In a sandwich shop, 3 workers are able to make 45 sandwiches in an hour during the lunch rush. When a 4th worker is added, the team is able to make 57 sandwiches. Calculate the marginal product of adding the 4th worker.

Answers

Answer 1

Answer:

12

Explanation:

Calculation to determine the marginal product of adding the 4th worker

Using this formula

MP=ΔTPΔL

Let plug in the formula

ΔTP=57−45

ΔTP=12

Therefore The marginal product of adding the 4th worker is 12 sandwiches.


Related Questions

A company using the FIFO method had beginning work in process inventory of 10,000 units and completed 75,000 units. They also had 5,000 units in ending work in process inventory. The number of units started and completed equals_________

Answers

Answer:

the number of units started and completed is 65,000 units

Explanation:

The computation of the number of units started and completed is given below:

= Units completed - beginning work in process inventory units

= 75,000 units - 10,000 units

= 65,000 units

Hence, the number of units started and completed is 65,000 units

Comparing each item on a financial statement with a total amount from the same statement is referred to as

Answers

Answer: vertical analysis

Explanation:

Vertical analysis is when each item on a financial statement is compared with a total amount from the same statement.

Vertical analysis refers to a financial statement analysis method whereby each line item in a statement is listed as a percentage of the base figure. In such case, each amount in the income statement will then be restated as a percentage of sales.

On January 1, 2020, Fiscus Company purchased equipment costing $90,000. Fiscus records depreciation expense for the equipment at the rate of $1,000/month. What is the credit balance in FIscus Company's accumulated depreciation account for this equipment at December 31, 2020

Answers

Answer:

the credit balance in FIscus Company's accumulated depreciation account for this equipment at December 31, 2020 is $120,000

Explanation:

The computation of the credit balance is shown below:

= Depreciation expense per month × number of months

= $1,000 × 12 months

= $120,000

Hence, the credit balance in FIscus Company's accumulated depreciation account for this equipment at December 31, 2020 is $120,000

The Down and Out Co. just issued a dividend of $2.91 per share on its common stock. The company is expected to maintain a constant 6 percent growth rate in its dividends indefinitely. If the stock sells for $35 a share, what is the company's cost of equity?

Answers

Answer:

14.81%

Explanation:

Cost of equity = (Dividend for next period / Current price) + Growth rate

Cost of equity = (($2.91*1.06) / $35) + 0.06

Cost of equity = $3.0846/$35 + 0.06

Cost of equity = 0.08813143 + 0.06

Cost of equity = 0.14813143

Cost of equity = 14.81%

what does the "S" represent for the designation GMAW-S?
A. Spray Transfer
B. Pulsed Spray
C. Solid wire
D. Short Circuit Transfer
Help me bro​

Answers

Answer:

C. Solid wire

Explanation:

HOPE IT' HELP YOU

Which of the following occurs when a party threatens to file a legitimate (in other words, a non-frivolous) civil lawsuit unless another party gives consent to the terms of a contract?

a. Duress
b. Undue influence
c. Durable fraud
d. Criminal influence
e. None of these choices are correct.

Answers

Answer: E. None of the above

Explanation:

Duress occurs when there's threat by a party to file a criminal lawsuit unless the terms of a contract is given consent.

Duress occurs when a party was being forced into an agreement due to the wrongful act of another party. An example of this is when a party threatens to file a frivolous civil lawsuit unless another party gives consent to the terms of the contract.

Based on the options given, the answer to this is none of the above.

Investment A cost 12,000 today and it pays back 15,500 two years from now. Investment B cost $8,000 today and it pays back $6,000 each year for two years. If Interest of 5% is used, which alternate is superior? (Hint: Use present worth your cost is negative and your profits are positive) Group of answer choices

Answers

Answer:

Investment "B" is superior.

Explanation:

Below is the calculation of each investment net present worth.

Net present worth of Investment A = -12000 + 15500(P/F, 5%, 2)

Net present worth of investment A = -12000 + 15500 (0.9070)

Net present worth of investment A = 2058.95

Net present worth of Investment B = -8000+ 6000(P/A, 5%, 2)

Net present worth of investment B = -8000 + 6000 (1.8594)

Net present worth of investment B = 3156.4

Investment "B" is superior because its net present worth is greater.

