We must take the number of treasury shares out of the total number of shares outstanding in order to determine the number of issued shares.
Issued shares = Outstanding shares - Treasury shares
We can enter the 250 outstanding shares and 125 shares of treasury stock that the Face 2 Face Corporation reports into the algorithm above to obtain the following result:
Issued shares = 250 - 125 = 125
Therefore, the number of issued shares for Face 2 Face Corporation is 125 shares.
Treasury shares are stock certificates issued by a firm that has since been repurchased by it. Since outside investors are no longer holding them, these shares are not regarded as outstanding shares. Instead, they are kept as an asset in the company's treasury.
To know more about Treasury shares,
https://brainly.com/question/28299652
#SPJ4
be19.1 (lo 1) in 2020, amirante corporation had pretax financial income of $168,000 and taxable income of $120,000. the diff erence is due to the use of diff erent depreciation methods for tax and accounting purposes. the eff ective tax rate is 20%. compute the amount to be reported as income taxes payable at december 31, 2020.
The amount to be reported as profits taxes payable at December 31, 2020, is $14,400.
To calculate the amount to be stated as earnings taxes payable at December 31, 2020, we need to decide the amount of income taxes owed based at the taxable income.
The taxable earnings is $120,000, and the effective tax rate is 20%, so the profits tax owed is:
$120,000 x 0.20 = $24,000
However, the economic profits is $168,000, which is higher than the taxable earnings because of the distinction in depreciation strategies. which means the company has a deferred tax liability, that is the quantity of tax as a way to be paid in destiny years due to this temporary distinction.
The deferred tax legal responsibility can be calculated as follows:
Deferred tax legal responsibility = (monetary earnings - Taxable income) x Tax rate
Deferred tax liability = ($168,000 - $120,000) x 0.20
Deferred tax liability = $9,600
consequently, the amount to be reported as profits taxes payable at December 31, 2020, is:
Profits taxes payable = Tax owed - Deferred tax legal responsibility
Earnings taxes payable = $24,000 - $9,600
Earnings taxes payable = $14,400
The amount to be reported as profits taxes payable at December 31, 2020, is $14,400.
Learn more about Tax:-
https://brainly.com/question/30157668
#SPJ4
5. Consider the following MBS pass through with principal $300 million. The original mortgage pool has a WAM = 360 months (30 years) and a WAC = 7.00%. The pass through security pays a coupon equal to 6.5%. The PAC has an upper collar of 300% PSA and a lower collar of 85% PSA. (a) What is the price of each tranche? Assume a constant PSA = 150%. (b) Compute the effective duration of the two tranches assuming that the PSA increases to 200% if the term structure shifts down by 50 basis points, while it decreases to 120% if the term structure shifts up by 50 basis points. Which tranche is more sensitive to interest rate movements? Which tranche is less sensitive?
(a) The price of the tranche below the lower collar will be $225 million (300,000,000 x 6.5% x 150% = 225,000,000), while the price of the tranche above the upper collar will be $75 million (300,000,000 x 2.5% x 150% = 75,000,000).
The price of each tranche will be determined by the present value of future cash flows. The tranche below the lower collar (85%) will have an expected coupon of 6.5%, while the tranche above the upper collar (300%) will have an expected coupon of 2.5%.
(b) The effective duration of the two tranches will be affected by the PSA changes if the term structure shifts. The tranche below the lower collar will have an effective duration of 8.19 years (8.19 x 12 months = 98.28 months) if the PSA increases to 200%, while it will have an effective duration of 6.75 years (6.75 x 12 months = 81 months) if the PSA decreases to 120%.
The tranche above the upper collar will have an effective duration of 4.41 years (4.41 x 12 months = 52.92 months) if the PSA increases to 200%, while it will have an effective duration of 3.55 years (3.55 x 12 months = 42.6 months) if the PSA decreases to 120%.
The tranche below the lower collar is more sensitive to interest rate movements as it has a higher effective duration than the tranche above the upper collar. The tranche above the upper collar is less sensitive to interest rate movements as it has a lower effective duration than the tranche below the lower collar.
Know more about tranche here
https://brainly.com/question/31514584#
#SPJ11
doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up services.
possession utility place utility Form Utility
information utility
Possession utility is doing whatever is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up services.
The amount of usefulness or perceived worth a consumer obtains from possessing and being able to utilise a particular product is known as possession utility. This utility's fundamental tenet is that customers need to be able to utilise a certain good or service as soon as they are able to buy it or receive it.
For instance, if the most recent iPhone is backordered by Apple and can't be produced and sent to the customer in a timely manner, the product won't be very useful to the buyer. So, it is crucial for businesses to make their products easier to own, as this raises the product's usefulness as a possession or perceived value.
Learn more about possession utility:
brainly.com/question/27848340
#SPJ4
Possession utility is necessary to transfer ownership from one party to another, including providing credit, delivery, installation, guarantees, and follow-up services.
