The required return on the stock of Moe's Pizza is 12. 5 percent and aftertax required return on the company's debt is 3. 91 percent. The company's market value capital structure consists of 69 percent equity. The company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus 1. 8 percent. The tax rate is 35 percent. What is the required return for the new project

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Answer 1

Answer:

The required return on the stock of Moes pizza is 10.4 percent and after tax required return on the company’s debt is 3.28 percent. The company’s market value capital structure consists of 65 percent equity. The company is considering a new project that is less risky than current operations and it feels the risk adjustment factor is minus 1.5 percent. The tax rate is 35 percent.


Related Questions

Drag each label to the correct category. the fictional country of kovasia decides to open its market to foreign businesses. what positive and negative effects will kovasia likely experience? the volume of exports will increase. people may lose jobs to outsourcing. goods and services may become less expensive. domestic products may become less popular.

Answers

The positive effect of market opening is that goods and services would be cheaper (option C), while the negative effect is that local products are consumed less (option D).

What is market opening?

Market opening is a term that refers to the action of a state to open its economy so that foreign companies send their products to that country.

The opening of the market is an economic activity that brings benefits and harm to the economy of a country because it diversifies the products that are on the market for citizens.

However, it has negative effects such as local products sometimes being the most expensive or losing popularity compared to imported ones, so people consume less of them.

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Answer:

Post Test: The Contemporary World

Explanation:

Positives:

The volume of exports will increase.

Goods and services may become less expensive.

Negatives:

People may lose jobs to outsourcing

Domestic products may become less popular.

A major source of inefficiency in barter economies is that they require:.

Answers

A major source of inefficiency in barter economies is that they require a. a double coincidence of wants in exchange.

What are the causes of a barter system's inefficiency?

The barter system is 'inefficient' because a 'double coincidence of wants' is required. Bartering between two parties requires that both parties have what the other wants.

There is no standard unit of account/common measure of value.

Therefore, the Barter system is considered an 'inefficient' system.

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Secret Trails received payment in full within the credit period for horse boarding for $1,300 plus 4% sales tax. Terms of the sale were 3/10, n/30. Which entry is required to record this

Answers

The appropriate journal entry is:Debit Cash $1313; debit Sales Discount $39; credit Accounts Receivable $1352.

Journal entry

Based on the information given the correct entry to record this transaction is:

Debit Cash $1313

{$1300+[($1300×4%)-($1300×3%)]}

[$1300+($52-$39)]

Debit Sales Discount $39

($1300×3%)

Credit Accounts Receivable $1352

[$1300 + ($1300×4%)]

Inconclusion the appropriate journal entry is:Debit Cash $1313; debit Sales Discount $39; credit Accounts Receivable $1352.

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Products in the Blank______ stage of the product life cycle tend to consume a disproportionate share of management and financial resources relative to their future worth.

Answers

Answer:decline

Explanation:

products in the DECLINE stage of the product lifestyle tend to consume

Your business pays $1,200 per year for insurance, but the insurance company has offered a 15% discount if you complete an online safety class. How much will your new annual insurance cost be if you complete the online safety course

Answers

Answer:

$1,020

Explanation:

15% of 1200 = 180

1200-180= 1020

Technical name for a savings account is

Answers

Answer: Reverse relationship or Repo Rate.

________ is the process by which the consumer surveys the environment for appropriate data to make a reasonable decision. Problem recognition Information search Evaluation of alternatives Product choice

Answers

Information search is the process by which the consumer surveys the environment for appropriate data to make a reasonable decision

What is information search?

It is the process of gathering relevant information as regarding a particular goods and services.

This information helps the consumer to make appropriate decision as regarding a commodity.

Therefore, Information search is the process by which the consumer surveys the environment for appropriate data to make a reasonable decision.

