If Ms. Kona owns a 9% interest in Carlton LLC, it means that she has a 9% ownership stake in the company.
What soes stake ownership meanMs. Kona is evidently an owner of 9% of Carlton LLC, granting her a privilege to a nine percent share in the association's gains and interest when it comes to taking part in management resolutions.
In essence, the specifics of her investment rights are reliant upon the particular conditions of the existing Limited Liability Company operation contract, which supervises the alliance between the business' proprietors and executives.
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Advanced Corporation's growth has slowed to a constant rate during the past few years. As a result, the company expects its common stock dividend to grow at a constant 4% for the remainder of the company's life. A few days ago, Advanced paid common stockholders a $5 dividend. If the required rate of return on the company's stock is 12%, what is the value of the stock today?
Based on the concept of the Dividend Growth Model and percentage, and the context of the question, the value of the stock today is $65.
What is Dividend Growth Model?Dividend Growth Model is a term that is used to describe the dividend of a firm that grows at a constant rate g indefinitely.
Generally, in the Dividend Growth Model of the most recent dividend payment is D, and the required rate of return on the stock, given its risk characteristics and market returns, is r, then the price of the stock is D(1 + g)/(r - g).
Therefore, in this case, since the most recent dividend is $5, and the growth rate of the dividend is 4%.
And the required rate of return is 12%.
Hence, by applying the dividend growth model, the price of the stock today is 5*(1 + 4%)/(12% - 4%) = $65.
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On December 1, NNC began an electro repair shop,Samson Quality Automotive. The following transactions occurred during December Dec. 1 Samson contributed birr 55,000 cash to the business in exchange for shares of common stock. 1 Purchased birr 9,000 of equipment paying cash. 1 Paid birr 1,500 for a five-month insurance policy starting on December 1. 9 Paid birr 16,000 cash to purchase land to be used in operations. 10 Purchased office supplies on account, birr 2,000. 19 Borrowed birr 12,000 from the bank for business use. Samson signed a notes payable to the bank in the name of the corporation. The note is due in five years. 22 Paid birr 1,700 for advertising expenses. 26 Paid birr 300 on account. 28 The business received a bill for utilities to be paid in January, birr 180. 31 Revenues earned during the month included birr 14,000 cash and birr 2,600 on account. 31 Paid employees’ salaries birr 3,800 and building rent birr 1,300. Record as a compound entry. 31 The business received birr 1,400 for auto screening services to be performed next month. 31 Cash dividends of birr 4,000 was paid to stockholders.
Journal entries are a record of financial transactions in chronological order, showing the accounts and amounts debited and credited for each transaction. Below is the journal entries of the transactions:
What constitutes the journal entries?Below are the debit and credit entries for each transaction:
Dec. 1:
Debit: Cash (55,000)
Credit: Common Stock (55,000)
Debit: Equipment (9,000)
Credit: Cash (9,000)
Debit: Prepaid Insurance (1,500)
Credit: Cash (1,500)
Dec. 9:
Debit: Land (16,000)
Credit: Cash (16,000)
Dec. 10:
Debit: Office Supplies (2,000)
Credit: Accounts Payable (2,000)
Dec. 19:
Debit: Cash (12,000)
Credit: Notes Payable (12,000)
Dec. 22:
Debit: Advertising Expense (1,700)
Credit: Cash (1,700)
Dec. 26:
Debit: Accounts Payable (300)
Credit: Cash (300)
Dec. 28:
Debit: Utilities Expense (180)
Credit: Accounts Payable (180)
Dec. 31:
Debit: Cash (16,600)
Debit: Accounts Receivable (2,600)
Credit: Service Revenue (17,600)
Debit: Salary Expense (3,800)
Debit: Rent Expense (1,300)
Credit: Cash (5,100)
Debit: Unearned Revenue (1,400)
Credit: Cash (1,400)
Debit: Cash Dividends (4,000)
Credit: Cash (4,000)
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Select and research a company that is having financial difficulties or is on the brink of bankruptcy.
Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity. Management plans to maintain debt at 26% of the company’s present value, and you believe that at this capital structure the company’s debt holders will demand a return of 6% and stockholders will require 13%. The company is forecasting that next year’s operating cash flow (depreciation plus profit after tax at 21%) will be $64 million and that investment in plant and net working capital will be $26 million. Thereafter, operating cash flows and investment expenditures are forecast to grow in perpetuity by 4% a year. a. What is the total value of Icarus? (Do not round intermediate calculations. Enter your answer in millions rounded to the nearest whole dollar amount.)