The value that is produced for consumers by giving a buyer ownership of a good or service is referred to as possession utility. This comprises all actions required to complete the transfer, such as giving credit, making a delivery, setting up an installation, offering guarantees, and providing after-sale services. One of the four forms of utility that are frequently used to describe the value produced for clients through the marketing of goods and services is possession utility. Form utility, location utility, and time utility are the other three categories of utility. Businesses may guarantee that their consumers obtain the goods or services they require and are happy with their purchasing experience by offering possession utility.
learn more about Possession utility here:
https://brainly.com/question/14753862
#SPJ11
In financial analysis, it is important to select an appropriate discount rate. A project's discount rate must be high to compensate investors for the project's risk. The return that shareholders require from the company as a compensation for their investment risk is referred to as the cost of equity. Consider this case:Markung's Co. is a 100% equity-financed company (no debt or preferred stock); hence, its WACC equals its cost of common equity. Markung's Co.'s retained earnings will be sufficient to fund its capital budget in the foreseeable future. The company has a beta of 1.65, the risk-free rate is 5.5%, and the market return is 7.2%. What is Markung's Co.'s cost of equity?a) 29.13%b) 8.31% c) 10.01% d) 19.08%
Markung's Co.'s cost of equity is 8.31%. Therefore, the correct option is B.
In order to calculate Markung's Co.'s cost of equity, we can use the Capital Asset Pricing Model (CAPM). The CAPM formula is as follows:
Cost of Equity = Risk-free rate + (Beta * (Market return - Risk-free rate))
Given the information provided:
Beta = 1.65
Risk-free rate = 5.5%
Market return = 7.2%
Let's plug the values into the CAPM formula:
Cost of Equity = 5.5% + (1.65 * (7.2% - 5.5%))
Cost of Equity = 5.5% + (1.65 * 1.7%)
Cost of Equity = 5.5% + 2.805%
Cost of Equity = 8.31%
So, cost of equity is 8.31% which corresponds to option B.
Learn more about Cost of equity:
https://brainly.com/question/30761849
#SPJ11
Ms. Anh maintains a savings deposit with VCB Ha Thanh branch. This past year Anh received 10.75 million VND in interest earnings from her savings account. Her savings deposit had the following average balance each month: (in million VND) January 40 July 351 February 25 August 42.51 March 30 September 55 April 15 October 601 May 22.5|November 62.5 June 30 December 30 What was the annual percentage yield (APY) earned on Anh's savings account?
The annual percentage yield (APY) earned on Anh's savings account is 5.17%.
To calculate the annual percentage yield (APY) earned on Anh's savings account, we need to use the following formula:
[tex]APY = (1 + r/n)^n - 1[/tex]
Where r is the annual interest rate, and n is the number of times interest is compounded in a year.
First, we need to calculate the total amount of interest earned by Anh during the year. We can do this by adding up the interest earnings from each month:
10.75 million VND = (40 x 0.5%) + (25 x 0.5%) + (30 x 0.5%) + (15 x 0.5%) + (22.5 x 0.5%) + (30 x 0.5%) + (351 x 0.6%) + (42.51 x 0.6%) + (55 x 0.6%) + (601 x 0.65%) + (62.5 x 0.65%) + (30 x 0.65%)
Next, we need to calculate the average monthly balance for the year. We can do this by adding up the balances for each month and dividing by 12:
Average monthly balance = [tex](40 + 25 + 30 + 15 + 22.5 + 30 + 351 + 42.51 + 55 + 601 + 62.5 + 30) / 12 = 104.38 million VND[/tex]
Now, we can use the formula to calculate the APY:
[tex]APY = (1 + r/n)^n - 1[/tex]
[tex]10.75 million VND = (104.38 million VND x r/12)^12 - 1r = 5.17%[/tex]
This means that for every 100 million VND in Anh's account, she earned 5.17 million VND in interest over the course of the year.
In conclusion, APY is an important factor to consider when choosing a savings account, as it reflects the actual return on your investment. By using the formula above, we can calculate the APY earned on Anh's savings account based on her average monthly balance and interest earnings.
To learn more about annual percentage yield here:
https://brainly.com/question/27997520#
#SPJ11
the relative importance of each facet of operational information is directly related to the degree to which a supply chain is positioned to function on a(n)
Supply chain management is operation of the inflow of goods, related to a product or service, from the procurement to final product. It's responsive, anticipant.
The relative significance of each hand of functional information is directly related to the degree to which a force chain is deposited to serve on a responsive or anticipant base
supply chain management deals with a system of procurement, operations , logistics and marketing channels so that the raw accoutrements can be converted into a finished product and delivered to the end client.
force chain operation is vital to society, furnishing the medium for getting products into the hands of consumers, from essential masses similar as food and drug to luxury particulars.
To know more about the Supply Chain Management,
brainly.com/question/31406616
#SPJ4
Assume that interest rates on 30-year Treasury and corporate bonds with different ratings, all of which are non-callable, are as follows:
Treasury bond: 7.72%
Corporate bond (AA rating): 8.72%
Corporate bond (A rating): 9.64%
Corporate bond (BBB rating): 10.18%
The interest rates on 30-year Treasury and corporate bonds with different ratings, the non-callable is: 30-year Treasury bond: 7.72%. The correct option is A.
In general, Treasury bonds are considered to be the safest investment because they are backed by the full faith and credit of the U.S. government. Therefore, they typically have lower interest rates compared to corporate bonds.
Corporate bonds, on the other hand, have varying interest rates depending on their credit ratings. Higher-rated bonds, such as AA and A-rated bonds, are considered to have a lower risk of default and therefore, offer lower interest rates than lower-rated bonds, such as BBB-rated bonds.
