The value of a firm is maximized when the: Group of answer choices Levered cost of capital is maximized. Tax rate is zero. Cost of equity is maximized. Debt-equity ratio is minimized. Weighted average cost of capital is minimized.

Answers

Answer 1

Answer:

e. The value of a firm is maximized when the

Explanation:

The value of a firm is maximized when the weighted average cost of capital is minimized.

When the cost of capital or investment is lower, the profit or after tax value generated by the firm would be higher (lower finance cost, higher profit). This implies, the value of firm would be higher.  Also, value of firm today is present value of all future after tax profit discounted by cost of capital. Lower the discount rate (WACC), higher would be the value of firm hence.


Related Questions

A collaborative selling environment makes the sales pitch more challenging for salespeople.
O True
O False

Answers

Answer: True

Explanation:

Collaborative selling simply refers to a sales approach whereby both the buyer and seller collaborate that is, work together in order to get a convenient and suitable purchase.

It should be noted that a collaborative selling environment makes the sales pitch more challenging for salespeople. Therefore, the answer is true.

What is one way investment consultants protect their clients’ money during periodic performance reviews?

Answers

Answer:

Investment consultants check that the portfolio manager's performance was based on skill investing in the agreed-upon stocks or sectors

Explanation:

because it is

In a bid to ensure that money is adequately channeled and client's finances are safe, investment consultant analyses the stocks and portfolio's in other to ensure they are based on the advise offered and agreed upon.

The investment consultant offers expert advise on profitable stocks and portfolio's which could be invested in.

The portfolio manager handles and monitors client's investment and finances.

Hence, the investment consultant and portfolio manager work hand in hand in other to ensure that the right stock is chosen and invested in.

Therefore, investment consultant ensures that portfolio managers do not deviate from the agreement made.

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Doing business in the financial markets most fundamentally presupposes that _______ will be respected.

Answers

Answer:

Ideas

Explanation:

While doing the business in the financial market the fundamental thing that prior supposed is that of ideas which could be respected

With the ideas of an individual, the individual could accomplish their targets and if there is no ideas than it is impossible to accomplish their goals and objectives

Therefore the ideas would be the answer

Harvey and Quick have decided to form a partnership. Harvey is going to contribute a depreciable asset to the partnership as his equity contribution to the partnership. The following information regarding the asset to be contributed by Harvey is available:
Historical cost of the asset $76,000
Accumulated depreciation on the asset $40,000
Note payable secured by the asset $18,000
Agreed upon market value of the asset
will be assumed by the partnership $45,000
Based on this information. Harvey's beginning equity balance in the partnership will be:______.
a. $76,000.
b. $36,000.
c. $18,000.
d. $27,000.
e. $45,000.

Answers

Answer:

d. $27,000.

Explanation:

In the context, it is given that Harley and Quick wants to form a partnership. For this, Harley contributes his depreciable asset as an equity contribution in the partnership.

The amount of market value of the asset that would be assumed by this partnership is = $45,000

The amount of note payable that is secured by the asset  or the debt assumed = $18,000

Therefore, the equity balance in the partnership = market value of asset - the debt assumed by the partnership

                                                                                = 45,000 - 18, 000

                                                                                = 27,000

Hence, the equity balance is $ 27,000 in the partnership.

The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a:

Answers

Answer:

Preemptive right

Explanation:

The right of common shareholders to purchase their proportional share of any common stock later issued by the corporation is called a Preemptive right. A preemptive right grants right to existing shareholders to buy some proportion of new shares at a price lower than market price

How many jobs do retail sales support in the United States?
O 4 million
O 24 million
O 42 million
O 240 million

Answers

Answer:

Hey mate here's your answer ⤵️

42 million jobs

The retail sector continues to grow. Total retail sales (including motor vehicle and parts sealers) from 1 million retail establishments in the United States surpassed $5 trillion in 2017. The U.S. retail industry directly employs about 29 million people and supports more than 42 million jobs.

Hope it was helpfulll

The retail sales sector support 42 million jobs in the United States. Thus, the correct answer is option C.

What is retail sales?

Retail sales are the sales of consumer goods, or final goods, by businesses to end users, and include both in-store and online sales. Products can be either durable (with a long expected shelf life) or perishable (such as groceries). Consumer goods include things like food, clothing, and furniture.

