Answer:
CCC's new required return be 16.5%
Explanation:
For computing the new required return, first, we have to compute the risk-free rate of return which is shown below:
Expected return = Risk- free rate of return + Beta × (Market risk - Risk- free rate of return)
12% = Risk- free rate of return + 1.5 × (10% - Risk- free rate of return))
12% = Risk- free rate of return + 15% - 1.5% Risk- free rate of return
So, the Risk- free rate of return is 6%
Now the average stock is increased by 30%
So, the new market risk is 13% and other things will remain constant
So, the new required return equal to
= 6% + 1.5 × (13% - 6%)
= 6% + 1.5 × 7
= 16.5%
Answer:
$1,255,000
Explanation:
The increase in accounts receivable is the portion of the current year sales revenue that has not been received in cash, hence, the cash collected from customers in the year 2010 is simply the sales adjusted for the impact of accounts receivable as shown below:
cash collection=sales revenue+beginning accounts receivable-ending accounts receivable
sales revenue=$1,300,000
beginning accounts receivable=$120,000
closing accounts receivable=$165,000
cash collection=$1,300,000+$120,000-$165,000
cash collection=$1,255,000
<u>Calculation of amount of stockholders' equity at the end of the year:</u>
At the beginning of the year, Morales Company had total assets of $816,000 and total assets increased $178,000 during the year, hence Total Assets at the end of the year shall be 816000+178000 = $994,000
At the beginning of the year, Morales Company had total liabilities of $526,000 and total liabilities decreased $82,000 during the year. Hence Total Liabilities at the end of the year shall be 526000-82000 = $444,000
Now we can calculate amount of stockholders' equity at the end of the year as follows:
Equity = Assets – Liabilities
= 994,000-444,000
= $550,000
Hence, the amount of stockholders' equity at the end of the year shall be <u>$550,000</u>
Predatory Pricing is the practice whereby a foreign producer intentionally sells its products in the United States for less than the cost of production to undermine the competition and take control of the market.
<h3><u>
Explanation:</u></h3>
hen there is a situation in the market whereby the products are sold at a cost very low than the cost of other suppliers refers to the predatory pricing. When predatory pricing is practiced then the suppliers with lower price will alone survive in the market making all the other suppliers to forcefully leave the market.
This kind of act is illegal. This is because predatory pricing will eradicate the competition. The main aim of this type of pricing is to eliminate the small business from the market. In the given scenario, a foreign producer is selling its products intentionally at lower price in U.S for the lower cost than the cost of production and takes the market to its control which is an example of Predatory Pricing.
Answer:
Sometimes following a disaster, a boil water alert is issued for areas connected to mains scheme water because the mains water may be unsafe to drink or cook with.
If a boil water alert has been issued, it is essential you follow this warning to prevent illness.
To prepare water for drinking and food preparation, you should heat the water to a rolling boil for at least 1 minute using a stove or kettle and then allow it to cool. This will help to kill any bacteria.
Be sure to keep children clear from any boiling water until the water has cooled down to room temperature.
Once it has cooled it should be placed in the fridge in a clean container with a lid.
Under no circumstances should you drink or cook with water that has not been boiled until the alert is lifted.
Alternatively you can use bottled water.
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