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yuradex [85]
2 years ago
8

Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers? Select two answe

rs.
Business
1 answer:
GaryK [48]2 years ago
7 0

Answer:

Option 1 and 2

Explanation:

Complete Question

Which scenarios can be considered effects of Sole Sister Shoe Store choosing to sell dress shoes over sneakers?

CHECK ALL THAT APPLY.

  1. High school athletes stop shopping there.
  2. The inventory of sports socks goes unsold.
  3. Publicity for the store declines.
  4. Profits decline because dress shoes cost less than sneakers

Solution

Sole Sister Shoe Store chooses to sell dress shoes over sneakers because  the customers of sneakers stopped shopping from the store. Sneakers are mainly purchased by the high school athletes over any other footwear. Now, they stopped shopping and hence  Sole Sister Shoe Store started selling dress shoes

Also, sports socks' inventory is unsold indicating the reduction in sale of sneakers and hence the Sole Sister Shoe Store started selling dress shoes

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Which of the following is most correct:Question 8 options:A firm with financial leverage has a larger equity multiplier than an
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Answer:

A firm with financial leverage has a larger equity multiplier than an otherwise identical firm with no debt in its capital structure.

Explanation:

The equity multiplier basically tells us what portion of the company's assets were financed through equity, i.e. what portion was financed by the company's owners.

the formula to determine the equity multiplier = total assets / total equity

the higher the equity multiplier, the higher the return on equity (ROE), but a high equity multiplier (financial leverage) also increases the company's risk since eventually it might not be able to pay off its creditors if something goes wrong.

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3 years ago
Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 3,100 units ar
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Answer:

Cash Disbursement for selling and administrative expense = $42,370

Explanation:

Provided information,

Units to be sold in the month of March = 3,100 units

Variable selling and administrative cost per unit = $3.60

Fixed selling and administrative cost  = $35,810

Depreciation included in fixed selling and administrative cost = $4,600

Cash fixed cost of selling and administrative cost = $35,810 - $4,600 = $31,210

Total cash cost of selling and administrative cost = Variable + Cash Fixed cost

Total variable cost = $3.60 \times 3,100 units = $11,160

<u>Total cash disbursement = $11,160 + $31,210 = $42,370</u>

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4 0
3 years ago
How did you identify your customers?
solong [7]
Customers may be grouped by similar variables, such as age, gender, occupation, education, income levels, geographic location, industry, number of employees, number of years in business, products or services offered or other defined criteria.
6 0
3 years ago
Because of an accident Royce was involved in, his insurance company has increased his annual premium for auto insurance by 5. 2%
PSYCHO15rus [73]

Premium is often paid by people based on some kinds of services offered.

From the picture attached, we can see Royce' premiums for the previous year, which were;

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If you add all together, the total premium of the policy was $543

Note that the premiums will increase by 5.2%,

therefore, the new total premium will be = $543 x 1.052 = $571.24

Learn more from

brainly.com/question/13880376

7 0
2 years ago
You are given the following information for Watson Power Co. Assume the company’s tax rate is 24 percent. Debt: 14,000 6.3 perce
Alenkinab [10]

Answer:

10.18%

Explanation:

The computation of the WACC is shown below:

But before that following calculation is to be done

The value of debt is

= 14000 × $1,000 × 107%

= $14,980,000

The value of equity is

= 470,000 × $65

= $30,550,000

The value of preferred stock is

= 20,500 × $86

= $1,763,000

Now

value of total capital is

= $14,980,000  + $30,550,000 + $1,763,000

= $47,293,000

Now we find the cost of debt using excel function i.e.

= RATE(nper,pmt,pv,fv)) × 2

= RATE(29 × 2,1000 × 6.3% ÷ 2,-1000 × 107%,1000)) ×2

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Now  

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= 5.2% + 1.16 × 7%

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cost of preferred stock is

= (100 × 4.1%) ÷ 86

= 4.77%

Now finally  

WACC = weight of debt × cost of debt ×(1 - tax rate) + weight of equity × cost of equity + weight of preferred stock ×cost of preferred stock

= ($14,980,000 ÷ $47,293,000) × 5.80% × (1  - 24%)+($30,550,000 ÷ $47,293,000) × 13.32% + ($1,763,000 ÷ $47,293,000) ×4.77%

= 10.18%

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