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eimsori [14]
3 years ago
8

One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general resul

t is that:A. the firm will select only all-equity financed projects.B. stockholders expropriate value from bondholders by selecting high-risk projects.C. the firm will always select the lowest-risk project available.D. bondholders expropriate value from stockholders by selecting high-risk projects.E. the firm will rank all projects and select the project which results in the highest expected firm value.
Business
1 answer:
Oksana_A [137]3 years ago
8 0

Answer: B. stockholders expropriate value from bondholders by selecting high-risk projects.

Explanation:

Bankruptcy simply means when an individual or business cannot pay back the funds that is owed to the creditor. When bankruptcy is declared by a particular business, the assets for the business are used in paying back the debt.

One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that stockholders expropriate value from bondholders by selecting high-risk projects.

Therefore, option B is the answer.

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For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21, and the unit selling price
zzz [600]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Fixed costs= $109,000

Unit variable cost= $21

Selling price= $85.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 109,000/ (85 - 21)

Break-even point in units= 1,703 units

Now, we need to include the desired profit:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (109,000 + 150,000) / 64

Break-even point in units= 4047 units

Sales= 500,000

Variable cost= 5,882*21= (123,522)

Contribution margin= 376,478

Fixed costs= (109,000)

Net operating income= $267,478

8 0
3 years ago
__________ is the set of costs associated with various issues firms face when entering foreign markets, including unfamiliar ope
FromTheMoon [43]

<u>Option c. Liability of foreignness</u> is the correct answer.

<h3>What is Liability of Foreignness?</h3>

(LOF) specifies the disadvantages that a corporation faces in a foreign country as a result of its foreign status. Because of differences between cultures, languages, conventions, rules, and market conditions, they are at a disadvantage. Foreignness liability introduces new issues for firms to comply with, costing them more fees and effort to run. Zaheer, S., created the phrase "Liability of Foreignness" in her foundational paper "Overcoming the Liability of Foreignness," published in the Academy of Management Journal in 1995.

<h3><u>Examples of LOF</u></h3>

Consider a foreign corporation starting a business in a host nation with a different culture, language, and legislation. In such a case, they must train their employees to acquire the fundamentals of the foreign language, tailor their products to meet local needs, and adjust their marketing techniques. All of them need additional fees for the company.

Therefore,<u> Liability of Foreignness</u> is the set of costs associated with various issues firms face when entering foreign markets, including unfamiliar operating environments; economic, administrative, and cultural differences; and the challenges of coordination over distances.

For more information on Liability of Foreign, refer to the following link:

brainly.com/question/23451497

#SPJ4

3 0
1 year ago
Why do organizations identify their opportunities and threats??​
matrenka [14]

Answer:

So they know what do when they fight back or attack

7 0
3 years ago
The process of improving the competencies, team member interaction, and overall team environment to enhance project performance
sweet-ann [11.9K]

The process of improving the competencies, team member interaction, and overall team environment to enhance project performance is known as developing Project Team.

Project performance control is the process of creating, implementing, and handling projects that make contributions to the performance of a business enterprise and its method. In place of specializing in project execution, mission overall performance management is ready for the bigger picture.

There are 5 key procedures worried in development and performance measurement: progress dimension making plans, performance size planning, development, and overall performance size execution, monitoring and management, and dimension closure.

A project performance domain is described as a set of related activities which might be crucial for the powerful shipping of challenge results.

Learn more about project performance here brainly.com/question/26402160

#SPJ4

4 0
2 years ago
Refer to the data for Pennewell Publishing Inc. (PP). Assume that PP is considering changing from its original capital structure
Mnenie [13.5K]

Answer:

$57.69 per share

Explanation:

The computation of the  stock price per share immediately after issuing the debt but prior to the repurchase is shown below

Price per share = Value of equity ÷ number of Shares

where,

Value of equity is

= Value of operations + T-bills value - Debt value

= $576,923 + $259,615 - $259,615

= $576,923

And, the number of shares is 10,000 shares

So, the price per share is

= $576,923 ÷ 10,000 shares

= $57.69 per share

We simply applied the above formula

6 0
3 years ago
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