Cede & Co. expects its EBIT to be $115,000 every year forever. The company can borrow at 7 percent. The company currently has no debt and its cost of equity is 13 percent. a. If the tax rate is 24 percent, what is the value of the company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the value be if the company borrows $255,000 and uses the proceeds to repurchase shares? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answers
Answer: See explanation
Explanation:
a. . If the tax rate is 24 percent, what is the value of the company?
= [($115,000 × (1-24%)]/13%
= ($115,000 × 76%)/13%
= ($115000 × 0.76)/0.13
= $87400/0.13
= $672307.69
b. What will the value be if the company borrows $255,000 and uses the proceeds to repurchase shares?
= $672307.69 + ($255000×24%)
= $672307.69 + ($255000 × 0.24)
= $672307.69 + $61200
= $733507.69
Related Questions
a. Suppose we have a three year fixed-payment loan with $300 payments made at the end of each year. Given a market interest rate of 6 percent, how much was initially borrowed?
Answers
The amount that has been initially borrowed is $802, having an annuity payment of $300 at the end of each year and a market interest rate of 6%.
What is annuity?An annuity is a series of payments made at regular intervals in the financial world. Regular savings account deposits, monthly home mortgage payments, monthly insurance payments, and pension payments are all examples of annuities. The frequency of payment dates distinguishes annuities.
The formula for calculating the present value of an annuity which is actually the sum borrowed is :
V= A/i {1-(1+i)^-n} , where,
A= fixed payment of annuity,
i= market rate of interest, and
n = number of years
V= 300/0.06{1-(1+0.06)^-3}
= 300/0.06{1-0.8396}
= 300/0.06 × 0.1604
= $802
Therefore, $802 was initially borrowed.
To learn more about annuity, click here:
https://brainly.com/question/23554766
#SPJ1
Objectives of pep stores
Answers
Answer:
The answer is below
Explanation:
PEP is a big store that is located in South Africa and other African countries.
Based on the PEP mission and vision and according to the company's website, the Objectives of PEP stores are:
1. To be the friendliest and most trusted retailer for this market.
2. To offer wanted products and services at the lowest possible prices
3. To meet changing consumer needs.
$50 an hour is a
A salary
B commission
C wage
D pension
Answers
Answer: C.) Wage
Explanation: A salary is a set cost that is due to you over an agreed amount of time. A commission is a percentage that you get from the original cost. A wage is the income one makes daily, or per hour. A pension is the gradual amount of money being added up during the years one works. Therefore, $50 an hour is a wage.
I hope this helped!
Good luck <3
Describe the internal control features that were missing that enabled the employee to commit this fraud.
Describe what actions the employer should take to prevent this kind of fraud from happening in the future.
High-Flying Auto Dealer Employee Steals $10M For Luxuries
The scheming employee was able to electronically transfer funds from the company's online account to her own personal account and use the funds to buy four homes, 10 vehicles, Louis
Vuitton luggage, jewelry, $30,000 in pre-paid travel funds and stow away more than $20,000 in savings, court records show. Authorities said she covered up the thefts with a series of fake transactions as well as listing phantom cars in inventory so they could be recorded as assets.
Answers
Answer:
yes my answer is yes
Explanation:
I dont know
price elasticity of demand for electricity
Answers
The price elasticity of demand for electricity reflects the sensitivity of electricity consumption to price changes.
The price elasticity of demand for electricity is a measure of the responsiveness of electricity consumption to changes in its price. It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
Understanding the price elasticity of demand for electricity is important for policymakers, electricity providers, and regulators in making informed decisions.
In the short run, the price elasticity of demand for electricity tends to be relatively low or inelastic. This means that changes in the price of electricity have a relatively small effect on the quantity demanded.
Electricity is considered a necessary and essential good for many households and businesses, and there are limited substitutes available in the short run.
In the long run, the price elasticity of demand for electricity becomes more elastic. Consumers and businesses have more flexibility to respond to price changes by adjusting their behavior, investing in energy-efficient technologies, or switching to alternative energy sources.
The availability of substitutes and technological advancements play a significant role in increasing the elasticity of demand over time.
It is important to note that the price elasticity of demand for electricity can vary across different consumer segments and regions. Industrial and commercial consumers often have more options to adjust their electricity consumption patterns and tend to have a higher elasticity of demand.
