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Naily [24]
2 years ago
7

The primary of financial reporting is to provide financial information about companies that is useful to capital providers for d

ecision making. (Enter only one word per blank.)
Business
1 answer:
Shkiper50 [21]2 years ago
8 0

Answer:

The primary <u>OBJECTIVE</u> of financial reporting is to provide financial information about companies that is useful to capital providers for decision making.

Explanation:

The objective of financial reporting is to provide information that is useful to existing and potential investors or creditors. One of the main uses given to financial reports is comparing one business to another. In order for the reports to be comparable, they must follow strict standards and be properly prepared.

If the reports aren't comparable, they use is extremely limited, since how else can you decide if investing in company A is a better idea than investing in company B. Comparability applies even to the same company, since you must be able to compare the financial results of different years in order to evaluate the performance of the company.  

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Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75%
deff fn [24]

Answer:

15.29%

Explanation:

Calculation to determine What would be the estimated cost of equity if the firm used 60% debt

First step is to calculate the Original beta using this formula

Original beta = (rs-rRf)/ RPM

Let plug in the formula

Original beta= (11.5%- 5%)/6%

Original beta= 6.5%/ 6%

Original beta= 1.083

Second step is to calculate the Original D/E using this formula

Original D/E = D/A / (1-D/A)

Let plug in the formula

Original D/E= .25/ (1-.25%)

Original D/E= .333

Third step is to calculate the Unlevered Beta using this formula

Unlevered Beta = Bu = Bl / 1+((1- Tax rate) x (D/E)

Let plug in the formula

Unlevered Beta= 1.083/1+((1-.4) x .333

Unlevered Beta=.90

Fourth step is to calculate the Target using this formula

Target =D/e

Let plug in the formula

Target = .6/.4

Target= 1.5

Fifth step is to calculate the New Beta using this formula

New Beta = bu* (1+(D/E)(1- tax rate)

Let plug in the formula

New Beta = .90 *(1+(1.5)*(.6)

New Beta = 1.71

Now let calculate the estimated cost of equity using this formula

rs = rRF + new beta (RPm)

Let plug in the formula

rs= 5% + 1.71*6

rs= 15.29%

Therefore What would be the estimated cost of equity if the firm used 60% debt is 15.29%

4 0
2 years ago
Rebecca, a department manager, has been dealing with two workers in her department who do not get along. due to family problems
Lerok [7]
<span>Rebecca is enacting the managerial role of mediator. By having both parties in the conflict meet to discuss the issue, Rebecca is hoping to resolve the conflict by having them talk things out in her presence while she unemotionally guides the discussion and make sure it stays on task.</span>
5 0
3 years ago
Consider a single-line, single-server waiting line system. Suppose that customers arrive according to a Poisson distribution at
andrey2020 [161]

Answer:

Correct answer is C i.e 25%

Explanation:

Arrival rate = λ = 60 / hour

Service Rate = μ = (60 * 60) / 45 = 80 / hour

Probability of no customers in the system = Po = 1 - λ/μ = 1 - 60/80 = 0.25 or 25%

3 0
3 years ago
Aces Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. Each
Alexxx [7]

Answer:

Sales Revenue  = 441,000

COGS  4,900 x 38 = 186,000

Gross Profit 254.800

Selling variable 4,900 x 2 = 9,800

Selling and administrative 65,200

Net Income 179,800

Explanation:

Sales

4,900 x 90

COGS

Fixed 78,000/6,000 = 13

Variables 25

Unit cost 38

4,900 x 38 = 186,200

Selling variable

4,900 x 2 = 9800

5 0
3 years ago
Quality Bike Maps has produced four map designs for the local area. A limited amount of time (in minutes) is allocated to the pr
stich3 [128]

Answer:

since 1 <= allowable increase

optimal solution won't change

hence

1500 * 1 + 1000*1 + 1000*2 + 2833.33* 3

=  13000

Note: Complete question is added in the attachment

8 0
2 years ago
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