All categories

2 years ago

What bankruptcy provision has the bank chosen? 45 POINTS

Business

1 answer:

Tanzania [10]2 years ago

5 0

Answer:

I think the bankruptcy provision the bank has chosen is chapter 7 because that provision entails selling company assets such as goods.

Explanation:

You might be interested in

Norris Co. has developed an improved version of its most popular product. To get this improvement to the market, will cost $48 m

Lorico [155]

Answer:

$1.0725 Million

Explanation:

So now

Net Present Value = Annuity value of the even cash inflow - Investment

Here

Investment is $48 Million

Annuity Value of $13.5 Million Cash Inflow = $13.5 Million * Annuity factor for 5 years at 11.66%

Annuity factor = (1 - (1 + r)^ -n) / r

Here

r is 11.66% (Step1) and n is 5 years

Annuity Factor = (1 - (1 + 11.66%)^-5) / 11.66%

Annuity Factor = 3.635

By putting values in the above equation, we have:

Net Present Value = $13.5 Million * 3.635 - $48 Million

NPV = $1.0725 Million

Step1: Find r which Weighted average cost of capital (WACC)

Weighted Average Cost of capital

= Value of Debt / (V of debt + V of equity) * After tax cost of debt PLUS

(Value of equity (Value of Debt / (V of debt + V of equity) * cost of equity

Here

Post tax cost of debt = Pre tax cost of debt * (1 + Tax rate)

Post tax cost of debt = 9% * (1- 30%) = 6.3%

The debt to equity ratio is 25% which means equity is 100% and debt is 25%.

Value of debt is 25%

value of equity is 100%

and total value of capital structure is 125%

This means

WACC = (25% / 125% * 6.3%) + (100% / 125% * 13%)

= 1.26% + 10.4% = 11.66%

3 0

3 years ago

3 Points

Maslowich

Answer:

C. An auction market

Explanation:

Option A is wrong because merchant wholesalers purchase any products directly from the manufacturers and sell those to the retailers, or consumers. In that case, buyers and sellers do not need to come together to complete a transaction.

Option B is incorrect as the warehouse club is recognized as a retail store where customers can purchase bulk products to reduce the expenses. In that case, only sell is the motive.

Option D is wrong because drop shippers cannot hold the inventory to their stocks. Therefore, customers and manufacturers will not come together.

Option C is correct because, in an auction market, the buyer and the seller have to come at the same time to complete a transaction. In that market, the buyer will directly negotiate with the seller to purchase a product or something else.

5 0

3 years ago

Read 2 more answers

Where would you find every escrow entry showing the running balance after each receipt or disbursement?

spin [16.1K]

You will find every escrow entry showing the running balance after each receipt or disbursement in a journal kept by the sponsoring broker. This journal must show the chronological order of the transactions when funds are received or disbursed by the sponsoring broker.

7 0

3 years ago

When an auctioneer decides that no one will bid any higher for the goods on sale, the bidding is closed, usually by

Black_prince [1.1K]

Answer:

True

Explanation:

An auction is defined as a public sale of properties that considers bids from prospective buyers.

The highest bidder eventually makes the purchase.

The auctioneer calls for bids and when there is an unchallenged bid he pounds the gavel to indicate the item has been sold.

The auctioneer is the seller himself of am agent representing him.

At the start of the auction the seller sets a minimum price before bidding commences

8 0

3 years ago

Dana, Inc. recently completed 56,000 units of a product that was expected to consume 4 pounds of direct material per

AysviL [449]

Answer:

$34,000 Units

Step by Step Explanation:

Direct Material Quantity Variance

= SP x (AQ – SQ Allowed)

Therefore:

SQ allowed: $56,000 units x 4 lbs = $224,000 lbs.

Direct Material Quantity Variance: $8.50 x ($228,000 lbs – $224,000 lbs) = $34,000 Units

The direct material quality variance is $34,000 Units

4 0

3 years ago