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If the Pomegranate and the iZac cost $4,000 each, how many of each should the school buy to keep the cost as low as possible

Answers

Answer:

10987654321

Explanation:

12345678910

Which is a profit seeking organization that has both depositors and borrowers and is equally responsible to both

Answers

A  profit seeking organization that has both depositors and borrowers is: Commercial banks.

What is commercial bank?

Commercial bank is a financial institution  that offers various product and  services such as:

Receive or accept deposit Give out loan to borrowersOperate a saving account and checking account etc

Commercial bank perform important function as they offers loan to their customers.

Therefore a profit seeking organization that has both depositors and borrowers is: Commercial banks.

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An advantage of an enterprise resource planning (ERP) system is that to implement it, an organization need not attempt to do everything at once. Group of answer choices True False

Answers

Enterprise Resource Planning systems allow an organization to avoid having to do everything at once so this is TRUE.

What does an ERP system do?

It enables an organization to plan out its activities so that the organization can become more successful.

ERP takes into account, the constraints and resources of a company and for this reason, will not require that all plans are executed at once but sequentially.

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Which of the following is a risk involved in both sales and leases?
OA. Loss due to damaged property
B. Disputed ownership
OC. A greater residual value than the actual market value of the
property
OD. Being forced by the owner to cease use of the property

Answers

Loss due to damaged property is the risk involved in both sales and leases. Thus, Option A is the correct statement.

What is the difference between a Sale and a Lease?

The primary distinction between sale and lease is that a sale occurs when the owner of a property gives up ownership in exchange for money.

A lease, on the other hand, is when the owner of specific property rents out the property for a set period of time.

Thus, Option A. Loss due to damaged property is the correct statement.

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Answer:

A. Loss due to damaged property

Explanation:

In both sales and leases the buyer runs the risk of having a loss due to damaged property whether it occur while transferring or before/after the property was bought. Usually title insurances and other insurance is bought to fight against the risk that may occur.

Which buyer type has an open mind and tends to take chances on new products without hesitation?
a. ready buyer
b. logical buyer
c. stubborn buyer
d. emotional buyer

Answers

Answer:

A

Explanation:

Capital ______ is the decision-making process for accepting and rejecting projects.

Answers

Answer:

budgeting

Explanation:

Which email message has a negative tone? (NEEDED SOON!!)

a. “We will see you next week.”

b. “How was your birthday?”

c. “There’s nothing we can do about it.”

d. “I hope you are feeling better soon.”

Answers

The answer is C
“There’s nothing we can do about it”

A,B and D have a positive tone.
But C sounds kinda mean

According to classical economists, a. both V and Q are variable for an economy in short-run equilibrium. b. prices are rigid. c. changes in M cause changes in V. d. the velocity of money is constant.

Answers

The average price of goods and services equals the contribution of money to the economy. Velocity and quantity are constant in the short run. So, a change in money supply leads to changes in price

What is Quantity Theory of Money?

Monetary economics is a branch of economics that studies different perspectives on money. One of the main research areas of this economic sector is quantity theory of money (QTM).

The quantity theory of money was developed by Irving Fisher

According to the quantity theory of money :

Money supply x velocity = price x quantity

Velocity and quantity are constant in the short run. So, a change in money supply leads to changes in price

Thus,According to classical economists,  the velocity of money is constant. Option D is correct statement.

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Mass media advertising is an example of a _________ strategy.

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Mass media advertising is a typical example of marketing strategy to increase brand awareness of a product.

What is an Advertisement?

Advertisement can be defined or thought of as a compaign orgainised and funded by a firm to tell the public about a new product.

In recent times, firms rely heavily on social media advetisement.

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Wi-Fi, Inc., reported a net income of $50,000 for the current year. The beginning and ending balances for Retained Earnings for the year are $100,000 and $130,000 respectively. How much did Wi-Fi pay as dividends for the year

Answers

The total value of dividends paid to the shareholders of Wi-Fi, Inc. for the year given the change in retained earnings and income is $20,000.

What is the dividend paid?

Dividend is the amount paid to shareholders of a public company out of the net income earned by a company in a particular period.

Dividend paid = net income - change in net income

Change in net income = $130,000 - $100,000 = $30,000

Dividend paid = $50,000 - $30,000 = $20,000

Assume the marginal propensity to save is 0.10. Firms become optimistic and increase investment spending by $10 billion. Other things being equal, real GDP will:

Answers

The real GDP will increase by $20 billion if the MPS equals 0.10 and investment spending increases by $10 billion.

What is MPS?

MPS stands for marginal propensity to save which is determined by deducting the MPC value from 1. This value is used in computing the investment multiplier.

Given values:

MPS = 0.10

Change in investment spending (increase) = $10 billion

Computation of change in real GDP (increase):

[tex]\rm\ Change \rm\ in \rm\ real \rm\ GDP=\rm\ Multiplier\times\ \rm\ Change \rm\ in \rm\ investment \rm\ spending\\\rm\ Change \rm\ in \rm\ real \rm\ GDP=\frac{1}{MPS}\times\ \$10\rm\ billion\\\rm\ Change \rm\ in \rm\ real \rm\ GDP=10\times\ \$10\rm\ billion\\\rm\ Change \rm\ in \rm\ real \rm\ GDP=$20\rm\ billion[/tex]

Therefore, when the investment spending increased by $10 billion with MPS equal to 0.10 then the real GDP will also increase by $20 billion.

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On a personal income statement, ____ and ____ are the normal designations for profit and loss for an individual.

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On a personal income statement, cash surplus and cash deficit are the normal designations for profit and loss for an individual.

What is personal income statement?

Personal income statement  can be defined as the statement that shows  or summarize your expenditure and revenue  over a particular period of time.

Personal income statement is important as enables a company to know their cash surplus as well as cash deficit .

Therefore on a personal income statement, cash surplus and cash deficit are the normal designations for profit and loss for an individual.

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Assume the following for a company whose sales are all on account: The total asset turnover is 1.8. The average total assets is $600,000. The accounts receivable turnover is 9.00. The average accounts receivable balance is closest to:

Answers

The average accounts receivable balance is closest to $120,000.

What is the average accounts receivable balance?

The average accounts receivable balance is the addition of beginning and ending accounts receivable divided by two.

For instance, if the average accounts receivable balance is $120,000, then the total accounts receivable is $240,000 ($120,000 x 2).

Data and Calculations:

Assets turnover = 1.8

= (Net sales/Average Total Assets)

Average total assets = $600,000

Accounts receivable turnover = 9.00

= (Net Sales/Average Accounts Receivable)

Net sales = $1,080,000 ($600,000 x 1.8)

Average Accounts Receivable = $120,000 ($1,080,000/9)

Thus, the average accounts receivable balance is closest to $120,000.

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The net income for Mongan Co. for 2022 was $280,000. For 2022, depreciation on plant assets was $70,000, and the company incurred a loss on disposal of plant assets of $28,000. Compute net cash provided by operating activities under the indirect method, assuming there were no other changes in the company's accounts.

Answers

The amount of net cash is $3,78,000, and the cash flow statement is shown in the image given below.

What is cashflow statement?

A cash flow statement is also known as a statement of cash flows. It is a financial statement in financial accounting that demonstrates how changes in balance sheet accounts and income effect cash and cash equivalents, and divides the analysis into operating, investing, and financing activities.

Therefore, the cashflow statement of the given information is presented in the image below.

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9. While parked on the street overnight, the passenger window in Sam's car was
smashed by someone trying to break in. Which type of auto insurance
coverage will help cover the cost to get the window replaced?
Liability

Answers

Liability insurance coverage will help cover the cost to get the window replaced in this case.

What is Insurance?

This is defined as a means of protection from financial loss and include auto and health insurance etc.

Liability insurance will pay for property damage or injuries to another person caused when the individual is at fault. In this case, parking on the street makes the individual to be liable.

