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Novosadov [1.4K]
3 years ago
9

Founders should be wary of crowdfunding sites like Kickstarter, because these efforts require founders to give up large ownershi

p stakes to a large number of contributors before they can raise funds to bring products to market.A. TrueB. False
Business
1 answer:
Westkost [7]3 years ago
5 0

Answer:

B. False

Explanation:

As the name suggests that crowdfunding refers to the funding for a project by having a small amount from the public at large in an internet

Since in the question it is mentioned that the founders should put efforts for giving the high stake of ownership with respect to high contributors before raising the funds to launch a product in the market

But this above requirement should not be necessary

Therefore the given statement is false

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Cusic Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,400
Sav [38]

Answer:

The correct answer is = $64,409,960

However, if we assume there are no Differed Tax, the answer will be

$47,371, 400

Explanation:

OCF stands for Operating Cash Flow.

The basic formula for Operation Cash Flow is =

Net Income + Non-Cash Expenses - Increase in working capital

Net Income:

Old Boards = 1,520 x 24,900 = $37,848,000

New Boards = 1500 x 26,400 = $39,600,000

Total Income = $77,448,000

Non-Cash Expenses:

Depreciation = 1.875 million + 2.9 million = $4,775,000

(Assumption) Differed income tax = 22% of Sales  = $17,038,560

Total Non-Cash Expense = $21,813,560

Increase in working Capital:

45% of Sales

i.e. $34,851,600

Hence:

77,448,000 + 21,81 3,560- 34,851,600

= $64,409,960

3 0
3 years ago
Those who pay off their credit card balances in full each month and avoid the finance and interest charges are known as convenie
Luden [163]

False, convenience users don't pay like they should.

6 0
2 years ago
Read 2 more answers
Why is it necessary for businesses to break their target markets down into segments?
kotegsom [21]
It is because businesses like cheap advertising
3 0
3 years ago
Preferred stock valuation TXS Manufacturing has an outstanding preferred stock issue with a par value of ​$68 per share. The pre
nikklg [1K]

Answer:

a. Annual dividend on TXS preferred stock is $6.12 per share.

b. The price of TXS preferred​ stock is $153 per share.

c. The value of TXS preferred stock if it is cumulative and if investors require​ a(n) 4​% rate of​ return is $164.77 per share.

Explanation:

These can be calculated as follows:

a. What is the annual dividend on TXS preferred​ stock?

The formula for calculating the annual dividend on preferred stock is given as follows:

Annual dividend on preferred stock = Par value of preferred stock * annual dividend rate

Since we have the following for TXS:

Par value of preferred stock = $68 per share

Annual dividend rate = 9%

Therefore, we have:

Annual dividend on preferred stock = $68 * 9% = $6.12 per share

Therefore, annual dividend on TXS preferred stock is $6.12 per share.

b. If investors require a return of 4​% on this stock and the next dividend is payable one year from​ now, what is the price of TXS preferred​ stock?

The formula for calculating the price of preferred stock is given as follows:

Price of preferred stock = Dividend per share / Preferred stock required rate of return

Since for TXS, we have

Dividend per share = $6.12 per share

Preferred stock required rate of return = 4%, or 0.04

Therefore, we have:

Price of preferred stock = $6.12 / 0.04 = $153 per share

Therefore, the price of TXS preferred​ stock is $153 per share.

c. Suppose that TXS has not paid dividends on its preferred shares in the past two​ years, but investors believe that it will start paying dividends again in one year. What is the value of TXS preferred stock if it is cumulative and if investors require​ a(n) 4​% rate of​ return?

Cumulative preferred stock implies that unpaid previous dividends can be carried forward as arrears to when the dividend is paid.

Since TXS has not paid dividends on its cumulative preferred shares in the past two​ years, but will start paying dividends again in one year implies that preferred stockholders will receive the dividends in arrears of one year together with the next dividend payment.

Based on this, we have

TXS preferred stock value = PV of two dividends + Preferred stock price

PV of two dividends = Present value of two dividends in arrears to paid now = M / (1 + r)^n

Where,

M = 2 * Annual dividend on TXS preferred stock  = 2 * $6.12 = $12.24

r = 4%, or 0.04

n = 1 year

Therefore, we have:

PV of two dividends = $12.24 / (1 + 0.04)^1 = $11.77

Since from part b. preferred stock price is $153 per share, we therefore have:

TXS preferred stock value = $11.77 + 153 = $164.77 per share

Therefore, the value of TXS preferred stock if it is cumulative and if investors require​ a(n) 4​% rate of​ return is $164.77 per share.

4 0
3 years ago
Cobble Corporation produces and sells a single product. Data concerning that product appear below: Fixed expenses are $499,000 p
kupik [55]

Answer:

b. decrease of $8,900

Explanation:

the sales price and variable costs are missing, so I looked them up:

sales price = $160

variable costs = $48

current operating income:

sales revenue $800,000

variable costs <u>($240,000)</u>

contribution margin $560,000

fixed costs <u>($499,000)</u>

operating income $61,000

if the company follows the marketing manager's plan:

sales revenue $867,300

variable costs <u>($283,200)</u>

contribution margin $584,100

fixed costs <u>($532,000)</u>

operating income $52,100

operating income will decrease by $61,000 - $52,100 = $8,900

6 0
3 years ago
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