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BaLLatris [955]
3 years ago
9

ChocolateCookie Inc is a private firm. You collected information about its competitors and calculated the weighted average of th

e unlevered betas of competitors to be 1.08. You also estimated the value of equity of ChocolateCookie to be $50 million, and the only debt the company has is a loan from the bank of $10 million. Tax rate is 21%. What is your estimate of the ChocolateCookie's equity beta?
Business
1 answer:
kvv77 [185]3 years ago
8 0

Answer:

1.25

Explanation:

The Capital Asset Pricing model will be used

ße = ßa × [Ve + Vd(1 – T)] / Ve

Here

ße = 1.08

Ve = Value of equity $50 million

Vd = Value of debt $10 million

T is tax rate which is 21%.

By putting the values, we have:

ße = 1.08 × [50 + 10(1 – 21%)] / 50

ße = 1.25

The beta equity of Chocolate Cookie is 1.25 which shows higher risk than average risk.

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Becky had net credit sales in 2020 of $2,000,000. At December 31, 2020, before adjusting entries, the balances in selected accou
denpristay [2]

Answer:

Following Becky's estimation, the bad debt expense must be equal than the 8% of the total credit, less the value already booked in the balance sheet accounts (doubtful accounts).

Explanation:

In this case, 2,000,000*8%=160,000. Then this 160,000 must be subtracted to 2,200 (160,000-2,200=157,800). Finally, the bad debt expense to be reported is $157,800

3 0
3 years ago
State two ways by which hotels may promote sales during the off season​
Svetlanka [38]

Answer:

  • Use off-season imagery on your website. ...

  • Create content dedicated to the off-season. ...

  • Build content around weddings, meetings, sporting events. ...

  • Update your ad copy with off-season friendly verbiage. ...

  • Create campaigns that market off-season amenities...

Explanation:

Hope it helps u

<h2>FOLLOW MY ACCOUNT PLS PLS</h2>
4 0
3 years ago
Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been received: How much will Bidder B have t
inn [45]

Answer:

$4,320.00

Explanation:

Calculation to determine How much will Bidder B have to spend to purchase all of the shares that have been allocated to him

Bidder B Cost = 300 *[900/(100 + 300 + 400+200)] *$16

Bidder B Cost = 300*[900/1,000)*$16

Bidder B Cost = 300*0.9*$16

Bidder B Cost = $4,320.00

Therefore The amount that Bidder B will have to spend to purchase all of the shares that have been allocated to him is $4,320.00

5 0
3 years ago
QUICKEST AND BEST ANSWER GETS A FOLLOW AND BRAINLIEST
Bumek [7]
Back in 2015, McDonald’s was struggling. In Europe, sales were down 1.4% across the previous 6 years; 3.3% down in the US and almost 10% down across Africa and the Middle East. There were a myriad of challenges to overcome. Rising expectations of customer experience, new standards of convenience, weak in-store technology, a sprawling menu, a PR-bruised brand and questionable ingredients to name but a few.

McDonald’s are the original fast-food innovators; creating a level of standardisation that is quite frankly, remarkable. Buy a Big Mac in Beijing and it’ll taste the same as in Stratford-Upon Avon.

So when you’ve optimised product delivery, supply chain and flavour experience to such an incredible degree — how do you increase bottom line growth? It’s not going to come from making the Big Mac cheaper to produce — you’ve already turned those stones over (multiple times).

The answer of course, is to drive purchase frequency and increase margins through new products.
Numerous studies have shown that no matter what options are available, people tend to stick with the default options and choices they’ve made habitually. This is even more true when someone faces a broad selection of choices. We try to mitigate the risk of buyers remorse by sticking with the choices we know are ‘safe’.

McDonald’s has a uniquely pervasive presence in modern life with many of us having developed a pattern of ordering behaviour over the course of our lives (from Happy Meals to hangover cures). This creates a unique, and less cited, challenge for McDonald’s’ reinvention: how do you break people out of the default buying behaviours they’ve developed over decades?


In its simplest sense, the new format is designed to improve customer experience, which will in turn drive frequency and a shift in buying behaviour (for some) towards higher margin items. The most important shift in buying patterns is to drive reappraisal of the Signature range to make sure they maximise potential spend from those customers who can afford, and want, a more premium experience.
I hope this was helpful
8 0
3 years ago
A large St. Louis feed mill, Robert Orwig Processing, prepares its 6-month aggregate plan by forecasting demand for 50-pound bag
xz_007 [3.2K]

From the production plan, the budget for January is $12800, February, $16250, March $17175, April $20875, May $16900, and June $16900.

Production planning simply means the act of designing a guide for the production of a particular good or service.

It should be noted that production planning is important to ensure that all necessary preparation is completed before the start of a production cycle.

Learn more about production on:

brainly.com/question/4139284

3 0
2 years ago
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