Residential consumers, on the other hand, may have fewer alternatives and exhibit a lower elasticity of demand.
It helps policymakers and stakeholders anticipate the impact of price fluctuations and design effective policies related to pricing structures, subsidies, energy efficiency programs, and the promotion of renewable energy sources.
Understanding the price elasticity of demand for electricity is crucial for balancing economic, environmental, and social goals in the energy sector.
For more such question on demand. visit :
https://brainly.com/question/18550230
#SPJ8
Explain any two (2) value chain activities that Coca-Cola makes use of.
Answers
Coca-Cola employs marketing and sales activities to create brand awareness and optimize their supply chain and manufacturing process to produce and distribute products efficiently.
Coca-Cola, one of the world's leading beverage companies, employs various value chain activities to produce and distribute its products effectively. Here are two examples of value chain activities that Coca-Cola uses
Marketing and Sales: Coca-Cola invests heavily in marketing and sales activities to create brand awareness and promote its products. They use various channels such as TV commercials, billboards, social media, and sponsorship of events to reach their target customers.
Operations: Coca-Cola has a highly efficient supply chain and manufacturing process that helps them produce and distribute their products efficiently. They have established production facilities in various regions worldwide, allowing them to produce and distribute products locally.
Overall, these value chain activities enable Coca-Cola to produce and distribute its products efficiently while maintaining the quality of its products and building brand loyalty among customers.
Learn more about Coca-Cola here
brainly.com/question/31367333
#SPJ1
Name and explain the four marketing strategies for company growth
Answers
-Packaging what draws people in to purchase
-Consistency to grow /make product better products or grow company more
-Patience companies take time and money
hope this helps
Question 2. (6)
Briefly explain why Investors, Competitors and Suppliers take interest in
accounting information related to a business. (Please include examples)
Answers
Answer:
They like googIe
Explanation:
PLEASE HELP
Discussion of how business intelligence is used or could be used to support SpaceX's 3D printing process
Answers
Business intelligence (BI) can be employed to provide assistance to SpaceX's 3D printing procedure in several ways:
How business intelligence is used or could be used to support SpaceX's 3D printing processQuality regulation: BI tools could facilitate the monitoring of the quality of 3D-printed parts, recognize errors anddefects, plus detect areas for advancement. By exploring data from the 3D printing step, SpaceX may discover structures and trends that hint towards potential troubles with both the design as well as fabrication process, allowing them to take corresponding adjustments.
Cost enhancement: BI tools might be implemented to investigatethe cost of 3D printing and pinpoint sections where price savings can be accomplished. For example, by examining information concerning material usage, labor costs, and equipment efficacy, SpaceX will be able to minimize expenditures while retaining greatness.
Process streamlining: BI tools may be exploited to optimize the 3D printing method by discovering hurdles, problems, or opportunities for betterment. For example, by studying data on utilization of machines and printing rate, SpaceX will recognize openings to escalate proficiency and reduce printing time.
Predictive maintenance: BI instruments could promote surveillance of health of 3D printers and anticipate when upkeep or renovations are needed. By evaluating data regarding functioning of devices and maintenance history, SpaceX would be capable of foreseeing repair needs and arrange mending or substitution ahead of time, curtailing downtimes and heightening machine operability.
Read more on business intelligence here:
https://brainly.com/question/30465461
#SPJ1
You are a loan officer at a bank. An applicant comes to you for a $5,000 loan. Explain why you would want to know that person's credit history.
Answers
I would want to know the applicant's credit history so as to be able to determine the likelihood of the applicant paying back the loan. An applicant that has a history of defaulting on loans or has maxed out credit cards is unlikely to pay back a loan.
For example, consider two applicants, Mr A and Miss B, who come to apply for a loan. Mr A. has a three maxed out cards, he has defaulted on a loan payment at another bank and he is currently unemployed. On the other hand, Miss B is a student with no history of debt. She came to apply for a loan so as to be able to pay for her college tuition.
Miss B has a better credit history when compared with Mr A. She is less likely to default on payment and hence she is a better candidate for the loan. If the loan officer does not check for this information, he would not be privy to the information and so he is in danger of giving the loan to the less suitable person.
