All categories

2 years ago

Firestone owns its manufacturing sites as well as retail stores that sell its tires. Firestone exemplifies a(n)

1 answer:

katrin2010 [14]2 years ago

5 0

Firestone exemplifies a corporate distribution system by owning its manufacturing sites as well as retail stores that sell its tires.

<h3>What is corporate distribution system?</h3>

A corporate system is where a distribution channel owns all of the others by combining distribution channel under the leadership of a single business.

A corporate distribution system keeps track of its manufacturers', wholesalers', and retailers' procedures, finances, and deadlines. They are in charge of the whole process of manufacturing.

Hence, Firestone exemplifies a corporate distribution system by owning its manufacturing sites as well as retail stores that sell its tires.

Learn more about corporate distribution system here: brainly.com/question/14326246

You might be interested in

Skymont Company wants an ending inventory each month equal to 30% of that month's cost of goods sold. Cost of goods sold for Feb

Law Incorporation [45]

Answer:

Purchases for February would be: $46,500

Explanation:

Prepare a Purchases Budget to find the Purchases for February.

<u>Purchases Budget for February</u>

Budgeted Cost of Sales $45,000

Add Budgeted Closing Inventory ($45,000 × 30%) $13,500

$58,500

Less Budgeted Opening Inventory ($12,000)

Budgeted Purchases $46,500

5 0

3 years ago

Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. T

Ira Lisetskai [31]

Answer:

1.$35,000

2.$6,300,000

Explanation:

The computation of Unit sales to earn the target income and Sales amount at required profit is given below:-

a. Contribution per unit = Unit sale price - Unit variable cost

= $180 - $135

= $45

Unit sales at required profit = (Sales cost + Required cost) ÷ Contribution per unit

= ($562,500 + $1,012,500) ÷ $45

= $1,575,000 ÷ $45

= $35,000

b. Sales amount at required profit = Unit sales at required profit × Unit sale price

= $35,000 × $180

= $6,300,000

8 0

3 years ago

If Wild Widgets, Inc., were an all-equity company, it would have a beta of 0.9. The company has a target debt-equity ratio of .4

Veronika [31]

Answer:

a. 6.5%

b. 13.06%

c. 10.91%

Explanation:

Cost of debt of a bond is yield to maturity. Yield to maturity is the rate of return that a investor actually receives or a borrows actually pays on a bond. It is long term return or payment which is expressed in annual term.

Formula for yield to maturity is as follow

Yield to maturity = [ C + ( F - P ) / n ] / [ (F + P ) / 2 ]

By placing values in the formula

Assuming the bond face value is $1,000

Yield to maturity = [ (1000x7.2) + ( 1,000 - $1,090 ) / 20 ] / [ ( 1,000 + $1,090 ) / 2 ]

Yield to maturity = [ $72 + ( 1,000 - $1,090 ) / 20 ] / $1,045

Yield to maturity = [ $72 - $4.5 ] / $1,045

Yield to maturity = $67.5 / $1,045

Yield to maturity = 6.5%

So, the cost of Debt is 6.5%

As 0.9 is the unlevered beta, We need Levered beta due to restructuring of capital.

Beta Levered = Beta Unlevered x ( 1 + ( 1 - tax rate ) x Debt / Equity)

Beta Levered = 0.9 x ( 1 + ( 1 - 0.35 ) x 0.4 )

Beta Levered = 1.134

Cost of equity can be calculated using CAPM

CAPM calculated the expected return on an equity investment based on the risk free rate, market premium and risk beta of the investment.

Formula for CAPM is as follow

Expected return = Risk free Rate + Beta ( Market premium)

As we know the Risk premium is the difference of market return and risk free rate.

Expected return = Risk free Rate + Beta ( Market Return - Risk free Rate )

Ra = Rf + β ( Rm - Rf )

Ra = 4.1% + 1.134 ( 12% - 4.1% )

Ra = 13.06%

Cost of Equity is 13.06%

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of equity x Weightage of equity )+ ( Cost of debt ( 1- t) x Weightage of debt )

Placing the values in formula

If the debt to equity 0.4 the equity value should be 1 and total capital is 1.4 ( 1 + 0.4 )

WACC = ( 13.06% x 1 / 1.4 )+ ( 6.5% ( 1- 0.35) x 0.4 / 1.4 ) = 9.71% + 1.2% = 10.91%

WACC is 10.91%

4 0

3 years ago

20. To add body to a hearty broth, you may use

Sophie [7]

Answer:

The correct answer would be A, Onions.

Explanation:

Meat, vegetables, herbs, etc are simmered with water on a low to medium flame to make a broth. Broths are usually thin and after some time, due to simmering, it starts to get body. The nutrients in the meat or vegetables or herbs start to mix in the water and give it a delicious taste. But the broth is still thin and needs to be thickened. So in order to make the broth thick, we need to add onions into the broth. Now when it will cook on a slow flame, the broth will get a hearty body and all the nutrients of the broth will make an appetizing dish.

4 0

3 years ago

Excerpts from Dowling Company's December 31, 2018 and 2017, financial statements and key ratios are presented below (all numbers

Rus_ich [418]

Answer:

Option (A) is correct.

Explanation:

Given that,

2018:

Accounts receivable (net) = $20

Net sales = $115

Cost of goods sold = $60

Net income = $20

Inventory turnover = 5.22

Return on equity = Return on assets × Equity multiple

= 10.3% × 2.36

= 24.308% or 24.3%

Therefore, Dowling's return on equity for 2018 is 24.3%.

5 0

3 years ago