The total value is $554.7
The company's equity is $410.5
What is a Company's Equity?Equity embodies the last remnants of a company's net assets after financial obligations have been sated. It can also assume the alternate term "shareholder's equity" due to its representation of company ownership in harmony with shareholders.
There are two valid methods of calculating equity: either by deducting liabilities from total assets or by consolidating share capital, earnings preserved, and other reserve items.
Within the domain of investors and analysts, equity holds significant value as it reveals critical insight regarding both the fiscal well-being of an establishment and its inherent potential for growth.
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At what point will producer must leave market
at what point will a producer must leave the market
The intersection of the average variable cost curve and the marginal cost curve represents the point at which a business would run out of customers to support its variable costs.
When should companies depart from a market?A company that cannot cover its fixed costs will choose to temporarily close if the price of the good in the short term is less than the average variable cost. Long-term, a corporation will opt to stop if the price is less than the average total cost and it can cover both fixed and variable costs.
Why is it necessary to shut down?A shutdown point is a time in a company's operations when it is decided to temporarily — or, in some situations, permanently — cease doing business because doing so is no longer advantageous. As a result of the link between output and price, a business only generates enough income to pay all of its variable expenses.
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A country has a comparative advantage in trade when it :
A country has a comparative advantage in trade when it can produce a particular good or service at a lower opportunity cost than another country. This means that for every unit of a good or service produced, the country gives up producing fewer units of another good or service than the other country would have to give up. By specializing in the production of goods and services in which they have a comparative advantage, countries can increase their economic efficiency and overall output, and can benefit from trade with other countries.
Which of the following can be used to create a marketing plan?
1 specific market to target
2 needs of customers
3 competing products
4 all of the above
Answer:
I think the answer of this question is option no 4.
4) all of the above.
Module 17 Learning Activity
A currency trader uses the Swiss franc futures quotes below to speculate on the value of the Swiss franc. Use the table below to answer the questions that follow it.. Ignore transactions costs and daily resettlement.
a. If the trader buys 5 June Swiss franc futures, and the spot rate at maturity is $0.7963/CHF, what is the value of their position?
b. If the trader sells 12 March Swiss franc futures, and the spot rate at maturity is $0.8963/CHF, what is the value of their position?
c. If the trader buys 3 March Swiss franc futures, and the spot rate at maturity is $0.8963/CHF, what is the value of their position?
d. If the trader sells 12 June Swiss franc futures, and the spot rate at maturity is $0.7963/CHF, what is the value of their position?
Month: Swiss franc futures contract settle price, S/CHF 1 contract = CHF62.500
March: 0.8528
June: 0.8234
Answer:
a. The trader buys 5 June Swiss franc futures at a settlement price of 0.8234. The value of the position is:
Value = (Settlement price - Purchase price) x Contract size x Number of contracts
Value = (0.7963 - 0.8234) x CHF62.500 x 5
Value = -0.0271 x CHF312,500
Value = -CHF8,687.50
Therefore, the value of the trader's position is -CHF8,687.50.
b. The trader sells 12 March Swiss franc futures at a settlement price of 0.8528. The value of the position is:
Value = (Sale price - Settlement price) x Contract size x Number of contracts
Value = (0.8963 - 0.8528) x CHF62.500 x 12
Value = 0.0435 x CHF750,000
Value = CHF32,625
Therefore, the value of the trader's position is CHF32,625.
c. The trader buys 3 March Swiss franc futures at a settlement price of 0.8528. The value of the position is:
Value = (Settlement price - Purchase price) x Contract size x Number of contracts
Value = (0.8963 - 0.8528) x CHF62.500 x 3
Value = 0.0435 x CHF187,500
Value = CHF8,156.25
Therefore, the value of the trader's position is CHF8,156.25.
d. The trader sells 12 June Swiss franc futures at a settlement price of 0.8234. The value of the position is:
Value = (Sale price - Settlement price) x Contract size x Number of contracts
Value = (0.7963 - 0.8234) x CHF62.500 x 12
Value = -0.0271 x CHF750,000
Value = -CHF20,325
Therefore, the value of the trader's position is -CHF20,325.
Explanation:
what will be the after tax equity from the sale?
Explanation:
not a full question, please repeat the full question
Match each vocabulary term below with its definition.
