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3 years ago

How have newspapers responded to their current financial situation?

Business

1 answer:

iragen [17]3 years ago

8 0

Answer:

The U.S. newspaper industry is suffering through what could be its worst financial crisis since the Great Depression. Advertising revenues have plummeted due in part to the severe economic downturn, while readership habits have changed as consumers turn to the Internet for free news and information. Some major newspaper chains are burdened by heavy debt loads. Between 2008 and early 2010, eight major newspaper chains declared bankruptcy, several big city papers shut down, and many laid off reporters and editors, imposed pay reductions, cut the size of the physical newspaper, or turned to Web-only publication.

Explanation:

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Orange Inc., an orange juice producer with a current debt-to-equity ratio of 2, is considering expanding its operations to produ

postnew [5]

Answer:

8.25%

Explanation:

Orange, Inc. should calculate the MARR (minimum acceptable rate of return) for this project using the following:

Re = 12% (similar to Paste, Inc., so it can be considered the industry's average)

Rd = 6% x (1 - 25%) = 4.5%

MARR = (1/2 x 12%) + (1/2 x 4.5%) = 6% + 2.25% = 8.25%

This calculation is similar to calculating a company's WACC since you must determine the weighted cost of financing the project.

6 0

3 years ago

Jacob and Marla were both presented with a complex accounting issue that neither had seen before. Marla was able to look at the

devlian [24]

Answer: Generally, when trying to solve a complex accounting problem in which there are obstacles and little knowledge about the subject, the most advisable thing is to work from a conceptual framework which serves as a guide to find a reasonable answer to the problem in question. In this case Marla was clearly working with a conceptual framework, and instead Jacob was not.

4 0

3 years ago

A company forecasts growth of 6 percent for the next five years and 3 percent thereafter. Given last year's free cash flow was $

Ilya [14]

Answer:

d. $2,676

Explanation:

The computation of the horizontal value is shown below:

FCF1 = (100 × 1.06) = 106

FCF2 = (106 × 1.06) = 112.36

FCF3 = (112.36 × 1.06) = 119.1016

FCF4 = (119.1016 × 1.06) = 126.247696

FCF5 = (126.247696 × 1.06) = 133.8225578

Now

Horizon value is

= FCF5 ÷ (Cost of capital - Growth rate)

= 133.8225578 ÷ (0.08 - 0.03)

= $2,676

Hence, the correct option is d.

4 0

3 years ago

Are perfectly competitive markets allocatively allocatively efficient in the long run?

antiseptic1488 [7]

Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.

7 0

3 years ago

Ruby Corporation, a calendar year, accrual method C corporation, has two cash method, calendar year shareholders who are unrelat

telo118 [61]

Answer:

Explanation:

Answer:

$200000 + $200000 +$50000(to COLE's bonus)

= $450000

Ruby corporation uses accrual method.

A corporation that is using accrual method, cannot claim a deduction for an accrual with respect to a related party until the recipient reports that amount as income.

Here, Cole owns more than 50% (55%) so its a related party and it will report bonus on february 1,2017

Therefore, Ruby can not deduct bonus payable to oliver in 2016

Hence total deductible in 2017 would be $450000.

5 0

3 years ago