1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
MariettaO [177]
3 years ago
11

When Ford discovered the fault with its Pinto model that caused the car to explode easily when hit from the rear, what action sh

ould it have taken to preserve basic consumer rights? A. Ford should have performed a cost-benefit analysis to determine whether it would save more money by doing nothing or by rectifying the problem. B. Ford should have launched a campaign warning consumers of the defect so they would avoid getting in accidents. C. Ford should have warned consumers of the explosions recalled all of the defective automobiles, and corrected the problem. D. Ford should have quietly ignored the problem and phased the Pinto out of its automobile lineup. E. Ford should have redesigned the automobile to make it safer for consumers in the future.
Business
1 answer:
Molodets [167]3 years ago
8 0

Answer:

Correct option is C

Explanation:

Ford should have warned consumers of the explosions, recalled all of the defective automobiles, and corrected the problem.

You might be interested in
McDonald's culture, with an emphasis on cleanliness, consistency, service, and the training that reinforces the value of these c
Luba_88 [7]

Option C

Costly to imitate criteria for sustainable competitive advantage

<h3><u>Explanation:</u></h3>

Sustainable competitive advantages are business assets, properties, or skills that are hard to replicate or exceed; and render a higher or complimentary long term situation over competitors.  A company must produce distinct goals, plans, and methods to create a sustainable competitive advantage.

 It needs huge expenditure in time and money to create a brand. It demands very limitedly to destroy it. A good brand is precious because it prompts customers to favor the brand over competitors. A unique product or service increases customer support and is less suitable for a competitor to imitate.

5 0
3 years ago
Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. It has a before-tax cost of
OLga [1]

Answer:

Turnbull’s weighted average cost of capital (WACC) will be higher by 0.64% if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question as follows:

Turnbull Co. has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. It has a before-tax cost of debt of 8.2%, and its cost of preferred stock is 9.3%. If Turnbull can raise all of its equity capital from retained earnings, its cost of common equity will be 12.4%. However, if it is necessary to raise new common equity, it will carry a cost of 14.2%. If its current tax rate is 40%, how much higher will Turnbull’s weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings? (Note: Round your intermediate calculations to two decimal places.)

The explanation to the answer is now given as follows:

Step 1: Calculation of WACC when all of its equity capital is raised from retained earnings

This can be calculated using WACC formula as follows:

WACCR = (WS * CE) + (WP * CP) + (WD * CD * (1 - T)) ………………… (1)

Where;

WACCR = Weighted average cost of capital when all of its equity capital is raised from retained earnings = ?

WS = Weight of common equity = 36%, or 0.36

WP = Weight of preferred stock = 6%, or 0.06

WD = Weight of debt = 58%, or 0.58

CE = Cost of equity = 12.4%, or 0.124

CP = Cost of preferred stock = 9.3%, 0.093

CD = Before-tax cost of debt = 8.2%, or 0.082

T = Tax rate = 40%, or 0.40

Substituting the values into equation (1), we have:

WACCR = (0.36 * 0.124) + (0.06 * 0.093) + (0.58 * 0.082 * (1 - 0.40))

WACCR = 0.078756, or 7.8756%

Rounding to 2 decimal places, we have:

WACCR = 7.88%

Step 2: Calculation of WACC if it raises new common equity

This can also be calculated using WACC formula as follows:

WACCE = (WS * CE) + (WP * CP) + (WD * CD * (1 - T)) ………………… (2)

Where;

WACCE = Weighted average cost of capital if it raises new common equity = ?

WS = Weight of common equity = 36%, or 0.36

WP = Weight of preferred stock = 6%, or 0.06

WD = Weight of debt = 58%, or 0.58

CE = Cost of equity = 14.2%, or 0.142 (Note: This is the only thing that has changed compared to what we have in Step 1 above.)

CP = Cost of preferred stock = 9.3%, 0.093

CD = Before-tax cost of debt = 8.2%, or 0.082

T = Tax rate = 40%, or 0.40

Substituting the values into equation (2), we have:

WACCE = (0.36 * 0.142) + (0.06 * 0.093) + (0.58 * 0.082 * (1 - 0.40))

WACCE = 0.085236, or 8.5236%

Rounding to 2 decimal places, we have:

WACCE = 8.52%

Step 3: Caculation of how much higher will Turnbull’s weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings.

This can be calculated as follows:

Percentage by which WACC is higher = WACCE - WACCR

Percentage by which WACC is higher = 8.52% - 7.88%

Percentage by which WACC is higher = 0.64%

Therefore, Turnbull’s weighted average cost of capital (WACC) will be higher by 0.64% if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings.

5 0
2 years ago
On December 31, 2015, Peligrino Co. has a long term note payable of $800,000. Of that balance, $100,000 will be paid within one
Studentka2010 [4]

Answer:

$700,000

Explanation:

The portion of the long term note payable that is due within one year must be reported as current portion of long term debt (CPLTD) and must be included under current assets. In this case, the current portion of the long term debt is $100,000, so the portion that must be reported as long term debt is $800,000 - $100,000 = $700,000.

3 0
3 years ago
Companies striving for global market leadership pursue strategic alliances or collaborative partnerships with foreign companies
FrozenT [24]

Answer:

get into critical country markets quickly, gain inside knowledge about unfamiliar markets and cultures, and access valuable skills and competencies that are concentrated in particular geographic locations.

Explanation:

Globalization can be defined as the strategic process which involves the integration of various markets across the world to form a large global marketplace. Basically, globalization makes it possible for various organizations to produce goods and services that is used by consumers across the world.

Some examples of international economic organizations involved in global economy and trade are;

I. World Trade Organization (WTO).

II. United Nations (UN).

III. International Monetary Fund (IMF).

IV. United Nations Conference on Trade and Development (UNCTAD).

When a company or business firm strive for global market leadership, its main focus would be to pursue strategic alliances or collaborative partnerships with foreign companies. This would enable it get into critical country markets quickly and effectively, it would also gain an inside knowledge and understanding about unfamiliar markets, consumer demographics and cultures, as well as getting hold of valuable skills and competencies that are concentrated in specific geographic locations in the world.

6 0
3 years ago
Just-in-time inventory (JIT) systems: a. are used only by manufacturing firms. b. provide a buffer stock of inventory for a comp
Annette [7]

Answer:

The correct answer is d. are used to reduce inventory holding costs.

Explanation:

The Just-in-time inventory (JIT) system is a stock management system where stock is received when needed for production (stock received just in time for production). This inventory strategy increases efficiency and decreases waste by receiving goods only as they need them for the production process, which reduces inventory costs. However its effectiveness lies in accurate demand forecast.

8 0
3 years ago
Other questions:
  • The following events occurred for Favata Company: a. Received $13,000 cash from owners and issued stock to them. b. Borrowed $10
    13·1 answer
  • "suppose that an angry customer started yelling at you in front of other customers. what would you do?" this type of interview q
    6·2 answers
  • As a politician, you would be more inclined to propose an increase in the minimum wage when you believe that the new minimum wag
    14·1 answer
  • Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2017. During that time, he earne
    12·1 answer
  • Service employees are important to customers and competitive positioning because the front line ________________.
    6·1 answer
  • BMW is planning to make a big push into markets around the world with its MINI brand. If BMW has valuable know-how that cannot b
    13·1 answer
  • The following are true statements about distributive bargaining except:
    13·1 answer
  • An ad on the newsnow web site asks viewers to "send us your story and we might share it with the world." ollie submits a manuscr
    7·2 answers
  • Give one example of how a decision that a consumer makes will involve an opportunity cost?
    13·1 answer
  • Match the type of teams to the scenario that portrays each of them.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!