1.identification to a church or belief; adherence to a certain faith
2.belonging to a nation by virtue of birth or naturalization
3.a group of people that share a common ancestry, nationality, or culture (including language and religious beliefs and practices)
4.being affiliated with a particular culture, association, or people
ethnic
group identity
nationality
religious affiliation
The vocabulary terms when matched with their definition are :
religious affiliation: identification to a church or belief; adherence to a certain faithnationality: belonging to a nation by virtue of birth or naturalizationethnic: a group of people that share a common ancestry, nationality, or culture (including language and religious beliefs and practices)group identity: being affiliated with a particular culture, association, or peopleWhat are religious affiliations and group identity ?Religious affiliation pertains to an individual's association with a particular religion or religious community; alternatively, it can denote the extent to which they abide by the tenets and rituals of such faith.
Conversely, group identity refers to a person's sentiment about being part of a certain cultural, social, or political cohort in society. This identification applies even when connected with a specific race, ethnicity, nationality, or other associations and emanates from intrinsic proclivities including family background, upbringing, education, and life experiences.
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Selena wrote a popular blog for a well-known cooking magazine. She used the success of her blog to write her own series of books and create a companion line of food products.
Which factor of production below does Selena illustrate?
According to the question, Selena illustrates Entrepreneurship, which is one of the factor of productions.
In the scenario, For a renowned cookery magazine, Selena contributed to a well-read blog. She wrote her own series of books and developed a companion line of culinary goods using the popularity of her blog as inspiration. This is an example of Entrepreneurship.
Hence, Selena is an Entrepreneur.
Entrepreneurship?Entrepreneurship is the capacity and willingness to create, plan, and manage a business enterprise—along with all of its uncertainties—in order to turn a profit. The creation of new firms is the most well-known example of entrepreneurship.
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What is one way for a entrepreneur to decrease risk
One way for a entrepreneur to decrease risk is by creating strong business strategy.
Entrepreneurs are valuable resources who power their businesses. They take their large responsibilities seriously and work hard to fulfil them. For an entrepreneur, managing a business, its staff, and its various departments is not a simple task. Since they are in a leadership position, they must handle the worst scenario with caution to protect the reputation of their business.
Entrepreneurs take risks to compete in the market because they are concerned about their position there and sincerely want to hold that position. Leaders won't be able to compete in the market or win the race if they don't take chances.
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Aunt Sally’s “New Orleans Most Famous Pralines” sells pralines costing $1.06 each to make. If Aunt Sally’s wants a 35% markup based on selling price and produces 45 pralines with an anticipated 20% spoilage, what should each praline be sold for? (Round your answer to the nearest cent.)
Selling price $
Each praline should be sold for $1.95.
Here's how you can calculate it:
- The cost to make each praline is $1.06.
- The markup based on selling price is 35%, which means the selling price is 135% of the cost.
- Let x be the selling price per praline.
- We can use the formula: Selling price = Cost / (1 - Markup) to find the selling price.
- Substituting the values, we get: x = 1.06 / (1 - 0.35) = 1.63.
- However, we need to take into account the anticipated 20% spoilage, which means we need to sell more pralines to make up for the ones that are spoiled.
- The total number of pralines needed is: 45 / (1 - 0.20) = 56.25, which we can round up to 57.
- Therefore, the selling price per praline should be: $1.63 * 1.35 = $2.20.
- Rounding this to the nearest cent, we get: $2.20 rounded to the nearest cent is $2.19, which is not correct since it is less than the cost of making each praline.
- We need to adjust the selling price to ensure that we make a profit. We can increase the selling price by $0.01 until we reach a price that is greater than the cost of making each praline.
- Increasing the selling price by $0.01, we get: $2.21, which is still less than the cost of making each praline.
- Increasing the selling price by $0.01 again, we get: $2.22, which is greater than the cost of making each praline.
- Therefore, each praline should be sold for $2.22 rounded to the nearest cent, which is $2.21.
Which type of unemployment is the product of a healthy economy?
A. Unemployment as a result of a mismatch of the skills of workers and the skills needed by employers.
B. Unemployment as a result of demand for products and services decreasing.
C. Unemployment as a result of people moving from one job to another.
D. None; unemployment is the result of an unhealthy economy.
Answer:
C. Unemployment as a result of people moving from one job to another.
Explanation:
Unemployment as a result of people moving from one job to another is known as frictional unemployment, which is a natural and inevitable part of a healthy, dynamic economy. Frictional unemployment occurs when workers voluntarily leave their jobs to seek better opportunities, and when new workers enter the labor market looking for work. In a healthy economy, there will always be some degree of frictional unemployment, as people move between jobs and industries, and businesses expand and contract.