Credit history is a report that provides information on the repayment of debt of an individual. It provides information about amount owed and how soon repayments were made. Credit history is usually contained in a credit report
Contents of a credit report
Number of credit accounts Types of credit account Information on bankruptciesAmount owedTo learn more about credit history, please check: https://brainly.com/question/9718559?referrer=searchResults
A Student Aid Report (SAR)What is Anna’s DRN? What is the purpose of this number?
Answers
Your individual 4-digit code on the FAFSA confirmation page and your Student Aid Report are referred to as your "DRN" or "Data Release Number" (SAR). Your identification is ensured by the 4-digit code.
What does the DRN number serve?Your application will be granted a four-digit Data Release Number (DRN) by Federal Student Aid. If you want to make adjustments to your FAFSA information, you can do so by giving your DRN to a customer service representative.
My FAFSA data Release number is where can I find it?Federal Student Aid issues applications with a four-digit identifier called a Data Release Number (DRN). Only the student can see the DRN, which is printed on the student's confirmation page and the top right corner of the Student Aid Report (SAR).
To know more about Student Aid Report visit:-
https://brainly.com/question/28160957
#SPJ1
The City of Houghton enacted an ordinance that forbids religious groups from distributing religious materials within the city limits of Houghton unless the distributor is granted a permit. Other types of materials can be distributed without a permit. What concerns do you have about the constitutionality of this ordinance?
Answers
The concerns that have about the constitutionality of this ordinance are Freedom of Religion, Content-Based Restrictions, Prior Restraint, Equal Protection and Unfettered Discretion.
Here are a few major concerns:
Religious Freedom: The First Amendment to the United States Constitution provides religious freedom, which includes the right to practise and express one's religious views. Content-Based limitation: By treating religious materials differently from other types of materials, the ordinance appears to impose a content-based limitation on communication. Prior constraint: Requiring religious organisations to seek a licence before disseminating religious materials is a type of prior constraint on speech. Equal Protection: If the ordinance treats religious groups differently than other groups or items, it may raise questions regarding legal equality. Unrestricted Discretion: If local officials have unrestricted discretion in choosing who gets a permit, there is a possibility of viewpoint discrimination or bias.For such more question on Restrictions:
https://brainly.com/question/30667577
#SPJ8
Given the information below, calculate the net cash provided from operating activities for Baskin Peter Pty. Ltd.
Receipts from customers $279,247
Payments for property, plant & equipment $42,310
Interest paid $4,231
Proceeds from issue shares $25,836
Payments to supplier and employees $220,013
Repayment of borrowings $53,331
GST paid $16,924
Payments for motor vehicle $37,985
Interest received $6,770
Select one:
$61,773
$44,849
$55,345
$49,080
Answers
The cash inflows from operating activities are:
Receipts from customers: $279,247
Interest received: $6,770
Total cash inflows from operating activities: $286,017
The cash outflows from operating activities are:
Payments to suppliers and employees: $220,013
GST paid: $16,924
Total cash outflows from operating activities: $236,937
Therefore, the net cash provided from operating activities is:
Net cash provided from operating activities = Cash inflows from operating activities - Cash outflows from operating activities
Net cash provided from operating activities = $286,017 - $236,937
Net cash provided from operating activities = $49,080
Therefore, the net cash provided from operating activities for Baskin Peter Pty. Ltd. is $49,080.
So the answer is D) $49,080.
Suppose that a restaurant uses a focus group of regular customers to determine how many customers would buy a proposed new menu item at various prices. Can this information be used to estimate an inverse demand function? A demand function? Explain briefly. Would it be possible to use a focus group to generate data that could be used to estimate a demand function that includes both price and income as explanatory variables?
Answers
The information can be used to estimate an inverse demand function and a demand function as E. the demand curve, and the inverse demand curve can be calculated from it.
A demand function with price and income as explanatory variables can be generated from the focus group by capturing buying pattern data at different prices and levels of income.
It should be noted that a demand function simply shows the relationship that exists between the quantity demanded and price. Based on the question, using a demand function can be computed easily since quantity is a function of price.
Read related link on:
https://brainly.com/question/25672804
TEll me 1 to 5 answers
Answers
The best choices from the list of questions provided are;
1. Positive and normative differ in that a positive statement can be verified by referring to fact whereas a normative statement cannot. Option A.
