Law is a practical discipline: theory has no place in law . With specific references of the Law of Contract , discuss

A store manager must decide how many rug cleaners to rent to customers. The manager estimates that the first would yield $200 a

Harrizon [31]

Answer:

The store manager must decide to buy 3

Explanation:

Given that:

The first: $200 a year
The second $150
The third $75,
The fourth $50
Interest rate is 12 percent
Investment: $500

As we know that the rate of return will be: Income / Investment

So the rate of return of:

The first: $200 / $500 = 0.4 = 40%
The second $150 / $500 = 0,3 = 30%
The third $75 / $500 = 0.15 = 15%
The fourth $50 / $500 = 0.1 = 10%

Only three rug cleaners have the rate of return greater than the interest rate so the store manager must decide to buy 3

5 0

3 years ago

The higher wages college graduates receive are primarily due to discrimination Answer A: discrimination A differences in working

Naya [18.7K]

Answer:

A differences in working conditions

Explanation:

The working conditions of the employees matters a lot when it comes to determine the wages of the employees. There is always a discrimination made based on the working condition, the level of education received by the employees and many more.

Thus the higher wages received by the college graduates is mainly due to the working condition and the responsibilities that they are going take while working in an organization when compared to their sub-ordinates.

3 0

3 years ago

Parton Company, a manufacturer of snowmobiles, is operating at 80% of plant capacity. Parton's plant manager is considering maki

ira [324]

Answer:

The answer is: a

Explanation:

The Parton Company has a 'make or buy' decision. This decision involves analysing the incremental costs associated with each option. Incremental costs are costs incurred as a result of producing one more unit of a product. If the excess capacity can be utilised to produce the headlights at a lower cost than the cost of acquiring the headlights from an external supplier, then the company should produce the headlights.

The Parton Company incurs $12.80 per headlight purchased from the external supplier. Added to this cost, are the existing costs of operating below plant capacity. If making the headlights in the manufacturing plant yields a positive contribution to fixed costs, then the Parton company should produce the headlights in the manufacturing plant.

By producing the headlights, the Parton company gains a contribution to fixed costs of $1.03 per headlight.

Foregone purchase costs from supplier: $12.80

Incurred costs (directly) from production: ($11.77)

Direct materials ($4.45)

Direct Labour ($3.45)

Manufacturing Overheads: $(6.45*0.6) ($3.87)

Net gain per headlight $1.03

6 0

3 years ago

The Corner Bakery has a bond issue outstanding that matures in 7 years. The bonds pay interest semi-annually. Currently, the bon

MaRussiya [10]

Answer:

Ans. The after tax cost of this bond is 2.09%

Explanation:

Hi, first we need to establish the cash flow of the bond, so we can find the after tax cost of the bond. After we find the after tax cash flow of the bond, we must use the IRR function of MS Excel to find the semi-annual cost of this debt, but, all after tax debts should be presented in annual basis. Let me walk you through the process. First, let me show you how it should look.

Face Value 100

price 101,4

years 7 years

Coupon 9%

Coupon 4,5% semi-annually

tax 30%

Per Cash Flow After Tax

0 101,4 101,4

1 -4,5 -3,15

2 -4,5 -3,15

3 -4,5 -3,15

4 -4,5 -3,15

5 -4,5 -3,15

6 -4,5 -3,15

7 -4,5 -3,15

8 -4,5 -3,15

9 -4,5 -3,15

10 -4,5 -3,15

11 -4,5 -3,15

12 -4,5 -3,15

13 -4,5 -3,15

14 -104,5 -73,15

Cost of Debt 1,04% semi-annually

Cost of Debt 2,09% annually

Ok, now, as you can see, there are 14 periods, that is because the coupon is paid semi-annually, the way to find the cash flow (I mean, the bond´s coupon) is:

$Coupon (semi-annual)=(Face Value)x\frac{0.09}{2} =4.5$

At the end (period 14), we need to add the face value and the coupon, that is $100+$4.5=$104.5

Now, to find the value of the third column (after-tax cost), we do the following.

$After-tax-Cost=Couponx(1-taxes)=4.5(1-0.3)=3.15\\$

Now, consider this, you are receiving 101.4 for every 100 of debt, that means that you are receiving more money than the emission value, and paying interests over 100 instead of 101.4, that is why we have to use the IRR excel function to find out the semi-annual cost of debt. That is, 1.04%.

Now, to make this an effective annual rate, we calculate it like this.

$EffectiveAnnualRate=(1+semi-annual Rate)^{\frac{1}{2} } -1=(1+0.0104)^{\frac{1}{2} } -1=0.0209$

Finally, the after-tax cost of this debt is = 2.09%

Best of luck.

6 0

3 years ago

The ___ style of advertising shows ordinary people clearly using a product in a normal setting

Paha777 [63]

The answer is: SLICE OF LIFE

8 0

3 years ago