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Ganezh [65]
3 years ago
8

If a company's cost of capital increases unexpectedly, which of the following actions will help it maintain or increase its stoc

k price? I. Decrease its asset turnover II. Increase its inventory III. Increase its gross margin IV. Issue a stock dividend
Business
1 answer:
Kitty [74]3 years ago
4 0

Answer:

III) Increase its gross margin

Explanation:

If the company increases its gross margin, it will have a direct impact on the company's net profit. The higher a company's net profit, the higher its value = higher stock price.

The only option that increases the value of the company is to increase its net profit, since:

  • an increase in inventory will result in a lower stock price
  • a decrease in the asset turnover ratio will result in a lower stock price
  • the issuing of stock dividends will only increase the price of stock in the short run, later the price will adjust down since the company's book value will lower
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The business was started when the company received $48,500 from the issue of common stock. Purchased equipment inventory of $176
masya89 [10]

Answer:

Total current liabilities  85.008,33‬

Explanation:

current liabilities: obligations that will setlte within a one-year period

<em />

<em>accounts payable</em> from the purchase of equipment:

cost:          176,500

paid:      <u>  (125,900)  </u>

balance:    50,600

<em />

<em>waranty liaiblity:</em>

191,000 x 5% = 9,550

<em>sales tax payable:</em>

sales for     191,000

paid for   <u>  (141,000)  </u>

unpaid for  50,000 x 6% = 3,000

<em>note payable</em> with a local bank:

principal:   21,500

accrued interest: 21,500 x 5% x 1/3 = 358,33

net:   21,858.33

<u>Total current liabilities:</u>

accounts payables 50,600

warrant liability:        9,550

sales tax payable:    3,000

note payable:     <u>    21,858.33   </u>

                             85.008,33‬

5 0
3 years ago
explain the law of increasing opportunity costs using the example of economic growth and a production possibilities curve.
Ivahew [28]

The law of increasing opportunity cost tells us that, as the economy moves along the production possibilities curve in the direction of more of one good, its opportunity cost will increase.

<h3>What is economy ?</h3>

An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviors, discourses, and tangible manifestations connected to the creation, utilization, and management of finite resources.

One's culture, values, education, technological advancement, history, social organization, political structure, legal system, and natural resources are all major determinants of an economy's processes. These elements determine the parameters and conditions under which an economy operates in addition to providing background and content. In other words, the economic realm is a social domain made up of connected human behaviors and exchanges that cannot exist independently.

Individuals, companies, organizations, or governments all qualify as economic actors.

To learn more about economy from the given link:

brainly.com/question/21253580

#SPJ4

3 0
1 year ago
An item on the University Book Store's survey asks respondents to tell the store, in their own words, what they like least about
kramer

Answer: Open-ended

Explanation:

Here, in this particular we can state that the given question is an example of an <em>open-ended question</em>. Under this scenario, the question being asked is subjective i.e. what an individual likes least about the textbook shopping. The open-ended questions are referred to as questions that cannot be replied with either a yes or a no.

4 0
3 years ago
Amy​ Parker, a​ 22-year-old and newly hired marine​ biologist, is quick to admit that she does not plan to keep close tabs on ho
Otrada [13]

Answer:

$1,213,657.685

Explanation:

For computation of compounded future value first we need to find out the present worth which is shown below:-

Present\ worth = Initial\ amount\ of\ investment\times \frac{(1 - (1 + g)^n \times (1 + i)^{-n}}{i - g}

= \$2,250\times  (\frac{(1 - (1 + 0.04)^{45}\times (1 + 0.06)^{-45}}{0.06 - 0.04})\\\\ = \$2,250 \times \frac{1-0.216245988}{0.02}

= $88,172.32636

Now, Future value = Present worth × (1 + interest rate)^number of years

= $88,172.32636  × (1 + 6%)^45

= $1,213,657.685

Therefore we have applied the above formula to determine the future value.

4 0
3 years ago
You want to save for retirement. Assuming you are now 30 years old and you want to retire at age 55, you have 25 years to watch
34kurt

Answer:

Final Value= $13,585.46

Explanation:

Giving the following information:

You decide to invest in the stock market, which has earned about 11% per year over the past 80 years and is expected to continue at this rate. You decide to invest $1,000 today for 25 years.

We need to use the following formula:

FV= PV*(1+i)^n

FV= 1000*(1.11)^25= $13,585.46

6 0
3 years ago
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