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3 years ago

Which of the following are examples of debt overhang? Which examples are likely to lead to a cutback in spending?

1 answer:

8 0

The correct answer for the question that is being presented above is this one: "c. Your friend's parents take out a loan to buy her ea condo to live in while she is at college. Meanwhile, the housing market plummets. By the time your friends leaves college, the condo os worth significantly less than the value of the loan."

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Marketing communicators should realize that other communication methods must receive careful consideration before _____ is autom

agasfer [191]

Answer:

Mass Media Advertising

Explanation:

Marketing communication refers to means of marketing the products such as advertising, sales promotion etc. It refers to how the product attributes are conveyed to the prospective customers.

Marketing communicators are the ones who undertake and decide upon marketing communication methods.

Mass media advertising means reaching out to wide masses by means of print media, visual and audio marketing through television, audio marketing through radio.

Mass media advertising involves heavy expenditure and thus before opting for it, the marketing communicators should weigh in or consider other marketing communication modes as well.

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3 years ago

Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, wha

ivanzaharov [21]

Complete question:

WACC Estimation

On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $20 million in new projects. The firm's present market value capital structure, here below, is considered to be optimal. There is no short-term debt.

Debt $30,000,000

Common equity 30,000,000

Total capital $60,000,000

New bonds will have an 7% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%.) The marginal tax rate is 40%.

1. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Enter your answer in dollars. For example, $1.2 million should be entered as $1200000.

2. Assuming there is sufficient cash flow for Tysseland to maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places.

3. Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, what will happen to the WACC? No numbers are required to answer this question.

I. rs will increase and the WACC will decrease due to the flotation costs of new equity.

II. rs will decrease and the WACC will increase due to the flotation costs of new equity.

III. rs and the WACC will not be affected by flotation costs of new equity.

IV. rs and the WACC will increase due to the flotation costs of new equity.

V. rs and the WACC will decrease due to the flotation costs of new equity.

-Select- one above IIIIIIIVV

Answer:

The answer is III.

rs and the WACC will increase due to the flotation costs of new equity.

Solution:

It is given that,

Equity is $30,000,000.

Debt is $30,000,000.

The amount of fund raised is $20,000,000.

The formula to calculate weight of equity is given below:

$Weight of equity = \frac{Equity}{Equity+Debt}$

Substitute $30,000,000 for equity and $30,000,000 for debt in the formula,

$Weight of equity = \frac{30,000,000}{30,000,000 + 30,000,000}$

= 50%

Since weight of equity is 50% and to maintain this capital structure, company should finance the 50% of funds

Amount financed by common equity = $20,000,000 * 50%

= $10,000,000

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3 years ago

a client who has cancer and is receiving TPN. Which of the following lab indicate the treatment is effective_____________.

lubasha [3.4K]

Answer:

A client who has cancer and is receiving TPN. The following lab findings indicate the treatment is effective:

Prealbumin 30 mg/dL

Explanation:

TPN stands for total parental nutrition. It is a method of giving nutrition to a person in which nutrients are given to the vein in order to bypass the gastrointestinal tract because that person is unable to take food through mouth.
The prealbumin blood test is used to check that a person is getting required amount of nutrients and the normal test indicates that prealbumin is 30 mg/dL so that's why the lab finding indicates that the treatment is effective.

5 0

4 years ago

Tax refunds:

shepuryov [24]

The answer is A, occur when a taxpayer's income tax withholding exceeds what they owe.

8 0

3 years ago

Compute the Cost of Goods Manufactured and Cost of Goods Sold for Strike Marine Company for the most recent year using the amoun

Alecsey [184]

Answer:

Instructions are below.

Explanation:

First, we need to calculate the direct material used and the manufacturing overhead:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 22,000 + 74,000 - 34,000

Direct material used= $62,000

Manufacturing overhead:

Insurance on plant $9,500

Depreciation-plant building and equipment 12,600

Repairs and maintenance-plant 3,900

Indirect labor 42,000

Total overhead= $68,000

Now, we can determine the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 41,000 + 62,000 + 88,000 + 68,000 - 27,000

cost of goods manufactured= 232,000

Finally, the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 13,000 + 232,000 - 21,000

COGS= $224,000

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3 years ago