Answer:
1. $3,59,666.66
2. $4,10,066.66
Explanation:
1. The computation of value of firm is shown below:-
As the Earning before interest and tax given remains the same, this impact that there is no growth rate in the earnings to consider.
= Earning before interest and tax × (1 - Tax) ÷ Cost of equity
= $83,000 × (1 - 0.35) ÷ (0.15)
= $53,950 ÷ 0.15
= $3,59,666.66
2. The computation of value of levered firm is shown below:-
Value of unlevered firm + Debt × Tax rate
= 3,59,666.66 + ($144,000 × 35%)
= $4,10,066.66
Answer:
Distributive bargaining
Explanation:
Distributive bargaining can be defined as a type of bargaining system/strategy in which one party gains only if the other party loses.
Distributive bargaining is mostly used when there is a negotiation that involves fixed resources e.g; money, assets, etc.
Distributive bargaining as a negotiation strategy does not aim to provide a win-win situation for all parties involved but that one party loses while the other gains considerably.
An example of distributive bargaining is a supermarket having a fixed price for an item. in that situation, you can't bargain and as such you either buy the item or leave the store.
That results in a win for the supermarket and a loss for you the buyer should yo choose to buy the item.
Cheers
That's not a question, but the proper answer should be a loan.
The account titles for transaction (C) 5/4 should appear in the Account Title column of the journal entry as s<span>upplies Cash
Hope this helps!!</span>
Answer: The correct option is C.
Explanation: From the scenario given above, we can see that Thomas has not shown any intention to replace the expensive team members, the only option in this case would then be to properly utilize their expertise to the advantage of the company.
In order to do this therefore, a SWOT analysis would need to be carried out and utilized in gaining an edge over the competition.
In this case, Thomas would make sure that the expertise of all his team members are brought to bare, the company would analyze the competition to see where it is lacking in customer satisfaction, and then try to gain the upper hand by including features in their product that the competition does not have in theirs.
This strategy will help in achieving a competitive advantage.
