explanation:

The central Bank can improve the domestic currency by using the reserves. If the domestic currency undervalued the central bank may intervene to sell the Foreign currency and purchase the domestic currency, which will increase the demand of domestic currency and increase the supply of foreign currency in the market which will improve the value of domestic currency and undervalue the foreign currency.

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You just opened a brokerage account, depositing $4,500. You expect the account to earn an interest rate of 8.57%. You also plan
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Answer:

$74108

Explanation:

Solution

Given that:

Deposit = $4,500

Interest rate =8.57%

Plan to deposit =$3000 at the end of 5 years through 1

n= 20 years

Now

We apply the formula given below:

A=P(1+r/100)^n

Here

A=future value

P=present value

r=rate of interest

n=time period.

Thus

=4500(1.0857)^20+3000(1.0857)^15+3000(1.0857)^14+3000(1.0857)^13+3000(1.0857)^12+3000(1.0857)^11+3000(1.0857)^10

=$74108

Therefore the account value at 20 years (ending) is $74108

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Answer:

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High tech companies generally tend to diversify a lot because they need to continuously produce innovative products or improve their existing ones. E.g. Google got so large and diversified that it turned into Alphabet which owns more than 200 companies (most of them through acquisitions). Sony's largest revenue sources are gaming services, financial services and home entertainment.

When we think about Sony we probably think about consumer electronics, the Playstation or even movies, but in order to be profitable, Sony had to expand and diversify. Sony's revenues are shifting from consumer electronics to services (including financial, gaming, network, music and movies), so that means that their diversification model actually worked.

2) Sony's goal with Future Lab is to create customer value and new lifestyles, whether they are able to do so depends on how well they work it out. Future Labs is based on San Francisco, and it should serve as a place where innovative prototypes should be tested by real users. The goal is that Sony can learn from actual real life user experiences in order to improve their products and services. The real life customers and users that want to participate in Sony's program must pay a fee for doing so, but they can also experience prototypes before anyone else.

7 0
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puteri [66]

Answer:

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Some other options given should not be concerning the condition in question. And the correct response would be alternative B.

5 0
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