Consider the following data that gives the quantity produced and unit price for three different goods across two different years. Assume that the base year is 2015.Good 2015 Price 2015 Quantity 2016 Price 2016 QuantityA $2 250 $3 200B $3 300 $ 2 400C $4 400 $5 500What was the real gross domestic product (GDP) in 2016?A. $3,000
B. $3,350
C. $3,600
D. $3,900
E. $8,550

Answers

Answer:

C. $3,600

Explanation:

The value of gross domestic product after adjusting the inflation effect in the valuation of the product.

Calculate the real GDP as follow

Real GDP of 2016 = ( $2 x 200 ) + ( $3 x 400 ) + ( $4 x 500 )

Real GDP of 2016 = 400 + 1200 + 2000

Real GDP of 2016 = $3600

Hence, real gross domestic product (GDP) in 2016 is $3,600

The domestic demand ​(​QD) for wheat in the United States is estimated to be
QDD = 1430​ - 55P
where the quantity of wheat is measured in millions of bushels per year. Suppose China also demands U.S. wheat ​(​QDC) and that its demand is given by
QDC = 2100 - 100P
What is the total demand for U.S.​ wheat, assuming the only two sources of demand are domestic and​ Chinese?
The total demand for U.S. wheat is:____.
A. QD = 3530 - 155P for all P.
B. QD = 1430 - 55P for all P.
C. QD = 3530 - 155P for P < or = to $26 and QD = 2100 - 100P for P > $26.
D. QD = 3530 - 155P for P < or = to $21 and QD = 2100 - 100P for P > $21.
E. QD = 3530 - 155P for P < or = to $21 and QD = 1430 - 55P for P > $21.

Answers

Answer:

E. QD = 3530 - 155P for P < or = to $21 and QD = 1430 - 55P for P > $21.

Explanation:

United States domestic demand function is QDD = 1430 - 55P

Demand for wheat in China is QDC = 2100 - 100P.

The total demand function for U.S. wheat will be given by function:

QD = 3530 - 155P

ohn and Lisa form a partnership to operate a restaurant. Lisa signs a two-year lease on a space for the restaurant without consulting John. Under the legal concept of ________, John and the partnership are responsible for this lease, although it was only signed by Lisa.

Answers

Answer:

General Partnership

Explanation:

The legal concept of General Partnership obliges two or more signing partners -Lisa and John in this case- to share all assets, all liabilities, and to be responsible for all matters related to the business, regardless of who signs a contract, or contracts new debt, or acquires a new asset, and so on.

So under this legal concept, even if John did not sign the lease, he is still legally responsible for it.

A spurious regression refers to a situation where:____.
a. the direction of the relationship between the dependent variable and the explanatory variables is uncertain.
b. even though two variables are independent, the OLS regression of one variable on the other indicates a relationship between them.
c. a few important and necessary explanatory variables are left out of a regression equation, thus leading to inefficient and inconsistent forecasts.
d. at least one of the variables used in a regression equation does not have a unit root and the error terms are heteroskedastic.

Answers

Answer:

b. even though two variables are independent, the OLS regression of one variable on the other indicates a relationship between them.

Explanation:

An experiment can be defined as an investigation which typically involves the process of manipulating an independent variable (the cause) in order to be able to determine or measure the dependent variable (the effect).

This ultimately implies that, an experiment can be used by scientists to show or demonstrate how a condition causes or gives rise to another i.e cause and effect, influence, behavior, etc in a sample.

In an experiment , the variable being manipulated by an experimenter is known as an independent variable while the dependent variable is the event expected to change when the independent variable is manipulated

A spurious regression refers to a situation where even though two (2) variables are independent, the ordinary least squares (OLS) regression of one independent variable on the other variable indicates a relationship between them.

An ordinary least squares (OLS) regression is typically designed to be used in estimating unknown variables or parameters in a linear regression model.

The free trade pact known as Mercosur has been successful at creating a full customs union between Brazil and Argentina. True False

Answers

Answer:

The given statement is "True".