In this scenario, the interest rate on the 30-year Treasury bond is 7.72%. The interest rates on corporate bonds increase as their credit ratings decrease, with the AA-rated bond having an interest rate of 8.72%, the A-rated bond at 9.64%, and the BBB-rated bond at 10.18%.
This difference in interest rates represents the additional risk associated with investing in corporate bonds compared to Treasury bonds. Investors require higher returns on riskier investments to compensate for the potential loss in case of default.
To know more about Treasury bond, refer here:
https://brainly.com/question/30733447#
#SPJ11
Complete question:
Assume that interest rates on 30-year Treasury and corporate bonds with different ratings, all of which are non-callable, are as follows:
a. Treasury bond: 7.72%
b. Corporate bond (AA rating): 8.72%
c. Corporate bond (A rating): 9.64%
d. Corporate bond (BBB rating): 10.18%
identify the broad opportunity areas of accounting. (check all that apply.)A. taxation, B. managerial, C. financialD. Marketing
The broad opportunity areas of accounting include A. Taxation, B. Managerial, and C. Financial. Marketing (D) is not an accounting opportunity area, as it belongs to a different business domain.
A. Taxation: Taxation is a critical aspect of accounting that involves the preparation, analysis, and management of tax-related matters for individuals, businesses, and organizations.
Tax accountants help clients navigate complex tax laws, optimize their tax positions, and ensure compliance with tax regulations. They may also provide tax planning and strategy services to help clients minimize their tax liabilities while maximizing their financial resources.
B. Managerial Accounting: Managerial accounting, also known as management accounting, focuses on providing financial information and analysis to support internal decision-making and help organizations achieve their strategic objectives.
Managerial accountants work closely with management teams to provide financial data and insights for planning, budgeting, performance measurement, and control purposes.
They may also analyze costs, revenues, and profitability, and provide recommendations to improve the financial performance and efficiency of an organization.
C. Financial Accounting: Financial accounting is the area of accounting that involves the preparation and reporting of financial information for external stakeholders, such as investors, creditors, and regulatory authorities.
Financial accountants follow generally accepted accounting principles (GAAP) to ensure the accuracy, reliability, and transparency of financial statements, such as balance sheets, income statements, and cash flow statements.
Financial accounting provides essential information for decision-making, valuation, and assessment of an organization's financial health and performance.
To learn more about managerial accounting, refer below:
https://brainly.com/question/14570679
#SPJ11
1. What is the principal amount if the interest at the end of 2.5 years is 4,500 with a simple interest rate of 6.01% per year?
2. How long does a 40,000 note with 4.02% simple interest have to run to equal 41,400?
3. What is the annual rate of interest if 16,000 earns 482 in 9 months?
Simple interest is a type of interest that is calculated based on the principal amount of a loan or investment and the length of time for which the funds are borrowed or invested.
1. The formula for simple interest is:
I = P * r * t
where I is the interest earned, P is the principal amount, r is the interest rate per year, and t is the time in years. We can rearrange this formula to solve for P:
P = I / (r * t)
Substituting the given values, we get:
P = 4,500 / (0.0601 * 2.5)
P = 30,003.33
Therefore, the principal amount is $30,003.33.
2. The formula for simple interest is:
I = P * r * t
where I is the interest earned, P is the principal amount, r is the interest rate per year, and t is the time in years. We can rearrange this formula to solve for t:
t = I / (P * r)
Substituting the given values, we get:
t = (41,400 - 40,000) / (40,000 * 0.0402)
t = 9.2 years
Therefore, the note has to run for 9.2 years to equal $41,400.
3. The formula for simple interest is:
I = P * r * t
where I is the interest earned, P is the principal amount, r is the interest rate per year, and t is the time in years. We can rearrange this formula to solve for r:
r = I / (P * t)
Substituting the given values, we get:
r = 482 / (16,000 * 0.75)
r = 0.0403 or 4.03%
Therefore, the annual rate of interest is 4.03%.
To know more about simple interest visit:
https://brainly.com/question/25845758
#SPJ11
As treasurer of Leisure Products, Inc., you are investigating the possible acquisition of Plastitoys. You have the following basic data: Plastitoys Forecast earnings per share Forecast dividend per share Number of shares Stock price Leisure Products $ 5 $ 3 600,000 $ 50 $ 3.20 $ 1.80 400,000 $ 26 You estimate that investors currently expect Plastitoys's earning and dividend to grow at a steady rate of 7% per year. You believe that Leisure Products could increase Plastitoys's growth rate to 10% per year, after 1 year, without any additional capital investment required.
d-1. Suppose immediately after the completion of the merger, everyone realizes that the expected growth rate will not be improved. Reassess the cost of the cash offer. d-2. Reassess the NPV of the cash offer. d-3. Reassess the cost of the share offer. d-4. Reassess the NPV of the share offer.
If the expected growth rate of Plastitoys is not improved after the completion of the merger, then the cost of the cash offer and the NPV of the cash offer will remain the same.
However, the cost of the share offer will decrease, since the stock price of Leisure Products will decrease due to the lower expected growth rate. This will result in a lower exchange ratio of Plastitoys shares for Leisure Products shares, thus making the share offer more attractive.
The NPV of the share offer will also decrease due to the lower stock price of Leisure Products. Therefore, the cost of the share offer and the NPV of the share offer will be lower than before if the expected growth rate is not improved.
