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tensa zangetsu [6.8K]
3 years ago
11

How does a company utilize stocks and bonds in financing growth? Identify the major sources of external financing for companies.

​
Business
1 answer:
frutty [35]3 years ago
3 0

External sources of finance are equity capital, preferred stock, debentures, term loans, venture capital, leasing, hire purchase, trade credit, bank overdraft, factoring etc.

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Cornerstone, Inc. has $125,000 of inventory that suffered minor smoke damage from a fire in the warehouse. The company can sell
kvv77 [185]

Answer:

It is better to cleaned and shipped to the firm's outlet center at a cost of $23,000 to be sold at $80,000

Explanation: In alternative A) the firm loss is $80,000 ($125,000-$45,000)

In alternative E) all $125,000 is lost

In alternative B, C and D) the loss is $68,000 ($125,000-$80,000+$23,000)

Relevant costs are those evitable, that are cause of a manager decision related to an specific business decision.  

The only cost that can be avoided in these example is the cost of $23,000 so the goods can be cleaned and shipped to the firm's outlet center

6 0
4 years ago
It is estimated that a first time dui costs roughly ______ once all potential costs are factored in.
Kamila [148]
The estimated cost of first time DUI roughly around $1,000 dollars once the potential cost are factored in. The potential cost of a contract is the sum of all the estimated and actual cost of all the fees and reimbursable expenses associated with contact.
4 0
3 years ago
Suppose you were considering depositing money in a savings account at two different banks. Each bank will pay 5% interest. Howev
Nastasia [14]

Answer

The answer and procedures of the exercise are attached in a microsoft excel document.  

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

Bank-B is better to invest because it has higher Future value due to higher effective annual interest rate.

4 0
3 years ago
Assume the following information concerning two stocks that make up an index. What is the value-weighted return for the index? (
tatuchka [14]

Answer:

8.54%

Explanation:

Current Index value:

= [current total market value of index stocks] ÷ [Base year total market value of index stocks] × Base year index value

= [(69 × 35000) + (122 × 32500)] ÷ [(63 × 35000) + (113 × 32500)] × 100

= 108.54

Return in percent:

= ( 108.54 - 100 ) ÷ 100

= 8.54%

Therefore, the value-weighted return for the index is 8.54%.

8 0
3 years ago
Suppose a commercial bank has checkable deposits of $60,000 and the legal reserve ratio is 25 percent. If the bank's required an
MAXImum [283]

Answer: $30000

Explanation:

Based on the information given in the question, the required reserve will be:

= $60000 × 25%

= $15000

Since the bank's required and excess reserves are equal, then the excess reserve will be $15000.

Therefore, the actual reserves will be:

= Required reserve + Actual reserve

= $15000 + $15000

= $30000

6 0
3 years ago
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