How might the consumer protection laws of a country affect global business activities

Bluebird mfg. has received a special one-time order for 15,000 bird feeders at $2.50 per unit. bluebird currently produces and s

melamori03 [73]

Since the units can be produced within existing plant capacity, the special order will not increase fixed costs. Let’s identify the relevant data for the decision. First, the variable
manufacturing costs will increase $30000 (15000×2). Second, the expected revenue will increase $37500 (15000×2.5). Thus, will increase its net income by $7500 (37500-30000) by accepting this special order.

4 0

2 years ago

To identify the management problem, the researcher must possess considerable skill in interacting with the DM. Which of the foll

Brrunno [24]

Answer:

d. All of the above are correct.

Explanation:

a. Access to the DM may be difficult and some organizations have complicated protocols for access to top executives.

b. The organizational stauts of the researcher or the research department may make it difficult to reach the key DM in the early stages of the project.

c. there may be more than one key DM and meeting with them collectively or individually may be

All the above-mentioned factors can complicate the interaction.

8 0

2 years ago

Read 2 more answers

The common stock of Dayton Repair sells for $43.19 a share. The stock is expected to pay $2.20 per share next year when the annu

mihalych1998 [28]

Answer: 7.35%

Explanation:

Based on the information given, the market rate of return on this stock will be calculated as:

= (D1/P0) +G

where,

D1= Dividend at year 1 = 2.20

P = price at present =43.19

G = dividend growth rate =2.25%

We then slot the figures into the formula and we will get:

= (D1/P0) +G

= (2.20 / 43.19) + 2.25%

= 0.051 + 2.25%

= 5.1% + 2.25%

= 7.35%

Therefore, the market rate of return will be 7.35%.

4 0

2 years ago

Suspect Corp. issued a bond with a maturity of 30 years and a semiannual coupon rate of 6 percent 4 years ago. The bond currentl

kifflom [539]

Answer and Explanation:

The computation of each point is shown below:-

But before that we need to do the following calculations

First Issue of Bonds:

Face Value = $45,000,000

Market Value = 95% × $45,000,000

= $42,750,000

Annual Coupon Rate = 6%

Semiannual Coupon Rate = 3%

= 3% × $45,000,000

= $1,350,000

Time to Maturity = 26 years

Semiannual Period to Maturity = 52

Let semiannual YTM be i%

$42,750,000 = $1,350,000 × PVIFA(i%, 52) + $45,000,000 × PVIF(i%, 52)

N = 52

PV = -42750000

PMT = 1350000

FV = 45000000

I = 3.20%

Semiannual YTM = 3.20%

Annual YTM = 2 × 3.20%

Annual YTM = 6.40%

Before-tax Cost of Debt = 6.40%

After-tax Cost of Debt = 6.40% × (1 - 0.40)

= 3.84%

Second Issue of Bonds:

Face Value = $50,000,000

Market Value = 54% × $50,000,000

= $27,000,000

Time to Maturity = 15 years

Semiannual Period to Maturity = 30

Let semiannual YTM be i%

$27,000,000 = $50,000,000 × PVIF(i%, 30)

Using a financial calculator:

N = 30

PV = -27000000

PMT = 0

FV = 50000000

I = 2.075%

Semiannual YTM = 2.075%

Annual YTM = 2 × 2.075%

= 4.15%

Before-tax Cost of Debt = 4.15%

After-tax Cost of Debt = 4.15% × (1 - 0.40)

= 2.49%

a. The total book value of debt is

Total Book Value of Debt = $45,000,000 + $50,000,000

= $95,000,000

b. The total market value of debt is

Total Market Value of Debt = $42,750,000 + $27,000,000

= $69,750,000

c. The estimate of the aftertax cost of debt is

Weight of first Issue of Debt is

= $42,750,000 ÷ $69,750,000

= 0.6129

Weight of second issue of Debt

= $27,000,000 ÷ $69,750,000

= 0.3871

So,

Estimated After-tax Cost of Debt is

= 0.6129 × 3.84% + 0.3871 × 2.49%

= 3.32%

6 0

2 years ago

A city mandates that all businesses who sell goods and services to the city must pay at least a living wage to their workers tha

ankoles [38]

Answer:

c. Higher-skilled workers are readily available at the higher wage.

Explanation:

the government decree would make the cost of hiring low skilled labour higher. As, a result there would be a reduction in the quantity demanded of low skilled labour.

if High skilled workers are readily available at the higher wage this would lead to a greater decrease in employment of low-skilled workers. Employers would ask themselves why pay the same high wages high skilled labour earns to low skilled labour when high skilled labour can be hired at the same price since most likely higher skilled workers would carry out the tasks better than lower skilled labour ?

4 0

2 years ago