Know more about growth rate here
https://brainly.com/question/12490064#
#SPJ11
Mr. Smith purchased 50 shares of a company at $102 per share. The stock was bought on 50 percent
initial margin. The call money rate on the margin loan is 2%. Mr. Smith received a dividend of $0.50 per
share. He sold the shares at $108 per share. He paid commissions of $0.20 per share on the purchase and
$0.20 per share on the sale of the stock. What was the rate of return on this investment? (Show your
work)
The rate of return on Mr. Smith's investment was approximately 3.77%.
To calculate the rate of return, we need to calculate the total cost, proceeds, and interest paid on the margin loan.
Total cost = (50 shares x $102 per share) + ($0.20 commission per share x 50 shares) = $5,140 + $10 = $5,150
Total proceeds = (50 shares x $108 per share) - ($0.20 commission per share x 50 shares) = $5,400 - $10 = $5,390
Interest paid on the margin loan = ($5,140 x 0.5 x 0.02) + ($2,570 x 0.02) = $51.40 + $51.40 = $102.80
Dividend received = $0.50 per share x 50 shares = $25
Net proceeds = total proceeds - total cost - interest paid + dividend received = $5,390 - $5,150 - $102.80 + $25 = $162.20
Rate of return = (net proceeds / total cost) x 100% = ($162.20 / $5,150) x 100% = 3.77%
Therefore, the rate of return on Mr. Smith's investment was approximately 3.77%.
For more questions like Investment click the link below:
https://brainly.com/question/15105766
#SPJ11
You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend of $1.75 a share at the end of the year (D1 = $1.75) and has a beta of 0.9. The risk-free rate is 3.2%, and the market risk premium is 6.0%. Justus currently sells for $33.00 a share, and its dividend is expected to grow at some constant rate, g. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years? (That is, what is P3 ?) Round your answer to two decimal places. Do not round your intermediate calculations.
The market believes that the stock price will be $40.34 at the end of three years.
The current price of the stock, P0, can be calculated using the dividend discount model:
P0 = D1 / (r - g)
where r is the required rate of return and g is the expected constant growth rate of dividends. We are given D1, and we can calculate r as follows:
r = rf + β (rm - rf)
= 0.032 + 0.9 * 0.06
= 0.086
So, P0 = 1.75 / (0.086 - g)
We are also given that P0 = $33.00, so we can solve for g:
33 = 1.75 / (0.086 - g)
g = 0.035
Therefore, the expected constant growth rate of dividends is 3.5%. We can use the constant growth version of the dividend discount model to find P3:
P3 = D4 / (r - g)
= D1 * (1 + g)^3 / (r - g)
= 1.75 * (1.035)^3 / (0.086 - 0.035)
= $40.34
For more such questions on market, click on:
https://brainly.com/question/25369230
#SPJ11
marriott corporation: the cost of capital (abridged)how does marriott use its estimate of the cost of capital? does this make sense?
your question makes sense. Marriott Corporation uses its estimate of the cost of capital to evaluate investment opportunities and make decisions regarding capital structure. By knowing the cost of capital, Marriott can determine whether an investment will generate sufficient returns to cover the cost of capital and create value for shareholders.
Marriott also uses the cost of capital as a benchmark for evaluating the performance of its various divisions and for making decisions regarding the allocation of resources. If a division's return on investment is lower than the cost of capital, Marriott may choose to reallocate resources to a more profitable division or to divest the underperforming division altogether.
Additionally, the cost of capital is used by Marriott in determining its capital structure, specifically the mix of debt and equity financing. By knowing the cost of each source of financing, Marriott can determine the optimal mix that minimizes the cost of capital and maximizes shareholder value.
In summary, Marriott Corporation uses its estimate of the cost of capital in a variety of ways, including evaluating investment opportunities, measuring divisional performance, and determining the optimal capital structure.
To know more about Marriott refer home
https://brainly.com/question/3910024#
#SPJ11
who is responsible for decisions about security strategy? it people shared: it leaders and business leaders business leaders consultants
! In an organization, decisions about security strategy are typically the responsibility of both IT leaders and business leaders.
Understanding IT leaders and business leaders.IT leaders, such as Chief Information Security Officers (CISOs) and IT managers, are responsible for the technical aspects of security, including identifying potential threats, implementing protective measures, and managing security systems.
Business leaders, such as CEOs and board members, play a crucial role in defining the organization's overall security goals, allocating resources, and ensuring that security policies align with business objectives.
Consultants may also be involved in the decision-making process, providing expert advice and guidance on industry best practices and emerging security trends.
By working together, IT leaders, business leaders, and consultants can create a comprehensive and effective security strategy that safeguards the organization's assets and supports its mission.
Learn more about security strategy at
https://brainly.com/question/28317637
#SPJ11
What are ways that risks can be minimized by the company
management ( Hermes company )
The management of Hermes company can minimize risks through various strategies. These include conducting thorough risk assessments, implementing internal controls, maintaining adequate insurance coverage, fostering a strong risk management culture, and regularly monitoring and updating risk mitigation plans.
How Hermes company minimizes riskHermes, a luxury goods company, can minimize risks through various strategies.
Firstly, they can conduct regular risk assessments to identify potential threats and vulnerabilities. This allows them to develop appropriate risk management plans and allocate resources accordingly.
Secondly, they can implement effective internal controls, such as segregation of duties, to prevent fraud or errors.
Thirdly, they can ensure compliance with laws and regulations to avoid legal and reputational risks.
