Answer:
Circulation and rating systems are used to determine ad rates by showing the amount of information that is getting out and is getting noticed by consumers. The advertising system works this way because more and more consumers are more opt to see these ads and that most likely means more sales for producers.
Answer:
The $8 million is the amount which should Carter report as net cash from investing activities.
Explanation:
Cash flow from investing activities : It includes all types of transactions whether it is a sale or purchase of fixed assets and intangible assets.
So, the net cash flow amount from investing activities is equals to
= Sale of marketable securities + Sale of land - Purchase of equipment - purchase of patent
= $30 million + $15 million - $25 million - $12 million
= $8 million
The sale of common stock and purchase of treasury stock is a part of financing activities. Hence, it is not considered in the computation part.
Thus, the $8 million is the amount which should Carter report as net cash from investing activities.
Bonds = 75,000*1000 = 75 Million
Preferred stock = 750,000*64 = 48 Million
Common stock = 2.5 Million *44 =110 Million
Total capital = 75+48+110 = 233 Million
Weight of debt (Wd) = 75/233 = 0.3219
Weight of preferred stock (Wp)= 78/233 = 0.206
Weight of equity (We) 1-0.3219-0.206 = 0.4721
Cost of debt after tax (Rd)= 7.5%*(1-0.34) = 4.95%
Cost of preferred stock (Rp)=6/64 = 9.375%
Cost of equity(Re) = rf + beta*(rm-rf) = 2.3+1.21*(11.2-2.3) = 13.069%
WACC = Wd *Rd + Wp*Rp + We*Re
WACC = 0.3219*4.95 + 0.206*9.375 + 0.4721*13.069% = 9.69%
Answer:
The correct answer is C. is neither minimizing costs nor maximizing profits
Explanation:
A company that operates under the conditions described above, moves within a market in purely competitive conditions that ensures linear behavior of demand and supply, which is why it must establish the condition of minimizing costs so that the market does not harm, this means that in the purely competitive market you should not minimize costs or maximize established profits.
Answer: 1) CM / Sales = CM Ratio
CM = 306,000 - 238,680 = 67,320
CM Ratio = 67,320 / 306,000 = 0.22
2) CM Ratio x 2,500 = 550
Explanation:
