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denis-greek [22]
3 years ago
12

Which type of borrowing option would most likely result in the borrower

Business
2 answers:
Mrrafil [7]3 years ago
8 0

Answer:

B. A card with a high compound interest rate

Explanation:

A.P.E.X

Zepler [3.9K]3 years ago
7 0

Answer: B

Explanation:

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The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales
aev [14]

Answer:

1-A. Sales budget

                                   1st             2nd             3rd             4th

                             Quarter     Quarter       Quarter       Quarter        Year

Sales units              12,200      13,200        15,200         14,200    54,800

Price per unit           $21             $21             $21             $21           $21

Total sales          $256,200  $277,200   $319,200   $298,200   $1,150,800

1-B. Cash collections budget

                                   1st             2nd             3rd             4th

                             Quarter     Quarter       Quarter       Quarter        Year

Collections from  $72,600    $76,860     $83,160      $95,760   $72,600

previous quarter  

Collections from $166,530  $180,180  $207,480  $193,830  $1,003,900

current quarter  

Total                    $239,130  $257,040  $290,640 $289,690  $1,076,500

2. Productions budget

                                   1st             2nd             3rd             4th

                             Quarter     Quarter       Quarter       Quarter        Year

Sales units              12,200      13,200        15,200         14,200    54,800

Planned ending       2,640       3,040          2,840          2,640       2,640

inventory

Total production     14,840      16,240        18,040         16,840    65,960

required

- Beginning              2,440        2,640         3,040           2,840       2,440

inventory

Units to be              12,400      13,600        15,000         14,000     63,520

produced

5 0
3 years ago
Steinberg Corporation and Dietrich Corporation are identical companies except that Dietrich is more levered. Both companies will
valentina_108 [34]

Answer:

a-1.

Steinberg's debt:

Steinberg's equity:

a-2.

Dietrich's debt:

Dietrich's equity:

b. Disagree as the values of the two companies are the same ( please see below Explanation for further clarification)

Explanation:

It is clear to determine that the value of debt and equity of the two firms is the present value of cash flow received in 1 year, discounted at 12%.

a-1.

In one year:

- Debt holder of Steinberg will receive $910,000 regardless of its EBIT. -=> Thus, Steinberg's debt present value = 910,000 / 1.12 = $812,500

- Given the probability of expansion and recession, Steinberg's shareholder will receive the amount equal EBIT -  amount paid to its debt holders: 0.8 x (3,700,000 - 910,000) + 0.2 x (1,100,000-910,000) = $2,270,000.

=> Thus, Steinberg's equity present value = $2,270,000/ 1.12 = $2,026,786

=> Value of Steinberg = D+E = 812,500 + 2,026,786 = $2,839,286 ( note: no tax applied)

a-2.

In one year:

- Debt holder of Dietrich will receive $1,200,000 when the business expands while only $1,100,000 when the business goes into recession (i.e business loss is 100,000):  0.8 x 1,200,000 + 0.2 x 1,100,000 = $1,180,000

=> Thus, Dietrich's debt present value = 1,180,000 / 1.12 = $1,053,571

- Given the probability of expansion and recession, Dietrich's shareholder will receive the amount equal EBIT -  amount paid to its debt holders: 0.8 x (3,700,000 - 1,200,000) + 0.2 x (1,100,000-1,100,000) = $2,000,000.

=> Thus, Dietrich's equity present value = 2,000,000 / 1.12 = $1,785,714

=> Value of Steinberg = D+E =$1,053,571+$1,785,714  = $2,839,286( note: no tax applied)

a-3.

From the calculation, it is clear that the values of the two companies are the same.

6 0
3 years ago
Government corporations can be described as which of the following
tester [92]
C. Independently run.
6 0
3 years ago
Read 2 more answers
A portfolio is entirely invested into BBB stock, which is expected to return 16.4 percent, and ZI bonds, which are expected to r
Mashutka [201]

Answer:

the expected return on the portfolio is 12.34%

Explanation:

The computation of the expected return on the portfolio is shown below:

Expected Return is

= Investment in BBB ×  Return+ Investment in ZI × Return  

= 16.4 × 48% + 8.6 ×52%      

= 7.87% + 4.47%    

= 12.34%

hence, the expected return on the portfolio is 12.34%

7 0
2 years ago
Betty owns 100 shares of MegaCorp, Inc., which she bought in MegaCorp’s initial public offering of 10,000 shares. MegaCorp makes
yaroslaw [1]

Answer:

Preemptive rights

Explanation:

Preemptive rights are a way of preventing the dilution of a shareholder's ownership in a corporation.  Preemptive rights are set by a contract clause that establishes that in case the corporation issues new stock, then a current shareholder must be given the right to buy additional shares before the stocks are sold to other investors.

The preemptive right usually gives the stockholder the right to buy new stock in the same proportion as his/her current stock ownership. For example, if an investor currently owns 2% of the company's stock, he/she will be able to buy 2% of every new set of stocks issued.

4 0
3 years ago
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