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wolverine [178]
3 years ago
6

A rapidly growing small firm does not have access to sufficient external financing to accommodate its planned growth. Discuss wh

at alternatives the company can consider in order to implement its growth strategy. How can the firm determine the cost of those alternative sources of capital?
Business
1 answer:
monitta3 years ago
3 0

Answer:

Alternatives :

1. Bank Overdraft facility

2.Suppliers Credit

Cost determination :

1. Bank Overdraft facility = Interest rate charged on the facility by the bank

2.Suppliers Credit = Opportunity cost of losing the early settlement discount.

Explanation:

If the company can not access sufficient external financing, consider internal sources such as bank overdraft or suppliers credit.

The cost of bank overdraft is evaluated based on the interest rate charged by the bank whilst the cost of the suppliers credit is determined by considering the opportunity cost of losing the cash discount available.

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Internal control does not consist of policies and procedures that
kotegsom [21]

Answer:

d.guarantee the company will earn a profit

Explanation:

Internal controls are controls put in place by management to mitigate against identified risk. Risk basically  refers to what could go wring in a process. Controls are put in place to mitigate against the risk of error or fraud and do not necessarily prevent the company from making a loss.

Companies make profit or loss based on management's decisions such as where to invest, what time to invest, introduction of a new product, management of cost of sales and operating expenses etc

Internal controls basically consist of policies and procedures that ensure that the company's asset are not misused (fraud), no misrepresentation of revenue (fraud), employees and managers comply with laws and regulations,  business information is accurate ( no misrepresentation of records due to error) etc.

Hence Internal control does not consist of policies and procedures that guarantee the company will earn a profit.

The right option is d.

4 0
3 years ago
Bouchard Company's stock sells for $20 per share, its last dividend (D0) was $1.00, and its growth rate is a constant 6 percent.
Delicious77 [7]

Answer:

The answer is 11,3%

Explanation:

The cost of common stock is common stockholders’ required rate of return. There are 3 methods to calculate the cost of common stock:

i- Dividend discount model or DMM

ii- Capital asset pricing model or CAPM

iii- Bond yield plus risk premium approach

Because of the information provided by the exercise, the correct method to use is de Dividend discount model.

Knowing the current market price of a stock and the last dividend paid, we can calculate the required rate of return, which is equal to the cost of common stock.

rs=(D1/P0)+g

D1= expected dividend

P0= current market price of the stock

g= dividend’s growth rate

To calculate D1 you need to use the following formula= D0x(1+g)

<u>Using the exercise information:</u>

D1=D0*(1+g)=1*1,06=1,06

P0=20

g=0,06

rs=(1,06/20)+0,06=0,113*100=11,3%

5 0
3 years ago
As part of an advertising campaign, a plane flew over the beach in Ocean City trailing a banner that read: "Boardwalk Bistro wil
bogdanovich [222]
Bistro's first banner was a form of a unilateral contract. This means that the banner was a legally enforceable promise between two parties where one party will perform the requirement and the other (Bistro) would pay.

For the given situation, Daisy substantially performed the required task and therefore, Bistro is not allowed to revoke the offer.

Based on the above, the statement that <span>best describes Daisy's and Bistro's rights in this situation is:
</span><span>Bistro cannot revoke the offer because Daisy has substantially performed the requested action.</span>
3 0
3 years ago
Why is money everything? Why is money kore important than life itself? Why does koney control you? Money is scary.
masha68 [24]
Money is life. Money is healthcare and food. Money is shelter. Money is family outings and entertainment. And unfortunately, money seems to be power. 
7 0
3 years ago
The trade agreement that began as advocating for free trade among nations and ended up as a confusing repository for a multitude
Vera_Pavlovna [14]

Answer:General Agreement on Tariffs and Trade(GATT)

Explanation:

The General Agreement on Tariffs and Trade (GATT) can be referred to as legal agreement between two or more nations, whose overall purpose is to promote international trade by reducing or eliminating trade barriers such as tariffs etc

4 0
3 years ago
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