Fourthly, they can implement proper training and development programs for employees to ensure they are equipped with the necessary skills to manage risks.
Fifthly, they can diversify their product lines and markets to reduce reliance on a single product or market.
Lastly, they can have crisis management plans in place to respond quickly and effectively to any unexpected events. By implementing these measures, Hermes can minimize risks and maintain its reputation as a leading luxury brand.
Learn more about company management at
https://brainly.com/question/30611924
#SPJ11
masterson company's budgeted production calls for 67,000 units in april and 63,000 units in may of a key raw material that costs $1.65 per unit. each month's ending raw materials inventory should equal 20% of the following month's budgeted materials. the april 1 inventory for this material is 13,400 units. what is the budgeted materials purchases for april?
The budgeted materials purchases for April are $109,230
How to calculate the budgeted materials purchasesThe Masterson Company's budgeted production calls for 67,000 units in April and 63,000 units in May for a key raw material costing $1.65 per unit.
To calculate the budgeted materials purchases for April, we first need to determine the desired ending raw materials inventory for April, which should be 20% of May's budgeted materials (63,000 units).
April's desired ending inventory = 0.20 * 63,000 = 12,600 units
Now, we can calculate the total materials needed for April, considering both production and the desired ending inventory:
Total materials needed = Budgeted production + Desired ending inventory - Beginning inventory
Total materials needed = 67,000 + 12,600 - 13,400
Total materials needed = 66,200 units
Finally, to find the budgeted materials purchases for April, we multiply the total materials needed by the cost per unit:
Budgeted materials purchases = 66,200 * $1.65
Budgeted materials purchases = $109,230
Learn more about budgeting at
https://brainly.com/question/15683430
#SPJ11
Deposits of 1100 are placed into a fund at the beginning of each year for 23 years. At the end of year 35, annual payments commence and continue forever. Interest is at an effective annual rate of 9%. Calculate the annual payment.
The answer of annual payment is $9,409.28.
How to calculate the annual payment of a perpetuity?To calculate the annual payment, we need to first find the value of the fund at the end of year 34. This will be the present value of perpetuity that will provide the annual payment.
First, we find the future value of the 23 deposits of 1100 made at the beginning of each year for 23 years. We can use the formula for the future value of an annuity:
FV =[tex]P * ((1 + r)^n - 1) / r[/tex]
where:
P = payment amount = 1100
r = interest rate per period = 9% / 1 = 0.09
n = number of periods = 23
FV = 1100 * ((1 + 0.09[tex])^2^3[/tex] - 1) / 0.09
= 1100 * 33.87049639
= 37,257.54603
The future value of the deposits is 37,257.54603 at the end of year 23.
Next, we find the future value of the fund at the end of year 34. We can use the formula for the future value of a lump sum:
FV = [tex]PV * (1 + r)^n[/tex]
where:
PV = present value = 37,257.54603
r = interest rate per period = 9% / 1 = 0.09
n = number of periods = 11
FV = 37,257.54603 * (1 + 0.09[tex])^1^1[/tex]
= 104,547.5638
The value of the fund at the end of year 34 is 104,547.5638.
Finally, we can calculate the annual payment using the formula for the present value of a perpetuity:
PV = P / r
where:
P = payment amount (what we need to find)
r = interest rate per period = 9% / 1 = 0.09
PV = present value = 104,547.5638
P = PV * r
= 104,547.5638 * 0.09
= 9409.28374
Learn more about annual payment
brainly.com/question/8824330
#SPJ11
St. Vincent's Hospital has a target capital structure of 50 percent debt and the remainder in equity. Its cost of equity (fund capital) estimate is 12.1 percent and its cost of tax-exempt debt estimate is 7 percent. What is the hospital's corporate cost of capital? (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)
The hospital's corporate cost of capital is 9.5%.
To calculate the corporate cost of capital, we need to find the weighted average of the cost of debt and the cost of equity based on their respective proportions in the capital structure.
Let's start by finding the proportion of debt and equity in St. Vincent's Hospital's target capital structure:
Debt = 50%
Equity = 50%
Next, we can calculate the weighted average cost of capital (WACC) using the following formula:
WACC = (Cost of Equity x Proportion of Equity) + (Cost of Debt x Proportion of Debt)
WACC = (0.121 x 0.5) + (0.07 x 0.5)
WACC = 0.0605 + 0.035
WACC = 0.095 or 9.5%
For more such questions on cost, click on:
https://brainly.com/question/28147009
#SPJ11
Suppose that Firefox Corp. has announced it is going to repurchase stock instead of paying out dividends. What effect will the repurchase have on an investor who currently holds 110 shares and sells 11 of those shares back to the company in the repurchase at the market price per share of $18.6 (1.0., Wh are the values of the investor's shares and cash)? Enter your answers rounded to 2 DECIMAL PLACES What will be the value of the investor's shares after the share repurchase? 1841.4 Correct response: 1,841.410.01
What will be the value of the investor's cash after the share repurchase? 204.6 correct response: 204.60.01 Suppose the company changes its mind and decides to issue a 17% stock dividend instead of issuing a cash dividend or a repurchase. How would this action affect a shareholder who owns 110 shares of the stock? Enter your answers rounded to 2 DECIMAL PLACES How many shares will the fire have alter the stock dividend? Number What will be the price per share after the stock dividend? Number
What will be the value of the investor's shares after the stock dividend? Numbor What will be the value of the investor's cash ate the stock dividend? Number
After selling 11 shares back to the company, the investor will be left with 99 shares (110-11=99). The total value of the shares before the repurchase is $18.6 x 110 = $2046.
After the repurchase, the value of the investor's remaining shares will be (99 x $18.6) = $1841.4, rounded to 2 decimal places. The value of the cash received from the repurchase will be (11 x $18.6) = $204.6, rounded to 2 decimal places.
If the company issues a 17% stock dividend, the investor's number of shares will increase by 17% of 110, or 18.7 shares (0.17 x 110 = 18.7), rounded to the nearest whole share. The investor will then own 110 + 18.7 = 128.7 shares, which can be rounded down to 128 shares.
To determine the new price per share after the stock dividend, we need to calculate the total number of shares outstanding after the dividend. This is the original number of shares (110) plus the new shares issued as a dividend (18.7), which equals 128.7. The price per share after the dividend will be the same as the price before the dividend, since the total value of the shares outstanding has not changed.
The value of the investor's shares after the stock dividend will be 128 x $18.6 = $2380.80, rounded to 2 decimal places.
The investor will not receive any cash from a stock dividend, so the value of the investor's cash will remain unchanged at $0.
to know more about investor refer here
https://brainly.com/question/30828591#
#SPJ11
Calculate the future value of $9,000 in a. Four years at an interest rate of 9% per year. b. Eight years at an interest rate of 9% per year. c. Four years at an interest rate of 18% per year. d. Why is the amount of interest earned in part (a) less than half the amount of interest earned in part (b)? a. Four years at an interest rate of 9% per year. The future value of $9,000 in 4 years at an interest rate of 9% per year is $_____. (Round to the nearest dollar.)
a. The future value of $9,000 in 4 years at an interest rate of 9% per year is $12,962.
b. The future value of $9,000 in 8 years at an interest rate of 9% per year is $18,506.
c. The future value of $9,000 in 4 years at an interest rate of 18% per year is $16,542.
d. The amount of interest earned in part (a) is less than half the amount of interest earned in part (b) because of the effect of compounding
a) To calculate the future value of $9,000 in 4 years at an interest rate of 9% per year, we can use the following formula:
FV = PV x (1 + r)^n
Where PV is the present value, r is the interest rate, and n is the number of years.
Plugging in the numbers, we get:
FV = 9,000 x (1 + 0.09)^4 = $12,744.39
Therefore, the future value of $9,000 in 4 years at an interest rate of 9% per year is $12,744.39.
b) To calculate the future value of $9,000 in 8 years at an interest rate of 9% per year, we can use the same formula:
FV = PV x (1 + r)^n
Plugging in the numbers, we get:
FV = 9,000 x (1 + 0.09)^8 = $19,402.08
Therefore, the future value of $9,000 in 8 years at an interest rate of 9% per year is $19,402.08.
c) To calculate the future value of $9,000 in 4 years at an interest rate of 18% per year, we can again use the same formula:
FV = PV x (1 + r)^n
Plugging in the numbers, we get:
FV = 9,000 x (1 + 0.18)^4 = $17,713.28
Therefore, the future value of $9,000 in 4 years at an interest rate of 18% per year is $17,713.28.
d) The amount of interest earned in part (a) is less than half the amount of interest earned in part (b) because the interest earned is compounded annually.
for more such questions on interest
https://brainly.com/question/14394479
#SPJ11
Malcolm's boss just came into his office, obviously upset, and said, "I'm tired of you being late all the time on these projects. You need to clean up your act!" Malcolm is likeliest to respond by
Malcolm's response to his boss's criticism is dependent on his personality, attitude, and work ethics. However, here are some possible ways he could respond:
Apologize and take responsibility, Malcolm might say, "I'm sorry for being late. You're right, it's not acceptable, and I take full responsibility for my actions. I'll do my best to ensure that it doesn't happen again."
Explain the situation: Malcolm might say, "I understand your frustration, but the reason I've been late is that I've been dealing with some personal issues that have affected my work schedule. I'm doing my best to resolve them and ensure that I'm on time with the upcoming projects."Ask for feedback: Malcolm might say, "Thank you for bringing this to my attention. Can you give me some feedback on what I need to do differently to improve my performance? I'm willing to learn and make the necessary changes."Get defensive: Malcolm might say, "I don't think I've been that late, and there were valid reasons for my delays. Besides, the projects still got done on time, right?"Option 1 and 3 are the most constructive responses and show that Malcolm is willing to take ownership of his mistakes and improve his performance. Option 2 is also reasonable if there are legitimate reasons for his lateness. Option 4, on the other hand, is likely to make the situation worse and damage Malcolm's relationship with his boss.
To know more about Malcolm's response
https://brainly.com/question/30241159
#SPJ4
The International Fisher equation states that...
a) ...domestic inflation rates will tend to equal foreign inflation rates.
b) ...domestic real interest rates will tend to equal foreign real interest rates.
c) ...the expected exchange rate depreciation of the domestic currency is equal to the future inflation differential (foreign minus domestic inflation).
d) ...the difference between the bid-ask spread for an exchange rate is equal to the future inflation differential (foreign minus domestic inflation).
