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3 years ago

If an item tends to be very expensive to repair, how might that affect your decision to purchase a warranty for it?

Business

2 answers:

Step2247 [10]3 years ago

6 0

Answer:

c. Buying an extended warranty might be a good idea so that you do not have to repair the item yourself.

Musya8 [376]3 years ago

3 0

You may decide to purchase a warranty because that will be way cheaper than paying to get it repaired a lot of times

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A growing perpetuity is currently valued $6,225.81. The next annuity payment will be $386 and the discount rate is 9 percent. Wh

viva [34]

Answer:

2.8%

Explanation:

The formula to calculate value of a perpetuity is as follow:

V = Annuity payment in year 1 / (r-g)

V: Value of the perpetuity

r: Discount rate

g: Growth rate (missing value)

By inputting numbers into the formula, we have:

6225.81 = 386 / (0.09 - g)

--> g = 2.8%

3 0

3 years ago

Debra's manager publicly reprimanded her in the department meeting. during the manager's 10 minute rant, debra sat quietly. afte

muminat

Answer: C) a tend-and-befriend strategy.

Explanation:

The Tend and Befriend strategy is a relatively new theory that tries to explain another way humans respond to stress.

Recent studies have shown that women are the main proponents of this theory because while men would rather prefer a 'Fight or Flight' approach, women can reduce stress faster when going by this theory as they are more likely to nurture and tend to their offspring as well as rely on their close ones as a support system who they can lean on in hard times.

Debra was stressed by her job and went to talk to her friend about it. It could be said therefore that Debra's friend is her support system. Also notice how Debra is now laughing which shows a reduction in stress has talen place thereby confirm this theory.

8 0

3 years ago

Ray Stokes is raising capital for a new company called NO Balloons Inc. NO Balloons will manufacture and sell festive balloons.

Sergeeva-Olga [200]

Answer:

NO Balloons' WACC = 7%

Explanation:

WACC = Weighted average cost of capital

The weighted average cost of capital (WACC) refers to calculation of a firm's cost of capital in which each category of capital is proportionately weighted. All sources of capital, including common stock, preferred stock, bonds, and any other long-term debt, are included in a WACC calculation.

Respective calculation of WACC:

Step 1: Calculate the value of equity:

Number of shares = 12 million

Share price = $19.5 per share

Value of equity = 12 million shares * 19.5/share = $234 million (A)

Step 2: Calculate the value of debt:

Bonds = 200,000

Value of debt = 200,000 bonds * 1000 face value/bond * 89% sale price = 178 million (B)

Step 3: Calculate the firm value:

Total firm value (A+B) = 234 + 178 = 412 million

Step 4: Calculate the weight of equity:

Dividing the value of equity to total firm value:

Weight of equity = 234 / 412 = 0.5680

Step 5: Calculate the weight of debt:

Dividing the value of debt to total firm value

Weight of debt = 178 / 412 = 0.4320

Step 6: Calculation of WACC :

WACC = weight of equity * cost of equity + weight of debt * cost of debt = 0.5680 * 9.275% + 0.4320 * 4% = 7%

7 0

3 years ago

Laura wants to improve her employees’ engagement. to do so, she should try to increase their

natali 33 [55]

One of the best things that Laura can do to be able to attain the goal is to increase the benefits that the employees are getting out of working for her. The benefits may come from different forms such as longer leaves, greater wages, health benefits, etc.

3 0

3 years ago

Sharon has opened a new startup company in web design. Within the first month of business, the startup agrees to maintain an acc

AVprozaik [17]

Answer:

trade can make everyone better off.

Explanation:

The aim of trade is to make all parties involved better off than they were before the trade occured. For example in international trade a country sells items they have reduced cost producing, while they buy items that will be expensive for them to produce.

In this instance the web startup is offering to give the accounting firm a service they have (web hosting) for tax return service.

Everyone is better off at the end of the day because they obtained a service they could not perform alone.

3 0

3 years ago

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