1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
VikaD [51]
3 years ago
11

The process of planning and managing a firm’s long-term assets is called:______.

Business
1 answer:
Leona [35]3 years ago
4 0
C is the correct answer
You might be interested in
If one of your other classes has a writing assignment, this would be the perfect opportunity to apply this lesson activity towar
Alex777 [14]

Answer:

awnsers may very

Explanation:

be ause it is your personal awnser

4 0
3 years ago
Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, wha
ivanzaharov [21]

Complete question:

WACC Estimation

On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $20 million in new projects. The firm's present market value capital structure, here below, is considered to be optimal. There is no short-term debt.

Debt $30,000,000

Common equity 30,000,000

Total capital $60,000,000

 New bonds will have an 7% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%.) The marginal tax rate is 40%.

1. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Enter your answer in dollars. For example, $1.2 million should be entered as $1200000.

$  

2. Assuming there is sufficient cash flow for Tysseland to maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places.

%

3. Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, what will happen to the WACC? No numbers are required to answer this question.

I. rs will increase and the WACC will decrease due to the flotation costs of new equity.

II. rs will decrease and the WACC will increase due to the flotation costs of new equity.

III. rs and the WACC will not be affected by flotation costs of new equity.

IV. rs and the WACC will increase due to the flotation costs of new equity.

V. rs and the WACC will decrease due to the flotation costs of new equity.

-Select- one above IIIIIIIVV

Answer:

The answer is III.

rs and the WACC will increase due to the flotation costs of new equity.

Solution:

It is given that,

Equity is $30,000,000.

Debt is $30,000,000.

The amount of fund raised is $20,000,000.

The formula to calculate weight of equity is given below:

Weight of equity = \frac{Equity}{Equity+Debt}

Substitute $30,000,000 for equity and $30,000,000 for debt in the formula,

Weight of equity = \frac{30,000,000}{30,000,000 + 30,000,000}

                         = 50%

Since weight of equity is 50% and to maintain this capital structure, company should finance the 50% of funds

Amount financed by common equity = $20,000,000 * 50%

                                                             =  $10,000,000

7 0
3 years ago
One of the main differences between residential mortgage loans and permanent financing of commercial real estate lies in the all
TiliK225 [7]

Answer – Nonrecourse loan

 

<span>In commercial real estate, the actual borrower is shielded from personal liability. In this case, the lender cannot lay claim to the personal properties of the borrower if ever he defaults. This type of loan is commonly referred to as a nonrecourse loan.</span>

7 0
3 years ago
While stocking the shelves with a new soup, the store manager notes a difference in price between the 16-ounce can and the 32-ou
asambeis [7]

Answer:

The correct answer is: Cost-Plus Pricing Strategy.

Explanation:

To begin with, a ''Cost-Plus'' is the name that a pricing strategy receives in the field of marketing and business that mainly focuses on the pricing of a product by the cost of it plus a certain porcentage of benefit, considering this last one as the benefit margin. Moreover, this type of pricing strategy is one of the most common ones in the field, typically the businesses use this type of pricing strategy due to the fact that it is easy to establish and it does not consider complex terms.

Secondly, in this case where the manager notices such a difference in the prices of the two cans is due to the fact that the manufacturer put less commodities and less effort in the can of 16-ounce rather than in the other can of 32-ounce where there is more soup and therefore there is more cost in that can, establishing that a higher price must put in that one.

5 0
3 years ago
Consider the market for film streaming services, tv screens, and tickets at movie theaters. for each pair, identify whether they
Trava [24]

Film streaming and tv screens: Compliments (if you are watching more netflix, hulu, etc you will care more about having a good tv to watch on)

Film streaming and movie tickets: Substitutes (you will either watch netflix or go to the movies, not both at the same time)

TV screens and movie tickets: Substitutes (if you are going to the movies, it doesn't matter what kind of TV you have)

3 0
3 years ago
Other questions:
  • Do you believe the cash flows from investing activities should include not only the return of investment, but also the return on
    6·1 answer
  • Suppose that Radical Board's manager simply verifies employment for the camp director. During Keller's first month at the camp,
    9·1 answer
  • An agency relationship can degenerate into an agency conflict when an agent acts in a manner that is not in the best interest of
    10·2 answers
  • Barkoff Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine-hours best explain the
    13·1 answer
  • Jim Jones, the landlord, rents a property to Tom Smith, a physically disabled person. Mr. Smith, with Mr. Jones' permission, mod
    11·1 answer
  • The company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales. Finished goods
    8·1 answer
  • brian earned $14,000 last spring giving swimming lessons. He invested part of the money at 5% simple interest &amp; the rest at
    9·1 answer
  • In doing aggregate planning for a firm producing paint, the aggregate planners would most likely deal with: a. Gallons, quarts,
    7·1 answer
  • The following selected data pertain to Flagship Corporation: Cash operating expenses July 1-31$180,000 Depreciation 60,000 Merch
    11·1 answer
  • Randy has established a successful fast-food restaurant chain named randy’s in the united states. He currently has 12 locations
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!