The International Fisher equation states that the expected exchange rate depreciation of the domestic currency is equal to the future inflation differential (foreign minus domestic inflation).(C)
The International Fisher equation is a key concept in international finance that links interest rates, exchange rates, and inflation. It suggests that the difference in nominal interest rates between two countries is equal to the expected change in their exchange rate.
The equation is derived from the Fisher effect, which states that nominal interest rates consist of a real interest rate component and an expected inflation component.
According to the International Fisher equation, if a country's expected inflation rate is higher than that of another country, its nominal interest rates will also be higher, leading to the depreciation of its currency in the foreign exchange market. This depreciation is equal to the future inflation differential (foreign minus domestic inflation).(C)
To know more about exchange rates click on below link:
https://brainly.com/question/29804445#
#SPJ11
Next question You are considering a car loan with a stated APR of 6.85% based on monthly compounding. What is the effective annuse tato of this an The effective annual rate is % (Round to two decimal
The effective annual rate of the car loan with a stated APR of 6.85% based on monthly compounding is 7.07%. The effective annual interest rate is the real return on an interest-paying investment when compounding over time is considered.
The effective annual rate of the car loan can be calculated using the formula: [tex](1 + APR/n)^{n - 1}[/tex], where APR is the stated annual percentage rate and n is the number of compounding periods per year. In this case, the APR is 6.85% and the loan is compounded monthly, so n = 12.
Substituting these values into the formula, we get: [tex](1 + 0.0685/12)^{12} - 1 = 0.0707 \;or \;7.07\%[/tex]. Therefore, the effective annual rate of this car loan is 7.07%.
The effective annual rate takes into account the effect of compounding on the loan over a year, providing a more accurate representation of the true cost of borrowing. It is important to consider this rate when comparing different loan offers from different lenders to ensure you are getting the best deal.
In summary, the effective annual rate of the car loan with a stated APR of 6.85% based on monthly compounding is 7.07%.
To know more about APR refer here:
https://brainly.com/question/31199226#
#SPJ11
Complete Question:
You are considering a car loan with a stated APR of 6.85% based on monthly compounding. What is the effective annual rate of this loan? Round to two decimals.
Roger Water’s 22-year-old daughter Kashmir has just accepted a job with Interactive Intelligence Inc. (ININ), an up and coming technology firm from Indianapolis. ININ offers employees a Traditional 401(k) plan to which employees may contribute 5 percent of their salary. ININ will match $0.50 for every dollar contributed. Kashmir’s starting salary is $32,000.
3. If she retires at age 67, given the amounts in (1) and (2), how much can Kashmir withdraw and spend each year for 20 years from each alternative? Assume she continues to earn 10% (before tax) and remains in the 20% federal income tax bracket.
Based on the information provided, Kashmir can contribute up to 5% of her $32,000 salary, which equals $1,600 annually. Additionally, ININ will match $0.50 for every dollar contributed, which means they will contribute $800 annually. This brings Kashmir's total annual contribution to $2,400.
If Kashmir decides to invest in a Traditional 401(k) plan, she will not be taxed on the contributions or earnings until she withdraws the money at retirement age. Assuming she earns 10% annually (before tax) and remains in the 20% federal income tax bracket, Kashmir will be able to withdraw approximately $20,800 annually for 20 years.
Alternatively, if Kashmir decides to invest in a Roth 401(k) plan, she will be taxed on the contributions at her current tax rate, but will not be taxed on the earnings or withdrawals in retirement. Assuming the same rate of return and tax bracket, Kashmir will be able to withdraw approximately $18,300 annually for 20 years.
It is important to note that these calculations are based on certain assumptions and may not reflect actual market conditions or tax laws in the future. It is also important for Kashmir to consider her personal financial goals and needs before making a decision on which type of plan to invest in.
To know more about Kashmir refer here:
https://brainly.com/question/17171251#
#SPJ11
What is the futuro equivalent of $2,000 invested at 8% simple interest per year for four (4) years? a. FW- $1,640 b. FW = $3,640 FW = $2,040 O d. FW $2,640
The future value (FW) of the investment after four years is $2,640. So, the correct answer is option d.
To calculate the future equivalent of $2,000 invested at 8% simple interest per year for four (4) years, we can use the formula: FW = PV x (1 + i x n) Where FW is the future worth, PV is the present value (in this case, $2,000), i is the interest rate (8% or 0.08), and n is the number of years (4).
Plugging in the numbers, we get:
FW = $2,000 x (1 + 0.08 x 4)
FW = $2,000 x 1.32
FW = $2,640
Alternatively, we can also use FW = P + (P * r * t) Where: FW = future value, P = principal (initial investment), r = interest rate per year (as a decimal), t = time in years. Now, let's plug in the given values: P = $2,000, r = 8% = 0.08, t = 4 years
FW = 2000 + (2000 * 0.08 * 4)
FW = 2000 + (160 * 4)
FW = 2000 + 640. The future value (FW) of the investment after four years is $2,640. So, the correct answer is d. FW = $2,640.
To know more about future value, refer here:
https://brainly.com/question/30787954#
#SPJ11
What is the bond equivalent yield on a $1 million T-bill that currently sells at 92.775 percent of its face value and 126 days from maturity? vrite your answer in % and round it to 2 decimal places)
The bond equivalent yield is 4.08%.
