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Virty [35]
2 years ago
15

Beranek Corp has $695,000 of assets (which equal total invested capital), and it uses no debt - it is financed only with common

equity. The new CFO wants to employ enough debt to raise the total debt to total capital ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. How much must the firm borrow to achieve the target debt ratio?
Business
1 answer:
lesya692 [45]2 years ago
3 0

Answer:

$278,000

Explanation:

Data provided:

Total invested capital or assets = $695,000

Total debt to total capital ratio = 40%

now,

\frac{\textup{Total debt}}{\textup{Total capital}} = \frac{\textup{40}}{\textup{100}}

or

Total debt = 0.4 × Total capital

or

Total debt = 0.4 × $695,000

or

Total debt = $278,000

Hence,

The firm must borrow $278,000 to achieve the desired ratio

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Canyon Trails is studying whether to outsource its Human Resources (H/R) activities. Salaried professionals who earn $390,000 wo
Doss [256]

Answer:

Benefit:                                  10,000

Explanation:

Salaries terminated:             390,000

decrease in misc overhead   30,000

outsourcing tariff:                (410,000)

Benefit:                                  10,000

The most questions most important issue is how to account the 120,000 assistant and the fixed cost that will be allocate to other department.

The truth is, this are not relevant cost.

As the company would hire this assistant in the near future if the H/R is not outsource as the company won't keep them if they aren't useful.

Also the allocate cost are cost from other operations not related to human resources. So ust be disregard from the calcualtion.

We should consider only the explicit decrease, which are the salaries and fewer tracable overhead.

4 0
2 years ago
A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What
skad [1K]

Answer:

$0

Explanation:

The amount of revenue realized from the sale=

(number of shares purchase × cost) - (number of shares sold ×cost)

(1000×10) - (500×20)

= $(10000 - 10000)

= $0

8 0
3 years ago
Geert Hofstede undertook what is probably the most famous study of how culture relates to values in the workplace. Through his r
polet [3.4K]

Answer:

a. Ming - Power Distance

b. Ben - Individualism and Collectivism

c. Elena - Uncertainty Avoidance

d. Jiro - Masculinity / Femininity

e. Bill - Time Orientation

Explanation:

Ming has shown characteristics of power distance as she considers herself to be superior of others. There is unequal distribution of power and Ming accepts it. Ben is more towards freedom and he does not want any one to interfere in his matters. Elena is a risk averse person who does not takes risk and follows the same routine everyday in order to avoid any uncertainty.

6 0
3 years ago
Bob is the owner of Apartments Complex. Betty is his manager. Bob informs all tenants in writing as part of their lease that ren
Keith_Richards [23]

Answer: perceived relationship

Explanation:

An agent is referred to as someone who is given authority by the principal and acts in his or her behalf and the agent is also under the control of such person.

From the question, the principal is Bob while Betty is his agent. The relationship that exist in thus case is the perceived relationship which means that the third party that us, the tenants in thus case believe that an agent is authorised by the principal to do a particular work such as collection of rent in this case but in reality thus doesn't exist. They ate not meant to pay to the manager in this case but they acted based on their perception and since the principal didn't complain, they continued doing it.

7 0
2 years ago
_____ is a programming language for controlling robots.
Archy [21]
<span>Variable assembly language would be my guess

Hope that helps</span>
8 0
2 years ago
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