Explanation:

An agreement for reducing obstacles to exporters and importers amongst two or even more organizations is determined as Free trade pact.Commodities could be purchased as well as transferred crossing international boundaries mostly under free markets having minimal or no governmental taxes restrictions or subsidies to prevent interchange.

The calculation of WACC involves calculating the weighted average of the required rates of return on debt and equity, where the weights equal the percentage of each type of financing in the firm's overall capital structure.
(rstd, rps, rs, rd)
_______ is the symbol that represents the required rate of return on short-term debt in the weighted average cost of capital (WACC) equation.
Co. has $2.3 million of debt, $1 million of preferred stock, and $2.2 million of common equity. What would be its weight on debt?
a. 0.42
b. 0.18
c. 0.40
d. 0.16

Answers

Answer:

a. 0.42

Explanation:

Calculation to determine What would be its weight on debt?

First step is to calculate the Total firm capital

Total firm capital= $2.3 + $1 + $2.2

Total firm capital= 5.50 million.

Now let determine the weight on debt using this formula

Weight on debt= Debt in the firm/ Total firm capital

Let plug in the formula

Weight on debt = $2.3 million/ 5.50 million

Weight on debt = 0.4182.

Weight on debt=0.42 (Approximately)

Therefore What would be its weight on debt is 0.42

Mabel is a single 40-year-old who has borrowed money on numerous occasions. Her payment record has been good, except she has been delinquent in paying a few bills. Which of the following is true regarding credit information gathered on Mabel?

a. Since Mabel has been delinquent, she waives her right to see the credit files.
b. If Mabel is rejected for a loan because of the consumer report, the lender must tell her the source of the report.
c. Mabel has a right to have the information regarding her delinquency in paying a few loans stricken from her credit record because her record has generally been good.
d. Mabel's only legal remedy, if there is erroneous information in her credit file, is to report the problem to the FTC for enforcement.

Answers

Answer:

b. If Mabel is rejected for a loan because of the consumer report, the lender must tell her the source of the report.

Explanation:

The best answer to this question is option b, given that it gives the best description of the situation at hand. If she is turned down for a loan due to the fact that she has been delinquent in paying bills, the the agency from which she seeks this loan has to tell her the source of the report. A credit report gives a summarized statement of a persons financial state. It has such important information like the particulars of the person , address as well as the person SSN,

Inventory turnover measures a.the relationship between cost of goods sold and the amount of inventory carried during the period. b.the times purchases are turned into inventory during the period. c.the efficiency and effectiveness of costing management. d.the average amount of inventory sold.

Answers

Answer:

a. the relationship between cost of goods sold and the amount of inventory carried during the period.

Explanation:

An inventory turnover can be defined as a measure of the relationship between cost of goods sold (COGS) and the amount of inventory carried during the period the goods were purchased by the consumers or customers of a business firm.

This ultimately implies that, an inventory turnover is a measure of the amount of times an inventory is used or sold by an organization at a specific period of time.

Basically, the inventory turnover is calculated by dividing cost of goods sold by average inventory.

Additionally, the Expense Account selected by a manufacturer or a producer for inventory parts would normally comprise of the account type Cost of Goods Sold.

Blitz Corp. had total sales of $3,130,000 last year and has 109,000 shares of stock outstanding. The benchmark PS is 1.66 times. What stock price would you consider appropriate

Answers

Answer:

$47.68

Explanation:

Calculation to determine stock price would you consider appropriate

Using this formula

Stock price=(Total sales/Shares of stock outstanding)*Benchmark PS

Let plug to determine

Stock price=($3,130,000/109,000) ×1.66

Stock price=28.72x 1.66

Stock price= $47.68

Therefore the stock price that you would

consider Appropriate is $47.68

You have $7,600 to deposit. Regency Bank offers 12 percent per year compounded monthly (1.0 percent per month), while King Bank offers 12 percent but will only compound annually.
How much will your investment be worth in 16 years at each bank? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Regency Bank
King Bank

Answers

Answer:

Regency Bank : $51,347.27

King Bank : $46,590.99

Explanation:

The formula for calculating future value:

FV = P (1 + r)^mn

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

m = number of compounding

Regency Bank : $7,600 x (1.01)^(16 x 12) = $51,347.27

King Bank : $7600 x 1.12^16 = $46,590.99

At the start of the year, your firm's capital stock equaled $10 million, and at the end of the year it equaled $15 million. The average depreciation rate on your capital stock is 20%. Net investment during the year equaled:________

a. $7 million
b. $4 million
c. $5 million
d. $3 million

Answers

Answer:

c. $5million

Explanation:

Net investment = Gross investment - Depreciation

Also, Net investment equals investment at the beginning of the year minus investment at the end of the year

Net investment = $15million - $10million

Net investment = $5million

Therefore, net investment during the year equals $5million

The Trailer division of Baxter Bicycles makes bike trailers that attach to bicycles and can carry children or cargo. The trailers have a retail price of $107 each. Each trailer incurs $44 of variable manufacturing costs. The Trailer division has capacity for 24,000 trailers per year and incurs fixed costs of $560,000 per year. Required: 1. Assume the Assembly division of Baxter Bicycles wants to buy 5,600 trailers per year from the Trailer division. If the Trailer division can sell all of the trailers it manufactures to outside customers, what price should be used on transfers between Baxter Bicycles's divisions

Answers

Answer: $107

Explanation:

When a division is able to sell all of its products to consumers outside the company, the transfer price within the company should be at the same price that the good would be sold to outside consumers.

This is to ensure that the division does not suffer an economic loss by selling to another division instead of selling to an outside customer. In this case therefore, the Trailer division should transfer the trailers at the retail price of $107 that it would have made from selling to outside customers.

Sandy purchased a new dress through Zappos. When it arrived, she opened the package and saw that the dress had very small cap sleeves. Slightly annoyed that they dress did not look like the photo on the website, she tried the dress on only to realize that it was too short for her. She regretted buying this dress. Luckily for her, Zappos included an easy return label for free return shipping and a comment card where she could indicate why she was returning the purchase. Zappos made it easy for Sandy to address her cognitive dissonance by focusing on processes for which area of the consumer decision-making process?
a. evaluating alternatives process.
b. postpurchase process.
c. making the purchase process.

Answers

Answer:

Option b: Post purchase process

Explanation:

There are several reasons or outcomes of post-purchase processes/evaluation of a product by consumers. They includes:

1. Post-purchase dissonance

2. Regret

3. Satisfaction/dissatisfaction

Post-purchase dissonance

This is simply known as a well-known feeling of anxiety over if the correct purchase decision was made concerning a product or services. It is said to occur when there is more than one alternative that is attractive thereby making the decision process important.

Post-purchase regret

This is simply regarded as a feeling that a wrong purchase decision has been made concerning a particular product or services. It is said to occur when one cannot reverse the decision and have experienced a negative outcome from the decision made.

product satisfaction.

This is said to exist when the consumer makes a positive evaluation and feels happy with their decision made concerning a particular product purchased.

Which one is not a main question when you evaluate earnings' quality?
a. Source of revenue and persistent of revenues
b. Gross profit relationship between earnings and the market price of the common stock
c. Debt to equity ratio and total amounts of liabilities.

Answers

Answer:

Debt to equity ratio and total amounts of liabilities

Explanation:

Permanent and Temporary components of Earnings

The Permanent components of earnings may continue into future. Example is the sales revenue from regular product lines may continue in the future.

Temporary components of earnings may not continue in the future. Example is the gains or losses from the sale of equipment

Quality of Earnings

This is simply defined as any substance of earnings and their sustainability into future accounting periods.

The Quality of Earnings is influence largely by:

1. Accounting Methods: this entails all methods/means are set up/designed to match revenue and expenses.

2. Accounting estimates: this is when users of financial statement need to be aware of the impact that accounting estimates have on income.

3. One time items: this covers if and when earnings increase/decrease because of a one time items,then that portion of earnings will be sustained in the future.

Components of Earnings quality

1. Proper revenue and expense recognition

2. Declining or stable operating expenses compared to sales

3. High and persistently improving gross margin/ sales ratio etc.

The debt to equity ratio and the total amount of liabilities of a company is not important in evaluating the earnings' quality.

