Provide an example of Intergenerational Mobility

Monika's gift barn has cash of $316, accounts receivable of $687, accounts payable of $709, and inventory of $2,108. what is the

kondaur [170]

Given:
Cash = $316
Accounts receivable = $687
Accounts payable = $709 (Liabilities)
Inventory = $2,108 (Assets)

Total assets = Cash + Receivables
= 316 + 687 = $1,003
Liabilities = $709

By definition, the quick ratio is
QR = (Assets - Inventory) / Liabilities
= (1003 - 2108)/709
= -1.5585

This means that the gift barn is over-leveraged and struggling to grow.

Answer: -1.56

3 0

3 years ago

Ray Stokes is raising capital for a new company called NO Balloons Inc. NO Balloons will manufacture and sell festive balloons.

Sergeeva-Olga [200]

Answer:

NO Balloons' WACC = 7%

Explanation:

WACC = Weighted average cost of capital

The weighted average cost of capital (WACC) refers to calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC calculation.

Respective calculation of WACC:

Step 1: Calculate the value of equity:

Number of shares = 12 million

Share price = $19.5 per share

Value of equity = 12 million shares * 19.5/share = $234 million (A)

Step 2: Calculate the value of debt:

Bonds = 200,000

Value of debt = 200,000 bonds * 1000 face value/bond * 89% sale price = 178 million (B)

Step 3: Calculate the firm value:

Total firm value (A+B) = 234 + 178 = 412 million

Step 4: Calculate the weight of equity:

Dividing the value of equity to total firm value:

Weight of equity = 234 / 412 = 0.5680

Step 5: Calculate the weight of debt:

Dividing the value of debt to total firm value

Weight of debt = 178 / 412 = 0.4320

Step 6: Calculation of WACC :

WACC = weight of equity * cost of equity + weight of debt * cost of debt = 0.5680 * 9.275% + 0.4320 * 4% = 7%

7 0

2 years ago

The parents of a child diagnosed with Tay-Sachs inquire about progression of the disorder. Which statement by the nurse is accur

Anit [1.1K]

Answer:

The correct answer is The child will experince decreased muscular and neurologic functioning until death occurs.

Explanation:

Tay-Sachs disease is a rare degenerative disease that affects the brain and central nervous system and is hereditary, autosomal recessive (more common in descendants of Hebrews).

It is one of the diseases by lysosomal deposition. Individuals who suffer from it are unable to produce a lysosomal enzyme called hexosaminidase-A that participates in the degradation of gangliosides, a type of sphingolipid, that accumulate and degenerate to the central nervous system. It is included within lipidosis or lipid storage diseases.

5 0

2 years ago

The benefits for employees who develop high-quality leader-member relationships include preferential treatment, increased job-re

GaryK [48]

Answer:

True

Explanation:

A good relationship between a leader and his/her employees will boost up the confidence among them. Moreover, the communication gap which exist otherwise, will no longer be found.
Employees would be comfortable in giving feedback and would not lie for the sake of job, and they would even be able to share their problems with supervisors with less awkwardness.
Leaders support their employees and in turn they get genuine results from them, and this is scene in most of the cases.

4 0

3 years ago

You hold a portfolio consisting of a $5,000 investment in each of 20 different stocks. The portfolio beta is equal to 1.12. You

bija089 [108]

Answer:

The new beta of the portfolio 1.17

Explanation:

Portfolio beta is sum of weighted beta of all stocks consisting of it.

Portfolio beta = 1.12

Weight of each portfolio = 5,000

All weight or Amount = 5,000 * 20 = 100,000

Weight of one stock = 5,000 / 100,000 = 0.05

Foregone beta or beta of sold stock = 1

Acquired beta or beta of purchased stock = 2

Weight of both are same = 0.05

New beta = Portfolio beta - (foregone beta * weight) + (Acquired beta * weight)

New beta = 1.12 - (1 * 0.05) + (2 * 0.05)

New beta = 1.12 - 0.05 + 0.1

New beta = 1.17

So New portfolio beta is 1.17

6 0

3 years ago