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Vesnalui [34]
2 years ago
12

The explicit forecast period must be long enough for the company to reach a steady state the point at which we calculate the con

tinuing value. Which of the following is NOT a desirable property of that steady state? a) The growth rate rises above the required return on capital. b) The company earns a constant rate of return on existing capital c) The company earns a constant rate of return on new capital invested. d) The company reinvests a constant proportion of its operating profits into the business each year. e) The company expects a constant weighted average cost of capital.
Business
1 answer:
Mamont248 [21]2 years ago
8 0

Answer: E) The company expects a constant weighted average cost of capital.

Explanation: The explicit forecast period in most organisations are usually made between five to about fifteen years,this is to ensure that enough timeline is given to effectively capture all the necessary information to do proper forecast.

The only option that is not a desirable feature of the steady state is that. The company expects a constant weighted average cost of capital. All other options are desirable feature because they have positive impact on the business and will make a good forcast.

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Answer:

a. Compare the mean tensile strengths at the 95% confidence level.

Explanation:

5 0
3 years ago
Warrants exercisable at $20 each to obtain 30,000 shares of common stock were outstanding during a period when the average marke
aivan3 [116]

Answer:

The increase in weighted average number of common shares is by 6,000 shares

Explanation:

Application of treasury method is used for exercising the warrants.

Outstanding Common shares = Number of shares / Market price * Exercisable price

= 30,000 shares / $25 * $20

= 24,000 shares

After the warrants have been exercise, the increase in weighted average number of common shares is as follows:

Increase in weighted average number of shares = 30,000 shares - 24,000 shares

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3 0
3 years ago
MC Qu. 93 Schrank Company is trying to decide how... Schrank Company is trying to decide how many units of merchandise to order
ss7ja [257]

Answer:

43,000 units

Explanation:

Given that,

Projected sales in August = 48,000

Projected sales in September = 38,000

Projected sales in October = 58,000

Ending inventory is the 25% of the next month's sales.

The units purchased in the month of September includes the amount of sales in this month and the amount of ending inventory for this month but the amount of beginning inventory excludes from this calculation of purchases.

Ending inventory for September:

= 25% of the next month's sales

= 0.25 × Sales in October

= 0.25 × 58,000

= 14,500

Here, the opening inventory for September is the amount of ending inventory for August.

Opening inventory for September:

= 0.25 × Sales in September

= 0.25 × 38,000

= 9,500

Units to be purchased:

= Sales in September + Ending inventory for September - Opening inventory for September

= 38,000 units + 14,500 - 9,500

= 43,000 units

8 0
3 years ago
Read 2 more answers
A retired auto mechanic hopes to open a rustproofing shop. Customers would be local new-car dealers. Two locations are being con
Lady bird [3.3K]

Answer:

X = 325 cars will yield same profit in both locations

Explanation:

Location                                            City                                         Outskirts

Dealer Price                                        $                                            $

(98 x 330)                                       32340                                       32340

Labour,Material                                                                                    

and Transportation Cost              

($30/car x 330 cars)                         (9900)                                          

( $38/car x 330 cars)                                                                           (12540)

<u>Fixed Cost                                          (6950)                                        (4350)</u>

Profit                                                  15,490                                       15450

City will yield greatest profit if monthly demand is 330 cars

Location                                            City                                         Outskirts

Dealer Price                                        $                                            $

(98 x 430)                                           42,140                                     42,140                                      

Labour,Material                                                                                    

and Transportation Cost              

($30/car x 430 cars)                         (12900)                                          

( $38/car x 430 cars)                                                                           (16340)

<u>Fixed Cost                                           (6950)                                        (4350)</u>

Profit                                                   22,290                                       21450

City will yield greatest profit if monthly demand is 430 cars

b)

let X be the volume of output for both sites to yield same profit

City

Dealer Price = 98X

Labour, material and transportation= 30X

Fixed cost = 6950

Profit = 98X-(30X+6950)

Outskirts

Dealer Price = 98X

Labour,Material and transportation = 38X

Fixed Cost = 4350

Profit = 98X-(38X+4350)

Both Profits are same therefore

98X-30X-6950 = 98X-38X -4350

-30X+38X = -4350+6950

-8X = 2600

X = 325 cars will yield same profit in both locations

3 0
3 years ago
In 1975, part IV was added to Title 35 as a major amendment dealing with _________ patent rights.
S_A_V [24]

International patent rights.

Part IV of US Code Title 35 established the <u>Patent Cooperation Treaty</u> which made it easier to protect your idea  via patent in every country that agreed  to the treaty.

6 0
3 years ago
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