Store Travel Time Each Way (Minutes) Price of a Dress (Dollars per dress)
Local Department Store 15 103
Across Town 30 85
Neighboring City 60 63

Juanita makes $16 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $16 in lost income. Assume that returning to work takes Juanita the same amount of time as getting to a store and that it takes her 30 minutes to shop. As you answer the following questions, ignore the cost of gasoline and depreciation of her car when traveling. Complete the following table by computing the opportunity cost of Juanita's time and the total cost of shopping at each location.

Store Opportunity Cost of Time (Dollars) Price of a Dress (Dollars per dress) Total Cost (Dollars)
Local Department Store 103
Across Town 85
Neighboring City 63


Answers

Answer:

Juanita makes $16 an hour at work so every hour away will cost her $16 in lost wages.

Local store

Opportunity costs would be the lost wages:

= ( Number of hours spent travelling * Wage per hour) + (Number of hours spent shopping * Wage per hour)

= ( 15/60 hours * 16 * 2 for the round trip) + (30/60 mins * 16)

= $16.00

Total cost = Opportunity cost + Price of dress

= 16 + 103

= $119

Across Town

Opportunity cost

= ( 30/60 hours * 16 * 2 for the round trip) + (30/60 mins * 16)

= $24.00

Total cost:

= 24 + 85

= $109

Neighboring city

Opportunity cost:

= ( 60/60 hours * 16 * 2 for the round trip) + (30/60 mins * 16)

= $40.00

Total cost:

= 40 + 63

= $103

In 2010 the Federal Reserve Board (the Fed) reported that nonfinancial companies in the United States had around $2 trillion in cash and short-term liquid assets. As the U.S. economy was still struggling, consumer spending remained low, and companies resisted in investing in new projects that would create value for their stakeholders.
As the economy improves, uncertainty in the markets decreases, and companies will start investing in projects. However, the challenge of analyzing and selecting projects that would generate cash flows and returns and add value to the firm would remain.
The assumptions in the analysis about cost of equity and debt—overall and for projects—have a significant impact on the type and the value of investments that a company makes.
According to the Association of Finance Professionals’ report, published in 2011 on current trends in estimating and applying the cost of capital, companies use a discount rate that is usually above or below 1% of the company’s true rate. Using this information and certain inputs from the Fed, Michael Jacobs and Anil Shivdasani estimated that a 1% drop in the cost of capital leads U.S. companies to increase their investment by about $150 million over three years.
Based on your understanding of the concept of cost of capital, which of the following statements are valid?
a. Companies always use the weighted average cost of capital (WACC) as the discount rate to analyze the financial viability of projects.
b. A company’s estimate of cost of capital impacts its application in the analysis of new investments that, consequently, affects the value of the firm and shareholders’ wealth.
c. Investors care about the incremental value addition that new projects are making; they are least concerned with the discount rates that the company uses.
d. Companies incorporate the required rate of return in the cost of capital to compensate investors for the components’ risks.

Answers

Answer:

b. A company’s estimate of cost of capital impacts its application in the analysis of new investments that, consequently, affects the value of the firm and shareholders’ wealth.  d. Companies incorporate the required rate of return in the cost of capital to compensate investors for the components’ risks.

Explanation:

A  company's estimate of cost of capital, is serious because it is used in the calculations of the returns from a new investment which is used to calculate the value of the firm and its shareholders. They therefore need to make these estimates as accurate as possible.

Companies also incorporate the required rate of return in the cost of capital so that the investors who provided this capital, can be ensured of a return on their investment because it would be accounted for in analysis of new investments.

If 2 percent growth is your break-even point for an investment project, under which outlook for the economy would you be more inclined to go ahead with the investment: (1) A forecast for economic growth that ranges from 0 to 4 percent, or (2) a forecast of 2 percent growth for sure, assuming the forecasts are equally reliable? What core principle does this illustrate?

Answers

Answer: (2) a forecast of 2 percent growth for sure, assuming the forecasts are equally reliable.

Core principle 5 - Stability improves welfare.

Explanation:

Based on the information given, I'll be more inclined to go ahead with the investment whereby there is a forecast of 2 percent growth for sure, assuming the forecasts are equally reliable.

It should be noted that when there's uncertainty about the future, it leads to the unattractiveness of investment. Here, the core principle illustrated is Core principle 5 - Stability improves welfare.