2. A positive economic statement is an increase in the price of sugar causes consumers to buy less sugar. option C
3. The statement that best describes market economy is voluntary exchange determines which product gets produced. option A.
4. PPC illustrates that if society is efficient, it can produce more of one goods only of it reduces the output of another goods. Option D.
5. The law of demand states that there is a negative relationship between price and quantity demanded, represented by a downward-sloping demand curve. The correct answer is option D.
What does PPC stand for, and what is it all about?PPC is a abbreviation for Production Possibility Curve. The PPC illustrates the concept of opportunity cost, which is the cost of foregone opportunities when a choice is made. It shows the trade-offs that society must make between different goods, as increasing the production of one good requires sacrificing the production of another good. The PPC also illustrates that resources are not unlimited and that society cannot produce more of all goods simultaneously if it wants to be efficient.
Learn more about PPC here;
https://brainly.com/question/14293257
#SPJ1
1. What is the name of the man behind black history month?
I need a answers plz
Answers
Answer:
Carter G. Woodson
Explanation:
Woodson. Carter G. Woodson was a scholar whose dedication to celebrating the historic contributions of Black people led to the establishment of Black History Month, marked every February since 1976.
If you wish to enter the field of soil and
forest conservation, what kind of
educational goal should you attain?
A. High school diploma
B. 2 year associate degree
C. 4 year college degree
D. Doctorate degree
Answers
4 year college degree is the minimum educational goal to attain if one wish to enter the field of soil and forest conservation.
The 4 year college degree is tantamount to the Bachelor degree achieved from University, college etc.
Usually, the position of forestry and related job requires the minimum of Bachelor degree from related course in the field of soil and forest conservation.
Hence, the 4 year college degree is the minimum educational goal to attain if one wish to enter the field of soil and forest conservation.
Therefore, the Option C is correct.
Read more about forestry
brainly.com/question/24518939
(Economics)
In an essay of at least two well-developed paragraphs, explain the global benefits of international trade and multinational corporations.
Answers
International trade refers to the exchange of goods and services across national borders. It plays a significant role in promoting economic growth and providing several global benefits.
One of the primary advantages of international trade is that it allows countries to specialize in producing goods and services in which they have a comparative advantage. This means that countries can focus on producing goods that they can produce more efficiently and at a lower cost compared to other countries. As a result, resources are allocated more efficiently, leading to increased productivity and higher standards of living.Furthermore, international trade enables countries to access a wider variety of goods and services that may not be available domestically. This increases consumer choices and provides opportunities for individuals to enjoy a higher quality of life. For example, consumers in a landlocked country can still enjoy fresh seafood by importing it from coastal countries. Similarly, individuals in colder climates can purchase tropical fruits from countries where they are grown.Multinational corporations (MNCs) also contribute to the global benefits of international trade. These are companies that operate in multiple countries, with business activities ranging from production to distribution. MNCs play a crucial role in facilitating international trade by establishing global supply chains, investing in foreign markets, and creating jobs. They bring capital, technology, and managerial expertise to host countries, which can lead to economic development and improved living standards.Moreover, MNCs often engage in research and development (R&D) activities, driving innovation and technological advancements. This can have far-reaching benefits for both the host country and the global economy. For instance, a multinational pharmaceutical company conducting R&D in a developing country may discover new drugs or medical treatments that can benefit people worldwide.In conclusion, international trade and multinational corporations provide numerous global benefits. They promote specialization, resource allocation efficiency, and access to a wider variety of goods and services. Additionally, MNCs contribute to economic development, job creation, innovation, and technological advancements. Overall, international trade and MNCs play a crucial role in fostering economic growth and improving the well-being of individuals and nations around the world.
For more such questions on economic
https://brainly.com/question/17996535
#SPJ8
Why does the bank generally print the address of the check writer on the upper left-hand corner of the check?
Maria V. Bowen’s Check for $42.92 is dated March 6, 2019. Pay to the order of Credit Card Company.
A. To prevent people from bouncing a check (i.e., a NSF transaction)
B. To contact the check writer if a check bounces.
C. To advertise its products on the front of a check.
D. To prevent people from stealing checks.
Answers
To contact the check writer if a check bounces the bank generally print the address of the check writer on the upper left-hand corner of the check.
