Answer:
Floating cost adjustment is 3.25%
Explanation:
Flotation-adjusted cost of equity = (Expected dividend at the end of Year 1 / Net proceeds per share) + Growth rate.
Expected dividend at the end of Year 1 (D1) = $ 2.30 (given in question)
Net proceeds per share = (21.30 - 4 % of 21.30) = $ 20.448
Flotation-adjusted cost of equity = (2.30 / 20.448) + 0.04
= 0.1125 + 0.04
= 0.1525 i.e., 15.25 %.
Flotation cost adjustment = Flotation-adjusted cost of equity - Cost of equity without flotation adjustment.
= 15.25 % - 12 % (given in question)
= 3.25 %.
Conclusion:- Flotation cost adjustment = 3.25 %
Complete Question:
An employee has a claim on the cash flows of Martin's Machines. This claim is defined as a claim by one of the firm's:
Group of answer choices
A. residual owners.
B. shareholders.
C. financiers.
D. provisional partners.
E. stakeholders.
Answer:
E. stakeholders.
Explanation:
An employee has a claim on the cash flows of Martin's Machines. This claim is defined as a claim by one of the firm's stakeholders.
A stakeholder can be defined as an individual or group of people that has an interest or concern in a business firm and usually either affect or be affected by the business.
Generally, the key stakeholders of business firm are its employees, public groups, suppliers, investors, creditors, consumers or customers. The employees working in an organization are key internal stakeholders because they play a significant role, function and have both financial and time-based investments in the operations of the business.
Answer:
the value of the MktRS (market rate of substitution) is 0
Explanation:
The computation of the market rate of substitution is shown below:
Since it is mentioned that
You like apples half as pears
So the equation would be
X = 1 ÷ 2 Y
X ÷ Y = 1 ÷ 2
Now the market rate of substitution of the price is
= $2 ÷ $4
= 1 ÷ 2
So,
= 1 ÷ 2 - 1 ÷ 2
= 0
Hence, the value of the MktRS (market rate of substitution) is 0
The same is to be considered
Answer and Explanation:
The subject of the email is too long and contains all the information. The subject should have been: Proposal draft due on Friday. Rest of the information should have been included in the body of the email.
Answer: 2 years
Explanation:
The payback period is the amount of time that is needed for the required cash inflow of a project to offset the initial cash outflow that the business offsets. The payback period is when the initial outlay of an investment is recovered. There are two different methods used to calculate payback period. We have the average method and the subtraction method.
In the above question, the payback period is solved as follows:
Labour cost decreases by 10% for each unit.
Therefore,
= $10 × 10%
= $10 × 0.1
= $1 per unit.
In order to recover $2000, the business needs to sell the following;
= 2000/1
= 2000units.
If Eric sells 1000 units per year of Emu, it will take:
2000/1000= 2years
In conclusion, the payback period of the investment is 2 years.
