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Neporo4naja [7]
3 years ago
10

Book Co. has 1.4 million shares of common equity with a par​ (book) value of $ 1.00​, retained earnings of $ 28.1 ​million, and

its shares have a market value of $ 50.96 per share. It also has debt with a par value of $ 21.1 million that is trading at 105 % of par. a. What is the market value of its​ equity? b. What is the market value of its​ debt? c. What weights should it use in computing its​ WACC?
Business
1 answer:
mash [69]3 years ago
5 0

Explanation:

The computations are shown below:

a. The market value of equity is

= $50.96 per share × 1,400,000  shares

= $71,344,000

b. The market value of debt is

= $105% × $21,100,000

= $22,155,000

c. Now the weights are as follows

Weight of equity is

= $71, 344,000 ÷ ($71,344,000  + $22,155,000 )  

=  0.7630

And,

Weight of debt = 1 - 0.7630

= 0.237

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The following transactions occur for the Hamilton Manufacturers.
Radda [10]

Answer:

The answer is stated below:

Explanation:

The accounting equation is as follows:

Assets = Liabilities + Stockholders' Equity

Analyzing the transactions:

1. The service is provided to customer on account, which result in increase in assets and the stockholders' equity

So,

Assets        =   Liabilities        +  Stockholders' equity

+ $4,000    = $0                     +  +$4,000

2. The equipment is purchased by signing a note, which result in increase in liability and also increase in the assets.

So,

Assets        =   Liabilities        +  Stockholders' equity

+ $10,500  =   +$10,500         + $0

3. Paid for the advertising, which result in decrease in cash as well as decrease in the equity of the company.

So,

Assets        =   Liabilities        +  Stockholders' equity

- $1,200    = $0                        +  -$1,200

7 0
3 years ago
What role can the private sector play in poverty alleviation?
cupoosta [38]

Through employment and engaging communities thru comprehensive business models, the private sector can play a significant role in poverty alleviation.

 

As it brings community members into the value chain thus making it a more sustainable relationship, this approach is makes it different from just social corporate responsibility.

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3 years ago
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General Mills conducted focus groups to collect and interpret data to gain insights into customer preferences and loyalty. Which
svp [43]

Answer:

The correct answer is (C)

Explanation:

It is very important to understand what consumers want and what they expect from a brand. In order to understand costumer’s preferences and loyalty, various techniques are used from questionnaires to interview. General mills conducted focus groups and estimated the results to better understand customer’s insight by asking various questions related to preferences, taste and expectations.

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At Groovy Rags, a trendy retail store, manager Eon Forcer doesn't waste any time thinking about whether the employees on his shi
matrenka [14]

Answer:

Theory X.

Explanation:

In this scenario, Groovy Rags, a trendy retail store, manager Eon Forcer doesn't waste any time thinking about whether the employees on his shift get their breaks at a reasonable time. In fact, he claims he is hard pressed to determine which one has "worked hard enough" to even deserve a break. Earlier today, Eon remarked, "I've never met one that likes this job! They're only biding their time and here for the money." Eon's managerial style would be classified as Theory X.

Douglas McGregor developed the theory x and y in the 1950s while working at the MIT Sloan school of management.

Theory X suggests that employees working in a particular organization dislike work, possess minimal ambition, and are generally not willing to take up responsibility.

Hence, with the Theory X it is very important and essential that these employees be supervised and rewarded externally with prizes and punishment should be used when they err.

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What is one way investment consultants protect their clients’ money during periodic performance reviews?
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Answer:

Investment consultants check that the portfolio manager's performance was based on skill investing in the agreed-upon stocks or sectors

Explanation:

because it is

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