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3 years ago

What is the struggle among producers for consumer dollars called?

1 answer:

3 0

The correct answer is competition.
All of these producers are competing against each other in order to get something they want, which in their case is the consumers' money as well as their loyalty. If they produce a good product which is better than another producer's product, chances are they are going to win the competition.

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Contemporary businesses have embraced leaner corporate hierarchies, simultaneously relying on teams, eliminating division walls,

MissTica

Answer:

A)All businesses are in the persuasion business

Explanation:

Persuasion Businesses can be regarded as act/ process involving presentation of arguments to move as well as to motivate the audience. In Persuasion process, motivation is one of compelling stimulus which encourages the audience to change or adjust their beliefs/ behavior towards adoption of ones argument.

8 0

3 years ago

Vang Enterprises, which is debt-free and finances only with equity from retained earnings, is considering 7 equal-sized capital

kifflom [539]

Answer:

E $75

Explanation:

Using CAMP we solve for the Cost of equity on each and determinate which project are worht to invest on it

$Ke= r_f + \beta (r_m-r_f)$

risk free = 0.045

rate premium market = (market rate - risk free) = 0.055

beta(non diversifiable risk) = 0.93

$Ke= 0.045 + 0.93 (0.055)$

Ke 0.09615 = 9.615%

A 9.615% - 2.00% = 7.615% As the return is 7.60% we should reject

B 9.615% - 1% = 8.615% return of 9.15% we should Accept

C return of 10.10% while Ke 9.615% Accepted

D 9.615% + 1% = 10.615% return of 10.40% rejected

E 9.615% + 2% = 11.615% against 10.80% yield rejected

F cost of 11.615% ith return of 10.90% rejected

G cost of 11.615% with return of 13.00% Accepted

We accept three projectthus, we require $75

7 0

4 years ago

Suppose that a firm's recent earnings per share and dividends per share are $3.00 and $1.50, respectively. Both are expected to

Alborosie

Answer:

$46.90

Explanation:

The dividend in each year is the previous year's dividend multiplied by the growth factor, whereas the growth factor is 1 plus the expected growth rate of 10%, the EPS in each year would also be determined in a similar manner.

Note that the stock price is the present value of its dividends for 5 years as well as the price value of its year 5 share price(year 5 EPS*year 5 P/E ratio of 16)

Download xlsx

6 0

3 years ago

________ is the management of the network of interconnected steps involved in the provision of product and service packages.

inn [45]

Answer:

Management

Explanation:

4 0

3 years ago

Titan Mining Corporation has 6.3 million shares of common stock outstanding, 220,000 shares of 3.6 percent preferred stock outst

Shkiper50 [21]

The firm’s market value capital structure is $503,910,000.

The rate the firm should use to discount the project’s cash flows is 9.33%.

We will begin by finding the market value of each type of financing. We find:

Market value of debt = MVD = 105,000*($1,000)*(1.07) = $25,750,000

Market value of preferred cost = MVP = 220,000*($83) = $18,260,000

Market value of equity = MVE = 6,300,000*($73) = $459,900,000

And the total market value of the firm is:

V = $25,750,000 + 18,260,000+ 459,900,000

V = $503,910,000

So, the market value weights of the company's financing are:

D/V = $25,750,000/$503,910,000 = 0.0511

P/V = $18,260,000/$503,910,000 = 0.0362

E/V = $459,900,000/$503,910,000 = 0.9127

For projects equally as risky as the firm itself, the WACC should be used as the discount rate.

First, we can find the cost of equity using the CAPM. The cost of equity is:

RE = .031 + 1.15(.071)

RE = 0.1030, or 10.03%

The cost of debt is the YTM of the bonds, so:

P0 = $1,070 = $26.50(PVIFAR%,34) + $1,000(PVIFR%,34)

R = 2.228%

YTM = 2.228% × 2

YTM = 4.46%

And the aftertax cost of debt is:

RD = (1 - .22)(.0446)

RD = .0348, or 3.48%

The cost of preferred stock is:

RP = $3.60/$73

RP = .0493, or 4.93%

Now we can calculate the WACC as:

WACC = 0.0511(.0348) + 0.0362(.0493) + 0.9127(.1003)

WACC =0.0933, or 9.33%

Hence, The firm’s market value capital structure is $503,910,000.

The rate the firm should use to discount the project’s cash flows is 9.33%.

Learn more about equity valuation:

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2 years ago