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3 years ago

PLEASE help im stuck

Business

1 answer:

Len [333]3 years ago

3 0

Answer:

Microeconomics uses a set of fundamental principles to make predictions about how individuals behave in certain situations involving economic or financial transactions. These principles include the law of supply and demand, opportunity costs, and utility maximization. Microeconomics also applies to businesses.

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Jenny owns a book company. It costs $10.00 to produce a new book and the company wants a 30% profit, so he charges $13.00 for th

diamong [38]

Answer:

B. Cost-plus pricing.

Explanation:

This is explained to be a cost based pattern or unique strategy which is seen to ensure that costs are been covered in the sense that all pricing variables are seen to add some particular percentage to mark its price. It is seen in most cases is obviously seen to cover all cost of what exactly it is a customer is seen to have loved or valued in the said product.

Certain scenarios has shown that optimization is rare in the discussed topic' way to calculate a price, it shouldn't be your only way of finding price.

7 0

3 years ago

Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, wha

ivanzaharov [21]

Complete question:

WACC Estimation

On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $20 million in new projects. The firm's present market value capital structure, here below, is considered to be optimal. There is no short-term debt.

Debt $30,000,000

Common equity 30,000,000

Total capital $60,000,000

New bonds will have an 7% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%.) The marginal tax rate is 40%.

1. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Enter your answer in dollars. For example, $1.2 million should be entered as $1200000.

2. Assuming there is sufficient cash flow for Tysseland to maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places.

3. Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, what will happen to the WACC? No numbers are required to answer this question.

I. rs will increase and the WACC will decrease due to the flotation costs of new equity.

II. rs will decrease and the WACC will increase due to the flotation costs of new equity.

III. rs and the WACC will not be affected by flotation costs of new equity.

IV. rs and the WACC will increase due to the flotation costs of new equity.

V. rs and the WACC will decrease due to the flotation costs of new equity.

-Select- one above IIIIIIIVV

Answer:

The answer is III.

rs and the WACC will increase due to the flotation costs of new equity.

Solution:

It is given that,

Equity is $30,000,000.

Debt is $30,000,000.

The amount of fund raised is $20,000,000.

The formula to calculate weight of equity is given below:

$Weight of equity = \frac{Equity}{Equity+Debt}$

Substitute $30,000,000 for equity and $30,000,000 for debt in the formula,

$Weight of equity = \frac{30,000,000}{30,000,000 + 30,000,000}$

= 50%

Since weight of equity is 50% and to maintain this capital structure, company should finance the 50% of funds

Amount financed by common equity = $20,000,000 * 50%

= $10,000,000

7 0

3 years ago

matthew has written his mission, vision, and value statements. he has completed his organizational assessment. what is his next

Dimas [21]

After completing the organizational assessment, Matthew's next step should be to formulate the functional strategies.

The action plans that a company develops in different areas to achieve its objectives and goals in the short and long term are called functional strategies.

It is the set of strategies of the areas:

Commercial
Financial
Marketing
Production
Human Resources
Distribution
Technology

As a company is an integrated system that works to achieve a common goal, which in general is to be profitable and competitive in the market, the functional strategies must be aligned with those at the corporate and organizational level.

Therefore, the formulation of functional strategies is essential for the integration and optimization of organizational resources in order to achieve a company's objectives and goals.

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brainly.com/question/4974396

4 0

2 years ago

A company issues $50 million of bonds at par on January 1, 2018. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and

marysya [2.9K]

Answer: Please see explanation for answer

Explanation:

Journal entry to record sale of bonds

Account titles Debit Credit

Cash $50,000,000

Bonds Payable $50,000,000

4 0

3 years ago

Suppose that on Valentine's Day, the demand for both roses and greeting cards increases by the same percentage amount. However,

ryzh [129]

Answer:

The correct answer is: the supply of the greeting cards is less elastic than the one of the roses.

Explanation:

To begin with, the elasticity show how much the price and the quantity are related by indicating the variation that happens to one of them when the other changes. Therefore that the supply of the greeting cards is less sensitive to price because when the quantity demanded increased the price did not change as much as the roses due to the fact that the sellers were not encourage as much as the sellers of the roses to produce more and therefore to increase the price of the cards. So to sum up, when the price changed the sellers were not encourage to increase the production of the cards as much as the production of the roses because of its elasticity.

6 0

3 years ago