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lubasha [3.4K]
3 years ago
6

ACME Confetti Corporation needs to finance $20 million for a plant expansion building project. They've decided to issue common s

tocks to finance the entire project. How many shares do they need to issue to cover the cost of the project plus all floatation costs (7% of issue price). ASSUMPTION: Issue price is $50 per share. Assets can cover the value of the share price and floatation costs.
a. 379, 940
b. 465,000
c. 430, 108
d. 383, 652
Business
1 answer:
Law Incorporation [45]3 years ago
6 0

Answer:

Option (C) is correct.

Explanation:

The required proceeds:

= Amount need to be finance ÷ (1 - 7%)

= $20 million ÷ (1 - 0.07)

= $215,05,376.34 (approx)

Hence, the number of shares needed to be issued:

= required proceeds ÷ Issue price per share

= $215,05,376.34 ÷ $50 per share

= 430,108 shares (approx)

Therefore, 430,108 shares they need to issue to cover the cost of the project plus all floatation costs.

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Bumek [7]

Customer feedback and Strategic Themes are two inputs to the solution vision.

A high-level architectural plan that addresses present company needs is a solution vision. These requirements include the architectural layer changes. As modifications in architecture are never the intended goal alone, it always has business benefit.

The Vision provides a summary of the developed Solution's potential future state. It reflects the features and capabilities that have been offered to address the needs of customers and stakeholders.

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2 years ago
Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assem
Ivahew [28]

Answer:

Results are below.

Explanation:

Giving the following information:

Supervisor salaries $117,000 per month

Depreciation $21,000 per month

Direct labor rate $15 per hour

Cabinets per hour= 60/20= 3

<u>We need to determine the flexible budget for different production levels:</u>

<u>12,000 units:</u>

Total direct labor hours= (12,000 / 3)= 4,000 hours

Total variable cost= 4,000*15= 60,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $198,000

<u>15,000 units:</u>

Total direct labor hours= (15,000 / 3)= 5,000 hours

Total variable cost= 5,000*15= 75,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $213,000

<u>18,000 units:</u>

Total direct labor hours= (18,000 / 3)= 6,000 hours

Total variable cost= 6,000*15= 90,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $228,000

3 0
2 years ago
thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as
oksian1 [2.3K]

Answer:

E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.

Explanation:

Options are <em>"A. cultural, lifestyle, and demographic changes, B. the birth of new industries, new knowledge, and disruptive technologies, C. weather, climate change, and water shortages, D. interest rates, exchange rates, unemployment rates, inflation rates, and economic growth, E. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently." </em>

Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as <u><em>how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.</em></u>

The strategy decision making about the industry and competitive conditions involve evaluating the prices, buyer sensitivity to the prices, serviceability & frequency.

7 0
3 years ago
Jessep Corporation has a standard cost system in which manufacturingoverhead is applied to units of product on the basis of dire
Orlov [11]

Answer:

Standard fixed overhead rate

= Budgeted fixed overhead cost

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= $45,000

  15,000 hours

= $3 per direct labour hour

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= (Standard hours - Budgeted hours) x Standard fixed overhead rate

= (12,000 hours - 15,000  hours)  x $3

= $9,000(U)

The correct answer is B

Explanation:

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3 years ago
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aleksklad [387]

Answer:

C. a good whose benefits cannot readily be restricted to a small group of people.

Explanation:

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II. Labor (working): this is the human capital or workers who are saddled with the responsibility of overseeing and managing all the aspects of production.

III. Capital resources: it includes the physical assets used for production of goods and services such as equipment, money, plant, etc.

IV. Entrepreneurship: it is intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).

These four (4) factors of production when combined effectively and efficiently are used for the manufacturing or production of goods and services that meets the unending requirements or needs of the consumers.

A public good is a good whose benefits cannot readily be restricted to a small group of people.

This ultimately implies that, a public good such as power utility (electricity) or water supply is capable of being provided simultaneously to the general public.

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