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3 years ago

The assertion that "There is no free lunch" means that:

Business

1 answer:

kati45 [8]3 years ago

5 0

Answer:

The correct answer is option B.

Explanation:

The statement "There is no free lunch" means that no product is made for free. Production of any good or service requires resources. These resources are scarce and have alternative uses. So in order to produce any goods or services limited resources are used and its alternative uses are sacrificed.

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Dry cleaning companies often charge more for women's blouses than men's shirts. They claim that this is because women's blouses

ANEK [815]

Answer:

This practice of charging women more than men for the same service is known as <u>pink tax</u>.

Explanation:

Many manufacturers are charging more for products simply because they're branded for women. This practice is know as pink tax . It is consider a gender discrimination

4 0

2 years ago

The market value of Fords' equity, preferred stock, and debt are $ 7 billion, $ 2 billion, and $ 13 billion, respectively.

steposvetlana [31]

Answer:

WACC is 9%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of equity x Weightage of equity ) + ( Cost of debt ( 1- t) x Weightage of debt ) + ( Cost of Preferred equity x Weightage of Preferred equity )

As per given data

Market Values

Equity = $7 billion,

Preferred stock = $2 billion

Debt = $13 billion

Cost

Equity

Capital asset pricing model measure the expected return on an asset or investment. it is considered as the cost of common stock.

Formula for CAPM

Cost of Equity = Risk free rate + beta ( market return - risk free rate )

Cost of Equity = Rf + β ( Mrp )

Cost of Equity = 3% + 1.6 ( 8% ) = 15.8%

Preferred stock = $2 / $26 = 0.077 = 7.7%

Debt = 8%

Placing values in the formula

WACC = ( 15.8% x $7 billion / $22 billion ) + ( 8% ( 1- 0.3) x $13 billion / $22 billion ) + ( 7.7% x $2 billion / $22 billion )

WACC = 5.03% + 3.31% + 0.7% = 9.04%

7 0

3 years ago

E-Tech Initiatives Limited plans to issue $500,000, 10-year, 4 percent bonds. Interest is payable annually on December 31. All o

Blababa [14]

Answer:

E-Tech Initiatives Limited

Partial balance sheet

as on January 2, 2019

Liabilities

Long term Liabilities

Bond Payable ________________ $500,000

Add: Premium on Bond _________ <u>$10,000 </u>

_____________________________________ $510,000

Explanation:

First Calculate the issuance value

Issuance value = $500,000 x 102% = $510,000

The bond is issued on Premium, Now calculate the premium on bond value

Premium on bond = Issuance value - Premium on Bond

Premium on bond = $510,000 - $500,000

Premium on bond = $10,000

The bond payable value of $500,000 and Premium on the bond aer reported in the long term liability section of balance sheet.

7 0

2 years ago

Yucca Co. updates its inventory periodically. The company's beginning inventory was $4,860 and purchases were $10,080 during the

erastovalidia [21]

Answer:

the cost of goods sold is $5,940

Explanation:

The computation of the cost of goods sold is shown below:

As we know that

Cost of goods sold is

= beginning inventory + purchase made - ending inventory

= $4,860 + $10,080 - $9,000

= $5,940

Hence, the cost of goods sold is $5,940

We simply applied the above formula so that the correct value could come

And, the same is to be considered

8 0

3 years ago

You are a rookie on traffic patrol. You watch as a young black man drives past you in a new silver Porsche. You estimate the car

dezoksy [38]

Answer:

Please see attachment.

Explanation:

Please see attachment.

Download pdf

5 0

3 years ago