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Sati [7]
3 years ago
10

Sommer, Inc., is considering a project that will result in initial after tax cash savings of $2.3mil at the end of the first yea

r, and these savings will grow at a rate of 2% per year indefinitely. The firm has a target debt-equity ratio of 0.6, a cost of equity of 10%, and an after tax cost of debt of 4.6%. The cost-savings proposal is somewhat riskier than the usual project the firm undertakes; management uses a subjective approach and applies an adjustment factor of 3% to the cost of capital for such risky project. Under what circumstances should the company take on the project
Business
1 answer:
alex41 [277]3 years ago
8 0

Answer:

sorry just getting points

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Market offerings are some combination of products, services, information, or experiences offered to a market to satisfy a need o
Rufina [12.5K]

Answer:

True

Explanation:

Market offerings can be defined as a company's complete offer to its customers and target market, including the product it sells, delivery, technical support, etc.  

Market myopia happens when the company has an inward looking approach, the company wants to sell what they produce, not what consumers' need and want. This will eventually lead to business failure since the company will not be able to adapt to market changes, e.g. Nokia insisted on manufacturing regular cellphones instead of smartphones because it was the world leader in the manufacturing of regular cellphones.

4 0
3 years ago
An investment bank agrees to underwrite an issue of 15 million shares of stock for Looney Landscaping Corp.
Naya [18.7K]

Answer:

A) Looney Landscaping will receive $187,500,000 (= $12.50 x 15,000,000 shares)

The bank's profit will be $11,250,000 (= ($13.25 - $12.50) x 15,000,000 shares)

B) Looney Landscaping will receive $166,260,000 (= ($12.50 - $0.275) x 13,600,000 shares)

The bank's profit will be $3,740,000 (= $0.275 x 13,600,000 shares)

If the stocks are sold at $11.95 per share, then Looney Landscaping will receive  $158,780,000 (= ($11.95 - $0.275) x 13,600,000 shares)

The bank's profit will be the same, $3,740,000

6 0
3 years ago
A business should endeavor to be socially responsible in its actions and conduct under what set of circumstances?
serg [7]

Answer: All of the above

Explanation:

A company should endeavour to be socially responsible if it will result in any of the listed circumstances as they are all benefits.

If this would increase the company's competitive advantage it should be embarked on as it would lead to the company having a better position in the market. It can also reduce the cost to the company of reputation damaging incidents.

A company having improved efficiency and workforce retention is a good company and if socially responsible actions will bring that, the company should do it. And with the purpose of a company being to maximise shareholder value, a company should definitely engage in socially responsible actions if there is a high correlation between CSR and stock price.

3 0
3 years ago
Which of the following activities are typically included in a project kick-off meeting? ​
ASHA 777 [7]

Answer:

b. The project manager outlines the project goals

Explanation:

As the name suggests, a project kick off meeting refers to the first and foremost meeting between project manager and his team and the clients of a project when commencing a new project.

The purpose behind such a meeting is to familiarize the project team, make them better understand the project and it's requirements and agreeing upon a plan of work together to accomplish the task.

Following steps would be noteworthy for conducting an effective project kick off meeting:

  • The project manager prepares his team and outlines and conveys the project goals to the team members and how they are to be attained.
  • Beginning the project client relationship on a good note and gaining client's support.
  • Putting one's best efforts with a systematic planned approach for the project kick off client meeting.

7 0
3 years ago
What type of lien can be placed on homeowners who do not pay their home association fees? A security bail bond lien An HOA lien
klio [65]

Answer: HOA lien

Explanation:

Homeowners associations (HOAs) are in charge of different operational and maintenance duties associated with a neighborhood or building. Homeowners associations are financed by dues from the homeowner members.

In a situation whereby the homeowners members delay their dues or does not pay their dues, Homeowners associations can place liens on the homes of their members. A lien is a legal hold on a property.

5 0
3 years ago
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