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liubo4ka [24]
3 years ago
8

Baldwin currently has $17,334 (000) in cash and management has decided to issue stocks and bonds worth an additional $8,000 (000

). Assuming that cash from operations will be the same for each of the following activities, which activity exposes this company to the most risk of being issued an emergency loan
Business
1 answer:
S_A_V [24]3 years ago
5 0

Answer:

d) Purchasing $18,000 (000) worth of plant and equipment

D. As the cost are forecast they can change over the course of the expansion making possible to be above budget. This may lead to an emergency loan if the cash flow and inflow of the company are don't go as planned which could be the case during a project of this magnitude.

Explanation:

<em>Missing information:</em>

a) A $5 dividend

b) Liquidate the entire inventory

c) Retiring the oldest bond

d) Purchasing $18,000 (000) worth of plant and equipment

------------------

A) dividends would not be the cause as they are determinated by the company they can chose not to declare it.

B) lquidate the inventory means selling and not replenish. This generates cash it doesn't use cash

C) re-rolling the debt (by issuing new bonds) is a course of action planned and that in hte end will not affect the cash of the company as will be paying the bonds and receiving from the new bonds thus the changes in cash would be controlled.

D. As the cost are forecast they can change over the course of the expansion making possible to be above budget. This may lead to an emergency loan if the cash flow and inflow of the company are don't go as planned which could be the case during a project of this magnitude.

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Lyndon, a citizen of Maryland, obtains a federal license to operate a commercial fishing boat in a certain area off the Maryland
Margarita [4]

Answer:

d) ​the supremacy clause

Explanation:

Lyndon a man from Maryland, receives a federal license to perform a commercial fishing boat in a particular region off the Maryland shore. Maryland's state legislature passes a law that bans all commercial fishing in that region. The state law most likely breaks <u>the supremacy clause</u>. In the supremacy clause, it authenticates that the federal laws made will be agreeable to it. Also, the agreements should be made under its authorization

7 0
3 years ago
1/4-2/3y=3/4-1/3 solve for y
Lelu [443]

1/4 - 2/3y = 3/4 - 1/3

-1/4                      -1/4

(3)-2/3y = (3/4 - 1/3 - 1/4)3

-2y = 1/2

/-2     /-2

y = -1/4


6 0
3 years ago
Sag manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%
Tasya [4]

The question is incomplete. The following is the complete question.

Sag Manufacturing is planning to sell 400,000 hammers for $6 per unit. The  contribution margin ratio is 20%. If Sweet will break even at this level of sales, what are  the fixed costs?

Answer:

Fixed costs are $480000

Explanation:

The break even sales is the value of total sales or total revenue where it equals total cost and the company makes no profit or no loss. The break even in sales is calculated by dividing the fixed costs by the contribution margin ratio.

Break even in sales = Fixed cost / Contribution margin ratio

Plugging in the available values we can calculate the value of fixed cost. We know that the break even in units is at 400000 units. Thus, its value in sale will be 400000 * 6 = 2400000

2400000 = Fixed cost / 0.2

2400000 * 0.2 = Fixed cost

Fixed costs = $480000

6 0
3 years ago
digby's product manager is considering lowering the price of the don product by $2.50 and wants to know what the impact will be
Zarrin [17]

Rigby's product manager is considering lowering the price of the don product by $2.50 and wants to know what the impact will be on the product’s contribution margin. Assuming no inventory carry costs, Don's contribution margin, if the price is lowered, will be 4.00%

“Contribution margin suggests you the mixture quantity of sales to be had after variable expenses to cowl fixed prices and provide earnings to the organization,” Knight says. you would possibly think about this as the part of income that allows offsetting fixed costs.

Contribution Margin = Net Revenue - Variable Expenses

Material Cost = 604 * 14.36 = 8673.44

Labor Cost = 604 * 7.09 = 4282.36

Current price = $35

Price is lowered by $2.5 ,then new price will be = $35 - $2.5 = $32.50

Therrefore, New Sales = 604 * 32.5 = $19630

Variable expenses = 8673.44 + 4282.36 = 12955.8

Contribution margin = 19630 - 12955.8 = 6674.2

Contrinution margin ratio = contribution margin / net sales

New Contribution margin = 6674.2/19630 = 34.00%

The contribution margin is beneficial for figuring out how income, variable costs, and fixed expenses all affect operating profit. It offers enterprise owners a manner of assessing how numerous income degrees will affect profitability.

Learn more about contribution margin here   brainly.com/question/24881206

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6 0
1 year ago
The book value of a firm's equity is $100 million and its market value of equity is $200 million. The face value of its debt is
UNO [17]

Answer:

$260 million

Explanation:

In this question, we are asked to calculate the market value of assets of the firm.

To do this, we use a mathematical formula. The mathematical formula to use is that of the Market value of assets of the firm.

Mathematically, the market value of assets of the firm = Market value of equity + Market value of debt

From the question, market value of equity = $200 million

The market value of debt = $60 million

Market value of assets of the firm = $200 million + $60 million = $260 million

6 0
3 years ago
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