Option B is correct
The bank generally prints the address of the check writer on the upper left-hand corner of the check to be able to contact the check writer if a check bounces or is returned due to non-sufficient funds (NSF). By having the check writer's address on the check, the bank can contact the check writer to inform them that the check bounced and to try to resolve the issue.
This also helps the bank to verify the identity of the check writer and to prevent check fraud.
Option B is correct
To know more about Credit Card . here
https://brainly.com/question/26857829
#SPJ1
The Equinox Fabrication Plant suffered a fire incident in August, and most of the records for the year were destroyed. The following accounting data for the year were recovered: Total manufacturing overhead estimated at the beginning of the year Total direct labor costs estimated at the beginning of the year Total direct labor hours estimated at the beginning of the year direct labor hours Actual manufacturing overhead costs for the year Actual direct labor costs for the year Actual direct labor hours for the year direct labor hours The company bases its manufacturing overhead allocation on the number of direct labor hours. What was the predetermined overhead allocation rate for the year? (Round your answer to the nearest cent.
Answers
The predetermined overhead allocation rate for the year is $29.40
The predetermined overhead allocation rate is referred to as the allocation rate that is used in the application of the estimated cost of manufacturing overhead to the job orders or products.
From the complete question, the predetermined overhead allocation rate will be calculated thus:
= Estimated manufacturing overhead / Estimated direct labor hours
= $105840 / 3600
= $29.40
Therefore, the predetermined overhead allocation rate is $29.40.
Read related link on:
https://brainly.com/question/24848893
The highest point of construction where rafters meet to form the roof is known as
the ridge board
the gable
the truss
the hip
Answers
QUESTION 5 of 10: True or False: The operations manager is involved primarily with supply network design. O a) True Ob) False
Answers
Answer:
true
Explanation:
An operations manager is a person who is involved with the supply network design which is also known as strategic supply chain planning. Thus, the given statement is true.
What is supply network design?The process of constructing and modeling a supply chain in order to fully understand the expenses and time associated with bringing items to market with the resources and locations available is known as supply chain network design.
Operations managers are in charge of product development and delivery, inventory and supply chain management, operations personnel and job design, and production are all under their control.
Therefore, The correct answer is Option a.
To learn more about Supply network design, refer to the link:
https://brainly.com/question/5004551
Dawn, a grocery store manager, is packaging pasta salad for retail sale at the store. Which three of the following details should she include on the label? the ingredient list the storage guidelines the location of the distributor the date of product packaging the quantity of food
Answers
The three details which Dawn should include on the label for retail sale at the store include the following:
The ingredient list.The storage guidelines.The date of product packaging.What is a product label?A product label can be defined as a paper document that is designed and developed to provide specific information about the chemical elements, ingredient list, nutrients, storage guidelines, and other chemical compounds that are present in a product and its general use or function, including storage guidelines.
This ultimately implies that, a product label is a paper document which must be used by manufactures and store managers to specify the nutrients, ingredient list, chemical elements, storage guidelines, expiry date, and other compounds that were used to make a particular product.
Read more on label here: brainly.com/question/14446515
#SPJ1
During the current year, a manufacturing company had the following activity. Units in beginning work in process: 10,000 at 70% complete. Units started into production: 150,000. Units completed during the year: 140,000. Units in ending work in process: 20,000 units at 25%. What is the number of equivalent units using the FIFO method
Answers
Based on the information given the number of equivalent units using the FIFO method is: 138,000.
Number of equivalent unitsNominal Units % Complete Equivalent Units
Beginning WIP 10,000 30% 3,000
Units started and finished 130,000 100% 130,000
Ending WIP 20,000 25% 5,000
Units to account for or Equivalent units 160,000 138,000
(10,000+130,000+20,000=160,000) (3,000+130,000+5,000=138,000)
Inconclusion the number of equivalent units using the FIFO method is: 138,000.
Learn more about equivalent units here:https://brainly.com/question/16259709
Determine the capital using the following information Assets = 27000 Kuh. liabilities ksh 9000
Answers
The capital using the following information Assets = 27000 Kuh is 18000 cash.