Two athletes of equal ability are competing for a prize of $10,000. Each is deciding whether to take a dangerous performance-enhancing drug. If one athlete takes the drug, and the other does not, the one who takes the drug wins the prize. If both or neither take the drug, they tie and split the prize. Taking the drug imposes health risks that are equivalent to a loss of X dollars

Required:
a. Draw a $2 payoff matrix describing the decisions the athletes face.
b. For what X is taking the drug the Nash equilibrium?
c. Does making the drug safer (that is, lowering X) make the athletes better or worse off? Explain.

Answers

Answer:

a) attached below.

b) for $x < $5000 will cause taking the drug to be part of the Nash equilibrium

c) will make the athletes feel better because the value their payoff will increase

Explanation:

a) 2 * 2  payoff matrix  describing the decision faced by the athletes

attached below

when both players take the drug the payoff for each player = $5000 - x

when neither player  takes the drug the payoff for each player = $5000

When only one player takes the drug his payoff = $10000 - x

b) If we consider the value of $x to be involved in the Nash equilibrium then

; $5000 - $x > 0  becomes the best response

hence for $x < $5000 will cause taking the drug to be part of the Nash equilibrium

c) Lowering the negative effect of the drug ( i.e. when the value of x is reduced )

will make the athletes feel better because the value their payoff will increase

Suppose Cold Goose Metal Works Inc. is evaluating a proposed capital budgeting project (project Beta) that will require an initial investment of $3,000,000. The project is expected to generate the following net cash flows:

Year Cash Flow
Year 1 $350,000
Year 2 $450,000
Year 3 $450,000
Year 4 $450,000

Cold Goose Metal Works Inc.'s weighted average cost of capital is 8%, and project Beta has the same risk as the firm's average project. Based on the cash flows, what is project Beta's NPV?

Answers

Answer:

Cold Goose Metal Works Inc.

Based on the cash flows, project Beta's NPV is negative:

= ($1,602,200).

Explanation:

a) Data and Calculations:

Initial investment in project Beta = $3,000,000

Weighted average cost of capital = 8%

Net cash flows:

Year        Cash Flow    Discount Factor   Present Value

Year 1     $350,000           0.926                  $324,100  

Year 2    $450,000           0.857                    385,650

Year 3    $450,000           0.794                    357,300

Year 4    $450,000           0.735                    330,750

Total cash inflows =                                   $1,397,800

Investment cost =                                     $3,000,000

NPV =                                                        -$1,602,200

b) Cold Goose should not pursue the investment.  The cash outflows outweigh the cash inflows by more than 50%.  The net present value of the project is negative.

Julio purchased a stock one year ago for $27. The stock is now worth $32, and the total return to Julio for owning the stock was 37 percent. What is the dollar amount of dividends that he received for owning the stock during the year

Answers

Answer:

$5

Explanation:

Calculation to determine the dollar amount of dividends that he received for owning the stock during the year

First step is to calculate the total profit earned

Total profit=$27*37%

Total profit=$10

Second step is calculate the Value of stock with profits earned

Value of stock=$27+$10

Value of stock=$37

Now let calculate the the dollar amount of dividends

Dividend=$37-$32

Dividend=$5

Therefore the dollar amount of dividends that he received for owning the stock during the year is $5

onsider the market for purple potatoes below and assume that a price ceiling of $30 is imposed by the government. Calculate the deadweight loss:

Answers

Answer:

Deadweight loss is $5000

Explanation:

Calculation to determine what deadweight loss is

First step is to calculate the Change in quantity

Change in quantity =2500-2000

Change in quantity=500 unit

Now let determine the Deadweight loss

Using this formula

Deadweight loss =0.5* Change in quantity *(Willingness to pay at the price ceiling -Price ceiling)

Let plug in the formula

Deadweight loss =0.5*500*(50-30)

Deadweight loss=250*20

Deadweight loss =5000

Therefore the deadweight loss is $5000

Recognizing religious holidays, differing modes of dress, and dietary restrictions as well as allowing flexible scheduling are all ways to improve employee retention that may appeal to diverse employees. These types of efforts are referred to as

Answers

Answer: Systems accommodations

Explanation:

Systems accomodations refers to the recognizing religious holidays, dietary restrictions, differing dressing modes, and allowing flexible scheduling which is vital in the improvement of employee retention which may appeal to diverse employees.

