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katrin [286]
3 years ago
11

Theo Chocolate has decided to purchase a fleet of climate controlled trucks which will allow them to distribute and deliver thei

r products to grocery stores across the U.S. This is an example of:
Business
1 answer:
Ivahew [28]3 years ago
8 0

The decision of the firm to purchase a fleet of climate controlled trucks for distribution of its product is an example of ·Differentiation strategy.

<h3>What is a Differentiation strategy?</h3>

A differentiation strategy is a strategy adopted that make the offered goods or services more unique compared to their competitors.

In conclusion, majority of firms use the differentiation strategy to the differentiate between their products and the competitors.

Read more about Differentiation strategy

<em>brainly.com/question/14682824</em>

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The 10.9 percent preferred stock of Rock Bottom Floors is selling for $91 a share. What is the firm's cost of preferred stock if
torisob [31]

Answer: 11.978%

Explanation:

From the question, we are informed that the 10.9 percent preferred stock of Rock Bottom Floors is selling for $91 a share. We are further informed that the tax rate is 44 percent and the par value per share is $100.

The firm's cost of preferred stock will be 10.9% multiplied by the par value per share and then divided by the share price of $91. This will be:

= (10.9% × 100)/91

= (0.109 × 100)/91

= 10.9/91

= 0.11978

= 11.978%

7 0
3 years ago
Divided Furniture Inc. has 11,000 bonds outstanding with a market price of $104 per bond. The firm also has 35,000 preferred sha
mote1985 [20]

Answer:

Market Value of equity = Price of equity*Number of shares outstanding

Market Value of equity = 36*45000

Market Value of equity = 1620000

Market Value of Bond = Par value*bonds outstanding*%age of par

Market Value of Bond = 100*11000*1.04

Market Value of Bond = 1144000

Market Value of Bond of Preferred equity=Price*Number of shares outstanding

Market Value of Bond of Preferred equity=52*35000

Market Value of Bond of Preferred equity = 1820000

Market Value of firm = Market Value of Equity + Market Value of Bond+ Market Value of Preferred equity

Market Value of firm = 1620000+1144000+1820000

Market Value of firm = 4584000

Weight of equity = Market Value of Equity/Market Value of firm

Weight of equity = 1620000/4584000

Weight of equity = 0.3534

Weight of debt = Market Value of Bond/Market Value of firm

Weight of debt = 1144000/4584000

Weight of debt = 0.2496

Weight of preferred equity = Market Value of preferred equity/Market Value of firm

Weight of preferred equity = 1820000/4584000

Weight of preferred equity =0.397

Cost of equity

Price= Dividend in 1 year/(cost of equity - growth rate)

36 = 2.2/ (Cost of equity - 0.04)

Cost of equity% = 10.11

After tax cost of debt = cost of debt*(1-tax rate)

After tax cost of debt = 8*(1-0.4)

After tax cost of debt = 4.8

Cost of preferred equity

Cost of preferred equity = Preferred dividend/price*100

Cost of preferred equity = 2.2/(52)*100

Cost of preferred equity = 4.23

WACC = After tax cost of debt*W(D)+cost of equity*W(E)+Cost of preferred equity*W(PE)

WACC = 4.8*0.2496+10.11*0.3534+4.23*0.397

WACC = 6.45%

7 0
3 years ago
Jake retired from the police force. He started working an hour or two a day at a paid job in city's courthouse. Jake is A) emplo
fredd [130]

Answer:

The correct answer is letter "A": employed.

Explanation:

Employment is the state in which an individual works independently or for someone else and obtains compensation for the duties performed regardless of the number of hours or days by week that person works. Employment could be informal (usually when the employee does not have payroll benefits) or formal (when the company that person works for offers employees wage, health benefits and a specific number of working hours per week).

5 0
3 years ago
What is a agenda, and what is it used for ?
leva [86]
A temporary organization plan for matter to be attending .it is used businesses management company
5 0
3 years ago
Read 2 more answers
The direct write-off method is used when: Multiple Choice Uncollectible accounts are not anticipated or are immaterial. A compan
stellarik [79]

Answer:

The correct answer is letter "B": A company elects to use this method as one of several alternatives.

Explanation:

The direct write-off method is one of two main approaches used to recognize bad debts being the other the allowance method. Using the direct write-off method implies straight recognizing an account as uncollectible as soon as the firm determines there will not be payment for it. There is no allowance account created for the debt. The bad debt, in either case, diminishes the company's period revenue.

4 0
3 years ago
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