1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
How has the steam engine changed over time?
Dovator [93]
Steam engine brought about advancement in transportation and trade by powering locomotives and steamships which carried both goods and people to distant places in record time. Over the years, knowledge continue to increase and new inventions emerge, these include diesel and electric trains. Today, steam engines are no longer in use. Those that exist are used for historical, entertainment and educational purposes.
6 0
3 years ago
he theory of efficiency wages provides a possible explanation as to why Group of answer choices workers form unions. firms shoul
Katena32 [7]

Answer:

Firms may be inclined to keep their workers’ wages above the equilibrium level.

Explanation:

The efficiency wage theory states that if an employer increases the wage of his/her employees, they will be motivated and their productivity will increase. The increase in productivity should offset the increased labor costs. So the costs of higher wages should be recouped through increased productivity. Higher wages also reduce worker turnover, reducing hiring and training costs.

4 0
3 years ago
_____ are any aspects of a good or service that a customer must believe in but cannot personally evaluate even after purchase an
34kurt

Answer:

Credence Attributes

Explanation:

A credence good or service is a type of good/service with qualities that cannot be observed by the consumer after purchase, making it difficult to assess its level of satisfaction.  Examples include expert services such as Tax advisory services, medical procedures, automobile repairs, and dietary supplements.

Because the quality of these products or service are unobservant through search or experience some providers tend to charge consumers at a premium for their provision.

3 0
3 years ago
What return do you expect earn if you buy the 3 years ,10% coupon bond today and sell it in exactly 1 year( if current price is
IrinaK [193]

Answer:

8.02%

Explanation:

Since corporate bonds pay coupons semiannually, it would be important to first all determine the semiannual yield to maturity of this bond using a financial calculator as shown below:

We need to set the calculator to its end mode before making the following inputs:

N=6(number of semiannual coupons in 3 years=3*2=6)

PMT=50(semiannual coupon=face value*coupon rate/2=1000*10%/2=50)

PV=-1051.45 (current price)

FV=1000(bond's face value)

CPT

I/Y=4.02%

After one year, there would 4 semiannual coupons left, we can compute the bond price as shown thus:

N=4

PMT=50

I/Y=4.02(without % sign)

FV=1000

CPT

PV=1,035.56

The expected rate of return over one year is computed thus:

N=2(number of semiannual coupons in 1 year holding period)

PMT=50(the amount of each semiannual coupon)

PV= -1051.45

FV=1,035.56(selling price after one year)

CPT=4.01%(on a semiannual basis)

annual rate of return=4.01%*2=8.02%

7 0
3 years ago
What is your opinion on traditional directed government benefits versus<br> universal income?
Elodia [21]

Answer:

I believe that a form of universal income would be a better policy than the traditional directed government benefits or welfare.

Explanation:

This is because the idea of the universal income would be to replace the welfare programs, by giving people a reasonable amount of money so that they can decide by themselves in what utilities or amenities to spend that money.

Programs with poor incentives like food stamps, or inefficiently run public-programs, could be replaced by universal income without causing harm to ther beneficiaries, and possibly even generating more benefit.

8 0
2 years ago
Other questions:
  • Which of the following job tasks would be performed in information systems and computer science career? A. coordinating data tra
    7·2 answers
  • Flamingos, Inc. has four departments. The Administrative Department costs are allocated to the other three departments based on
    15·1 answer
  • Lasch Co. recorded a right-of-use asset of... I. Lasch Co. recorded a right-of-use asset of $200,000 in a 10-year operating leas
    6·1 answer
  • In a recent year hart corporation had net income of $125,000, interest expense of $30,000, and tax expense of $40,000. what was
    14·1 answer
  • Consider the production of paper in Strelsau. Suppose that the supply of paper is upward-sloping and the demand for paper is dow
    12·1 answer
  • I NEEEEEEEEEEEED help and idea on a study website for learning im failing i cant really figure out how to use quizlet so any oth
    6·1 answer
  • Paolucci Corporation's relevant range of activity is 8,400 units to 17,000 units. When it produces and sells 12,700 units, its a
    9·1 answer
  • GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $60,000 for 6-months services in adv
    12·1 answer
  • On 1/1/2020, Studebaker Corp. had an Accounts Receivable balance of $500,000 and an Allowance for Doubtful Accounts balance of $
    15·1 answer
  • Which of these career positions typically advise customers of the amount of money they need to support their families in case of
    15·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!