Widget Works has a cost of equity of 17.1 percent. The market risk premium is 9.2 percent and the risk-free rate is 3.3 percent. The company is acquiring a competitor, which will increase the company's beta to 1.7. What effect, if any, will the acquisition have on the firm's cost of equity capital? Decrease of 2.62 percent Increase of 2.62 percent Increase of 1.84 percent No effect Decrease of 1.84 percent
The acquisition of the competitor will have an effect on the firm's cost of equity capital.
To determine the effect, we need to consider the relationship between beta and the cost of equity capital.
The cost of equity capital is determined using the Capital Asset Pricing Model (CAPM), which is given by the formula:
Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium
Before the acquisition, the company's beta is not provided, so we need to calculate it based on the given information. Using the CAPM formula, we can calculate the initial beta as follows:
Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium
17.1% = 3.3% + Beta * 9.2%
Beta = (17.1% - 3.3%) / 9.2%
Beta ≈ 1.74
After the acquisition, the company's beta will increase to 1.7. Comparing the initial beta of 1.74 with the post-acquisition beta of 1.7, we can see that the acquisition will have no effect on the firm's cost of equity capital. Therefore, the correct answer is "No effect."
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Explain way economic deals with allocation and efficient utilization of scarce resources only?
Economics deals with the allocation and efficient utilization of scarce resources as human wants are unlimited and resources to satisfy those needs are limited in nature. Hence, to utilize the resources in the optimum possible way and meet the demands of humans, the economy allocates scarce resources.
How Microeconomics allocates scarce resources?Microeconomics analyses how scarce resources are allotted efficaciously to the production of products and services. It facilitates in resolving the critical financial issues of the economic system at an individual level.
Thus, in this manner, Economics deals with the allocation and efficient utilization of scarce resources as human wants are unlimited and resources to satisfy those needs are limited in nature.
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alex invested $30,000 in cash in his business. how will this entry be posted in the ledger accounts? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) check all that apply the $30,000 will be posted to the credit side of the cash account.unanswered the $30,000 will be posted to the debit side of the cash account.unanswered the $30,000 will be posted to the debit side of the common stock account.unanswered the $30,000 will be posted to the credit side of the common stock account.
The entry of Alex investing $30,000 in cash in his business will be posted as follows: The $30,000 will be posted to the debit side of the cash account. The $30,000 will be posted to the credit side of the common stock account.
When Alex invests $30,000 in cash into his business, it involves two accounts: cash and common stock. The entry will be recorded to reflect the increase in both assets and owner's equity.
The cash account is debited with $30,000 because cash is being received, resulting in an increase in the asset. Debit entries are used to increase asset accounts.
On the other hand, the common stock account is credited with $30,000 to represent the increase in owner's equity. This reflects that the owner (Alex) is investing capital into the business. Credit entries are used to increase owner's equity accounts.
By recording the transaction in this manner, the accounting equation (Assets = Liabilities + Owner's Equity) remains balanced. The increase in cash is offset by the increase in owner's equity through the common stock account.
Therefore, the $30,000 cash investment by Alex will be posted as a debit to the cash account and a credit to the common stock account, reflecting the increase in assets and owner's equity, respectively.
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Less need for policy manuals, organization charts, and formal controls is a sign of shared values in a:
Multiple choice question.
corporate culture where there is little trust
corporate culture that doesn't empower employees
negative corporate culture
corporate culture that emphasizes service to others
An organization which preaches empathy and hence instills a cultural value which resonates around togetherness will show low levels of harsh and formal control and flexible policies.
When an organization shows less need for policy manuals, then it exhibits its level of flexibility and accommodation. Being less rigid in terms of being bent on formal guidelines and principles is a sign that the organization is empathic and promotes service to others. Such corporate policy framework is positive and hence, shows the orgainiziation's commitment towards social inclusion.Learn more : https://brainly.com/question/14378811?referrer=searchResults
Answer: corporate culture that emphasizes service to others
Keisha can produce the following combinations of X and Y: 100X and 20Y, 50X and 30Y, or 0X and 40Y. The opportunity cost of one unit of Y for Keisha is Group of answer choices
Answer:
5 units of x
Explanation:
Keisha's production possibilities frontier:
100x 20y
50x 30y
0x 40y
the opportunity cost of producing 1 unit of y = 50/10 = 5 units of x
The opportunity cost refers to the extra costs or benefits lost resulting from choosing one investment or activity over another alternative. In this case, if Keisha wants to produce one more unit of y, she will not be able to produce five units of x (trade-off)
which of the following is not an area of disadvantage of cellular layouts? A. work-in-process inventory. B. cell balance. C. training and scheduling. D. capital investment.
Capital investment is not an area of disadvantage of cellular layouts. Option D is the correct answer.
