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sashaice [31]
3 years ago
15

Bp and halliburton executives made the decision not to invest in the oil well blowout preventer that experts believe would have

prevented the deepwater horizon oil rig explosion and fire off the coast of louisiana. the executives made their decision based on their belief that their decision would have no great negative consequences. their decision is an example of
Business
1 answer:
UkoKoshka [18]3 years ago
4 0

Their decision to not invest because the executives didn't think there would be negative consequences is an example of relaxed avoidance

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Problem 16-12 Calculating WACC [LO1] Blitz Industries has a debt-equity ratio of 1.5. Its WACC is 7.7 percent, and its cost of d
nignag [31]

Answer:

a) 13.18%

b) 9.06%

c-1) 14.55%

c.2) 11.805%

c.3) 9.06%

Explanation:

debt = 60%, cost of debt = 5.4% x 0.75 = 4.05%

equity = 40%, Re = ?

WACC = 7.7%

7.7% = (40% x Re) + (60% x 4.05%)

7.7% = (40% x Re) + 2.43%

(40% x Re) = 5.27%

Re = 5.27% / 40% = 13.175 = 13.18%

13.18% = ReU + (ReU - 0.054) x 1.5 x (1 - 25%)

13.18% = ReU + (ReU - 0.054) x 1.125

0.1318 = ReU + 1.125Reu - 0.06075

0.19255 = 2.125ReU

ReU = 0.19255 / 2.125 = 9.06%

ReL = 9.06% + (9.06% - 5.4%) x 2 x 0.75

ReL = 14.55%

ReL = 9.06% + (9.06% - 5.4%) x 1 x 0.75

ReL = 11.805%

6 0
4 years ago
Eddy Jones Pottery produces serving bowls among other items. If they reengineer their automated equipment, a serving bowl can be
Ganezh [65]

Answer and Explanation:

Old equipment=2.5 mins per serving bowl

New equipment=1.5 mins per serving bowl

With old equipment, in one hour Eddy Jones can produce 60/2.5= 24 serving bowls

With new equipment, in one hour Eddy Jones can produce 60/1.5= 40 serving bowls

With old equipment, in 8 hours Eddy Jones can produce 24*8=192 serving bowls

With new equipment, in 8 hours Eddy Jones can produce 40*8=320 serving bowls

Therefore in 8 hours with new equipment Eddy Jones will produce 320-192= 128 more serving bowls than with old equipment.

5 0
3 years ago
A town's garbage trucks accidentally sideswiped two parked automobiles in the fiscal year ended December 31, 2019. One case was
asambeis [7]

Answer:

The answer is "$13,000".

Explanation:

In the given question, From December 31, 2019, the sum should also be $13,000 as just a liability for both the general fund. Its first village owner is $3000 as well as the second villager is $10,000, because their contingent liability is registered to a fair degree, that's why its correct answer is "$13,000".

7 0
4 years ago
The newly industrializing country that has competitive electronics and other light industries but which specializes in banking a
Lerok [7]

The country that is being described in the statement given above is Hong Kong as they are considered as a newly industrializing country in which they have the capabilities of competing in regards with electronics and to specialize in the category of trade and banking.

5 0
4 years ago
Which source of investor income is susceptible to double taxation?
sesenic [268]
Double taxation is occurs when income taxes<span> are paid twice on the same source of </span>earned income. The income  can be taxed at both the corporate level and personal level.<span>
</span><span>Dividends as a source of investor income is susceptible to double taxation.</span>
3 0
3 years ago
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