Caspian Sea is considering raising $33.00 million by issuing preferred stock. They believe the market will use a discount rate of 11.87% to value the preferred stock which will pay a dividend of $3.23. How many shares will they need to issue

Answers

Answer 1
Answer:

Answer:

1,212,723 shares

Explanation:

Given that,

Value of issuing preferred stock = $33,000,000

Discount rate = 11.87%

Dividend paid = $3.23

Price of preferred stock:

= Annual dividend ÷ discount rate

= $3.23 ÷ 0.1187

= $27.2115

Shares will they need to issue:

= Value of issuing preferred stock ÷ Price of preferred stock

= $33,000,000 ÷ $27.2115

= 1,212,723


Related Questions

The business purchased an office rack from Zuhdi Bhd for RM8,000 andpaid cash of RM3,000, the balance is to be paid later. State the journalentry for this transaction,Your answer​
Alpha Communications, Inc., which produces telecommunications equipment in the United States, has a very strong local market for its circuit board. The variable production cost is $130, and the company can sell its entire supply domestically for $170. The U.S. tax rate is 40 percent. Alternatively, Alpha can ship the circuit board to its division in Germany, to be used in a product that the German division will distribute throughout Europe. Information about the German product and the division’s operating environment follows.Selling price of final product: $360Shipping fees to import circuit board: $20Labor, overhead, and additional material costs of final product: $115Import duties levied on circuit board (to be paid by the German division): 10% of transfer price German tax rate: 60%Assume that U.S. and German tax authorities allow a transfer price for the circuit board set at either U.S. variable manufacturing cost or the U.S. market price. Alpha’s management is in the process of exploring which transfer price is better for the firm as a whole.Required:1. Compute overall company profitability per unit if all units are transferred and U.S. variable manufacturing cost is used as the transfer price. Show separate calculations for the U.S. operation and the German division.2. Repeat requirement (1). assuming the use of the U.S. market price as the transfer price. Which of the two transfer prices is better for the firm?3. Assume that the German division can obtain the circuit board in Germany for $155.a. If you were the head of the German division, would you rather do business with your U.S. division or buy the circuit board locally? Why?b. Rather than proceed with the transfer, is it in the best interest of Alpha to sell its goods domestically and allow the German division to acquire the circuit board in Germany? Why? Show computations to support your answer.
Which of the following is false about investing with borrowed money? (5 points)There is increased risk.If you lose money, you will still have payments on it.It is the best way to ensure you have retirement funds.No investment is a sure deal
Find the account balance at the end of the second period for $3,000.00 invested at 9% compounded quarterly.
Use below information to prepare general journal entries for Belle Co.’s 1 through 7 transactions. a. D. Belle created a new business and invested $5,900 cash, $6,900 of equipment, and $12,900 in web servers in exchange for common stock. b. The company paid $6,000 cash in advance for prepaid insurance coverage. c. The company purchased $800 of supplies on account. d. The company paid $600 cash for selling expenses. e. The company received $6,000 cash for services provided. f. The company paid $800 cash toward accounts payable. g. The company paid $4,000 cash for equipment.

Suppose you operate a coal power plant and is considering upgrading the flue gas desulphurisation (FGD) facility (or "scrubbers") to reduce sulphur dioxide emissions. A contractor says their new system will cost $5000 per year to operate. Calculate, to the nearest dollar, the present value of the operational costs for the next four years. Assume a discount rate of 2%.

Answers

Answer:

The present value is  $19,039

Explanation:

The computation of the Present value is shown below

= Present value of all yearly cash inflows after applying discount factor

The discount factor should be computed by

= 1 ÷ (1 + rate) ^ years

where,  

rate is 2%  

Year = 0,1,2,3,4 and so on

Discount Factor:

For Year 1 = 1 ÷ 1.02^1 = 0.9804

For Year 2 = 1 ÷ 1.02^2 = 0.9612

For Year 3 = 1 ÷ 1.02^3 = 0.9423

For Year 4 = 1 ÷ 1.02^4 = 0.9238

So, the calculation of a Present value of all yearly cash inflows are shown below

= (Year 1 cash inflow × Present Factor of Year 1) + (Year 2 cash inflow × Present Factor of Year 2) + (Year 3 cash inflow × Present Factor of Year 3) + (Year 4 cash inflow × Present Factor of Year 4)

= ($5,000 × 0.9804) + ($5,000 × 0.9612) + ($5,000 × 0.9423) + ($5,000 × 0.9238)

= $4,901.96  + $4,805.84  + $4,711.61  + $4,619.23

=  $19,039

We take the first four digits of the discount factor.  

A person who is confident, focused and highly determined would best be described with which of the following terms?

Answers

The correct answer of the given question above would be INDOMITABLE. A  person who is confident, focused and highly determined is best described as indomitable. An indomitable person is one who is not easily defeated. This could also mean as someone who is strong, brave and determined. 

Ethical wrong is done either by intending to deceive consumers in order to manipulate their buying behavior, treating them as a mere means to one's own ends (the Kantian approach) or by the harmful consequences for consumers, competitors and overall market efficiency (the utilitarian approach) but not by both. A)TRUE B)FALSE

Answers

Answer:

The correct answer is letter "B": False.