The physical arrangement of a business—known as a "cellular layout"—improves productivity, efficiency, and workflow. Work cells, which are little groups of 3–12 employees, must be created for this structure. There are certain numbers of equipment and supplies inside each unit. Option D is the correct answer.
A company's organizational structure is referred to as having a "cellular layout." The idea is to make equipment and supplies available to employees on demand so they won't have to waste time looking for what they need to complete their tasks. The number of personnel and machinery in a department might range from three to twelve, or even more, depending on the size and demands of the business.
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Categorize the following as components of M1, M2, both, or neither. (LO10-1) a. State and local government bonds. b. Checking accounts. c. Money market accounts. d. Currency. e. Stocks. f. Corporate bonds.
State and local government bonds, stocks, and corporate bonds are not considered money and therefore neither M1 nor M2. Currency and checking accounts are included in M1, while money market accounts are included in M2.
M1 and M2 are both monetary aggregates used to measure the money supply in an economy. M1 includes only the most liquid forms of money, such as currency, traveler's checks, and checking accounts. M2 includes M1 plus savings accounts, time deposits, and money market accounts.
Categorizing the given terms as components of M1, M2, both, or neither:
a. State and local government bonds - Neither. These are not considered money as they cannot be easily used for transactions.
b. Checking accounts - M1. Checking accounts are included in M1 as they are a liquid form of money that can be used for transactions.
c. Money market accounts - M2. Money market accounts are included in M2 as they are a less liquid form of money compared to checking accounts, but still easily accessible.
d. Currency - M1. Currency is included in M1 as it is a liquid form of money that can be used for transactions.
e. Stocks - Neither. Stocks are not considered money as they are not a means of payment or a store of value.
f. Corporate bonds - Neither. Like government bonds, corporate bonds are not considered money as they cannot be easily used for transactions.
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Sheridan Company produces flash drives for computers, which it sells for $20 each. The variable cost to make each flash drive is $13. During April, 650 drives were sold. Fixed costs were $1400 for the month. How much is the monthly break-even level of sales in dollars for Sheridan? $4000 $200 $3250 $13000
Answer:
$4,000
Explanation:
The computation of break-even is shown below:-
Contribution margin ratio = (SP per unit - VC per unit) ÷ SP per unit
= ($20 - $13) ÷ $20
= 35%
Break-even sales dollars = Total Fixed Costs ÷ Contribution margin ratio
Break-even sales dollars = $1,400 ÷ 35%
= $4,000
Therefore we applied the above formula.
Hence, the break even sales in dollars is $4,000
Please help--
Spending that is based on the purchase decisions you make that can vary from month to month is a ___
which piano is the best for beginners? List 5 best pianoes.
Answer:
1:Yamaha YPT-269
2:Casio PX-770
3:Korg EK-50
4:Roland
5:Go:keys
Answer:
1. Yamaha P-45
2. Yamaha YDP-S34
3. Casio PX-770
4. Korg B1SP
5. Roland RP102
Explanation:
Each month you spend $500 buying coffee. If the price of coffee increases from $2 to $3, what happens to your purchasing power?.
Answer:
The answer is C
Explanation:
COMPARE and contrast the terms scarcity and shortage and provide examples of each.
Answer:
Scarcity and shortage are not the same things. Shortage conditions exist when the demand of a good at the market price is greater than supply. ... Scarcity is the concept that we have limited resources and cannot meet the unlimited demand - it has nothing to do with a market price.
A florist sold 715 roses kf the raises sol 7 out of every 11 were red, how many red roses did she sell?
The florist sold 645 red roses. This is because 7 out of every 11 roses were red, so 645 is the closest integer to 7/11 multiplied by 715.
What is integer?An integer is a whole number that can be either positive, negative, or zero. It does not include decimal points, fractions, or other types of numbers. Integers are used in many mathematical operations and are essential for performing calculations. Integers are often referred to as "counting numbers" because they are used to count or measure items. In programming languages, integers are used to represent real-world objects such as numbers, characters, and Boolean values.
7/11 × 715 = 645.45 ≈ 645
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branches of accounting
Banks do not hold a lot of their assets in the form of cash mainly because of:
a. regulation.
b. the fear of being robbed.
c. the opportunity cost of holding cash, cash does not earn interest.
d. it can encourage employee theft.
Banks do not hold a lot of their assets in the form of cash mainly because of the opportunity cost of holding cash, cash does not earn interest. The correct option is C.
Opportunity costs are the possible advantages that a person, investor, or company forgoes while deciding between two options. It is necessary to weigh the advantages and disadvantages of each choice offered in order to correctly assess opportunity costs.
The interest that could have been made if the cash had been used to buy bonds instead is the opportunity cost of keeping any money balance.
Therefore, due to the opportunity cost of holding cash and cash does not earn interest banks does nor prefer to hold a lot of their assets in the form of cash .
