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777dan777 [17]
3 years ago
7

Match each of the following terms with their definition - Before-tax cost of debt - Cost of preferred stock - Cost of Common Sto

ck - WACC A. The interest rate the firm must pay on new long-term borrowing B. the rate of return on retained earnings, and adjusted for flotation costs C. rate of return investors require based on the preferred stock dividend D. the average cost of raising new financing
Business
1 answer:
fomenos3 years ago
3 0

Answer:

Before-tax cost of debt ⇒ A. The interest rate the firm must pay on new long-term borrowing.

This refers to the interest rate that a firm will pay on long term borrowing as compensation to the lenders for lending the company some funds.

Cost of preferred stock ⇒ C. rate of return investors require based on the preferred stock dividend.

The cost of the preferred stock is the rate of the preferred dividend that investors require they are paid every year if dividends can be paid and sometimes even when it cannot.

Cost of Common Stock ⇒ B. the rate of return on retained earnings, and adjusted for flotation costs .

Commons stock costs is the required return on the retained earnings of a company.

WACC ⇒  D. the average cost of raising new financing.

Weighted Average Cost of Capital (WACC) represents the total cost of raising capital for the company as it incorporates the costs of debt, preferred stock and common stock.

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Which of the following is a disadvantage of outsourcing?
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Answer:

b. ​It reduces productivity and revenue growth.

Explanation:

The disadvantage of outsourcing is that it reduces productivity and revenue growth. Due to outsourcing, the company ceases to produce a product in its own facility and gives the entire production responsibility to third party. This is because the company might not have the capability to produce on its own or it might be costly for the company.

Since the company has to give production cost, over runs, labour cost etc along with margins to the third party, hence there is a decrease in revenue growth and productivity of the company.

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4 years ago
What are the pressure that Lenovo faces for global integration?
blsea [12.9K]

Answer:

cost reduction and standardizing its products globally.

Explanation:

  • Lenovo needs to capitalize on the consumer trends and the universal needs of the products globally and seek to reduce the costs in increasing flexibility, acquire knowledge, scale economies, and improve on the quality of the product and the process that creates them.
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3 years ago
When is it acceptable under NASAA rules for an IAR to exercise discretionary authority over the account of an investor?
Fofino [41]

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B) If the IAR receives authority via telephone and this is followed by written authority within 10 days, the IAR may exercise discretion over the account.

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3 0
4 years ago
If a company's actual results for revenues, net profits, eps, and roe turn out to be worse than projected, then it is usually be
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4 years ago
Read 2 more answers
The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this infor
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Answer:

has been overapplied.

Explanation:

The net balance of debit and credit of manufacturing overhead account is under or over applied overhead. On debit sides the Actual costs incurred is recorded and overhead applied is recorded in credit side of manufacturing overhead account. Total actual costs are $82,000 ( $30,000 + $24,000 + $28,000 ) and overhead applied is $86,000. Net balance of account is overapplied overhead of $4,000 ( $86,000 - $82,000 ).

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3 years ago
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