Explanation:

Kantian ethics, named after Immanuel Kant (1724-1804), propose that actions such as theft or lying are absolutely forbidden even when the action brings the individual certain level of happiness. The Utilitarian Approach pursues obtaining maximum satisfaction by minimizing harm. Though, that minimal harm is subjective since it could represent greater harm for the individuals affected.

Thus, in both Kantian and utilitarian approaches ethical wrong is committed by deceiving consumers, producers, and the overall market efficiency.

The Model E extender fits with the 2 inch heavy duty hitches.The contract calls for 247 Model E extenders per week to be delivered in equal installments over the 16 weeks of the contract. The goal of Alpha Assemblies is to work 40 hours per week. The actual work time for completing the Model E extenders has been broken down by process in the table below. Also provided is the anticipated learning rate for each process. All processes must be performed in sequence and each step has its own separate and unique workcenter. To achieve the goal of working 40 hours per week or less, the cycle time must be lower than the takt time. What is the expected Cycle Time for Model E in Week 16? Note: learning is applied to the batch quantity per week. Do not try to break out the units within a week.Process Time Required per Unit Predecessor Task Learning RateA 9 82B 12 A 86C 18 B 81D 9 C 90E 12 D 80F 17 E 88G 14 F 83H 12 G 85I 8 H 82

Answers

Answer:

Cycle Time = 10.19482 minute

Explanation:

From the question :

The Model E can be illustrated perfectly as shown below:

Process Time Required         Predecessor Task           Learning Rate

                per Unit

A                  9                                                                          82

B                 12                                     A                                  86

C                 18                                     B                                  81

D                 9                                      C                                  90

E                 12                                     D                                  80

F                 17                                     E                                   88

G                 14                                     F                                   83

H                 12                                     G                                  85

I                   8                                      H                                  82

Now For the minutes per week for each Process; we have :

Process Time Required         Predecessor      Learning      Minutes

                per Unit                    Task                   Rate               (Week 16)

A                  9                                                      82               4.069096

B                 12                           A                         86              6.564098

C                 18                          B                          81               7.74841

D                 9                           C                          90              5.9049

E                 12                           D                         80               4.9152

F                 17                            E                         88               10.19482

G                 14                           F                         83              6.644165

H                 12                           G                        85              6.264075

I                   8                            H                        82              3.616974

The objective here is to determine the expected Cycle Time for Model E in Week 16

So, we can equally regard the Cycle Time = Bottleneck of Activity for Week 16.

Cycle Time = 10.19482 minute   in as much as it is the the largest activity time for the week 16

Given that the demand per week is : = 247

The available time per week = 40 hours = 40 × 60 hours = 2400 minutes

Talk Time = Available Time Per Week/Demand Per Week

Talk Time = 2400/247

Talk Time = 9.716599

Thus; here  the cycle time is greater than the talk time.

The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead: not been applied.
shows a zero balance.
has been underapplied.
has been overapplied.

Answers

Answer:

has been overapplied.

Explanation:

The net balance of debit and credit of manufacturing overhead account is under or over applied overhead. On debit sides the Actual costs incurred is recorded and overhead applied is recorded in credit side of manufacturing overhead account. Total actual costs are $82,000 ( $30,000 + $24,000 + $28,000 ) and overhead applied is $86,000. Net balance of account is overapplied overhead of $4,000 ( $86,000 - $82,000 ).

​Alice, Betty, and Cathy are interested in forming a business venture. Alice is quite wealthy and is ready to contribute money to the venture. Betty has a degree in business from an excellent university, worked for five years as a manager in a major corporation, and currently is a leadership/management consultant. Cathy is a scientist who has developed a process that will, according to her, "revolutionize cancer treatment throughout the world." Alice, Betty, and Cathy believe it is in their best interest to form a general partnership. Do you agree? Is there a more appropriate form of business you might recommend?

Answers

Answer:

I agree with that, because all of them have good bussiness ideas.

Final answer:

Even though a general partnership might work for Alice, Betty, and Cathy, a limited liability company (LLC) or a corporation might be more appropriate due to Alice's wealth, Betty's business knowledge, and Cathy's valuable scientific process. This way, they can better protect their individual assets, as well as the venture's funding and potential expansion.

Explanation:

While a general partnership might seem like a viable solution for Alice, Betty, and Cathy, it may not be the most optimal choice considering their individual circumstances and contributions. In a general partnership, every partner shares liability and financial commitment equally or according to their investment. Although this may initially seem fair, it might put Alice at risk since she's contributing the most financially. Instead, I'd recommend considering a limited liability company (LLC) or corporation.

In an LLC, Alice, Betty, and Cathy can limit their personal liabilities. This would allow Alice to protect her wealth while still contributing to the venture. In a corporation, the company is considered a separate legal entity. This structure can also be beneficial if they plan on seeking outside venture capital or looking into other ambitious expansion.

Remember, the final decision depends on various factors including tax considerations, business goals, and the level of desired legal protection. It is advisable to consult with a business advisor or attorney before deciding.

Learn more about Business Structures here:

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