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3 years ago

Many new business owners prefer a limited liability structure because there are ________.

1 answer:

3 0

Many new business owners prefer a limited liability structure because there are less liable at a loss towards the business. Personal assets are not needed to be sacrificed

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The debt has an interest rate of 8.50% (short term) and 10.50% (long term). The expected rate of return on the company's shares

viva [34]

Answer:

Re = 16.02%

Explanation:

current stock price 36 x 7,660,000 = 275,760,000

cost of equity = 17.5%

current short term debt = 141,600,000

cost of short term debt = 8.5%

current long term debt = 210,600,000

cost of long term debt = 10.5%

total financing = 627,960,000

equity = 275,760,000 / 627,960,000 = 0.4391
short term debt = 141,600,000 / 627,960,000 = 0.2255
long term debt = 210,600,000 / 627,960,000 = 0.3354

WACC = (0.4391 x 0.175) + (0.2255 x 0.085 x 0.75) + (0.3354 x 0.105 x 0.75) = 0.0768 + 0.0144 + 0.0264 = 0.1176 or 11.76%

under the new structure:

total financing = 627,960,000

equity = 325,760,000 / 627,960,000 = 0.5188
short term debt = 141,600,000 / 627,960,000 = 0.2255
long term debt = 160,600,000 / 627,960,000 = 0.2557

assuming WACC remains unchanged:

0.1176 = (0.5188 x Re) + (0.2255 x 0.085 x 0.75) + (0.2557 x 0.105 x 0.75) = (0.5188 x Re) + 0.0144 + 0.0201 = (0.5188 x Re) + 0.0345

0.5188 x Re = 0.1176 - 0.0345 = 0.0831

Re = 0.0831 / 0.5188 = 0.1602 or 16.02%

4 0

3 years ago

Charismatic leaders ________

AfilCa [17]

Answer:

Explanation:

one it makes sense & it fits in the context of the sentence

7 0

3 years ago

During a conversation with the credit manager, one of Tabor's sales representatives learns that a $1,234 receivable from a bankr

Natali5045456 [20]

Answer:

The answer is "No Effect ".

Explanation:

In the situation wherein the write-off would not affect the 2019 net earnings, the write-off reduces that both debt accounts as well as the benefit counter-asset for similar quantities. Whenever an expenditure was recognized, net revenues were affected, therefore, there will be nothing to write off under the allowance approach, so the response is no effect.

8 0

3 years ago

A _____ is used for goods that must be produced at a specific site or that are so large and bulky that it isn't feasible to move

12345 [234]

Answer:

fixed position

Explanation:

A fixed position layout is where a product to be produced remains in a certain spot or location but the workers needed to work on the product , including machinery are moved to the place where the product is to be produced as at when required. This is because there may be limited space at the project site, hence component parts of the product to be manufactured are then coupled at other site and taken to the product site.

An example of fixed layout is the construction of dams, shipbuilding, buildings etc. A fixed position layout is most suited for heavy and fragile products.

6 0

3 years ago

What is an example of a consumer good that you could also use as an industrial good to start a business?

Karolina [17]

Answer:

lets say the Sugar

Explanation:

Sugar is a consumable good as u can use to make tea, it also can be used in the production of many industrial goods eg beverage, brewery, etc

6 0

3 years ago