Which of the following scenarios is a circumstance in which it would be ethical to practice confidentiality?

Statement 1: The onset of 5% inflation means that your receipt of a $100 interest payment allows you to purchase only $95 worth

Nimfa-mama [501]

Answer:

A. 1 and 4 are true

Explanation:

Statement 1: When inflation goes up the market prices of goods increase and reduces buying power of customer. So, if you get $100 even after 5% inflation, you would get $95 worth good.

Statement 2: It is commonly known as, the higher the risk the higher the gain. So, risk premium and risk exhibited by security is directly related with each other.

Statement 3: Since, risk free rate is the compensation for time value of money, that is why it can’t make real risk-free rate negative because real risk rate is there, but inflation can go higher than risk free rate.

Statement 4: Maturity payment is paid to investors or savers after certain period of time along with principal amount.

Hence, A. 1 and 4 are true

6 0

2 years ago

Mullineaux Corporation has a target capital structure of 65 percent common stock and 35 percent debt. Its cost of equity is 12.8

Zepler [3.9K]

Answer:

WACC = 10.35%

Explanation:

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion that each source of finance bears to the total capital in the pool..

After-tax cost of debt = (1- tax rate) × before tax cost of debt

= (1-0.23)× 7.5% = 5.8%

Type Cost (%) Weight cost × weight

Equity 12.8 65% 8.32

Debt 5.8 35% <u> 2.03 </u>

Total 10.3

WACC = 10.35%

8 0

2 years ago

Blossom Company purchases land for $150000 cash. Blossom assumes $5200 in property taxes due on the land. The title and attorney

IgorLugansk [536]

Answer:

Blossom record $161,100 as cost of land.

Explanation:

Here, we are to calculate amount recorded as the cost of the land purchased by Blossom company.

We proceed mathematically;

From the question;

Calculation of land cost = cash payment + property tax value + Title and attorney fees + Grading cost

Cost of land = 150,000 + 5,200 + 2,000 + 3,900 = $161,100

Blossom record $161,100 as cost of land.

8 0

2 years ago

Cupid Co. manufactures dog toys. One of its most popular products, Bacon Ben, has the following costs to produce 1,000 units: $9

andreyandreev [35.5K]

Answer:

Total direct labor cost= $4,800

Explanation:

Giving the following information:

Bacon Ben, has the following costs to produce 1,000 units:

$9,600 direct materials

$1,920 in advertising costs

$960 plant manager salary

$640 salaries for factory maintenance.

The cost to produce one Bacon Ben is $14.72.

Total unitary cost= direct material + direct labor + manufacturing overhead

Unitary:

Direct material= (9600/1000)= 9.6

MOH= (960 + 640)/1000= 0.32

14.72= 9.6 + DL + 0.32

Direct labor= $4.8

Total direct labor cost= $4,800

3 0

2 years ago

Who are Zipcar's competitors and how do their promotional and advertising efforts compare? Do competitors vary for each of Zipca

UNO [17]

Answer:

Zipcar's competitors and their promotional and advertising efforts compare is described below in details.

Explanation:

Zipcar's top competitors incorporate Uber, Car2go, Enterprise, FlightCar, GoGet, Curb, Getaround, Hubber, and Lyft. Together they generated more than 32.9 billion out of an expected 35.4 thousand workers. Zipcar’s wealth is estimated top three amongst the top ten competitors. The top ten competitors on an average 1.8 Billion. Zipcar has 555 workers and is placed fourth amongst the top ten competitors.

4 0

2 years ago