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Can you really answer the question of whether an opportunity is real before developing a product concept?
Answer:
Yes
Explanation:
For example, it has been said that what prompted e-commerce on platforms such as Amazon, eBay, etc was a result of the opportunity their founders saw with the invention/adoption of the internet.
In other words, they saw a real opportunity (through the internet growth rate) and thus decided to develop a product concept. Hence, we could thus conclude with a yes to the question.
i am going to take my drivers ED for my licsense is there any thing i need to know thats important PLEASE HELP!!!!
i have a tip, try your best to stay calm. if you are nervous, take a deep breath and meditate before class
Answer: what you need to know is that not to be nervous if you are take da p breathes and when driving not to grab the steering wheel with to much strength hold the steering wheel as if you were holding someone's hand. But most important of all stop at the street lights and a good driver pays attention to there surrounding.
Explanation:sorry if it was late
Income received by households through the lending of their money to corporations and business firms is an example of
income.
Answer:
Interest / Dividend Income
Explanation:
Answer:
Answer for EDGE is C or Interest
Explanation:
Fine print contains what? A. Only stuff lawyers require B. A bunch of useless info C. Clear language designed to be easy to read D. Virtually all of the important info in an agreement. Which is it?
Answer:
D
Explanation:
A fine print is a term that refers to the business usage of the terms and the conditions.
Have important information regarding the company or the documents that are placed in the footnotes and they are essential for entering into an agreement.Hence the option D is correct.
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The number one reason risk pooling is valuable to the insurance industry is... A. It allows companies to charge the same premium to all members of the pool. B. It brings together many individuals' premiums so that there is money to cover the select few with losses. C. It makes insurance coverage available to everyone, even those who are unable to make their payments. D. It is subsidized by the federal government.
The reason for risk pooling which is beneficial for the insurance industry is best described as it brings together many individuals' premiums so that there is money to cover a selected few losses.
Option B is the correct answer.
Who is a policyholder?The policyholder is an individual who takes an insurance policy from an insurance company. He pays insurance premiums against their respective policies.
The insurance contract is an agreement between the individuals and insurance company to indemnify them at the happening of the specified event and individuals also agreed to pay the insurance premiums on time. The risk pooling allows the insurance company to get insured many people against a small amount of money called an insurance premium.
Therefore, risk pooling is valuable for the insurance company in respect of the insurance policies.
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Assuming a banking system with limited reserves, Which of the following actions by the Federal Reserve reduces the ability of the banking system to create money?- Increasing the reserve requirement- Decreasing the reserve requirement
- Spending the reserve requirement
Assuming a banking system with limited reserves, the action by the Federal Reserve that reduces the ability of the banking system to create money is Increasing the reserve requirement.
What is the reserve requirement?The reserve requirement is the portion of depositors' balances that banks must keep in cash reserves, either in their bank vaults or in their accounts at the Federal Reserve System. Banks with a large number of loans and deposits are likely to have a lower reserve ratio than banks with a lower amount of loans and deposits since they have more funds flowing through their accounts.
The ratio of the number of funds held in reserve to some particular deposit liabilities is referred to as the reserve ratio.
Assuming a banking system with limited reserves, the action by the Federal Reserve that reduces the ability of the banking system to create money is Increasing the reserve requirement. When the Federal Reserve increases the reserve requirement, banks must keep more money on hand, lowering the amount of money available to lend.
As a result, the amount of money that banks can create through loans is decreased by raising the reserve requirement, lowering the amount of money available for lending. Therefore, Increasing the reserve requirement is the right choice for the action by the Federal Reserve that reduces the ability of the banking system to create money.
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Your Mutual fund was valued at $237,500 it has lost 6% per year for the last three years what is its value today
Answer:
197263.70
Explanation:
I did math on a website
At the firm level, gross margin is calculated as net sales
revenue minus the cost of goods sold.
At the firm level, the gross margin is calculated as the net sales revenue minus the cost of goods sold.
Gross margin is a financial metric that measures the profitability of a company's core operations by subtracting the direct costs associated with producing goods or services from the revenue generated from their sale. It represents the amount of revenue available to cover other operating expenses and contribute to net profit. Gross margin is expressed as a percentage and is an important indicator of a company's operational efficiency and pricing strategy. By subtracting the cost of goods sold from net sales revenue, the gross margin provides insights into the profitability of the company's primary revenue-generating activities.
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The product Blank______ is the complete set of all products and services offered by a firm. Multiple choice question. width line category brand mix
The product mix is the complete set of all products and services offered by a firm.
What is a product mix?This is a term that is used to group all of the services or the products that is offered by a company or firm to their customers.
The product mix usually involves more than just one service or product. It is usually made up of two or more.
