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krok68 [10]
3 years ago
15

Adamson Corporation is considering four average-risk projects with the following costs and rates of return:

Business
1 answer:
Jlenok [28]3 years ago
7 0

Answer:

a. Cost of debt = Interest * (1 - Tax rate)

= 10%*(1 - 0.30)

= 7%

Cost of preferred stock = Dividend/ Issue price

= 5/48

= 10.42%

Cost of common stock (Cost of retained earnings) = (D1/P0) + g

= (4/33) + 0.07

= 0.12 + 0.07

= 0.19

= 19%

b. Fund                         Cost        Weight       Cost * Weight

Debt                           7%          0.15                 1.05%

Preferred stock        10.42%     0.10                1.042%

Retained earnings     19%         0.75               <u>14.25%</u>

WACC                                                               <u>16.342%</u>

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Explanation:

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2 years ago
A resource-based strategy Multiple choice question. focuses on efficient execution of both primary and supporting components of
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Answer:

can be achieved by exploiting resources that are competitively valuable, rare, and hard to imitate by rivals

Explanation:

A resource-based strategy is a form of the technique used by business managers to efficiently utilized the existing and valuable resources of the firm. These resources would be difficult to come by for the competitors such that it is hard for competitors to replicate. Thereby leading a sustainable or long term competitive advantage to the firm

Hence, in this case, the correct answer is A resource-based strategy "can be achieved by exploiting resources that are competitively valuable, rare, and hard to imitate by rivals."

5 0
2 years ago
On May 1, Year 1, Benz’s Sandwich Shop loaned $18,000 to Mark Henry for one year at 9 percent interest. Required a. What is Benz
ehidna [41]

Answer:

a) $1080

b)$19080

c) Loan given | -$18000

d)$540

e)$19620

f)loan | 18000

Interest received | $1620

g)  $1620

Explanation:

a) Year 1 : a) Interest income = $18000*9%*8/12 = $1080

b) The total receivable at december 31,Year = 18000+1080 = $19080

c)  Year 1  :Statement of cash flow

Loan given | -$18000

d) Interest income Year 2 = $18000*9%*4/12 = $540

e) Total cash collect in 2017 = $18000+$1080 + $540 = $19620

f) Cash flow from investing activities :

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           Interest received | $1620

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7 0
3 years ago
On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati
BlackZzzverrR [31]

Answer:

The answer is $243,000

Explanation:

The inventory on July 8 immediately prior to the fire is the CLOSING INVENTORY.

To find this closing inventory, we need to find the gross profit first and then cost of sales.

To find gross profit:

Gross profit margin=gross profit ÷sales.

Gross profit margin is 20% or 0.2

Sales is $690,000

Therefore, gross profit is:

0.2 x $690,000

=$138,000

To find cost of sales:

Gross profit = sales - cost of sales.

Gross profit is $138,000

Sales is $690,000

Therefore, cost of sales is

$690,000 - $138,000

=$552,000.

And finally to get closing inventory:

Cost of sales = opening inventory + purchases - closing inventory.

Cost of sales = $552,000

Opening inventory = $140,000

Purchases = $655,000

Closing inventory = $140,000+$655,000-$552,000

=$243,000.

6 0
3 years ago
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I think the most appropriate answer would be A.



I hope it helped you!
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3 years ago
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