(1) Quality of products available in superstore.

For a typical firm, which of the following sequences is CORRECT? All rates are after taxes, and assume that the firm operates at

GREYUIT [131]

Answer:

The answer is: re > rs > WACC > rd.

Explanation:

We can see that the return on equity is greater than return on common stock which is greater than Weighted average cost of capital and return on debt.

For the source of financing, debt will be less cost than others because of the tax effect.

While weighted average cost is decided by return on equity, preferred stock and debt. => It is higher than the cost for debt.

4 0

4 years ago

Diversification merits strong consideration whenever a single-business company: Select one: a. Is faced with diminishing market

harina [27]

Answer:

The answer is option A) Diversification merits strong consideration whenever a single-business Is faced with diminishing market opportunities and stagnating sales in its principal business company

Explanation:

Diversification is a technique that reduces risk by allocating investments among various financial instruments, industries, and other categories. It aims to maximize returns by investing in different areas that would each react differently to the same event.

It's important to diversify among different asset classes. Different assets such as bonds and stocks will not react in the same way to adverse events. A combination of asset classes will reduce your portfolio's sensitivity to market swings. Generally, bond and equity markets move in opposite directions, so if your portfolio is diversified across both areas, unpleasant movements in one will be offset by positive results in another.

7 0

3 years ago

Read 2 more answers

In its most recent financial statements, Westhouse Corp. reported $41 million of net income and $665 million of retained earning

Lisa [10]

Answer:

$51 million

Explanation:

The movement or difference between the opening and closing retained earnings is the net in the dividends paid and the net income for the year.

Given

net income = $41 million

Opening retained earnings = $675 million

closing retained earnings = $665 million

Dividend paid = p

$675 million + $41 million - p = $665 million

p = $675 million + $41 million - $665 million

p = $51 million

Dividend paid to shareholders is $51 million

4 0

3 years ago

Annual general meeting what is it?

Sonbull [250]

Answer: Gathering of the directors and stockholders (shareholders) of every incorporated firm, required by law to be held each calendar year. Generally, not more than 15 months are allowed to elapse between two AGMs, and a 21-day's written notice of its date is required to be given to the stockholders. The main purpose of an AGM is to comply with legal requirements, such as the presentation and approval of the audited accounts, election of directors, and appointment of auditors for the new accounting term. Other items that may also be discussed include compensation of officers, confirmation of proposed dividend, and issues raised by the stockholders.

7 0

3 years ago

Use the following information to answer the questions:

Nostrana [21]

Answer:

A.) Since the United States has an aging population and thus an expected decline in working population in the future, therefore, increasing the output per worker seems more relevant in the United states than increasing the proportion of working population. Because Mexico on the other hand boasts a youthful population, Mexico can increase its standard of living by either increasing its output per worker or by increasing the proportion of the population that works.

B.) GDP INCREASES.....

STANDARD OF LIVING ALSO INCREASES....

INCREASE IN NUMBER OF EMPLOYED WORKERS HAS GREATER WEIGHT THAN THE DECREASE IN LABOR PRODUCTIVITY

Explanation:

A.) Since the United States has an aging population and thus an expected decline in working population in the future, therefore, increasing the output per worker seems more relevant in the United states than increasing the proportion of working population. Because Mexico on the other hand boasts a youthful population, Mexico can increase its standard of living by either increasing its output per worker or by increasing the proportion of the population that works.

2.). - - - - - - - - - - - - - - - - - - - - - YEAR - - - - - -

------ - - - - - - - - - - - - - - - 2014 - - - - - - - 2015

Population - - - - - - - - - - 1000 - - - - - - - 1000

Employed workers - - - - 400 - - - - - - - - 440

Labor productivity - - - - 2000 - - - - - - - 1900

GDP = Labor productivity × employed pop.

2014 GDP = 2000 × 400 = 800,000

2015 GDP = 1900 × 440 = 836,000

GDP INCREASES.....

STANDARD OF LIVING ALSO INCREASES....

INCREASE IN NUMBER OF EMPLOYED WORKERS HAS GREATER WEIGHT THAN THE DECREASE IN LABOR PRODUCTIVITY

7 0

3 years ago