Answer:
The right answer to this question is to choose higher-risk projects over low-risk projects.
Explanation:
Jenner is a multi-division company that uses its overall WACC as a discount rate for all proposed projects. Every division is in a different line of business, every of which poses risks specific to those divisions.
WACC lowered the overall expense of the various sources of finance by using the mechanics involved in calculating the costs of these sources of fluidity. Organizations use the hybrid structure that costs the customer to the organization to save the source of funding in WACC.
Answer:
crowding out new entrants
Explanation:
Based on the information provided it can be said that in this scenario the company is trying to create a barrier to entry by crowding out new entrants. This is a technique in which a company introduces various variations of a product into the market so that consumers are more likely to buy one of their products instead of another company's similar product.
Answer:
<em>$41.69</em>
Explanation:
Assuming the shares is on point and is not overrated or underrated we can <em>solve for dividends</em>
dividends/(r-g) = 35.50
dividends = 1.2425
Now we apply the growth for 3 years
Then we apply the dividend growth model
1.4589949084375/(0.09-0.055) = 41.68556881 = 41.69
The risks of foreign outsourcing is that they could stop trading with you.
Answer:
The necessary adjusting entry would include a credit to the allowance account for $40080
Explanation:
Marigold Corp.'s Account Balances
At December 31, 2020
Accounts Receivable $917000 Debit
Allowance for Doubtful Accounts $1920 credit
Bad Debts $42000
Unadjusted Balance of Uncollectibles $ 1920
<u>Estimated Balances $ 42000</u>
<u>Required Adjustment $ 40080</u>
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The data tells that the Allowance for Doubtful Accounts has a credit balance of $1920 the required adjustment to the allowance for doubtful accounts is $ 40080. The required entry is
Bad debts Expense 40,080 Dr.
Allowance for Doubtful Accounts $40,080 credit