The retail industry is expanding. Total retail sales (including motor vehicle and parts sealers) from the United States 1 million retail establishments surpassed $5 trillion in 2017. The retail industry in the United States directly employs approximately 29 million people and supports over 42 million jobs.

Therefore, option C is correct.

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Determine the price in period 1 (the future) if 30 units of oil are consumed in period 0 (the present).

Answers

Answer:

$16.50

Explanation:

Note: The complete question is attached as picture below

We know that there is a total of 90 units of oil and 30 units is consumed in period 0.

So, in period 1, the consumption amount will be = 90-30=60 units.

So, Q1 = 192 - 8P

For 60 units, the price will be 60 = 192 - 8P

8P = 192 - 60

8P = 132

P = 132 / 8

P = 16.5

So, the price in period 1 is $16.50

Why do company manager-owners smile when they ring the stock exchange bell at their ipo?A. An IPO's price goes up on the first day, generating guaranteed returns for investors. B. Manager-owners are freed of the burden of managing their company. C. An IPO reveals the value of the manager-owners' stake. D. Manager-owners receive their first stake in the company at an IPO.

Answers

Answer:

The correct option is C. An IPO reveals the value of the manager-owners' stake

Explanation:

The reason company manager-owners smile whenever they ring the stock exchange bell at their ipo which full meaning is INITIAL PUBLIC OFFERING is that it will show them the value of their owners stake which is the percentage of the value of the stock the manager own .

A small co ffee company roasts coff ee beans in its shop. The unroasted beans cost the com- pany 200 cents per pound. The MARGINAL cost of roasting coff ee beans is 150 - 10q + q^2 cents per pound when q pounds are roasted. The smell of roasting beans imposes costs on the company's neighbors. The total amount that neighbors would be willing to pay to have the shop stop roasting altogether is 5q^2; where q is the number of pounds being roasted. The company sells its output in a competitive market at 450 cents per pound. What is the socially efficient amount of co ffee for the company to roast?

Answers

Answer:

q = 10 pounds = socially efficient amount of coffee for the company to roast.

Explanation:

Data Given:

Cost of Unroasted beans = 200 cents/pound.

Marginal Cost of roasting coffee beans = [tex]q^{2}[/tex]-10[tex]q^{}[/tex] + 150

Cost neighbors willing to pay to stop shop operations = 5[tex]q^{2}[/tex]

Output selling price = 450 cents/pound

Required:

Amount of coffee to roast = ?

Solution:

As we know from the problem statement that it costs the company 200 cents/pound for the procurement of raw beans which are here termed as unroasted beans. Let's say it is the marginal cost of procuring.

Moreover, we know that marginal cost of roasted beans = [tex]q^{2}[/tex]-10[tex]q^{}[/tex] + 150.

which is in the form of quadratic equation and will be solved for q to know the required answer.

Let's suppose X = marginal cost of unroasted beans.

Y = marginal cost of roasted beans.

MPC = Marginal Private cost

In order to calculate the marginal private cost, we need to add X+Y.

MPC = 200 + [tex]q^{2}[/tex]-10[tex]q^{}[/tex] + 150

MPC = [tex]q^{2}[/tex]-10[tex]q^{}[/tex] + 350

Now,

The total social cost which the neighbors are willing to pay = 5[tex]q^{2}[/tex]

In order to calculate marginal social cost, we need to differentiate the above equation.

MSC = d/dq5[tex]q^{2}[/tex] = 10q

Finally,

Marginal Benefit = 450 cents/pound

For socially efficient amount = q =

MPC + MSC = Marginal Benefit

[tex]q^{2}[/tex]-10[tex]q^{}[/tex] + 350 + 10[tex]q^{}[/tex] = 450

[tex]q^{2}[/tex]-10[tex]q^{}[/tex] + 10[tex]q^{}[/tex] = 450-350

Solving for q,

[tex]q^{2}[/tex] = 100

taking square root on both sides,

q = +/-10.

Hence,

q = 10 pounds = socially efficient amount of coffee for the company to roast.

