Theresa's flower garden has 650 bonds outstanding that are selling for $1,007 each, 2,100 shares of preferred stock with a market price of $68 a share, and 42,000 shares of common stock valued at $44 a share. what weight should be assigned to the preferred stock when computing the weighted average cost of capital?

5.40%

Explanation:

For computing the weight, first we have to determine the total market value which is shown below:

= Number of outstanding bonds × selling price per bond + number of preferred stock × market price per share + number of common stock × par value per share

= 650 bonds × $1,007 + 2,100 shares × $68 + 42,000 shares × $44

= $654,550 + $142,800 + $1,848,000

= $2,645,350

Now the weight of preferred stock would be

= Total value of preferred stock ÷ total market value × 100

=  $142,800 ÷ $2,645,350 × 100

= 5.40%

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi