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Sergeeva-Olga [200]
3 years ago
5

​Andyco, Inc., has the following balance sheet and an equity​ market-to-book ratio of 1.4. Assuming the market value of debt equ

als its book​ value, what weights should it use for its WACC​ calculation? g

Business
1 answer:
Digiron [165]3 years ago
5 0

Answer:

29.80%

70.20%

Explanation:

The computation of weights should it use for its WACC is shown below:-

FMV of Andyco's Equity = Equity × Equity market-to-book ratio

= $690 × 1.4

= $966

Weight for Debt = Debt ÷ (FMV Equity + Debt)

= $410 ÷ ($966 + $410)

= $410 ÷ $1,376

= 29.80%

Weight for Equity = FMV Equity ÷ (Debt + FMV Equity)

= $966 ÷ ($410 + $966)

= $966 ÷ $1,376

= 70.20%

Therefore we have applied the above formula

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Gannon Enterprises is in the midst of a major strategic change. To lessen resistance from some of the senior managers who are op
Vera_Pavlovna [14]

Answer:

The correct answer is negotiation.

Explanation:

A definition of negotiation that appears on the internet expresses, which is the communication process that aims to influence the behavior of others and where both parties reach a WIN-WIN agreement. The reason why at the end of a negotiation both parties can believe that they have won is that neither the interests nor the values have to be opposed, and it is the responsibility of the negotiators to discover the complementary points to develop a negotiation with the win-win scheme.

On the other hand, negotiation techniques are defined as the mechanisms and models of behavior that the parties use to influence the other and achieve a satisfactory solution to a conflictive encounter. These actions are based on the potential power of the parties involved in the negotiation.

7 0
4 years ago
You purchase one IBM July 125 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se
Trava [24]

Answer:

Loss of $500

Explanation:

Given that

Stock price = 123

Strike price = 125

Premium price = 5

Recall that

Long call profit = (MAX (stock price - strike price, 0) - premium per share

Thus,

Long call profit = Max [0, ($123 - $125)(100)] - $500

= - $500.

Therefore, the negative sign in front indicates a loss of $500

3 0
4 years ago
As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The fir
I am Lyosha [343]

Answer:

1.5

Explanation:

Current ratio = current asset/current liabilities

This ratio is used to determine how quickly the current assets can be used to settle the current liabilities as they fall due.

current assets = $120,000

current liabilities = $80,000

The firm's current ratio = $120,000/$80,000

                                      = 1.5

5 0
3 years ago
Britt is a member of an environmental activist organization and has helped organize peaceful protests on campus. She is deeply i
larisa [96]

Answer:

Rebel

Explanation:

Burton Clark and Martin Trow, the two sociologists described about the four types of college subcultures.

1) Collegiate

2) Academic

3) Vocational

4) Rebel

Britt has all the characteristics of Rebel subculture, that is being deeply involved with ideas from the classroom and wider society of art, literature, and politics. They are aggressive nonconformism, and find critical detachment from the college they attend and from its faculty like Britt consider her professors ideas as outdated.

8 0
3 years ago
Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On J
jasenka [17]

Answer:

Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant date—$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax.

Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include

5 0
3 years ago
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