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The clerk who opens mail is assigned responsibility for preparing a document which identifies all cash collections received in the mail for a given day. this document is called
The clerk who opens mail is assigned responsibility for preparing a document which identifies all cash collections received in the mail for a given day. This document is called Cash receipt prelist.
A clerk is a person who works in an office, typically doing administrative or secretarial work. Clerks are often responsible for keeping records, filing documents, and performing other office tasks.
In some cases, clerks may also be responsible for customer service or sales. Clerks typically work in business or government offices, though they may also be found in other settings such as schools or hospitals.
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can you return amazon items without original packaging
Answer:
Explanation:
Yes, Amazon allows returns of items without the original packaging. However, the item must be returned in a new and unused condition. If the item is used or damaged, Amazon may not accept the return. It is recommended to contact Amazon customer service before returning an item without its original packaging to ensure that it meets their return policy requirements.
According to Amazon's return policy, "Items must be returned in the original manufacturer's packaging. We strongly recommend you keep your packaging for at least the first 90 days after purchase." However, this does not mean that returns without original packaging are not allowed.
It is important to note that some items may have specific packaging requirements for returns, such as electronics or fragile items. In these cases, it is best to contact Amazon customer service for guidance on how to properly package and return the item.
In summary, while Amazon prefers items to be returned in their original packaging, it is possible to return items without it as long as they are in new and unused condition.
Assume that at December 31, 2015, management determined that it will be unable to collect $1,200 owed to it by its customer Acme, Inc. On September 15, 2016, a check in the amount of $600 was unexpectedly received from Acme. Management does not expect any future collections from Acme. (This company uses the allowance method to account for uncollectible accounts.) Prepare the necessary September 15 journal entry by selecting the account names and dollar amounts from the drop-down menus. (Use a compound entry instead of preparing two separate journal entries.)
Answer:
account receivables 600 debit
allowance for doubful account 600 credit
--to revert the write-off--
cash 600 debit
account receivables 600 credit
--to record the payment from Acme Inc--
Explanation:
The company will revert the write-off of Acme. Inc account and then record a collection as usual
We use the allowance account as previously the company did as follows:
allowance for doubful account 1,200 debit
account receivables 1,200 credit
to write-off the account.
We reverse this by the amount paid by Acme which is 600
Then, we record receiving the cash (debit) and decreasing the account receivable (credit)
A regional sales manager position has opened up in your company, and the National Sales Director calls you to encourage you to apply for the position. The position would require significant international travel. Since you've recently adopted a child, the idea of international travel isn't appealing. According to _____ theory, you will not be motivated by the National Sales Director's suggestion.
Answer: test
Explanation:
In accordance with Maslow's theory, i will not be motivated by the National Sales Director's suggestion.
The Maslow theory is a psychological theory which explains the 5 needs that must be possess by individual's for proper motivation.
This hierarchy of needs is very to organizational theory because they helps to understand and induce human motivation.
Since the new position will not help me to fulfill my imminent need of taking proper care of my adopted child, then, the position will not be considered by me.
Therefore, in conclusion, the Option A is correct because i will not be motivated by the National Sales Director's suggestion according to Maslow's theory,
The missing options includes "a. the two-factor b. Maslow's c. equity d. Hawthorne's e. expectancy."
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Help please :)
In a circular flow diagram, households represent the elements of the
economy that:
A. sell products to consumers.
B. produce goods and services.
C. provide businesses with materials.
D. purchase and consume products,
Answer:
Produce good & services
Explanation:
In the circular-flow model of an economy, households own all the factors of production. Households earn their income when firms purchase or rent these factors of production to use them to produce goods and services. Firms, in turn, earn revenue when households buy goods and services.
Answer: B
Explanation:
The Role of Households
In a circular flow diagram, households consume the goods offered by the firms. However, households also offer firms factors so that the firms can produce products for the household to later consume.
During October, Crusan Corporation incurred $62,000 of direct labor costs and $4,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a
- debit to Work in Process of $66,000
- credit to Work in Process of $66,000
- debit to Work in Process of $62,000
- credit to Work in Process of $62,000
The journal entry to record the accrual of direct labor costs and indirect labor costs for Crusan Corporation would be a debit to Work in Process of $62,000 and a credit to Wages Payable of $66,000.
This is because the direct labor costs are directly attributable to the production process and are therefore debited to Work in Process, while the indirect labor costs are not directly attributable and are therefore credited to Wages Payable.
How to record the accrual of direct labor costs and indirect labor costs in the journal entry? In order to record the accrual of direct labor costs and indirect labor costs, the following journal entry is required: Debit Work in Process $62,000Credit Wages Payable $66,000The Work in Process account is debited for the direct labor costs because they are directly attributable to the production process.
The indirect labor costs are not directly attributable to the production process, and therefore are credited to the Wages Payable account. The total credit of $66,000 represents the sum of the direct and indirect labor costs.
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