We can apply the accounting formula Assets = Liabilities + Capital to calculate the capital based on the available data. We can find the capital by rearranging the equation and deducting liabilities from assets.
What are assets and liabilities?A company's assets are any possessions that have the potential to provide future financial gain. Your debts to other people are called liabilities. In other words, assets increase your wealth while obligations decrease it.
Capital is calculated as assets minus liabilities.
Inputting the values provided yields:
Capital = 27000 - 9000 Kenyan Kwacha
If we simplify, we get: 18000 cash is the capital.
Hence, based on the information provided, the company's capital is 18000 Ksh. After deducting all liabilities and assets, this sum symbolizes the money that the company's owners have contributed to it.
Learn more about assets and liabilities :
brainly.com/question/14287268
#SPJ9
After visiting several automobile dealerships, Richard selects the used car he wants. He likes its $11,500 price, but financing through the dealer is no bargain. He has $1,500 cash for a down payment, so he needs an $10,000 loan. In shopping at several banks for an installment loan, he learns that interest on most automobile loans is quoted at add-on rates. That is, during the life of the loan, interest is paid on the full amount borrowed even though a portion of the principal has been paid back. Richard borrows $10,000 for a period of four years at an add-on interest rate of 11 percent.
What is the total intetrest on Richard's loan?
What is the total cost of the car?
What is the monthly payment ?
What is the annual percentage rate?
Answers
Explanation:
I = Prt
I = (10000)(.11)(4) = $4400
Total Cost = Down Payment + Principal Borrowed + Interest
Total Cost = 2000 + 8000 + 4400
= $14,400
Monthly Payment = (Principal Borrowed + Total interest) / Total number of payments
Monthly Payment = (10,000 + 4400) / 48
= $300
APR= (2 × n × I) / [P × (N + 1)]
APR = (2 × 12 × 4400) / [10,000 × (48+1)]
= 21.55%
Opening up an economy during a pandemic has costs and benefits. Which of the following is most likely the opportunity cost of opening an economy during a pandemic?
Answers
Answer:
hey what's up pick me up at took your picture a picture pick a picture
Explanation:
why you phone number give me phone number Chen. I will call you you married
Select the qualification that is best demonstrated in each example.
Harriet does not give up until she figures out what is wrong with an engine.
Giovanni is friendly and pleasant when interacting with others.
Tabitha is good at identifying and fixing problems with equipment.
Answers
Answer:
1: persistence
2: customer service skills
3: troubleshooting skills
Explanation:
Can I have Brainly?
Answer:
1: persistence
2: customer service skills
3: troubleshooting skills
Explanation:
An integrated management information system was implemented in the Celestial VIllage Continuum of Care, a 180-bed long-term care facility, owned and operated by a religious order. When Eudora Darling was recruited as manager of administrative systems, she discovered that the technology used in the administrative office was several generations obsolete and that none of the work processes or job functions had been restructured to take full advantage of information technology. Statistics were still being collected manually, and calculations were performed by handheld calculators and adding machines using information from manual entries in daily employee logs. Computer software utilities were available for database management, electronic spreadsheet and statistical functions, and publication quality reporting. However, the jobs and work processes in the department had to be analyzed and restructured before the staff could take full advantage of this technology (which has become standard in other administrative environments).
Required:
a. What issues must Ms. Darling address in achieving effective implementation of the new technology?
b. What outcomes could she reasonably expect to achieve through an effective job analysis process?
c. Should external consultants or internal staff implement this change? Explain your response.
Answers
Analyzing the case, Ms. Darling as manager of administrative systems must address the restructuring of the company, relating the lack of use of technology to the presence of a strong organizational culture.
The results it could achieve through an effective job analysis process would be to increase clarity about the role of each job and department in order to reduce burden on certain employees and optimize task delegation.
To implement this change, external consultants could be hired in order to provide an innovative, unbiased and broader view with a focus on expected results.
What is organizational culture?It is the set of habits, behaviors and values that are learned and shared in a professional environment, generating beliefs and expectations about an organization.
Therefore, implementing new technologies in an organization can generate resistance and must be implemented smoothly and shared with all employees in order to declare the benefits of change for all.
Find out more about organizational culture here:
https://brainly.com/question/26965722
It is easier to start your own business in what economy
Answers
Answer:
New Zealand
I hope this helps :)