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Komok [63]
1 year ago
11

Ezra is the manager of outdoor adventure sporting goods. during the past six months, his cash expenditures have exceeded his cas

h receipts. outdoor adventure is suffering from a(n) __________ problem.
Business
1 answer:
nikklg [1K]1 year ago
7 0

The manager of sporting items for outdoor adventures is Ezra. His monetary outlays have outpaced his cash receipts during the last six months. The outdoor adventure industry has a cash flow issue.

Although profitability may be the most important indicator of a company's success, maintaining a steady level of cash flow on a daily basis is essential if your organization is to survive and expand.

When the amount of money leaving the organization exceeds the amount of money coming in, there is a cash flow issue. This results in a lack of liquidity, which might hinder your capacity to pay bills, make loan repayments, and run business profitably.

To learn more about cash flow problem here

brainly.com/question/14281450

#SPJ4

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Hankins Corporation has 7.5 million shares of common stock outstanding, 275,000 shares of 4.7 percent preferred stock outstandin
yulyashka [42]

Answer:

7.98%

Explanation:

For computing the market value capital structure we need to do following calculations which are shown below:

Market value of stock = 7,500,000 ×  $62 per share = $465,000,000

Cost of Equity = Risk Free rate + Beta × Market risk Premium

= 3.4% + 1.10 × 7.2%

= 11.32%

Market value of Bond = 108% × $2,000 × 160,000 bonds = $345,600,000

Coupon = 5.6% × 2000 ÷ 2 = 56

Number of Periods(n) = 18 × 2 = 36

Market value = $2000 × 1.08 = $2160

Cost of debt (YTM) using excel formula is

= RATE(36,56,$2,000,-$2,160)

= 4.92%

Market value of Preferred Stock = 275,000 × $94 = $25,850,000

Cost of Preferred Stock = 4.7%

Total value = $465,000,000 + $345,600,000 + $25,850,000

= $836,450,000

Equity ratio = $465,000,000 ÷  $836,450,000 = 0.5559

Debt ratio = $345,600,000 ÷ $836,450,000 = 0.4132

Preferred Stock ratio = $25,850,000 ÷ $836,450,000 = 0.0309

Now the market capital structure is

Cost of Project = Equity Ratio × Cost of Equity + Debt ratio × ( 1-Tax rate) × Cost of Debt + Preferred Stock ratio × Cost of Preferred stock

= 0.5559 × 11.32% + 0.4132 × (1 -24%) × 4.92% +  0.0309 × 4.7%

= 7.98%

3 0
3 years ago
Lead indicators guide management to: Multiple Choice pursue identical strategies as those implemented with lag indicators. take
zheka24 [161]

Answer:

take actions now that will have positive effects on organizational performance in the future.

Explanation:

Lead indicators can be defined as an economic indices such as level of company stock prices or corporate profits, which usually changes before any significant corresponding change in the state of an economy. Thus, leading indicators serves as leaders or drivers for a business firm or organization.

Generally, lead indicators guide management to take actions now that will have positive effects on organizational performance in the future because they are variables that corresponds to a future variable of interest.

5 0
3 years ago
What are the time durations for capacity planning, and which one provides the greatest value for strategic capacity planning?
Afina-wow [57]

Answer:

Short term, medium term and long term.

Explanation:

There are three time frames or durations for capacity planning. And these are short term, medium term and long term.

It should be understood that when the management of a company is considering the time frame or duration that will provide greatest value for strategic capacity planning, long term should be the one to be considered, because it is the best for the planning. Because it is the key determinant of the competitiveness of the organization.

7 0
2 years ago
On January 2, 2021, L Co. issued at face value $20,000 of 4% bonds convertible in total into 1,000 shares of L's common stock. N
Eduardwww [97]

Answer:

$1.3

Explanation:

The computation of diluted earnings per share is shown below:-

a. Statement showing adjusted net profit

Net income                                            $2,000

Interest expenses                                  $800

($20,000 × 4%)

Less: Tax relating to interest expense $200

($800 × 25%)

Adjusted Net profit                                 $2,600

b. Statement showing weighted average number of common stock shares

Shares of common stock        1,000

Debentures converted into

common stock shares             1,000

Total number of weighted

shares                                       2,000

Therefore,

Diluted earning per share = Adjusted net profit ÷ Number of weighted average shares

= $2,600 ÷ 2,000

= $1.3

Therefore for computing the diluted earning per share we simply applied the above formula.

5 0
3 years ago
A firm is considering the purchase of an asset whose risk is greater than the current risk of the firm, based on any method for
Anika [276]

Answer:

e) Increase the required rate of return used to evaluate the project to reflect the higher risk of the project

Explanation:

As per the basic concept of investment, "higher the risk, higher the return".

Thus, an investor assumes a higher risk only in the scenario wherein the expected return would be commensurate with such risk. Investor would only invest in a risky asset when the return derived can compensate him for the excess risk assumed.

Required rate of return is an investors expectation of return from a project also referred to as the cost of capital.

So for the purpose of evaluating the project, the investor should use a higher required rate of return to signify higher risk which would reveal the true viability of the project.

8 0
3 years ago
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