$50,000 in cash values more than $50,000 on a cheque. <br> True<br> False

"If you know the contents and price of a McDonald's Extra Value Meal, it may serve as ________ to you when you visit other fast

Ratling [72]

Answer:

Reference value.

Explanation:

If you know the contents and price of a McDonald's Extra Value Meal, it may serve as reference value to you when you visit other fast food restaurants and consider the purchase of a meal option there.

Reference value in marketing measures the price of a company's product with respect to its close competitors in the same industry.

Hence, companies commonly sell their products with discounts or at a price below that of their competitors so as to encourage continuous patronage from their customers, as well as potential customers.

<em>Basically, a reference value helps to inform consumer's choice when it comes to buying a product or taking a service from a business entity</em>.

3 0

3 years ago

Laramie Trucking's CEO is considering a change to the company's capital structure, which currently consists of 25% debt and 75%

deff fn [24]

Answer:

15.29%

Explanation:

Calculation to determine What would be the estimated cost of equity if the firm used 60% debt

First step is to calculate the Original beta using this formula

Original beta = (rs-rRf)/ RPM

Let plug in the formula

Original beta= (11.5%- 5%)/6%

Original beta= 6.5%/ 6%

Original beta= 1.083

Second step is to calculate the Original D/E using this formula

Original D/E = D/A / (1-D/A)

Let plug in the formula

Original D/E= .25/ (1-.25%)

Original D/E= .333

Third step is to calculate the Unlevered Beta using this formula

Unlevered Beta = Bu = Bl / 1+((1- Tax rate) x (D/E)

Let plug in the formula

Unlevered Beta= 1.083/1+((1-.4) x .333

Unlevered Beta=.90

Fourth step is to calculate the Target using this formula

Target =D/e

Let plug in the formula

Target = .6/.4

Target= 1.5

Fifth step is to calculate the New Beta using this formula

New Beta = bu* (1+(D/E)(1- tax rate)

Let plug in the formula

New Beta = .90 *(1+(1.5)*(.6)

New Beta = 1.71

Now let calculate the estimated cost of equity using this formula

rs = rRF + new beta (RPm)

Let plug in the formula

rs= 5% + 1.71*6

rs= 15.29%

Therefore What would be the estimated cost of equity if the firm used 60% debt is 15.29%

4 0

3 years ago

The eventual result in the U.S. v. Microsoft case was: a. Bill Gates was sentenced to one year in prison for violations of the S

liraira [26]

Answer: C. The court concluded that Microsoft violated the Sherman Act

Explanation: The case between United States v. Microsoft Corporation which took place at the

United States Court of Appeals for the District of Columbia Circuit during the period February 26–27, 2001 and was finally decided June 28, 2001.

It was decided by the District Court that Microsoft violated the Sharma Antitrust Act of 1890.

4 0

3 years ago

What has the greatest potential to demotivate you and lead you to unproductive activities

Anastaziya [24]

The product of drugs and alchohol has the tendenancy to demotivate you and lead to unproductive activities.

3 0

3 years ago

CoffeeCarts has a cost of equity of , has an effective cost of debt of , and is financed with equity and with debt. What is th

-Dominant- [34]

Complete Question:

Coffee Carts has a cost of equity of 15.5%, has an effective cost of debt of 3.9%, and is financed 75% with equity and 25% with debt. What is the firm's WACC?

Answer:

The firm's WACC is:

= (0.75 * 0.155) + (0.25 * 0.039)

= 0.11625 + 0.00975

= 0.126

= 12.6%

Explanation:

CoffeeCarts Company's WACC (Weighted Average Cost of Capital) is the average rate that the company is expected to pay to all its security holders (stockholders and debt holders) who financed its assets. We can calculate CoffeeCarts' WACC by multiplying the cost of each capital source (equity and debt) by its relevant weight, and then adding the products together. The weight is the proportional percentage of each class of finance source to the whole.

8 0

3 years ago

$50,000 in cash values more than $50,000 on a cheque. True False