The more debt used, the greater the leverage a company employs on behalf of its owners.
What is financial leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing.
What is financial leverage example?
Example of financial leverage usage include using debt to buy a house, borrowing money from the bank to start a store and bonds issued by companies.
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2. Mrs Marta is a financial executive with XYZ Enterprises. Although Mrs Msrts has not had any formal training in finance or accounting, she has a “good sense” for numbers and has helped the company grow from a very small company ($500,000 sales) to a large operation ($45 million in sales). With the business growing steadily, however, the company needs to make a number of difficult financial decisions in which Marta feels a little “over his head.” She therefore has decided to hire a new employee with “numbers” expertise to help her. As a basis for determining whom to employ, she has decided to ask each prospective employee to prepare answers to questions relating to the following situations she has encountered recently. Here are the questions. a. In 2009, XYZ Enterprises negotiated and closed a long-term lease contract for newly constructed truck terminals and freight storage facilities. The buildings were constructed on land owned by the company. On January 1, 2010, XYZ took possession of the leased property. 20-year lease is effective for the period January 1, 2010, through December 31, 2029. Advance rental payments of $800,000 are payable to the lessor (owner of facilities) on January 1 of each of the first 10 years of the lease term. Advance payments of $400,000 are due on January 1 for each of the last 10 years of the lease term. XYZ has an option to purchase all the leased facilities for $1 on December 31, 2029. At the time the lease was negotiated, the fair market value of the truck terminals and freight storage facilities was approximately $7,200,000. If the company had borrowed the money to purchase the facilities, it would have had to pay 10% interest. Should the company have purchased rather than leased the facilities? b. Last year the company exchanged a piece of land for a non-interest-bearing note. The note is to be paid at the rate of $15,000 per year for 9 years, beginning one year from the date of disposal of the land. An appropriate rate of interest for the note was 11%. At the time the land wa
The Present Value of Lease is $6,449,579, the Fair value of the note is $83,055.75 and the cost of credit is 12.12%.
Present Value of LeaseYear Cash flows PV Factors Discounted cash flow
0-9 800,000 6.75902 5,407,216
10-19 400,000 2.60590 1,042,360
20
Total 6,449,579
Present Value of Lease = $6,449,579
Purchase price = $7,200,000
Based on the above cash flow the company should lease the facility because the present value of cash payment is low.
b. Fair value of the note
Using this formula
Fair value of the note=Amount×PVOA
Let plug in the formula
Fair value of the note=$15,000×5.53705
Fair value of the note=$83,055.75
c. Cost of credit
Using this formula
Cost of credit=Discount/(1-Discount)×360/Allowed payment day-Discounted day
Let plug in the formula
Cost of credit=1/(1-100)×360/30
Cost of credit =1/99×360/30
Cost of credit=0.1212×100
Cost of credit =12.12%
Based on the above the calculation because the cost of funds which is 10% is lower than the cost of credit which means that the company should not continue the policy.
The complete parts of the question is:
(b) Last year the company exchanged a piece of land for a non-interest-bearing note. The note is to be paid at the rate of $15,000 per year for 9 years, beginning one year from the date of disposal of the land. An appropriate rate of interest for the note was 11%. At the time the land was originally purchased, it cost $90,000. What is the fair value of the note?
(c) The company has always followed the policy to take any cash discounts on goods purchased. Recently, the company purchased a large amount of raw materials at a price of $800,000 with terms 1/10, n/30 on which it took the discount. McDowell has recently estimated its cost of funds at 10%. Should McDowell continue this policy of always taking the cash discount?
Therefore the Present Value of Lease is $6,449,579, the Fair value of the note is $83,055.75 and the cost of credit is 12.12%.
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Based on comparable trading metrics, what is the implied enterprise value if the median P/E ratio is used as the basis for valuation? Review Later $315,618 $305,618 $295,618 $325,618
The comparable trading metrics show that the implied enterprise value if the median P/E ratio is used for valuation is $315,618.
How can the implied enterprise value be found?First, the value of equity needs to be found. Based on the market capitalizations, and the earnings, the P/E ratios for the companies are:
Company A = 22.77Company B = 22.05Company C = 16.65Company D = 32.54Company E = 23.51Using the median P/E ratio requires that we arrange the values:
= 16.65, 22.05, 22.77, 23.51, 32.54
The median P/E is 22.77.
The value of Equity is:
= Earnings x Median P/E
= 13,423 x 22.77
= $305,618
The enterprise value is:
= Market value of debt + Market value of equity - Balance in cash account
= 20,000 + 305,618 - 10,000
= $315,618
In conclusion, the implied enterprise value is $315,618
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Which of the following is included in the M-2 definition of the money supply but NOT in the M-1 definition?
The option included in the M2 definition of money supply and not in the M1 definition is money market mutual fund shares.
What is M2?M2 definition of money supply that includes cash, checking deposits, and near money. M2 is a broader measure of the money supply when compared with M1. It also less liquid than M1. M1 includes includes cash and checking deposits.
Here are the options:
a. Checkable deposits.
b. Currency held in banks.
c. Currency in circulation.
d. Money market mutual fund shares.
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During the past year, Stacy McGill planted a new vineyard on 150 acres of land that she leases for $30,000 a year. She has asked you as her accountant to assist her in determining the value of her vineyard operation. The vineyard will bear no grapes for the first 5 years (1–5). In the next 5 years (6–10), Stacy estimates that the vines will bear grapes that can be sold for $60,000 each year. For the next 20 years (11–30) she expects the harvest will provide annual revenues of $110,000. But during the last 10 years (31–40) of the vineyard’s life, she estimates that revenues will decline to $80,000 per year. During the first 5 years the annual cost of pruning, fertilizing, and caring for the vineyard is estimated at $9,000; during the years of production, 6–40, these costs will rise to $12,000 per year. The relevant market rate of interest for the entire period is 12%. Assume that all receipts and payments are made at the end of each year.
Based on the various costs that Stacy McGill will incur, and the present value of her revenue, the minimum price that Stacy should accept from Ric Button is $376,595.
What amount should Stacy accept?This should be the net present value of her vineyard over 40 years.
Present value of revenue from 1 - 5 years is $0 because no grapes will be grown in the vineyard.
Present value of revenue from 6 - 10 years;
= 60,000 x 3.14772
= $188,863.20
Present value of revenue from 11 - 30 years
= 110,000 x 6.40475
= $704,522.50
Present value of revenue from 31 to 40 years:
= 80,000 x 1,28146
= $102,516.80
Then find the present value of the expenses:
Present value of expenses from 1 - 5 years:
= 9,000 x 4.21236
= $37,911.28
Present value of expenses from 6 - 40 years:
= 12,000 x 10.83393
= $130,007.16
Present value of lease:
= 30,000 x 15.04629
= $451,388.70
The minimum amount Stacy should sell for is therefore:
= 188,863.20 + 704,522.50 + 102,516.80 - 37,911.28 - 130,007.16 - 451,388.70
= $376,595.
Question is:
Eric Button has offered to buy Stacy’s vineyard business by assuming the 40-year lease. On the basis of the current value of the business, what is the minimum price Stacy should accept?
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1.1 Basic terminologies in agricultural accounting 1.2 Recognition and measurement of agricultural produces 1.3 Reporting and disclosure requirements 2. Overview of Share-based Payments 2.1 Share-based Payments Settled with Equity 2.2 Share-based Payments Settled with Cash 2.3 Share-based Payments with Cash Alternatives 2.4 Counterparty Has Choice of Settlement 2.5 Issuer Has Choice of Settlement 2.6 Share-based Payment Disclosures 3. Insurance Contracts 3.1 Insurance Contract Aggregation 3.2 Initial Recognition of Insurance Contracts 3.3 Initial Measurement of Insurance Contracts 3.4 Estimated Future Cash Flows 3.5 Discount Rates Used 3.6 Risk Adjustment for Non-Financial Risk 3.7 Contractual Service Margin 3.8 Subsequent Measurement of Insurance Contracts 3.9 Modification of Insurance Contracts 3.10 Derecognition of Insurance Contracts 3.11 Presentation of Insurance Contract Information 3.12 Disclosures
not understand question sry
Frederick taylor’s work in management was instrumental in using engineering principles to
Fredrick Taylor's work in management was instrumental in using engineering principles to the work performed on the factory floor. This way he established a discipline called Industrial Engineering.
Taylor was a mechanical engineer who wanted to improve efficiency in the industry. He is considered as the father of Scientific Management. Taylor supported giving management more power over the workforce. He set out to make a stronger separation between manual labor and mental(planning) labor (executing work). Management was required to create and provide to the workforce detailed plans that outlined the task and how it was to be completed.
Nevertheless, his system's implementation was frequently despised by the workforce, which led to repeated strikes.
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explain other roles of quality circle as part of continuous improvement to process and systems
The quality circle are essential to the part of continuous improvement to process and systems because they examine products, processes or procedures with the objective of making recommendations for improvement to management.
What is a quality circle?This refers to the small group of employees that volunteers to meet regularly to undertake work related projects such as on work quality, productivity, safety, efficiency, cost, working conditions etc.
On other word, they are team of volunteer production employees and their supervisors who meet regularly to solve quality problems.
In a continuous improvement to process and systems, these quality circle are essential because when they meets, they examine products, processes or procedures with the objective of making recommendations for improvement to management.
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Using Apple as the company, how can this organization benefit from the four business intelligence capabilities? Identify the specific benefits, and how the four capabilities contribute to them.
Explain how business intelligence would improve their Customer Service function.
Explain the technologies that facilitate organizational memory capabilities.
The four capabilities of a business intelligence can be divided into:
data presentationdata analysisdata ingestiondata foundation.What is a business intelligence?This refers to the technology that allows analyzing of data and delivering of actionable information that can helps executives, managers and workers make informed business decisions.
The system of business intelligence is vital for business because it allows them to have an insight into what their competitors are doing and to allows informed & educated decisions for plans.
The business intelligence would improve Apple's Customer Service function because it helps to gain better understanding of customers. For instance, it help to predict the future buying behavior of a customer.
In conclusion, the system thus increases the overall customer satisfaction by improving interactions with your customers and understanding their needs.
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when parents share their concerns and questions about observation and screening results , listen actively and think before responding .
true or false
True. You should always listen and think before responding to a situation like this.
When parents share their concerns and questions about observation and screening results , listen actively and think before responding.
Thus, the correct option is True.
What do you mean by observation?An interdisciplinary field of study known as observational psychology is typically categorized as learning psychology.
In order to understand how people learn, what it means to learn a behavior, and how this understanding of learning might be applied in a preventive or therapeutic context, the psychology of learning is a specific area of psychological study.
According to observational psychology in particular, learning is a direct result of observation.
Similar to behaviorism, it rejects an underlying or instinctual foundation for (most) human behaviors and asserts that instead, the behaviors we acquire and display are a result of a complex interaction between the behaviors we observe in others and the culture in which we are raised.
Because of its heavy emphasis on early learning, observational psychology also has some relevance to developmental psychology, which is why it is referred to be a "interdisciplinary" system.
When observational psychology is referred to as an interdisciplinary field, it implies that the field's theoretical underpinnings are still somewhat in flux.
Observational psychologists' conclusions have received substantial institutional support when considered separately, but they have not yet been codified.
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Please answer the following questions: 1) Do goods that have secondary packaging influence your purchasing decisions? Why/why not?
If a housekeeping vendor cleans the room(s) in Jan. 2022, but we did not receive the invoice until Feb. 2022, what would be the double sided entries in Jan. 2022 and Feb. 2022?
In January, the entries would recognized as follows:
Account Payable will be credited; while Cash is debited.In February,
Credit the Vendor, Debit Account Payable.What is account payable?Account payable is a term that is used to depict the moneys that are owed that that need to be paid to vendors and service providers for services rendered or goods purchased on credit.
What is the double entry principle?The double entry principle is one of the principles of accounting. The fundamental tenet of double entry is that every debit must be balanced by an equal and opposite credit entry.
Any transaction must involve a minimum of two accounts:
The debit and credit accounts of the transaction serve as the foundation for the double entry.
For example, if a business takes out a $10,000 loan, the cash (asset) account is debited to $10,000 and the outstanding debt (liability) account is credited $10,000.
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Lamborghini is a classic example of Question 2 options: selective distribution exclusive distribution intensive distribution indirect distribution
Lamborghini is a classic example of exclusive distribution.
Selective distribution is a method of product distribution where more than one distributor is present in a given area. Brands of televisions, furniture, and home appliances frequently use it.
Exclusive distribution, on the other hand, describes a distribution strategy that only uses one distributor, retailer, or wholesaler in a particular region. Designer clothing, cars, and even home appliances frequently go through exclusive distribution.
A corporation may use an intensive distribution marketing plan to try to sell its goods from a small vendor to a large retailer. A customer will almost always be able to find the merchandise wherever he travels.
The sale and transfer of a product from a producer to a wholesaler, retailer, and ultimately to the customer is known as indirect distribution.
Hence, Lamborghini is a classic example of exclusive distribution.
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Violations of the Federal False Claims Act may lead to
exclusion from participating in Federal health care programs.
True or False.
Violations of the Federal False Claims Act may lead to exclusion from participating in Federal health care programs is true.
The False Claims Act permits private parties to file qui tam actions alleging that defendants cheated the federal government.
What are the possible consequences for violating the False Claims Act?
Violations under the federal False Claims Act can result in significant fines and fines. Financial penalties to the person or community includes recovery of three times the amount of the false claim(s), plus an additional fine of $5,500.00 to $11,000.00 per claim.
What are specific False Claims Act cases?Healthcare scam, government contractor fraud, and environmental scam are common types of False Claim Act cases. The False Claims Act permits individuals to report companies, federally funded schedules, or individuals who perpetrate fraud opposed the U.S. Government.
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12. The stock that is selling for GH¢12 today is expected to pay GH¢ 1 next year, GH¢2 the year after and GH¢ 3 the following year. How much are you expecting to sell it for after the third dividend if you buy it today? Your discount rate is 32%.
The expected share price after the third dividend is GH¢ 20.22
What is stock price?
The stock price can be determined as the present value of future dividends, years 1-3 and the present value of all dividends beyond year 3 which is known as the terminal value(i.e. the unknown selling price after the third dividend as required in this case)
The terminal value is the present value of future dividends after 3 years which needs to be discounted 3 years backward in the process of computing share price
Share price=12
Year 1 dividend=1
Year 2 dividend=2
Year 3 dividend=3
Terminal value=unknown (assume it is X)
discount rate=32%
Each future dividend can be discounted using the present value formula of a single cash flow shown below:
PV=FV/(1+r)^N
FV=each future cash flow/dividends
r=discount rate=32%
N=the year of dividends, 1 for year 1, 2 for year 2
12=1/(1+32%)^1+2/(1+32%)^2+3/(1+32%)^3+X/(1+32%)^3
12=3.20978378829618+X/(1+32%)^3
12-3.20978378829618=X/(1+32%)^3
(12-3.20978378829618)*(1+32%)^3=X
X=(12-3.20978378829618)*(1+32%)^3
X=GH¢ 20.22
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Why is the stock price of a company an indication of the performance of that company's senior managers?
Answer:
In general, people want to invest in a well-managed corporation, which will drive up the price of shares.
The stock price of a company is often considered an indication of the performance of that company's senior managers for several reasons:
Market Perception: The stock price reflects the collective perception of investors and the market about the company's current and future prospects.
If investors have confidence in the company's management and believe that they are making sound strategic decisions, it can lead to an increase in the stock price.
Financial Performance: The stock price is influenced by the company's financial performance. Senior managers are responsible for making key decisions that impact the company's revenue, profitability, and growth.
A well-performing company is more likely to have a higher stock price, indicating effective management practices
However, it is important to note that the stock price is just one metric to evaluate the performance of senior managers.
Other financial and non-financial metrics, such as revenue growth, profit margins, employee satisfaction, customer retention, and innovation, also play a crucial role in assessing management performance comprehensively.
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Which of the following is the single largest federal expenditure? *
1.national defense
2.Social Security
O interest
O Medicare
Answer:
it is B
Explanation:
I Known because I searched it up
What other pervasive institutional consideration may influence pay inequality
The other pervasive institutional consideration which may influence pay inequality include: technological advancement, globalization, wage-setting institutional changes. In a persuasive speech, the discourse will focus on the reasons for supporting your specific purpose statement. Read below about persuasive institutional consideration strategies.
What are persuasive strategies?
The persuasive strategies are logos, ethos and pathos. The peak effective persuasive communication usually has a mix of all three strategies. Logos uses logic or reason to reach a conclusion, while ethos depends upon the credibility of the author or speaker.
Therefore, the correct answer is as given above
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What are Convention hotels? Give an example
Convention hotels host large meetings similar to conferences. Social conventions restrict what we can do; they dictate how we should behave. Conventionalism is the result of being conventional, something held up as a normative example; "the convention of not naming the main character"; "violence is the rule, not the exception".
Hotel conventions are large formal assemblies, "political conventions", and international agreements (diplomacy).
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All choices can have unintended consequences. When those outcomes affect someone who had no part in the initial choice, what is it called?
O Free market
O Free resource
O Eminent domain
O Externality
Answer: Externality
Explanation: I got that right
1) Do goods that have secondary packaging influence your purchasing decisions? Why/why not?
Yes the goods that have secondary packaging are able to influence the purchasing decision of a person.
How does packaging influence consumer buying?The packaging of a product is one of the ways of creating good impression of a product to the would be consumer. The aesthetics of packaging would leave a positive impression on the person affecting their willingness to go for the product..
what is Secondary packaging?This refers to the cover of a product. most times this is what we see when we are about buying a product. it is usually colorful and appealing.
When a particular good is well packaged in a good way, some consumers would want to equate its quality packaging to the fact that the good would be one of value. Packaging are intended to be appealing and this will appease the minds of consumers. The consumer end up making the decision of getting goods or products with better secondary packaging.
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The TBSI Core Team must include the following:
O A. An administrator or designee
OB. Any general or special education personnel likely to use restraint
OC. A Licensed Specialist in School Psychology
K Both A and B
O All of the above
The TBSI Core Team must include the following-
An administrator or designeeAny general or special education personnel likely to use restraintThus option K is correct.What is a Team?When a group of people comes together to achieve the common objective in the organization by performing individual tasks to achieve the desired results teams are formed.
The TBSI core team referred to as Texas Behavior Support Initiative works to teach students with special needs and all children the fundamental necessary information to implement positive behavior strategies and treatments.
This TBI team must include An administrator or designee who is generally known as a Principal as well as Any general or special education personnel likely to use restraint who helps to teach students.
Therefore, option K both A and B are appropriate.
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Which of the following would not be considered as an example of industrialization
a. Replacement of human with mechanical skills
b . Improved economic organization
c . Improved extraction and working of raw materials
d. Increase in literacy
When a house is built on a lot, the house is an example of:
When a house is built on a lot, the house is an example of Real property.
A lot or plot of land is a tract or a parcel of real estate that is owned by or intended to be owned by some owner. In certain nations, a plot is essentially regarded as a piece of real estate, whereas in others it is referred to as immovable property which effectively means the same thing.
What are the two types of properties?Two different kinds of property exist. Any property will be categorized legally as either personal property or real property. Our current laws still make a distinction between the two categories of property, although this distinction dates back to English common law.
A "lot" is frequently big enough for just one house. Typically, the word "lot" does not refer to a specific area of land. Instead, it usually refers to a particular parcel of land of any size that can be purchased under a separate contract. The area described must be contiguous in order to be treated as a single lot.
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In a market system, how does society decide what goods and services will be produced?
Answer:
the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.
Prophet Co. signed a long-term purchase contract to buy timber from the U.S. Forest Service at $300 per thousand board feet. Under these terms, Prophet must cut and pay $6,000,000 for this timber during the next year. Currently, the market value is $250 per thousand board feet. At this rate, the market price is $5,000,000. Jerry Herman, the controller, wants to recognize the loss in value on the year-end financial statements, but the financial vice president, Billie Hands, argues that the loss is temporary and should be ignored. Herman notes that market value has remained near $250 for many months, and he sees no sign of significant change. INSTRUCTIONS What are the ethical issues, if any? Is any particular stakeholder harmed by the financial vice president's decision? What should the controller do?
The ethical issue is that the financial vice president fraudulently agreed to pay $6,000,000 rather than the market price of $5,0000,000.
What are the ethical issues?From the information given, the financial vice president fraudulently agreed to pay $6 million instead of the market price of $5 million for the timber.
This is unethical due to the fact that the financial manager may collude with the seller to rip off the company the extra $1 million.
b. Is any particular stakeholder harmed by the financial vice president's decision
The vice president’s financial decision affects the shareholders of the company.
This is because the vice president is reducing the profitability of the company and low profitability means low retained earnings.
The shareholders will be affected in terms of the reduced dividends earned due to the reduced retained earnings.
c) What the controller should do
The controller should then use professional due diligence and integrity on order to ensure transparency in the dealings.
He should therefore ensure that the company does not pay the $6 million that the financial president agreed to pay.
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P owns a $25,000 life policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. what kind of policy does p own?
The kind of policy that p owns is D) Endowment at Age 70.
The 4 types of regulations include Public policy, Organizational policy, practical policy, and particular policy. Coverage refers to a direction of motion proposed through an agency or man or woman.
A coverage set up and finished by using the authorities is going thru numerous degrees from inception to end. these are timetable construction, formula, adoption, implementation, evaluation, and termination. Before a policy may be created, trouble should exist that is known to the attention of the authorities.
Organizational Policies, These refer to the overall policies of the organization:
Functional Policies Originated Policies. Appealed Policies. Imposed Policies. General Policies. Specific Policies. Implied Policy.Disclaimer: The question is incomplete. Please read below to find the missing content.
Question:P owns a $25,000 Life Policy that pays the face amount to him if he lives to age 70, or to his beneficiary if he dies before age 70. What kind of policy does P own?
A)Straight Life
B)Modified Life
C)Whole Life Paid-Up at Age 70
D)Endowment at Age 70
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Where can you find information about the cost of goods sold as well as total
sales?
A. general ledger
B. worksheet
C. balance sheet
D. adjusted trial balance
The adjusted trial balance represents the cost of goods sold as well as total sales. Thus, option D is correct.
What is the cost of goods sold?Cost of goods means the direct cost that is included in the making of the goods. The cost of goods is calculated by adding the purchase price of the commodity and deducting the closing inventory.
A report known as an adjusted trial balance lists all the debit and credit firm accounts exactly as they would appear on the accounting records after reconciliations have been made. Therefore, option D is the correct option.
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Answer:
B. Worksheet
Explanation:
trust
what do multinational corporations need to balance when making decisions about social responisbilities?
Answer:
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The net present value (NPV) method estimates how much a potential project will contribute to
-Select-
, and it is the best selection criterion. The
-Select-
the NPV, the more value the project adds; and added value means a
-Select-
stock price. In equation form, the NPV is defined as:
CFt is the expected cash flow at Time t, r is the project's risk-adjusted cost of capital, and N is its life, and cash outflows are treated as negative cash flows. The NPV calculation assumes that cash inflows can be reinvested at the project's risk-adjusted
-Select-
. When the firm is considering independent projects, if the project's NPV exceeds zero the firm should
-Select-
the project. When the firm is considering mutually exclusive projects, the firm should accept the project with the
-Select-
NPV.
Quantitative Problem: Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 8%.
0 1 2 3 4
Project A -900 620 395 200 250
Project B -900 220 330 350 700
What is Project A's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.
$
What is Project B's NPV? Do not round intermediate calculations. Round your answer to the nearest cent.
$
If the projects were independent, which project(s) would be accepted?
-Select-
If the projects were mutually exclusive, which project(s) would be accepted?
-Select-
This answer requires that we fill in the blanks
The net present value (NPV) method estimates how much a potential project will contribute to shareholder wealthThe larger the NPV, the more value the project adds; and added value means a higher stock price.The NPV calculation assumes that cash inflows can be reinvested at the project's risk-adjusted WACCWhen the firm is considering independent projects, if the project's NPV exceeds zero the firm should accept the project. When the firm is considering mutually exclusive projects, the firm should accept the project with the higher positive NPV.What is the NPV?
In order to get the NPV we have to make the following calculations for the projects A and B.
This is calculated as
Project A
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= $355. 237
For the project B
We would have to perform similar calculation
Hence we would have
-900 + 620/1.08 + 395/1.08² + 200/1.08³ + 250/1.08⁴
= 378.98
From the calculations that we have done above, we can see that the value for project B is greater hence we have to choose project B.
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Yvonne and Rolanda are good friends. One day, they are on the way to the market together when they are hit by a car whose driver runs a stop sign. Yvonne is barely injured, but Rolanda sustains life-threatening injuries. In the hospital, just before they wheel Rolanda away to surgery, Rolanda tells Yvonne that she wants Yvonne to have her diamond necklace. Rolanda directs Yvonne to get the diamond necklace out of Rolanda’s purse, where they had put it after the accident, so Yvonne does. The surgery is successful, and Rolanda makes a full recovery. If Rolanda asks for her necklace back:
Answer:
Yvonne would have to return the necklace to Rolanda
Explanation:
Yvonne would have to return the necklace to Rolanda after she survived the surgery because it was a gift causa mortis, a gift given in contemplation of impending death. Because Rolanda did not die, Rolanda is entitled to have the necklace returned to her.