A task has an optimistic completion time of 4 days, a most likely time of 10 days, and a pessimistic time of 13 days. The expected task duration is:

Answers

Answer: 9.5 days

Explanation:

The following can be deduced from the question:

Optimistic Time (To) = 4 days

Most likely Time (Tm) = 10 days

Pessimistic Time (Tp) = 13 days

Expected Task Duration (Te) will then be calculated as:

= (To + 4Tm + Tp) / 6

= (4 + 4×10 + 13) / 6

= (4 + 40 + 13)/6

= 57 / 6

= 9.5 days

Segment management is best suited for: _____________

a. small-to-medium businesses
b. large businesses
c. businesses who already identify customers individually and differentiate them by value
d. businesses who do not yet identify or differentiate their customers individually
e. a, b, and c
f. a, b, and d

Answers

Answer:

Segment management is best suited for: _____________

d. businesses who do not yet identify or differentiate their customers individually

Explanation:

Segment management is aimed at grouping customers according to their individual characteristics and value so that maximum benefits can be derived by the customers and the profitability of the company will be impacted positively in the long-term.  A business that can identify customers individually and differentiate them by value is already doing segment management.  It is the business that does not yet identify or differentiate their customers that should embrace segment management.

A firm is considering whether to finance a new project with debt or equity. Will the choice of financing affect the WACC the firm uses to discount the project?

Answers

Answer:

Yes. The resulting WACC after the finance choice will be affect investment evaluation and hence discount of the project.

Explanation:

The Weighted Average Cost of Capital or WACC is the return that is required by the providers of long term sources of finance.

WACC is used to evaluated Capital Investment Projects against their Return. A project will be accepted if it gives a return greater than the WACC (Cost of Capital).

So the finance used on the project will greatly alter the existing WACC and the resulting WACC will later be used to evaluate the Investment or Project. This will as well affect discount of the cash flow from the project.

At her death Serena owned real estate worth $210,000 with her spouse in joint tenancy with the right of survivorship. Serena contributed $50,000 to the original cost of the property and her spouse contributed the remaining $100,000. What amount, if any, is included in Serena's gross estate?

Answers

Answer: $105000

Explanation:

From the question, we are informed that Serena owned real estate worth $210,000 with her spouse in joint tenancy with the right of survivorship when she died and that she contributed $50,000 to the original cost of the property and her spouse contributed the remaining $100,000.

The amount, that will be included in Serena's gross estate will be:

= $210,000 × 50%

= $210000 × 0.5

= $105,000

It should be noted that only 50% will be included since she owes the property with her spouse in joint tenancy.

You want to send your alumni association $17 per month for a swimming scholarship. If your deposit earns 3.0% annual interest, compounded monthly, how much should be deposited one time?

Answers

Answer:

The amount to be deposited one time is $6,800.

Explanation:

This can be calculated using the following formula:

M = D * r ..................... (1)

M = Monthly amount to be sending to the alumni association = $17

D = Amount to be deposited one time = ?

r = Monthly interest rate = Annual interest rate / 12 = 3.0% / 12 = 0.03 / 12 = 0.0025

Substituting the values into equation (1) and solve for D, we have:

$17 = D * 0.0025

D = $17 / 0.0025

D = $6,800

Therefore, the amount to be deposited one time is $6,800.

Typically, the average tax rate for a person is ________ his or her marginal tax rate, because the marginal tax rate applies to ________.

Answers

Answer:

1. below;

2. the last dollars taxed but not to all income

Explanation:

Given that the average tax rate for individuals is the percentage of income that individuals pay in taxes. While the marginal tax rate applies to a certain part of taxable income, which is usually the last dollar of the income

Hence, Typically, the average tax rate for a person is BELOW his or her marginal tax rate, because the marginal tax rate applies to THE LAST DOLLARS TAXED BUT NOT TO ALL INCOME.

Given the following information, calculate the debt yield ratio on the following commercial property: estimated net operating income in the first year: $2,500,000; debt service in the first year: $960,000; loan amount: $20,000,000; purchase price: $27,300,000.

Answers

Answer:

12.5%

Explanation:

Debt yield ratio = Net operating income / Loan amount

Debt yield ratio = $2,500,000 / $20,000,000

Debt yield ratio = 0.125

Debt yield ratio = 12.5%

Thus, the debt yield ratio on the commercial property is 12.5%

To record estimated uncollectible accounts using the allowance method, the adjusting entry would be a

Answers

Answer:

Bad debt expense

      To Allowance for doubtful accounts

(Being the bad debt expense is recorded)

Explanation:

The adjusting entry using the allowance method for recording the predicted uncollectible account is as follows:

Bad debt expense

      To Allowance for doubtful accounts

(Being the bad debt expense is recorded)

Here the bad debt expense is debited as it increased the expenses and credited the allowance for doubtful account as it decreased the assets

Therefore the above represent the bad debt expense

DVC stock has a required return of 25%. The expected market return is 15% and the risk-free rate is 5%. What is the beta of the DVC stock

Answers

Answer:

2

Explanation:

As per CAPM, Required Return = Risk Free rate + (Market Return - Risk Free Rate ) * Beta

25% = 5% + (15%-5%)*Beta

25% = 5%+10%*Beta

25% - 5% = 10%*Beta

Beta = (25%-5%)/10%

Beta = 20% / 10%

Beta = 2

Thus, the beta of the DVC stock is 2

why are education and training important for employment?​

Answers

Answer:

Education and training are important tools for informing workers and managers about workplace hazards and controls so they can work more safely and be more productive.

Education and training are pivotal to ensuring that employees possess the knowledge necessary to effectively carry out their job duties. Because employers know of this importance, they often seek candidates who are educated, and plan training to ensure that their workers remain up-to-date

It helps you do certain skills needed for the employment

Sheridan Company produces flash drives for computers, which it sells for $12 each. Each flash drive costs $9 of variable costs to make. During April, 1000 drives were sold. Fixed costs for April were $1000. How much is the contribution margin ratio

Answers

Answer:

12%

Explanation:

Contribution margin ratio is calculated as

= Contribution margin / Sales

Sales [ $12 each × 1,000 drives sold] $12,000

Less Variable costs [$9 each x 1,000 drives sold]

($9,000)

Contribution margin

$3,000

Less Fixed costs

($1,000)

Operating profit

$1,000

Recall that contribution margin ratio

= [ Contribution margin / Sales] × 100

= [ $3,000 / $12,000 ] × 100

= 12%

Therefore, contribution margin ratio is 12%

Rabid Manufacturing Company has the following data:
Direct labor $145,000
Direct materials used 151,000
Total manufacturing overhead 208,000
Beginning work in process 26,000
Compute total manufacturing costs.
Total manufacturing costs $_________
Compute total cost of work in process.
Total cost of work in process $__________

Answers

Answer:

Total manufacturing costs $504,000

Total cost of work in process $530,000

Explanation:

Calculation for Total manufacturing costs

Direct labor $145,000

Direct materials used 151,000

Total manufacturing overhead 208,000

Total manufacturing costs $504,000

Calculation for Total cost of work in process

Direct labor $145,000

Direct materials used 151,000

Total manufacturing overhead 208,000

Beginning work in process 26,000

Total cost of work in process $530,000

Therefore Total manufacturing costs is $504,000 and Total cost of work in process is $530,000

Mark this question Brian discussing the financial position of his company with Mike, who is interested in acquiring Brian's company, is an example of which of the following? A. Managerial accounting B. Investment accounting C. Financial accounting D. External accounting

Answers

Answer:

B. Investment accounting

Explanation:

Investment accounting focuses on the management of assets of the business. this also includes valuations when considering a sell, a merger or acquisition of the business.

In this question, Mark wants to acquire Brian's company so he is making an investment decision.

The given situation represent the Financial Accounting

The following information should be considered;

Financial accounting means the process of identifying, classifying, recording, summarizing, analyzing & reporting the financial information of an entity to all the stakeholders of the company.So, in the given situation, it is the financial accounting example.

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What are the global implications for the product or service you are marketing? What are the global implications of your marketing strategy and recommendations? “Rockstar video games”

Answers

Answer:

The global implications for the product or service you are marketing is explained below in complete details.

Explanation:

The principal involvement of a marketing maneuvering is the familiarization approaching gathering customer requirements that appears in enhanced customer fulfillment and satisfaction. ... Such a marketing maneuvering is intended to achieve and to grow new customers as you develop a more agreeable character.

Eric is a proponent of the Michigan Studies on leadership. He is very attentive to the needs of his employees and helps them build successful work teams. Eric is displaying​ _____-centered behavior.

Answers

Answer:

employee

Explanation:

The Michigan Studies on leadership was a study done on leadership in the 1950s at the  University of Michigan.

