Why should someone invest their money?

Question 1 Presented below is the basic accounting equation. Determine the missing amounts. Assets = Liabilities + Owner’s Equit

Nostrana [21]

Answer:

(a) $21,000

(b) $112,000

(c) $34,000

Explanation:

Accounting equation is as follows:

Assets = Liabilities + Owner’s Equity

(a) $80,000 = $59,000 + Owner’s Equity

$80,000 - $59,000 = Owner’s Equity

$21,000 = Owner’s Equity

(b) Assets = $47,000 + $65,000

= $112,000

(c) $88,000 = Liabilities + $54,000

$88,000 - $54,000 = Liabilities

$34,000 = Liabilities

3 0

3 years ago

why might a company decide to outsource (i.e., buy) a product that they currently make in their company-owned operations?

mestny [16]

Companies outsource to save costs or improve the value of their goods. There are several options when deciding whether to outsource a business' operations or production.

The use of outsourcing has increased as a way for businesses to cut expenses and concentrate on what they do best. A business precise known as outsourcing involves a corporation hiring a third party to carry out duties, manage operations, or offer services on their behalf.

Reduce and manage operating expenses. Enhance the company's focus. liberate internal resources for fresh endeavors. Increase output for some time-consuming tasks for which the organization may lack the resources.

The finest examples of outsourcing include website creation, office and warehouse cleaning, and advertising.

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3 0

2 years ago

In recent years, new mp3 and digital technologies have replaced compact disks. This is an example of?

Lemur [1.5K]

In recent years, new mp3 and digital technologies have replaced compact disks. This is an example of creative destruction.

Creative destruction is an economic concept most closely identified with the Austrian-born economist Joseph Schumpeter since the 1950s. Schumpeter derived it from Karl's work on Marx and popularized it as the theory of economic innovation economics. Sometimes called a Schumpeter storm.

According to Schumpeter, a 'creative destruction storm' is a process of industrial mutation that is constantly transforming the economic structure from within, constantly destroying the old and always creating the new. ”.In Marxist economic theory, the concept more generally refers to the interconnected processes of wealth accumulation and destruction in capitalism. We owe the first use of these terms to German sociologist Werner Sombart in his book War and Capitalism (1913).

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7 0

1 year ago

AZ Products has 375,000 shares of common stock outstanding at a market price of $35 a share. Next year's annual dividend is expe

My name is Ann [436]

Answer:

The firm's weighted average cost of capital 5.81%

Explanation:

In order toTo calculate WACC, we need to calculate the cost of equity and after-tax cost of debt. The WACC can be calculated with the use of following formula:

WACC = After-Tax Cost of Debt*Weight of Debt + Cost of Equity*Weight of Equity

Where,

After-Tax Cost of Debt = Pretax Yield*(1-Tax Rate)

Market Value of Debt = Outstanding Bonds*Par Value*Current Selling Percentage

Cost of Equity = D1/Current Market Price + Growth Rate

Market Value of Equity = Number of Common Shares Outstanding*Current Market Price

Weight of Debt = Market Value of Debt/(Market Value of Debt + Market Value of Equity)

Weight of Equity = Market Value of Equity/(Market Value of Debt + Market Value of Equity)

Therefore, Market Value of Debt = 7,500*1,000*98.60% = $7,395,000

Market Value of Equity = 375,000*35 = $13,125,000

Weight of Debt = 7,395,000/(13,125,000 + 7,395,000)

Weight of Equity =$13,125,000 /($13,125,000 + 7,395,000)

Cost of Equity = 1.50/35 + 2% = 6.28% 0.01801

After-Tax Cost of Debt = 7.65*(1-34%) = 5.05%

Using the values calculated above in the formula for WACC, we get,

WACC = 5.05%*7,395,000/(13,125,000 + 7,395,000) + 6.28% *$13,125,000/($13,125,000 + 7,395,000) = 5.81%

5 0

4 years ago

Helen is a engineer at a large chemical plant. She has some reason to believe that the plant manager is knowingly violating loca

elena-s [515]

Answer: Yes, in light of the fact that the dumping practices pose a serious (and credible) threat, she does have a prima facie obligation to blow the whistle

Explanation:

Helen has the right to blow the whistle because engineers in well protected society for whistle blowing can have legal and moral support if they disclose some irregularity and corruption in their industry. In denial of not making known the decadence in the industry exposes individuals who work there and the society at large to a risk. Safety is a primary factor in any industry and whatever isn't done well or in the right manner is a danger to everyone

3 0

3 years ago