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3 years ago

In two to four sentences, explain economies of scale.

1 answer:

5 0

The reduction in long-run average and marginal costs arising from an increase in size of an operating unit (a factory or plant, for example). Economics of scale can be internal to an organization (cost reduction due to technological and management factors) or external (cost reduction due to the effect of technology in an industry).

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The next dividend payment by Hot Wings, Inc., will be $4.25 per share. The dividends are anticipated to maintain a 3 percent gro

NARA [144]

Answer:

10.20%

Explanation:

According to the Gordon constant growth model :

value = D1 / r - g

D1 = next dividend = $4.25

r = required return

g = growth rate = 3%

value = $59

$59 = $4.25 / r - 0.03

4.25 / 59 = r - 0.03

0.072034 = r - 0.03

r = 0.102034

r = 10.20%

8 0

3 years ago

A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $768,000 of its accounts receivable as

denpristay [2]

Answer:

See all the entries below.

Explanation:

a. Record the entry for Sterling to record the secured borrowing.

The entries will look as follows:

Account Name Debit ($) Credit ($)

Cash (768,000 * 85%) 652,800

Note Payable 652,800

(To record the secured borrowing.)

b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.

The entries will look as follows:

Account Name Debit ($) Credit ($)

Cash 504,320

Refund Liability 20,480

Accounts Receivable 524,800

(To record collection on receivables for first month.)

Interest Expense 4,480

Note Payable 499,840

Cash 504,320

(To record payment to Miami for the first month.)

c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

The entries will look as follows:

Account Name Debit ($) Credit ($)

Cash 238,080

Allowance for Doubtful Debt 5,120

Accounts Receivable (w.1) 243,200

(To record collection on receivables for second month Interest.)

Expense 1,920

Note Payable 151,040

Cash (w.2) 152,960

(To record final payment to Miami.)

Workings:

w.1: Accounts Receivable = Amount of accounts receivable as collateral – Cash received from customer = $768,000 - $524,800 = $243,200

w.2: Cash = Loan - First payment for principal = $652,800 - $499,840 = $152,960

3 0

3 years ago

Suppose you own 5% of Coastal Corporation's 400,000 outstanding common shares. The stock was trading for $135 per share before C

Elan Coil [88]

Answer:

number of share 30,000 share

price per share = $90

Explanation:

given data:

investor's share = 5%

outstanding share =400,000

stock split = 3/2

number of share after spliting = investor share* outstanding share* stock split

= 5%*400,000*(3/2)

= 30,000 share

per share price can be determined by using following relation:

$price\ per\ share =\frac{ outstanding\ share*\ trading\ price * investor's\ share}{ number\ of \ share\ after \ splittg}$

$= \frac{40000 *135*0.05}{30000}$

= $90

3 0

3 years ago

Leahy Corp. sells $300,000 of bonds to private investors. The bonds are due in five years, have a 6% coupon rate, and interest i

emmasim [6.3K]

Answer:

c. $326,948

Explanation:

we must determine the market price of the bonds:

market price = PV of face value + PV of coupons

PV of face value = $300,000 / (1 + 2%)¹⁰ = $246,104.49
PV of coupons = $9,000 (coupons) x 8.9826 (PV annuity factor 2%, 10 periods) = $80,843.40

total market price = $326,947.89 ≈ $326,948

since the market rate is lower than the coupon rate, the bonds should be sold at a premium.

3 0

3 years ago

Adrian is part of a team that builds and assembles wind turbines. Because the turbines are so large, the team travels to the bui

loris [4]

Answer:

fixed position layout

Explanation:

According to my research on different manufacturing techniques, I can say that based on the information provided within the question the best type of layout for this scenario would be a fixed position layout. This is a layout in which all the personnel, supplies, and equipment are transported to the location of where the product will be created or assembled. This is done in many situations where the product is too big and will cause more trouble by transporting it to it's destination intact, as is the case in this scenario.

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3 0

3 years ago