In marketing, consumer decision rules is the set of criteria that consumers use to quickly and efficiently select from among several alternatives.
What dost most consumer decision rule entails?Consumer decision rules refer to a set of guidelines or criteria that consumers use to make purchasing decisions. These rules help consumers simplify and prioritize their choices, and make a decision based on the information available to them.
Some common consumer decision rules include:
Maximize utility: Consumers try to get the most satisfaction or benefit from their purchase.Minimize regret: Consumers try to minimize the regret or disappointment they may feel after making a decision.Satisfice: Consumers look for the first option that meets their minimum requirements and stop searching.Elimination by aspects: Consumers eliminate options based on specific criteria until only one remains.Anchoring and adjustment: Consumers start with an initial reference point and then adjust their expectations based on the information available etc.Read more about consumer decision
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If Bethany Lewis receives a check payable to the order of Bethanie Louis, she:______.
The available options are:
a. can indorse the check either "Bethany Lewis" or "Bethanie Louis."
b. will need to ask the drawer to send her a new check.
c. will not be able to cash the check.
d. must use a restrictive indorsement to cash the check.
Answer:
a. can indorse the check either "Bethany Lewis" or "Bethanie Louis."
Explanation:
When it comes to financial related matters, most specifically, on the issue of cheque, Indorsement is a financial related term that describes a legal signature, (often signed at the back of a cheque), which serves as a form of approval, to ensure the cheque is payable to individual aside the designated payee.
Hence, in this case, Bethany Lewis can indorse the check either "Bethany Lewis" or "Bethanie Louis."
Answer:
idek
Explanation:
lmbo
Shares of Corporation have a beta of 0.90. The market risk premium is 7%, and
the risk-free rate is 8%. Corporation paid a dividend of $1.80 per share, and the
dividend is expected to grow at 7% forever. The share currently sells for $25.
Corporation has a debt-equity ratio of 50%. Its cost of debt is 8%, before taxation,
taxation rate is 30%.
What is the weighted average cost of capital of Corporation?
Answer:
The weighted average cost of capital of Corporation is 11.4%
Explanation:
Now use following formula to calculate the weighted average cost of equity
WACC = ( Weight of equity x Cost of equity ) + ( Weight of debt x Cost of debt (after tax ) )
Weight
Equity = 100%
Debt = 50%
Cost
First we need to calculate the cost of equity using CAPM formula
Cost of equity = Risk free rate + Beta x ( Market risk premium )
Placing values in the formula
Cost of equity = 8% + 0.90 x 7%
Cost of equity = 14.3%
Cost of debt = 8%
Cost of debt (after tax ) = 8% x ( 1 - 30% ) = 5.6%
Placing values in the formula of Weighted average cost of capital
WACC = ( ( 100%/150% ) x 14.3% ) + ( ( 50% / 150% ) x 5.6% )
WACC = 9.53% + 1.87%
WACC = 11.4%
When the perpetual inventory system is used, the inventory sold is debited to
1 benefit of transportation management system is fewer stock outs
Answer:
One benefit of a transportation management system (TMS) is that it can help reduce stockouts in a supply chain. A TMS can optimize the transportation of goods, providing real-time visibility into inventory levels and shipment statuses. This can help to ensure that goods are delivered to their intended destination on time, reducing the likelihood of stockouts caused by delays or other transportation-related issues.
By using a TMS, companies can also better manage their inventory levels by forecasting demand and adjusting shipments accordingly. This can help to prevent overstocking and reduce the need for excess inventory storage, which can save costs in the long run.
Overall, by improving transportation management and providing greater visibility into inventory levels and shipment statuses, a TMS can help to minimize the occurrence of stockouts and improve supply chain efficiency.
Explanation:
What is the best way to prevent the transmission of Hepatitis B?
Vaccination
Avoidance of situations where the virus could be present
Improper disposal of sharps
None of the above, because Hepatitis B is not a communicable
disease
Answer:
A! But in addition to vaccination, there are other simple ways to help stop the spread of hepatitis B:
Wash your hands thoroughly with soap and water after any potential exposure to blood
Use condoms with sexual partners
Avoid direct contact with blood and bodily fluids
Clean up blood spills with a fresh diluted bleach solution (mix 1 part bleach with 9 parts water)
Cover all cuts carefully
Avoid sharing sharp items such as razors, nail clippers, toothbrushes, and earrings or body rings
Discard sanitary napkins and tampons into plastic bags
Avoid illegal street drugs (injecting, inhaling, snorting, or popping pills)
Make sure new, sterile needles are used for ear or body piercing, tattoos, and acupuncture
Explanation:
Recall that an exchange rate is the price of one currency in another. For example, it may take US $1.35 to buy 1 British Pound. Also recall the interest rates affect exchange rates. What do you predict will happen to the foreign exchange rate if interest rates in the United States increase more than in the UK? (In other words, which currency will become stronger?) How would such a change affect US exports to the UK? Would it be less expensive for an American tourist to take a vacation to London after the interest rate change? Be sure to clearly explain and justify your reasoning.
Answer:
Exchange Rate and Interest Rate
1. If interest rates in the United States increase more than in the UK, the exchange rate of the US dollars will increase relative to the UK pounds, thus causing the UK pounds to become stronger than the US dollars.
2. US exports to the UK would become cheaper in UK.
3. It would be more expensive for an American tourist to take a vacation to London after the interest rate change because they would need more money to handle the differences.
Explanation:
Generally, higher interest rates in an economy offer investors some higher returns when compared to other countries. These higher interest rates attract foreign capital and cause the exchange rate to rise. When this happens, the cost of goods and services in the country with the higher interest and exchange rates. The opposite becomes the case when the interest and exchange rates are lower relative to other countries.
If interest rates in the United States increase more than in the UK, the United states currency would become stronger or appreciate against the British Pound.
As a result of the increase in the value of the US currency, export to the UK would decline because export would become more expensive. It would be less expensive for American tourist to take a vacation to London.
Exchange rate is the rate at which one currency is exchanged for another currency.
If interest rates in the United States increase more than in the UK, there would be an increase in foreign investments in the US. As a result, the demand for the dollar would increase and this would lead to an appreciation of the dollar against the GBP.
As a result of the appreciation of the dollar, export goods to the UK becomes more expensive and imports to the US from the UK becomes cheaper.
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The financial statements of New World, Incorporated, provide the following information for the current year: December 31 January 1 Accounts receivable $ 287,000 $ 381,500 Inventory $ 280,000 $ 266,000 Prepaid expenses $ 72,800 $ 70,000 Accounts payable (for merchandise) $ 258,300 $ 249,550 Accrued expenses payable $ 66,150 $ 79,450 Net sales $ 3,167,500 Cost of goods sold $ 1,669,500 Operating expenses (including depreciation of $63,000) $ 381,500 What is the amount of cash received from customers during the current yea
What are Uber's options in handling California AB5, an attempt to reclassify Uber's drivers as employees? What potential impact would each decision have?
The potential impacts of each decision with regard employee classification include financial costs, legal battles, public perception, and potentially losing market share to competitors who are able to navigate the regulatory landscape more effectively.
What is the explanation for the above response?
Uber's options in handling California AB5 are as follows:
Comply with AB5 and reclassify drivers as employees, which would result in significant increases in labor costs and potential loss of driver flexibility.
Contest AB5 and argue that their drivers are independent contractors, which could lead to legal battles and potentially a negative public image.
Seek a compromise with California lawmakers, such as creating a new worker classification that falls between employee and independent contractor, which could help maintain some flexibility for drivers while also providing certain benefits.
The potential impacts of each decision include financial costs, legal battles, public perception, and potentially losing market share to competitors who are able to navigate the regulatory landscape more effectively.
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You are 20 years old and have completed your BBA and want to pursue further education but you don’t want to make money from your father. Your plan is to start working and earn enough money so that you can finance your degree on your own and get yourself enrolled in five years’ time. You estimate that the annual cost of doing an MBA 5 years from today will be PKR 400,000 and the program will be two years long. You will need the money at the beginning of your program so that you are not worried about how to clear your dues during your studies. Luckily you go for a job interview and they hire you and you start working at a salary of PKR 25,000. So you decide that 50% you will deposit in a saving account at a 10% rate with monthly compounding for your further studies and the remaining amount you will use for your daily expenses. 1. Will you be able to meet your goal at this current saving rate? 2. What percentage of your salary should you save if you want to have exactly your university expenses amount? 3. How would your answer to part 1 change if the saving account rate changed to 5%? Comment on your answer. 4. If you are given an option to invest at the 10% saving rate with monthly compounding or 10.5% semiannual compounding, which would you chose? Explain your answer.
Answer:
1. Yes, you will be able to meet your goal at this current saving rate since the Future value of the monthly savings after 5 years of PKR 967,963.40 is greater than Total MBA cost for 2 years of PKR 800,000.
2. Percentage of monthly salary to save = 41%.
3. You will still be able to meet your goal at the saving rate of 5% since the Future value of the monthly savings after 5 years of PKR 850,076.04 is greater than Total MBA cost for 2 years of PKR 800,000. Although, the Future value of the monthly savings after 5 years of PKR 967,963.40 at 10% is higher than the Future value of the monthly savings after 5 years of PKR 850,076.04 at 5% saving rate.
4. I would choose the saving rate of 10% monthly compounding. The reason is that the Future value of the monthly savings after 5 years at 10% semiannual compounding saving rate of PKR 967,963.40 is greater than the Future value of the semiannual savings after 5 years at 10.5% saving rate semiannual compounding of PKR 954,422.88 by an amount of PKR 13,540.52 (i.e. PKR 967,963.40 - PKR 954,422.88 = PKR 13,540.52).
Explanation:
Monthly salary = PKR 25,000
Monthly savings = PKR 25,000 * 50% = PKR 12,500
Annual MBA cost = PKR 400,000
Total MBA cost for 2 years = PKR 400,000 * 2 = PKR 800,000
1. Will you be able to meet your goal at this current saving rate?
To determine this, the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:
FV = M * {[(1 + r)^n - 1] / r} ................................. (1)
Where,
FV = Future value of the monthly savings after 5 years =?
M = Monthly savings = PKR 12,500
r = Monthly interest rate = 10% / 12 = 0.10 /12 = 0.00833333333333333
n = number of months the savings will be made = 5 year * 12 months = 60
Substituting the values into equation (1), we have:
FV = 12,500 * (((1 + 0.00833333333333333)^60 - 1) / 0.00833333333333333)
FV = 12,500 * 77.4370721734302
FV = PKR 967,963.40
Yes, you will be able to meet your goal at this current saving rate since the Future value of the monthly savings after 5 years of PKR 967,963.40 is greater than Total MBA cost for 2 years of PKR 800,000.
2. What percentage of your salary should you save if you want to have exactly your university expenses amount?
To determine this, we still make use of equation (1) in part (1) above by changing Future value of the monthly savings after 5 years (FV) to PKR 800,000 while other values remains the same and solve for Monthly savings (M) after substituting the values into equation (1) follows:
800,000 = M * (((1 + 0.00833333333333333)^60 - 1) / 0.00833333333333333)
800,000 = M * 77.4370721734302
M = 800,000 / 77.4370721734302
M = PKR 10,330.97
Percentage of salary to save = M / Monthly salary = PKR 10,330.97 / PKR 25,000 = 0.41323876409392, or 41%
3. How would your answer to part 1 change if the saving account rate changed to 5%? Comment on your answer.
We use equation (1) is part 1, retain all the other values except r which is obtained as follows:
r = Monthly interest rate = 5% / 12 = 0.05 / 12 = 0.00416666666666667
Substituting the values into equation (1), we have:
FV = 12,500 * (((1 + 0.00416666666666667)^60 - 1) / 0.00416666666666667)
FV = 12,500 * 68.0060828408433
FV = PKR 850,076.04
You will still be able to meet your goal at the saving rate of 5% since the Future value of the monthly savings after 5 years of PKR 850,076.04 is greater than Total MBA cost for 2 years of PKR 800,000. Although, the Future value of the monthly savings after 5 years of PKR 967,963.40 at 10% is higher than the Future value of the monthly savings after 5 years of PKR 850,076.04 at 5% saving rate.
4. If you are given an option to invest at the 10% saving rate with monthly compounding or 10.5% semiannual compounding, which would you chose? Explain your answer.
From part 1 above, the Future value of the monthly savings after 5 years at 10% saving rate monthly compounding is PKR 967,963.40.
To obtain the Future value of the monthly savings after 5 years at 10.5% semiannual compounding saving rate, we use equation (1) with changes in definitions to semiannual where:
FV = Future value of the semiannual savings after 5 years =?
M = Semiannual total savings = Monthly saving * 6 months = PKR 12,500 * 6 = PKR 75,000
r = Semiannual interest rate = 10.5% / 2 = 0.105 / 2 = 0.0525
n = number of semiannual the savings will be made = 5 year * 2 semiannuals = 10 semiannuals
Substituting the values into equation (1), we have:
FV = 75,000 * (((1 + 0.0525)^10 - 1) / 0.0525)
FV = 75,000 * 12.7256383972991
FV = PKR 954,422.88
Therefore, I would choose the saving rate of 10% monthly compounding.
The reason is that the Future value of the monthly savings after 5 years at 10% semiannual compounding saving rate of PKR 967,963.40 is greater than the Future value of the semiannual savings after 5 years at 10.5% saving rate semiannual compounding of PKR 954,422.88 by an amount of PKR 13,540.52 (i.e. PKR 967,963.40 - PKR 954,422.88 = PKR 13,540.52).
If Devin is purchasing a $1,500 stereo system making monthly payments for a
year and is given a "same as cash" financing promotion, what will his monthly
payment be?
A. $125
B. $150
C. $75
D. $120
Answer: Answer is A
Explanation:
If Devin is purchasing a $1,500 stereo system making monthly payments for a year and is given a "same as cash" financing promotion, There will his monthly payment be $125. Thus, option (a) is correct.
What is promotion?
Promoting products and services in the marketplace is referred to as "promotion." A paid and unpaid payment is the promotion. In order to promote itself, the business releases a new product. Public purchasing is influenced by the promotion of the goods and services. Public relations, advertising, sales promotion, and direct marketing are the four different methods of promotion.
Determine the promotion of the monthly payment to be:
Given the amount are:
Devin is purchasing a $1,500 stereo system.
Monthly payment given to the cash is 12 months.
The promotion of the monthly payment = ?
The promotion of the monthly payment = 1500 ÷ 12
The promotion of the monthly payment = $125
As a result, the promotion of the monthly payment will be $125. Therefore, option (a) is correct.
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Berman & Jaccor Corporation's current sales and partial balance sheet are shown below.
This year
Sales $ 1,000
Balance Sheet: Assets
Cash $ 150
Short-term investments $ 125
Accounts receivable $ 150
Inventories $ 100
Total current assets $ 525
Net fixed assets $ 400
Total assets $ 925
Sales are expected to grow by 14% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets?
Sorry but this is kind of confusing but can you plz help me with this math problem
Santa is trying to buy socks for all his elf helping the year. He went on Amazon and found a pack of 8 socks for $24. He wants to know what each socks cost to be able to write an equation, and later he wants to know how much 12 socks with cost him.
I need the Ratio, Unit Rate, C.O.P. And an equation
Answer:
Explanation:
Total Operating costs for this year = Cash + Acct. Receivable + inventories + net fixed assets
Total Operating costs = 150+150+100+400 = 800
(Short term investments are not included in operating costs)
Projected growth in costs (Assuming same as sales) = 12% *800 = 96
Projected total operating costs = $800+$96 = $896
What types of information do we disclose to others when forming a relationship? (site 1)
Answer:
self disclosure
Explanation:
It is generally not a good idea to put a cash advance on your credit card because
It will negatively effect your credit score.
O
Credit card companies charge a higher interest rate (and often an additional fee) on cash advances than they do on
purchases
O Credit cards have no grace periods on cash advances
Student loans must be repaid and grants do not need to be repaid.
How do you think Patagonia executives decide on what products to offer so that the outcomes will be both business practical (think profits) and environmentally friendly (think sustainability)? Take the case of a proposed hiking boot. What criteria would you use to evaluate it as a new Patagonia product?
Patagonia executives will decide on products which are environmental and user friendly as it ensures individuals buy them more than others.
What is Profit?This is defined as the financial gain derived when revenue exceeds expenses.
Patagonia products must cause no unnecessary harm or environmental crisis which is a characteristic of it being user and environmental friendly thereby leading to increased sales hence making it the most appropriate choice.
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The impact of induction on coep
Which question can best help a consumer assess risk when purchasing insurance? How much must be paid to make a claim? What problems are most likely to happen? What are the possible payouts on a claim? How much are the monthly premiums?
Answer: the answer is : What problems are most likely to happen?
Explanation:
Answer:
b
Explanation:
V144
QUESTION 2
A bus driver covers a certain distance in 3 hours at an average
speed of
80 km/h.How long will the journey take at an average speed of 50
km /h?
There are 96 boys and 120 girls in Grade 9. Write down the ratio
of thenumber of boys to the number of girls in the class.
QUESTION 3
Find the HCF and LCM of 172 and 258.
QUESTION 4
Answer:
3hr=80km/r
?=50km/R
(50*3)/80=1.88hr
q Conflict Consequences 2 Difference between critical and Creative thinking. 3. Positive Use & Teisure time 41m Portance & Self Identity Svalues associated with creative Thinking
Critical thinking involves analyzing and evaluating information, while creative thinking involves generating new ideas and solutions. Positive use of leisure time includes engaging in activities that promote personal well-being, learning, self-improvement, socializing, and exploring new experiences.
Difference between critical and creative thinking:
Critical thinking is a cognitive process that involves analyzing and evaluating information or arguments in a logical and systematic manner. It focuses on objective analysis, reasoning, and problem-solving. Critical thinking requires the ability to question assumptions, recognize biases, and assess evidence to form well-reasoned judgments or decisions.
On the other hand, creative thinking involves generating new ideas, insights, or solutions. It is a process of divergent thinking, breaking away from conventional thoughts and exploring alternative perspectives.
Creative thinking often involves combining different ideas, making connections, and thinking outside the box. It encourages imagination, flexibility, and the ability to embrace uncertainty.
While critical thinking aims to assess and evaluate existing information or arguments, creative thinking aims to generate new possibilities or approaches. Critical thinking seeks to analyze and deconstruct, while creative thinking seeks to synthesize and construct.
Positive use of leisure time:
Leisure time refers to the period when individuals are free from work or other obligations and can engage in activities of their choice. Positive use of leisure time involves engaging in activities that contribute to personal well-being, growth, and fulfillment. Here are some examples:
Pursuing hobbies and interests: Engaging in activities such as painting, playing a musical instrument, gardening, or sports can provide relaxation, personal enjoyment, and a sense of accomplishment.
Learning and self-improvement: Using leisure time to learn new skills, read books, take online courses, or engage in personal development activities can enhance knowledge, broaden perspectives, and foster personal growth.
Physical and mental well-being: Allocating leisure time for exercise, meditation, yoga, or other wellness activities promotes physical fitness, reduces stress, and enhances overall well-being.
Socializing and building relationships: Spending leisure time with family, friends, or participating in community activities helps foster social connections, build relationships, and strengthen support networks.
Exploring new experiences: Traveling, visiting museums, attending cultural events, or trying new cuisines broadens horizons, provides exposure to different cultures, and creates memorable experiences.
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Kegler Bowling buys scorekeeping equipment with an invoice cost of $165,000. The electrical work required for the installation costs $17,000. Additional costs are $3,400 for delivery and $11,865 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,600. What is the total recorded cost of the scorekeeping equipment?
The scorekeeping equipment amounted to $198,865 recorded as a cost of equipment.
What is an Equipment?The collection of items or physical resources needed to outfit a person or object, such as the tools utilized during a task or operation of sporting goods equipment, all of a corporate enterprise's fixed assets, except land and buildings.
The calculation for the Total recorded Cost
Invoice cost + Installation cost + Additional Cost + Delivey charges + cost of Repair
= 165,000 + 17,000 + 3,400 + 11,865 + 1,600= $198,865
The Total recorded cost is $198,865.
Thus, the total recorded cost consists of all the costs of equipment including the purchase price, applicable sales taxes, shipping charges, and any additional expenses for preparing the item for use.
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Easter Egg and Poultry Company has $2,000,000 in assets and $1,400,000 of debt. It reports net income of $200,000.
Required:
a. What is the firm's return on assets?
b. What is its return on stockholders' equity?
c. If the firm has an asset turnover ratio of 2.5 times, what is the profit margin (return on sales)?
Answer:
a. Return on assets
= Net income / Total assets
= 200,000 / 2,000,000
= 10%
b. Return on Equity:
First find leverage ratio = Debt / Assets
= 1,400,000 / 2,000,000
= 70%
ROE = Return on Assets / (1 - Leverage ratio)
= 10% / (1 - 70%)
= 33.3%
c. Return on sales = Net income / Sales
Asset Turnover = Sales / Total assets
2.5 = Sales / 2,000,000
Sales = 2.5 * 2,000,000
= $5,000,000
Return on sales = 200,000 / 5,000,000
= 4.0%
A company had issued 10,000 bonds which had a par value of $50 and currently sold at $60. The company is expected to pay 10% interest for the next 5 years. In addition to this the preferred stock of the company is issued at $150 which a promised dividend of 8 per share. The common stock holders will receive $2 per share and this will grow T 8% for the first 3 years, 6% for the other 3 years and it will grow at 5% for indefinite period. Assume the tax rate is 35%. The capital structure of the company is composed of 600,000 common stock, 200,000 preferred stock and 100,000 is debt.
A) Find the cost of capital for each sources A) Find the weighted average cost of capital
To calculate the cost of capital for each source, we'll consider the cost of debt, cost of preferred stock, and cost of common stock.
1. Cost of Debt:
The cost of debt is the interest rate the company pays on its debt. In this case, the company has issued bonds with a par value of $50, currently selling at $60, and a coupon rate of 10% for 5 years.
Cost of Debt = (Interest Expense / (Bonds Market Value - Bond Discount)) * (1 - Tax Rate)
Interest Expense = Bonds Market Value * Coupon Rate
Bonds Market Value = Number of Bonds * Bond Selling Price
Number of Bonds = 10,000
Bond Selling Price = $60
Coupon Rate = 10%
Tax Rate = 35%
Interest Expense = $60 * 10,000 * 10% = $60,000
Bonds Market Value = 10,000 * $60 = $600,000
Bond Discount = Par Value - Bond Selling Price = $50 - $60 = -$10 (Negative value because the bond is selling at a premium)
Cost of Debt = ($60,000 / ($600,000 - (-$10))) * (1 - 0.35) = $6,000 / $600,010 * 0.65 = 0.064997 (approximately 6.50%)
2. Cost of Preferred Stock:
The cost of preferred stock is the dividend rate the company pays on its preferred stock. In this case, the preferred stock is issued at $150 with a promised dividend of $8 per share.
Cost of Preferred Stock = Dividend / Preferred Stock Price
Dividend = $8
Preferred Stock Price = $150
Cost of Preferred Stock = $8 / $150 = 0.053333 (approximately 5.33%)
3. Cost of Common Stock:
The cost of common stock is calculated using the dividend growth model. The dividend is expected to grow at different rates for different periods.
First 3 years: Dividend Growth Rate = 8%
Next 3 years: Dividend Growth Rate = 6%
Indefinite period: Dividend Growth Rate = 5%
Cost of Common Stock = Dividend / Current Stock Price + Growth Rate
Dividend = $2
Current Stock Price = Market Price
Growth Rate = Dividend Growth Rate
Cost of Common Stock = $2 / Market Price + Growth Rate
Weighted Average Cost of Capital (WACC):
The weighted average cost of capital is the weighted average of the costs of each source of capital, considering their respective proportions in the capital structure.
WACC = (Weight of Debt * Cost of Debt) + (Weight of Preferred Stock * Cost of Preferred Stock) + (Weight of Common Stock * Cost of Common Stock)
Weight of Debt = Debt / Total Capital
Weight of Preferred Stock = Preferred Stock / Total Capital
Weight of Common Stock = Common Stock / Total Capital
Debt = $100,000
Preferred Stock = $200,000
Common Stock = $600,000
Total Capital = Debt + Preferred Stock + Common Stock = $100,000 + $200,000 + $600,000 = $900,000
Weight of Debt = $100,000 / $900,000 = 0.111111 (approximately 11.11%)
Weight of Preferred Stock = $200,000 / $900,000 = 0.222222 (approximately 22.22%)
Weight of Common Stock = $600,000 / $900,000 = 0.666667 (approximately 66.67%)
WACC = (0.111111 * 6.50%) + (0.222222 * 5.
The cost of capital for each source can be calculated by determining the cost of debt, cost of preferred stock, and cost of common equity. The cost of debt is 8.33%, the cost of preferred stock is 5.33%, and the cost of common equity is 14.77%.
To find the cost of capital for each source, we will calculate the cost of debt, cost of preferred stock, and cost of common equity.
The cost of debt can be calculated using the formula: Cost of Debt = (Annual Interest Payment / Bond Price) x 100%. In this case, the bond price is $60 and the annual interest payment is 10% of the bond's par value of $50, so the cost of debt is (0.10 * $50 / $60) x 100% = 8.33%.
The cost of preferred stock can be calculated using the formula: Cost of Preferred Stock = Dividend / Stock Price. In this case, the dividend is $8 per share and the stock price is $150, so the cost of preferred stock is $8 / $150 = 5.33%.
The cost of common equity can be calculated using the Dividend Discount Model (DDM) formula: Cost of Common Equity = Dividend / Current Stock Price + Growth Rate. The growth rate for the first 3 years is 8%, for the following 3 years is 6%, and for an indefinite period is 5%. The dividend for common stock is $2 per share. The current stock price can be calculated using the market value of the common stock ($2 * 600,000 = $1,200,000) divided by the number of shares (600,000), which equals $2 per share. The cost of common equity is $2 / $2 + 0.08 + 0.06 + 0.05 = 14.77%.
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• TWO interpersonal skills selected from Addendum A, are listed and linked to examples/evidence from the background information.
Answer:
Here are some examples of interpersonal skills or social skills:
Active listening.
Being able to understand and empathize with others.
Managing conflict.
Building lasting relationships.
Teamwork.
Motivating others.
Leadership.
Negotiation and persuasion.
Explanation:
Step 2. Search to find any summary about the company that mentions funds for starting the business. Try to find any information containing employee data in this section.
Step 3. Find the section where the product or service is detailed. Look to see what kinds of products or services will be involved with the business. Compare this with what other similar business plans are offering.
Record the information you found for steps 2 and 3. Make sure you discuss how the company got money to start the business, employee data, and what products or services the company provides in comparison with what other similar business plans are offering.
We can see here that such company gotten after searching for company that mentions funds for starting the business is Go-o-gle.
Funds for starting the business: $1 million in funding from Andy Bechtolsheim.
Employee data: over 160,000 employees worldwide.
What is a company?A company is a legal and organizational entity formed by individuals or a group of individuals with the purpose of conducting business activities. It is an association of individuals who come together to engage in commercial, industrial, or professional activities in order to generate revenue and make a profit.
Their products are digital and online services.
Comparing this company, we see Microsoft.
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If a firm has a sales price per unit of $6.00, a variable cost per unit of $4.00, and a break-even point of 40,000 units, fixed costs are equal to
Answer:
$80,000
Explanation:
From marginal analysis concepts, the break-even point is determined using the formula.
Break-even in units = fixed cost / contribution margin per unit
For this firm,
break -even = 40,000 units
Contribution margin per unit = selling price - variable costs
=$6 - $4 =$2
Therefore:
40,000 = fixed costs/ $2
Fixed costs = $40,000 x 2
Fixed costs = $80,000
Question 5: Definitions and concepts
• What is economic growth?
• What is economic development?
• Is economic growth a necessary condition for economic development? Explain with an example
• What are the differences between gross national Income and gross domestic product?
Answer:
Economic growth - an increase in the capacity of an economy to produce goods and services, compared from one period of time to another
Economic development - creation of wealth from which community benefits are realized, it is more than a jobs program, it's an investment in growing your economy and enchancing the prosperity and quality of life for all residents.
Danny's workplace just started casual Fridays. What can Danny now wear to work on Fridays?
A black suit and tie
Jeans and a t-shirt
Shorts and a tank top
A swimsuit and flip flops
The engagement team performed testing of the tax account rollforward and documented the following for testing of the income tax payments for the
current year, "Agreed balance to Tax payments/refunds schedule prepared by the client without exception." Which is the best response as a result of
your review?
Answer the question, then select Confirm
A. You consider the source of the payments/refunds schedule noting it comes from a key system and ITGCs were deemed to be
effective and add this fact to the team's documentation.
B. Additional procedures are not necessary, as the appropriate tie-out procedures were performed.
C. You consider the testing over the accuracy and completeness of management's schedule which has been performed in a
separate EGA, ensure the balance in the rollforward agrees to the testing performed, and enhance the tax team's documentation to
reference the additional testing.
D. As part your review of the team's work, you re-perform their procedures by agreeing the balance to the payments/refunds
schedule obtained from the client.
Confirm
The best response that you would have as a result of your review would be ; You consider the testing over the accuracy and completeness of management's schedule which has been performed in a separate EGA, ensure the balance in the roll forward agrees to the testing performed, and enhance the tax team's documentation to reference the additional testing.
What does it mean to carry out testing of tax account?This is the term that has to do with the performing of the procedure in such a way that it would be able to take care of an underlying account record or a given transaction.
The answer to this question is option C. You would have to ensure that you consider the testing over the accuracy and completeness of management's schedule.
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A common stock pays an annual dividend per share of $2.10. The market capitalization rate (required return on equity) is 10.0%. If the annual dividend is expected to remain at $2.10, what is the value of the stock
Answer:
the value of the stock is $21
Explanation:
The computation of the value of the stock is given below:
= Annual dividend per share ÷ required rate of return
= $2.10 ÷ 10%
= $21
Hence, the value of the stock is $21
We simply divided the annual dividend from the required rate of return so that the value of the stock could come
Alexander Rees is concerned about appearing knowledgeable in exporting. What are
some of the factors he mentions in the project letter?
A-Finding good coffee
B-Developing a reliable source for twizzle sticks
C-Travel costs
D-Cultural Differences and exchange rates
Alexander Rees is concerned about appearing knowledgeable in exporting. The some of the factors he mentions in the project letter are
Travel costs
Cultural Differences and exchange rates
Thus option (C) and (D) are correct.
What is a cost?The cost is the expenditure or spending required or incurred to create and sell products and services, or to acquire assets.
When a product is sold or consumed, a cost is charged to expense. In the case of a buying of an asset, the charge to expense could be significantly deferred. The cost concept underlies the transition of assets from the balance sheet to expenses in the income statement.
Alexander Rees is concerned about appearing knowledgeable in exporting. Travel costs and Cultural Differences and exchange are some of the factors he mentions in the project letter.
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Reverse logistics is required because?