It can be concluded that the Wheelz On Rent most likely
practices the concentrated marketing. Concentrated marketing is a type of
strategy in which the products are being made and produced because of a
specific segment of the population of the consumer of that they are likely to
be made for a specific segment.
Answer: D. supervisors gain experience in and are accountable for solving problems in their work units.
Explanation:
A chain of command is necessary in business because it diversifies authority such that decisions can be made faster.
It works by dividing employees into units which will answer to a manager. That manager will make decisions for the unit and this leads to decisions being made faster because everybody wouldn't have to go to upper management when they already have a manager.
Supervisors/ managers of these units are therefore accountable for their units and will gain experience from being so.
Answer and Explanation:
The computation is shown below:
a. Marpor's value without leverage is
But before that first we have to calculate the required rate of return which is
The Required rate of return = Risk Free rate of return + Beta × market risk premium
= 5% + 1.1 × (15% - 5%)
= 16%
Now without leverage is
= Free cash flows generates ÷ required rate of return
= $16,000,000 ÷ 16%
= $100,000,000
b. And, with the new leverage is
= (Free cash flows with debt ÷ required rate of return) + (Tax rate × increase of debt)
= ($15,000,000 ÷ 0.16) + (0.35 × $40,000,000)
= $93,750,000 + $14,000,000
= $107,750,000
We
should note that the bond investment account is recorded at cost by the Bondholder
or Investor.
The
cost or price is calculated as:
Cost
= $90,000 * 86.4%
Cost
= $90,000 * 0.864 = $77,760
Therefore,
the entry to record should be:
<span>debit
Held-to-Maturity Investment in Bonds for $77,760 and credit Cash for $77,760</span>
A bond typically pays a fixed, predictable amount of interest each year.