Stock control at Saiko
Pousands
4
700
5
600
500
400
300
200
100
Figure 1 Stock-control diagram for Saiko
Trading Ltd
Max
stock
Re-order
[20 marks, 30 minutes]
1 What factors may have determined the size of the
maximum inventory level?
2 What size of order was received at the end of
January?
3 In weeks, what was the lead time between
ordering goods in March and receiving them?
Suggest why inventories fell to zero in April.
Bur
stocks
Discuss the problems Saiko Trading Ltd might
experience from the pattern of inventory usage
shown by the chart.
[
[
Answer: 3
Explanation: 1
Do you think wealth taxes are a good idea? Why or why not? Defend your position.
Answer:
no it's not
Explanation:
it's not easy to pay what you don't have but if you can pay yes it's OK.
answer this problem please
Assessments that match what is important to a person with a career are called C. Value Assessments.
Assessments that match a person's unique traits to a career are called d. Personality tests.
The statement that Skills Assessment should always be followed is D. False - Skills assessments may tell you what skills you have today but not what skills you will be able to learn.
What are assessments ?Value assessments are designed to identify and assess an individual's values, beliefs, and attitudes towards work and life. These assessments help individuals gain a better understanding of what is most important to them in a career and what they want to achieve in life.
Value assessments can also help individuals make decisions about career transitions, job changes, or education and training opportunities. By gaining a better understanding of their values and preferences, individuals can make more informed decisions about their careers and personal lives.
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Ethics in PR therefore remains an important issue to consider. Discuss any five of
the six values in codes of ethics proposed by Taylor and Yang (2014:549).
Six values in codes of ethics, including professionalism, advocacy, moral standards, clients' interests, competence, and relationship, they note, "transcend national boundaries" (Taylor & Yang 2014:549).
Advocacy, honesty, expertise, independence, loyalty, and fairness are among the key traits and attributes of a public relations professional that are outlined in the public relations code of ethics. Honesty: Giving the people information that is factual and true – the cornerstone of gaining their trust.
In order for people to make informed judgments, advocacy involves providing all pertinent information, opinions from various groups, and/or individuals. Building relationships and gaining trust need ethical performance of PR activities.
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The small town of Honnavara. the Arabian Sea and on the banks of the River Sharavathi?
Honnavara is a small town in the uttara kannada district which is located in the southwestern part of the indian state of karnataka the town is situated on the coast of the arabian sea
The Arabian seaThis is a body of water that lies between the arabian peninsula and the indian subcontinent the arabian sea is part of the indian ocean and is bordered by several countries
including india pakistan oman yemen and somalia the town of honnavara is also located on the banks of the river sharavathi which is a major river in the region
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A machine that cost $740,000has an estimated residual value of $20,000 and an estimated useful life of eight years. The company uses straight-line depreciation. Calculate its book value at the end of year 7.
Answer:
The depreciable cost of the machine is:
$740,000 - $20,000 = $720,000
Since the company uses straight-line depreciation, the annual depreciation expense is:
$720,000 ÷ 8 years = $90,000 per year
So, after 7 years, the accumulated depreciation would be:
$90,000 × 7 = $630,000
At the end of year 7 would be:
$740,000 - $630,000 = $110,000
Therefore, the machine's book value at the end of year 7 is $110,000.
Interest rates were high but have finally started to decrease. Explain the possible results on the economy.
A. The decreased cost of borrowing and increased return on savings sway customers to both save and spend. The economy grows quickly, resulting in higher inflation rates.
B. The decreased cost of borrowing and decreased return on savings encourage consumers to save rather than spending. Demand decreases, resulting in rising prices.
C. The cost of borrowing and return on savings both increase, which entice consumers to save instead of spending. Demand decreases, which could lead to falling prices for goods.
D. The decreased cost of borrowing and decreased return on savings discourage consumers to save. Demand increases, which could result in rising prices.
Explanation:
people will eventually start spending less. The demand for goods and services will then drop, which will cause inflation to fall.
The amount a lender charges a borrower is called an interest rate, and it is expressed as a percentage of the principal or the loaned amount. The annual percentage rate (APR), which represents the interest rate on a loan, is commonly stated on an annual basis.
