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Stella [2.4K]
2 years ago
7

Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comme

nts, "If you don't stop drinking that stuff, you will get sick." Les replies, "Hey, I bought it, and I am not going to waste one drop of it." Les's behavior could best be described by which of the following mental biases?
Business
1 answer:
MrMuchimi2 years ago
8 0

Answer:

Sink-Cost Fallacy

Explanation:

According to my research on studies conducted by various behaviorists, I can say that based on the information provided within the question the mental bias that describes Les's behavior is called the Sink-Cost Fallacy. This fallacy/bias refers to when an individual relentlessly continues's a behavior solely because of the resources that they have invested, either being time, money, or effort. Which in this case since, Les invested money into the drink so he does not want to waste it even though it might make him sick.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

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Which of the following is TRUE of debt securities? (A) Debt securities include preferred stocks. (B) Debt securities typically p
Bingel [31]

Answer:

The statement which is correct and true is that the debt securities usually pay interest for the fixed period or year. Therefore, the correct option is B.

Explanation:

Debt securities are the securities which refer to a debt instrument like CD (Certificate of deposit, preferred stock, corporate bond and municipal bond, it is sold or bought among the parties.

It is also called as the securities which are fixed income, therefore, the statement which is correct is that these securities pay interest for a fixed period.

6 0
3 years ago
ABC Company owns 30% of the outstanding shares of Teal Company. At the beginning of the current year, the carrying value of Teal
BabaBlast [244]

Answer:

$69,000

Explanation:

Percentage of shares owned by ABC in Teal's company = 30%

This is an example of equity method investment , and a portion of the attributable income at the end of the year is earned and added to the initial stock.

Attributable income is the remaining income after dividends have been settled.

<u>Workings</u>

The opening carrying value of the shares on ABC balance sheet = 60,000

Profit made at the end of the period = 40,000

Dividends paid = 10,000

Attributable income to share holders = 40000-10000 = 30,000

ABC portion of attributable profit = 30000*30% = 9,000

Carrying value at the end of the year = opening carrying value + portion of the attributable profit

=60000+9000=69000

6 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 <u>common stock</u>, <u>preferred stock</u>, <u>bonds</u>, and <u>any other long-term debt</u>, are included in a WACC calculation.

<u>Respective calculation of WACC:</u>

<u>Step 1: Calculate the value of equity:</u>

Number of shares = 12 million

Share price = $19.5 per share

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

<u>Step 2: Calculate the value of debt: </u>

Bonds = 200,000

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

<u>Step 3: Calculate the firm value:  </u>

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

<u>Step 4: Calculate the weight of equity: </u>

Dividing the value of equity to total firm value:

Weight of equity = 234 / 412 = 0.5680

<u>Step 5: Calculate the weight of debt: </u>

Dividing the value of debt to total firm value

Weight of debt = 178 / 412 = 0.4320

<u>Step 6: Calculation of WACC :</u>

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

7 0
3 years ago
Partnership records show the following capital balances at the date of Hopkin's withdrawal: M. Hammel, $80,000; D. Hopkins, $210
Anestetic [448]

Answer:

Dr D. Hopkins, Capital 210,000

Cr P. Houghton, Capital 10,000

Cr M. Hammel, Capital 10,000

Cr Cash 230,000

Explanation:

Preparation of the December 31 journal entry for the partnership.

Based on the information given the December 31 journal entry for the partnership will be :

Dr D. Hopkins, Capital 210,000

Cr P. Houghton, Capital 10,000

(100,000-80,000/2)

Cr M. Hammel, Capital 10,000

(100,000-80,000/2)

Cr Cash 230,000

3 0
2 years ago
Identify two prices indices?
Pie

Answer:

Some notable price indices include:

Consumer price index.

Producer price index.

Employment cost index.

Export price index.

Import price index.

GDP deflator.....

7 0
3 years ago
Read 2 more answers
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