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When organizing a business, some of the manager's main departments would include _____.


accounting
utilities
marketing
cleaning

Answers

When organizing a business, some of the manager's main departments would include marketing. As in organizing of the business marketing plays an  essential role.

What is organizing in business?

The process of identifying and organizing work to be done, defining and allocating responsibility and authority, and building relationships.

The purpose of allowing people to work together more effectively to achieve goals is known as organizing.

Thus, marketing is important in organizing.

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The cost of assets consumed or services used is also known as:.

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Answer:

It is called expense. that is the correct answer. Give me Brainiliest.

If the approximate market value for of a $1,000 corporate bond is $1,200 and it pays 6 percent interest, then what are comparable bonds paying?

Answers

The comparable bonds pay a 5% interest rate when the approximate market value of a $1,000 corporate bond is $1,200 and it pays 6 percent interest.

What are bonds?

A bond is a type of financial security in which the issuer owes the holder debt and is obligated depending on the terms to repay the principal of the bond as well as interest over a specified period of time.

Given that,

Approximate market value of $1,000 is $1,200

Interest rate is 6%

[tex]\rm\,Annual \; Interest = (face \; value)\times Interest \; rate\\ \rm\,Annual \;Interest = 1,000 \times 6\%\\ \rm\,Annual \;Interest = 60\\\\Calculation of comparable bond interest rate:\\\\Approximate \;bond \;value = \frac{Annual\; interest}{Comparable \;interest\; rate} \\\\1200 =\frac{60}{Comparable\; Interest \;Rate} \\\\Comparable\; Interest\; Rate = 5\%[/tex]

Hence, the comparable bonds pay a 5% interest rate.

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Which step of an ethical analysis is designed to enable a manager to obtain guidance or insights from other managers

Answers

The act of searching for precedents is one that is designed to enable a manager to obtain guidance or insights from other managers.

What is an ethical analysis?

In a firm, this refers to the systematic approach that helps in figuring out the right moral decision in a particular situation.

The step of an ethical analysis includes:

Getting all the pertinent factsDetermining who is affectedListing and researching optionsMaking a decisionPreparing for the consequences

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Any type of communication occurring via a technological channel is a form of __________ communication.

Answers

Any type of communication occurring via a technological channel is a form of mediated communication.

What is mediated communication?

mediated communication serves as any situation where a technological medium is used to pass across information via face-to-face interaction.

Therefore, mediated communication includes interpersonal access as well as media-simulated interpersonal communication.

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What is the market value of one share of Beaver Business Inc. stock if the company just paid an annual dividend of $6.16, the dividends will increase by 3.6 percent annually, and you require a return of 7.7 percent

Answers

Based on the dividends, the growth rate, and the return required, the price for Beaver Business's stock is $155.65

What is the market price of Beaver Business's stock?

This can be found by the formula:
= (Current dividend x ( 1 + growth)) / (Required return - Growth rate)

Solving gives;

= (6.16 x 1.036) / (7.7% - 3.6%)

= $155.65

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A ________ state is one with unstable leadership, whose policies are driven by ideology rather than by economic or human costs and benefits.

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A rogue state is one that has unstable leadership and the policies are driven by ideologies instead of economic costs or benefits.

What is a state?

A state is a territory that belongs to one country. It is having its own government which runs that particular state or province.

A rogue state is a kind of state which is responsible for shattering and disrupting global laws and is also considered a danger to other countries or nations in the whole world. North Korea, Libya, Iran, Iraq, and Cuba are labeled as rogue states. These states are not driven by an economy and are actually driven by the ideologies developed by their presidents.

Therefore, the state is driven by ideologies instead of an economy that is considered to be a rogue state.

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________ models assist top-level managers in long-range planning, such as stating company objectives or planning plant locations.

Answers

Strategic models assist top-level managers in long-range planning, such as stating company objectives or planning plant locations.