The amount of interest due each period expressed as a percentage of the amount lent, deposited, or borrowed is known as an interest rate. The total interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time the loan, deposit, or borrowing took place.
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A company plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the appliance from a vendor at $7 each or to produce them in-house. With the process in-house production; the annual fixed cost is $190,000 and a variable cost of $4 per unit. Determine the range of annual quantity for which each of the alternatives would be best?
The cost of a unit is $7 while it can be purchased in house at a variable rate that depends on the quantity.
What is production?Production is the creation of goods, which are sold to earn profits, it is therefore required to keep the cost low so that the highest profit is earned.
The new small appliance can be purchased for $7 from outside while for in-house it will cost as,
To match the price from the vendor we need to produce 63,333 units per year, ($190,000/63,333) + $4 = $7
Calculation for 63,333 units,
$7-$4 (per unit variable cost) = $3 this cost needs to be fixed cost.
$190,000/$3 = 63,333 units.
Therefore the company needs to produce more than 63,333 units to benefit from in-house production.
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NEED ASAP!
Which 2 leadership styles promote teamwork
Answer:
Participative and Transformational
Explanation:
An participative leader is a good leader and empowers the team members to do their best and put goals on top. So, this type of leader promotes teamwork.
A transformational leader usually decides the roles of members and ways to monitor performance so that results are delivered.
The charter of a corporation provides for the issuance of 109,000 shares of
common stock. Assume that 53,000 shares were originally issued and 11,800
were subsequently reacquired. What is the number of shares outstanding?
Oa. 41,200
Ob. 53,000
Oc. 109,000
Od. 11,800
If the charter of a corporation provides for the issuance of 109,000 shares of common stock. The number of shares outstanding is: A. 41,200.
What is number of shares outstanding ?Using this formula to determine the Outstanding shares:
Outstanding shares = Issued shares - Reacquired shares
Let plug in the formula
Outstanding shares = 53,000 - 11,800
Outstanding shares = 41,200
Therefore the number of shares outstanding is option A.
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Answer for lab Plato
* Who is the teen entrepreneur? Young people the age of 13 to 18.
* What makes this business successful? Useful for the community, solves their problems.
* How did the teens prepare for entrepreneurship?looked for solutions for people, requirements to start a business, get financially help from family etc.
* Where did they get startup money? Selling s service to get paid, Crowdsourcing through Kickstarter could be an option, while parents and friends might help, too.
* What was the motivation for starting a business? To overall help their community.
The teen entrepreneur are young people the age of 13 to 18.
This business is successful because it is useful for the community, solves their problems.
What are the responses to other questions?* The teens prepare for entrepreneurship by looking for solutions for people, requirements to start a business, get financially help from family etc.
* They got startup money from selling service to get paid, Crowdsourcing through Kickstarter could be an option, while parents and friends might help, too.
* The motivation for starting a business was too overall help their community.
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Blossom Company reported net income of $159,500. For 2022, depreciation was $47,300, and the company reported a gain on sale of investments of $14,300. Accounts receivable increased $27,300 and accounts payable decreased $25,300.
Compute net cash provided by operating activities using the indirect method.
Net cash provided by operating activities $
To calculate net cash provided by operating activities using the indirect method, we start with net income and adjust for non-cash items and changes in working capital accounts.
The Net income is $159,500. The Depreciation is +$47,300 and Gain on sale of investments is -$14,300. The Changes in working capital accounts are the Increase in accounts receivable is +$27,300 and the Decrease in accounts payable is -$25,300
The Net cash provided by operating activities =Net income + Adjustments for non-cash items + Changes in working capital accounts
= $159,500 + $47,300 - $14,300 + $27,300 - $25,300
= $194,500
Therefore, the net cash provided by operating activities using the indirect method is $194,500.
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4. Akua is a trader based in Techiman. She wants to buy goods from a supplier based in
Accra. Advise her on the general rules governing delivery of goods.
The vendor shall deliver the Products in accordance with the terms of the Sale Contract and the Buyer shall accept and pay for the Products.
What laws apply to the distribution of products?The delivery of the Products shall be made by the Seller in compliance with the terms of the Contract and the Applicable Sales Laws and the Buyer's payment and acceptance of the Products shall be made by the Buyer. The delivery of the goods and payment of the money are simultaneous conditions under the sales law, unless the parties expressly agree otherwise.
