Question 1 (1 point)

Explain two benefits to society of business activity<br> PLS HELP<br> ILL GIVE BRAINLIST

Westkost [7]

Answer: Business can positively influence how society operates. It can build and maintain social capital through its core operations; the goods and services it provides; and the activities supported through increasingly global and complex supply chains.

Explanation:

3 0

2 years ago

Read 2 more answers

Ricardo paid an annual premium of $1,200 in total liability coverage for his car, including up to $200,000 in bodily injury cove

Umnica [9.8K]

Answer:

No, the cost of the annual premium for 10 years was less than the accident claims

Explanation:

Since in the question it is mentioned that the annual premium is $1,200, $200,000 is the bodily injury coverage and $100,000 should be the property damage coverage

Also the $40,000 and $20,000 represent the medical cost and the car damage

So here the cost should not outweight the benefit of the transferring the risk as the annual premium cost for ten years should be lower than the accident claims

3 0

3 years ago

Stock Y has a beta of 1.3 and an expected return of 15.3 percent. Stock Z has a beta of 0.70 and an expected return of 9.3 perce

zmey [24]

Answer:

Reward-to-risk ratio Y =7.54%

Reward-to-risk ratio Z = 5.43%

Since the SML reward-to-risk is 6.8%

Stock Y is Undervalued

Stock Z Overvalued

Explanation:

Calculation for the reward-to-risk ratios for stocks Y is 7.54% and Z is 5.43% respectively.

Reward-to-risk ratio Y = (15.3%-5.5%)/1.3

Reward-to-risk ratio Y =7.54%

Reward-to-risk ratio Z = (9.3%-5.5%)/0.7 =

Reward-to-risk ratio Z = 5.43%

Therefore the reward-to-risk ratios for stocks Y and Z are and percent, respectively

Since the SML reward-to-risk is 6.8%

Stock Y is undervalued while Stock Stock Z on the other hand is overvalued reason been that

Reward-to-risk ratio Y is high while the Reward-to-risk ratio is low .

5 0

3 years ago

Highlight 4 ways of running a public corporation

svet-max [94.6K]

Answer:

Highlight four ways in which the running of public corporations...

Ensuring that appointment for senior and technical posts are done on merit.

Exercising the supervisory role of the government.

Continuous training of staff for development.

Setting performance targets to be achieved.

Establishing incentive system for motivation.

Creating public awareness.

Restructuring the corporations ( retrenching)

Reduce policy interference

Reducing monopolistic tendencies

3 0

3 years ago

Reliable Gearing currently is all-equity-financed. It has 10,000 shares of equity outstanding, selling at $100 a share. The firm

pogonyaev

Answer:

Part a. What will be the debt-to-equity ratio if it borrows $200,000?

25%

Part b. If earnings before interest and tax (EBIT) are $110,000, what will be earnings per share (EPS) if Reliable borrows $200,000?

$11.25 or 1125 cents

Part c. What will EPS be if it borrows $400,000?

$11.67 or 1167 cents

Explanation:

Part a. What will be the debt-to-equity ratio if it borrows $200,000?

If it Borrows $200,000 then, debt will Increase by $200,000 and Shares will decrease by $200,000 since they would be bought back under this option

Debt-to-equity ratio measures the extent to which Foreign Money is used by the Company

Debt-to-equity ratio = Total Debt / Total Equity

= $200,000/ $1,000,000 - $ 200,000

= $200,000/$800,000

= 25%

Part b. If earnings before interest and tax (EBIT) are $110,000, what will be earnings per share (EPS) if Reliable borrows $200,000?

Earnings per share (EPS) = Earnings Attributable to Ordinary Shareholders/ Weighted Average Number of Ordinary Shares in Issue during the period

=( $110,000 - $200,000×10%)/ ($800,000/$100)

= $110,000-$20,000/8,000

= $11.25 or 1125 cents

Part c. What will EPS be if it borrows $400,000?

If it borrows $400,000 then, it pursues the High -Debt Plan and exchanges debt for equity

Earnings per share (EPS) = Earnings Attributable to Ordinary Shareholders/ Weighted Average Number of Ordinary Shares in Issue during the period

= ( $110,000 - $400,000×10%)/ ($1,000,000-$400,000/$100)

= $70,000 / 6,000

= $11.67 or 1167 cents

3 0

3 years ago