This is required in order to create an environment in the workplace where everyone is welcomed and a harmonious workplace which is important in the achievement of organizational goals.

Preferred stock is a hybrid security because it has some characteristics typical of debt and others typical of equity. The following table lists various characteristics of preferred stock. Determine which of these characteristics is consistent with debt and which is consistent with equity.

Characteristics Debt Equity
Dividends are fixed.
Usually has no specified maturity date

At the present time, Tamin Co. does not have any preferred stock outstanding but is looking to include preferred stock un its capital structure in the future. Tamin has found some institutional investors that are willing to purchase its preferred stock issue provided that it pays a perpetual dividend of $13 per share. If the investors pay $130.45 per share, Taemin's cost of preferred stock will _____.

a. 11.5%
b. 10.0%
c. 9.5%
d. 9.0%

Answers

Answer:

Dividends are fixed. ⇒ Consistent with Debt

Fixed dividends makes preferred shares consistent with debt because debt repayments are made in equal payments as well.

Usually has no specified maturity date ⇒ Consistent with Equity.

Equity has no set maturity date unlike debt and preferred stock has no maturity date either so is much like equity in this regard.

Cost of preferred stock.

Preferred stock is like a perpetuity. The cost of preferred stock is therefore:

= Constant dividend / Price of stock

= 13 / 130.45

= 9.97%

= 10%

Other Questions
Hola es para hoy por favor ayudenme!!!!!! A bullet 2cm log is fired at 420m/s and passes straight a 10cm thick board exiting at 280m/s What is the enlightenment?Think of the Enlightenment in the broad sense of the word as the intellectual trend that includes all of the authors we have covered in the class. Focus on features that all or most of them share as the defining characteristics of the movement.The authors are: Nicholas CopernicusImmanuel KantJean-Jacques RousseauRene DescartesJohn LockeFransic BaconGiordano BrunoAlexander PopeThomas HobbesJohann Gottfried von HerderMarquis de Condorcet many of the students (didn't/don't) come to school yesterday .Choose the correct form from the brackets Please help me with these two Algebra problem. ThanksProblem 1:If two half planes never intersect, then their system of inequalities has no solution. True or False?Problem 2:If the boundary lines of two half planes are parallel, then they have no solution area. True or False?Please answer as quick as possible and please answer asExample:True, because . . . .Thanks again!! A solution has a OH- concentration of 7.7x10-3. What is the pH of this solution? How to get 14 using four fours a taxi rider must pay 15000 VND for 1km in the first 10km, when exceeding 10km, they will pay them 14000 VND for each subsequent kilometer.Please write the expression to that the user number must be pay on x km (x>10) What type of line is PQ?A. angle bisectorB. side bisectorC. altitudeD. median I. Adverbs of frequency - Put the adverb of frequency on the right place1. He listens to the radio. (often)_____________________________2. They read a book. (sometimes)_____________________________3. Pete gets angry. (never)_____________________________4. Tom is very friendly. (usually)_____________________________5. I take sugar in my coffee. (sometimes)_____________________________6. Ramon is hungry. (often)_____________________________7. My grandmother goes for a walk in the evening. (always)_____________________________8. Walter helps his father in the kitchen. (usually)_____________________________9. They watch TV in the afternoon. (never)_____________________________10. Christine smokes after dinner. (seldom)_____________________________ V. Complete the following sentences by using the right form of to do (do, don't, does, doesn't).1) My mother likes chocolate, but she ________ like biscuits.2) What _________ the children wear at your school?3) Lynn's father watches badminton on TV, but he ___________ watch judo.4) Where _________ the Masons buy their fruit?5) _________ the cat like to sleep on the sofa?6) Dogs love bones, but they ______________ love cheese.8) We eat pizza, but we ____________ eat hamburgers.9) ___________ Mrs Miller read magazines?10) _____________ the boys play cricket outside?VI. Put in the correct verb forms into the gaps. Use Simple Present.1) _______ you ______________ mineral water? (to drink)2) _________ Sarah and Linda ______________ their pets? (to feed)3) _________ your teacher _____________ your homework? (to check)4) _________ they _____________ in the old house? (to live)5) ___________ the cat _____________ on the wall in the mornings? (to sit)6) _____________ Nina _____________ computer games? (to play)7) _________ your parents _____________ TV in the afternoon? (to watch)8) __________ your grandmother ____________ the phone? (to answer)9) __________ Andy ____________ the shopping? (to do)10) ______ Garry and Ken ________ a cup of tea in the afternoon? (to have)11) _______________ to school? (you/to walk)12) _______________ a banana in the morning? (Ronda/to eat)13) _______________________ parrots? (your father/to like)14) _______________ a room with her sister? (Wendy/to share)15) _______________ a lot in England? (it/to rain)16) ______________________ sports after school? (the friends/to do)17) ______________________ camping in summer? (Susan and Jack/to go)18) _______________ their friends to the party? (they/to invite)19) _______________ at the bus stop? (we/to wait)20) _______________ in the mornings? (he/to smile)VII. Put in the verbs in brackets into the gaps. Use the Simple Present. 1) Anne _________________________ my questions. (not/to answer)2) ______________ they _______________ tomatoes in this shop? (to sell)3) This girl ______________________ trousers at school. (not/to wear)4) _________________ Mr Barker ______________ Physics? (to teach)5) The guinea pigs ______________________ under the desk. (not/to hide)6) ____________ Ken often _________________ the school bus? (to miss)7) The poster __________________ on the wall anymore. (not/to hang)8) __________________________ for the tickets? (you/to pay)9) The boys ___________________ stones. (not/to throw)10) _________ the bells of your church still ________________? (to ring)11) They _________________ hockey at school. (to play)12) She ______________________ e-mails. (not/to write)13) ___________ you ____________________ English? (to speak)14) My parents _______________________ fish. (not/to like)15) ________ Anne _________________ any hobbies? (to have)16) Andy's brother ______________________ in an office. (to work)17) Leroy ____________________ very fast. (can/not/to read)18) ________ Jim and Joe ___________ the flowers every week? (to water)19) Yvonne's mother _____________________ a motorbike. (not/to ride)20) ___________ Elisabeth ___________________ cola? (to drink) FILL IN THE BLANK:The rate of a reaction is measured by how fast a (Product Or Reactant)is used up or how fast a (Reactant Or Product) is formed? A brewery has a beer dispensing machine that dispenses beer into the company's 12 ounce bottles. The distribution for the amount of beer dispensed by the machine follows a normal distribution with a standard deviation of 0.17 ounce. The company can control the mean amount of beer dispensed by the machine. What value of the mean should the company use if it wants to guarantee that 98.5% of the bottles contain at least 12 ounces (the amount on the label) 3. Which of the following statements is true?a ) Video should be used sparingly.b) Video should be avoided whenever possible.c) Video should be used together with text.d) Video should be used as often as possible. can anyone answer this PLS HELP ME ON THIS QUESTION I WILL MARK YOU AS BRAINLIEST IF YOU KNOW THE ANSWER!!Outliers can cause the _________ to be misleading when summarizing a data set.A. meanB. interquartile rangeC. all of theseD. median if a = 3 and b=2,find the value of a square+2ab and (a+b)square ? The term "peer influence" is best described as when A. an individual or group has an impact on another person's choice of behaviorB. a parent encourages a child to improve their health through daily activitiesC. one friend encourages another friend to improve their health through daily activitiesD. print media influences teenagers to engage in unhealthy and risk behaviors Read the excerpt below and answer the question.Well, as I was saying, they have hardly uttered a word, or not more than a word, of truth; but you shall hear from me the whole truth: not, however, delivered after their manner, in a set oration duly ornamented with words and phrases.What is Socrates saying about rhetoric in this excerpt from The Apology? !!!Select all that apply!!!!His accusers' rhetoric is lengthy and uninteresting.His accusers' rhetoric is attractive but lacking in substance.His own rhetoric is straightforward and to the point.His own rhetoric is more charming than that of his accusers. please help!! will give brainliest to whoever answers