The Michigan Studies on leadership identified two types of leadership behaviour. They are :

1. Employee Centred behaviour : focuses on the employee and their needs.

2. The production centred behaviour : focuses on the production process and views employees as a means to achieve production.

Research shows that the employee centred behaviour is the most effective leadership style

Skysong, Inc. had net credit sales during the year of $1090600 and cost of goods sold of $604000. The balance in accounts receivable at the beginning of the year was $114000 and at the end of the year was $152000. What was the accounts receivable turnover?
A. 10.20
B. 5.00
C. 8.20
D. 6.90

Answers

Answer:

8.2 times

Explanation:

The first step is to calculate the average receivable

= $114,000+$152,000/2

= $266,000/2

= $133,000

Therefore the accounts receivables turn over can be calculated as follows

= net sales / average receivable

= $1,090,000/$133,000

= 8.2 times

Hence the account receivable turnover is 8.2 times

I found this off the internet: Government security agencies like the NSA can also have access to your devices through built-in back doors. This means that these security agencies can tune in to your phone calls, read your messages, capture pictures of you, stream videos of you, read your emails, steal your files … whenever they please

Answers

Answer:

Well isn't that just great. Well my family is crazy and there is always something going on. I bet we must be pretty fun to watch. XD. I can't imagine what the government thinks about my fam. And we are always joking about murder and stuff. I am prolly on some watch list for the crazy people.

Explanation:

My fam is just a bunch of funny crazy people.

OneChicago has just introduced a single-stock futures contract on Brandex stock, a company that currently pays no dividends. Each contract calls for delivery of 1,000 shares of stock in 1 year. The T-bill rate is 6% per year. a. If Brandex stock now sells at $120 per share, what should the futures price be

Answers

Answer: $127.20

Explanation:

Based on the scenario in the question, if Brandex stock now sells at $120 per share, the futures price would be:

T-bil rate = 6%

Stock Price = $120

Future price = $120 × (1 + 6%)

= $120 × (1 + 0.06)

= $120 × 1.06

= $127.20

One unusual feature of the UCC is the so-called "battle of forms" concept, under which additional terms from the forms used by the merchants involved become part of their contract unless there is an objection on a timely basis. Read the attached opinion in J.W.S. Delavau, Inc. v. Eastern America Transport & Warehousing, Inc., which is from a Philadelphia case. What is your view of the decision that was reached by the court?

Answers

Answer:

The decision reached by the court was valid, in my view.  Since the parties, Delavau, Inc. and Eastern Warehousing, Inc. had a valid contract in which they set out their understanding and agreement on the terms of their business relationship, the parties should follow the contract terms without distractions from pre-printed Form terms.

Having a formal contract is the only way to avoid the battle of forms.

Explanation:

The conflict involved a battle of conflicting forms.  This battle of conflicting form, with different contract terms, occurred when Delavau, Inc. and Eastern Warehousing, Inc. exchanged contract terms, with Eastern's own small print terms on the reverse side its own receipts, which it wanted Delavau to comply with.  That the court held that Delavau was not bound by Eastern's form terms was valid because their contract agreement specified the terms of their relationship, which cannot be negated by the form terms.

A seller can create value in a customer relationship by nurturing the customer's trust and developing it into____.

Answers

Answer:

Loyalty.

Explanation:

This is seen in different forms in a human being. In an organisational or marketing setting, it is seen to be dicey and do not come by easily; as the quality of the commodity play also key role in getting a customer's loyalty. Such customers are seen to have good raport as good interaction principles and techniques have been used in getting a marketing approach that seem to have made them happy. This form of relationship can be seen to go beyond buying and selling as the customer can be seen to shower or receive other forms of kindness in the process.

If the dividend yield for year 1 is expected to be 5% based on a stock price of $25, what will the year 4 dividend be if dividends grow annually at a constant rate of 6%

Answers

Answer:

$1.33

Explanation:

Calculation for what will the year 4 dividend be

Using this formula

Year 4 dividend=[(Expected dividend yield×Stock price)×(1+Constant rate )]

Let plug in the formula

Year 4 dividend = [(.05 × $25) × (1+0.06)]

Year 4 dividend=(.05 × $25) × 1.06

Year 4 dividend=1.25×1.06

Year 4 dividend= $1.33

Therefore what will the year 4 dividend be if dividends grow annually at a constant rate of 6% is $1.33

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