The items agreed to be sold are to be delivered at the place they are at the time of the agreement to sell, or, if not yet existent, at the location where they are being made or created, in the absence of any such arrangement. Likewise, the products must be brought to the spot where they were at the time of the transaction.
What do you mean by "delivery" and under what circumstances is a delivery deemed "valid"?The terms of delivery of the goods and payment of the money coexist unless otherwise stated. In other words, the seller must be ready and willing to give the buyer ownership of the products in return for the price, and the buyer must be ready and willing to pay the price in order to have the right to possess the things.
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Question 3 (1 point)
Betty has a degree in wildlife conservation. She is passionate about preserving
habitats for endangered animals. What kind of company might want to hire Betty?
a farm in need of a dairy manager
a bald eagle sanctuary looking for a ranger
a pesticide company in need of a marketing person
a local food truck looking for a chef
Betty's degree in wildlife conservation and passion for preserving habitats for endangered animals make her a great fit for companies and organizations that focus on environmental conservation. A farm in need of a dairy manager or a local food truck looking for a chef may not necessarily be the best fit for Betty's skill set and interests. hence the correct option B) bald eagle sanctuary looking for a ranger.
Betty's degree in wildlife conservation makes her highly qualified for roles that involve working with endangered species, researching wildlife populations, and identifying solutions to protect and conserve habitats. As such, organizations that work to protect and preserve habitats for wildlife, including national parks and conservation areas, environmental advocacy groups, and research institutions, may be interested in hiring Betty. Additionally, companies that specialize in sustainable agriculture or eco-friendly practices may also be interested in hiring Betty, given her expertise in wildlife conservation. Overall, Betty's degree in wildlife conservation and passion for preserving habitats for endangered animals make her a great fit for companies and organizations that prioritize environmental conservation. Her knowledge, skills, and passion make her an asset to any organization that is working towards protecting the environment and preserving habitats for future generations. Therefore the correct answer is option B) bald eagle sanctuary looking for a ranger
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It is January 2nd and senior management of Chester meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterday's stock price ($38.45) and leverage changes to 2.7. Which of the following statements are true? Select all that apply.
A. total investment for Chester will be $207,586,970
B. Total liabilities will be $120,024,454
C. Chester will issue stock totaling $2,883,750
D. Working capital will remain the same at $16,588,390
E. Total Assets will rise to $220,846,541
F. Equity will be $84,678,765
Based on the information you provided, Chester’s senior management decided to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assuming the stock can be issued at yesterday’s stock price ($38.45) and leverage changes to 2.7, we can calculate the following:
A. Total investment for Chester will be $217,192,866 B. Total liabilities will be $120,024,454 C. Chester will issue stock totaling $2,883,750 D. Working capital will remain the same at $16,588,390 E. Total Assets will rise to $235,535,291 F. Equity will be $97,511,437.
The term "stock" (sometimes known as "capital stock") is used in finance to describe all of the shares that comprise an entity's ownership. Particularly in American English, the word "stocks" is frequently used to refer to shares. Based on the overall number of shares, each share of stock represents a minuscule portion of the company's ownership.
The shareholder (stockholder) usually has a right to that portion of the company's revenues, proceeds from the sale of assets, or voting power after all senior claims, such as secured and unsecured debt, have been met. These rights are frequently distributed in accordance with the capital contributions made by each stakeholder.
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6. Suppose that demand and supply of Oragnges are described by the following equations: P = 200-6Q (demand) P = 40 +2Q (supply) a) Calculate the equilibrium price and quantity. Illustrate.
Answer: Equilibrium price is P = 80 and the equilibrium quantity is Q = 20
Explanation:
To calculate the equilibrium price and quantity, we can follow these steps:
Set the demand equation equal to the supply equation:
200 - 6Q = 40 + 2Q
Simplify by adding 6Q to both sides and subtracting 40 from both sides:
160 = 8Q
Solve for Q by dividing both sides by 8:
Q = 20
Substitute Q = 20 into either the demand or supply equation to find the equilibrium price:
P = 200 - 6(20) = 80
or
P = 40 + 2(20) = 80
So the equilibrium price is P = 80 and the equilibrium quantity is Q = 20.
To illustrate this on a graph, we can plot the demand and supply curves on the same graph and look for the point where they intersect. The vertical axis represents price (P) and the horizontal axis represents quantity (Q). At the point where the demand and supply curves intersect, we have the equilibrium price and quantity.