How to calculate bond equivalent yield?To calculate the bond equivalent yield on a $1 million T-bill, we need to use the following formula:
BEY = (FV - PV) / PV * 365 / d
Where:
BEY is the bond equivalent yield
FV is the face value of the T-bill, which is $1,000,000
PV is the purchase price of the T-bill, which is 92.775% of the face value, or $927,750
d is the number of days to maturity, which is 126 days
Plugging in the values, we get:
BEY = ($1,000,000 - $927,750) / $927,750 * 365 / 126
BEY = 0.0408 or 4.08%
Therefore, the bond equivalent yield on a $1 million T-bill that currently sells at 92.775% of its face value and 126 days from maturity is 4.08%.
Learn more about bond equivalent yield
brainly.com/question/14644574
#SPJ11
what information do sustainability reports tend to provide? 1. environmental impact and labor practices 2. product safety 3. innovation
Sustainability reports are comprehensive documents that provide: information about a company's sustainability practices, environmental impact, and social responsibility initiatives.
These reports generally focus on three main areas: environmental impact and labor practices, product safety, and innovation.
Firstly, sustainability reports typically provide information about a company's environmental impact and labor practices. This includes information about the company's carbon footprint, energy and water usage, waste management, and supply chain sustainability.
The report may also outline the company's efforts to reduce their environmental impact and promote sustainable practices throughout their operations.
Secondly, sustainability reports often include information about product safety. This includes information about the company's quality control processes, product testing procedures, and any recalls or safety incidents that have occurred.
This information is particularly important for customers who want to know that the products they are using are safe and reliable.
Lastly, sustainability reports may also include information about innovation. This includes information about the company's efforts to develop new products or technologies that promote sustainability, as well as their partnerships with other organizations to advance sustainable practices.
Overall, sustainability reports are an important tool for companies to communicate their commitment to sustainability and social responsibility to stakeholders.
By providing transparent and comprehensive information about their environmental impact, labor practices, product safety, and innovation efforts, companies can build trust and strengthen their reputation as responsible corporate citizens.
To know more about Sustainability reports, refer here:
https://brainly.com/question/30117732#
#SPJ11
Complete question:
what information do sustainability reports tend to provide?
A project is expected to generate annual revenues of $120,900, with variable costs of $76,000, and fixed costs of $16.500. The annual depreciation is $4.050 and the tax rate is 40 percent What is the annual operating cash flow? Ο $18,660 Ο $46,520 Ο $32.450 Ο $28.400 S63,020
The annual operating cash flow for the given project is $18,660. Therefore, the correct option is option 1.
It is given that a project has an annual revenues of $120,900, variable costs of $76,000, fixed costs of $16,500, annual depreciation of $4,050, and a tax rate of 40 percent.
To calculate the annual operating cash flow follow these steps:1. Calculate the Earnings Before Interest and Taxes (EBIT):
EBIT = Revenues - Variable Costs - Fixed Costs
EBIT = $120,900 - $76,000 - $16,500
EBIT = $28,400
2. Calculate the Earnings Before Taxes (EBT):
EBT = EBIT - Depreciation
EBT = $28,400 - $4,050
EBT = $24,350
3. Calculate the Taxes:
Taxes = EBT * Tax Rate
Taxes = $24,350 * 0.4
Taxes = $9,740
4. Calculate the Net Income:
Net Income = EBT - Taxes
Net Income = $24,350 - $9,740
Net Income = $14,610
5. Calculate the annual Operating Cash Flow (OCF):
OCF = Net Income + Depreciation
OCF = $14,610 + $4,050
OCF = $18,660
So, the annual operating cash flow for this project is option 1: $18,660.
Learn more about Operating cash flow:
https://brainly.com/question/28185713
#SPJ11
business rules implement specific activities for a particular business process.
deposited
control
multplicities
Yes, business rules are essential for implementing specific activities in a particular business process. They provide guidelines and constraints for decision-making and behavior within an organization. Multiplicities refer to the number of occurrences or relationships between objects in a system, which can also be controlled through business rules. Overall, business rules help ensure consistency and efficiency in business operations.
Business rules implement specific activities for a particular business process. They ensure that the activities are carried out in a controlled manner by setting boundaries and conditions, which helps in maintaining order and consistency. When a transaction, such as a deposit, takes place, business rules provide the necessary control measures to guarantee that the deposited amount follows the predefined criteria.
Multiplicities, on the other hand, define the minimum and maximum number of occurrences of an entity in a relationship. In the context of business rules, multiplicities help to establish the correct number of instances and associations that should exist, ensuring that the process complies with the defined guidelines.
In summary, business rules implement specific activities for a particular business process by providing control and setting multiplicities, which ensure that activities such as deposits are carried out correctly and consistently.
Read more about "Business rules": https://brainly.com/question/24038343
#SPJ11
Aregistered bond is a bond registered with the trustee of the bondissue. True or FalseBonds are long-term liabilities of the issuer of the bonds.True or False
A registered bond is a bond that is registered with the trustee of the bond issue, which means that the owner's information is recorded with the trustee, and interest payments and principal repayment are made directly to the owner.
This is in contrast to bearer bonds, which do not have registered owners, and interest payments are made to whoever holds the physical bond certificate.
Bonds are long-term debt securities issued by corporations, municipalities, and government entities to raise capital. They are considered long-term liabilities of the issuer since they have a maturity date that extends beyond one year from the date of issuance.
Learn more about bonds https://brainly.com/question/29344176
#SPJ11