Strategic models

Strategic planning tools, or models, are designed to help organizations develop their action plan to achieve their goals. It is also referred to as how an organization takes its strategy and creates a plan to implement it to improve operations and better meet their goals.

Therefore, the models that assists top-level managers in planning is known as Strategic models.

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Please help!! ThanksSolve for a.6a5=7+8a Why does eletronic music is against rock music Find the area of the shape below:NOTE: The figure is NOT drawn to scale In at least one hundred words, describe Huck's plan to get Jim back and then help him escape. Explain why you think it is a good plan or a bad plan. Which of the following has the most potential of experiencing background extinction based on the natural disruption described? A population observing a natural volcano erupting on a remote island every year A population that lost their habitat due to a hurricane lasting several hours A species that will not grow during a specific season every year A species that struggles to compete for resources due to limited access from habitat loss Which function describes this graph?O A. y = (x+5)(x-3)B. y = x2 + 5x+12O C. y -(x-2)(x - 5)D. y = 2.7x+10 Harry gave 13% of his 3400 pay check to kane. How much money did kane receive A ti _____ gustan las plantas.temeleles (06. 02 MC)A fast-food chain claims one small order of its tater tots weighs 90 grams. Ava thinks sheis getting less than what the restaurant advertises. She weighs the next 14 randomorders of tater tots before she eats them and finds the sample mean is 89. 3 grams andthe standard deviation is 3. 71 grams. What conclusion can be drawn at a = 0. 05? (2points)There is not sufficient evidence to prove the fast-food chain advertisement is true. There is sufficient evidence to prove the fast-food chain advertisement is false. Ava does not have sufficient evidence to reject the fast-food chain's claim. O Ava has sufficient evidence to reject the fast-food chain's claim. There is not sufficient data to reach any conclusion. Would the following statement be heard from a person considered a traditionalist or a modernist in the 1920's?"I don't think the government has the right to tell us what we should or should not be drinking. If I'd like a beer when I'm out on the towncuttin' loose with my fellas, I should be able to!"A) modernist B) traditionalist need help will give brainlist Which of these statements is true about severe weather?Severe weather does not cause enough injuries to take precautions.Weather situations can be prepared for in many cases,Severe weather can be avoided in certain areas of the country.Preparation is impossible for extreme weather situations. How did many latin american leaders attempt to make their countries more self-sufficient after world war ii?. Luis has a bag that contains strawberry chews, apple chews, and peach chews. He performs an experiment. Luis randomly removes a chew from the bag, records the result, and returns the chew to the bag. Luis performs the experiment 37 times. The results are shown below:A strawberry chew was selected 8 times.A apple chew was selected 14 times.A peach chew was selected 15 times.Based on these results, express the probability that the next chew Luis removes from the bag will be a flavor other than strawberry as a fraction in simplest form. What year were american alligators put on the endangered species list?1976197020001980 HELP The ceiling of Joey's living room is a square that is 22 ft long on each side. Joey knows the diagonal of the ceiling from corner to corner must be longer than 22 ft.(a) he thinks that because a square cut and half forms a special right triangle the diagonal as the hypotenuse so he multiplies the side by 2 to get 44 ft what is Joey's mistake(b) what is the correct length of the diagonal in Joey ceiling used to correct the special right triangles shortcut (give exact answer no rounding)(c) used either the pythagorean theorem or the correct trigonometry ratios to solve for the length of the diagonal ( round to nearest tenth of a foot )make sure to show all your workI will report if you comment something random to just get points Which state was the founding site of the Confederate States of America in 1861?TennesseeMississippiAlabamaKentucky To make lemonade, Carlos used 5 times more water than lemon juice. He used 3 pints of lemon juice. After making the lemonade, he poured it equally into 4 jugs. How many cups of lemonade are in each jug? can someone help me for this question? PLS HELP ME I NEED HELP ON THIS!!