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2 years ago

For the current year, Klay Corporation reports the following information:

Business

2 answers:

DerKrebs [107]2 years ago

7 0

Answer:

The company’s cash flows from operating activities was a cash inflow of $5,000

Explanation:

Cash at the end of the year = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities + Net cash inflows from operating activities

Therefore,

Net cash inflows from operating activities = Cash at the beginning of the year + Net cash inflows from investing activities + Net cash inflows from financing activities - Cash at the end of the year = $340,000 + $40,000 + $45,000 - $420,000 = $5,000 >0

The company’s cash flows from operating activities was a cash inflow of $5,000

Doss [256]2 years ago

4 0

Answer:

A cash outflow of $5,000

Explanation:

the sum of cash flows from the operating, investing and financing activities must equal the net change in cash during the period

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Bruce & Co. expects its EBIT to be $165,000 every year forever. The company currently has no debt but can borrow at 8.6 perc

zmey [24]

Answer:

14.33%

Explanation:

WACC is the average cost of capital of the firm based on the weightage of the debt and weightage of the equity multiplied to their respective costs.

According to WACC formula

WACC = ( Cost of equity x Weightage of equity ) + ( Cost of debt ( 1- t) x Weightage of debt )

First Calculate the Weightage

Market Value of Shares = EBIT / cost of equity = $165,000 / 14.7% = $1,122,449

Value of Debt = $55,000

Total = $1,122,449 + $55,000 = $1,177,449

Weightage

Equity = $1,122,449 / $1,177,449 = 0.9533

Debt = 0.0467

Placing values in the WACC formula

WACC = ( 14.7% x 0.9533 ) + ( 8.6% ( 1 - 0.21 ) x 0.0467 )

WACC = 14.01% + 0.32% = 14.33%

6 0

2 years ago

Assume the current Treasury yield curve shows that the spot rates for six months, one year, and one and a half years are 1 %1%

Ludmilka [50]

Answer:

present value of bond = $1042.96

Explanation:

given data

spot rates for six months = 1%

spot rates for one and = 1.1%

spot rates for one and half years = 1.3%

price = $1000

coupon bond = 4.25%

time = 6 month

solution

we get here first price on bond paid that is

coupon paid = $1000 × 4.25 × 0.5 = $21.25

we get here present value of 6 month and 1 year and 1 and half year

present value = $\frac{coupon\ payment }{(1+\frac{spot \ rate}{2})^t}$ ..............1

present value of 6 month = $\frac{21.25}{(1+\frac{0.1}{2})^1}$ = 20.23

present value of 1 year = $\frac{21.25}{(1+\frac{0.011}{2})^2}$ = 21.01

present value of 1 year and half year = $\frac{21.25}{(1+\frac{0.013}{2})^2}$ = 20.97

and

now we get present value of par value in 1 and half year

present value of par value in 1 and half year = $\frac{par\ value}{(1+\frac{spot rate}{2})^3}$

present value of par value in 1 and half year = $\frac{1000}{(1+\frac{0.013}{2})^3}$

present value of par value in 1 and half year = 980.75

present value of bond will be as

present value of bond = 20.23 + 21.01 + 20.97 + 980.75

present value of bond = $1042.96

5 0

2 years ago

The management team for Volcanic Batteries came up with the following vision statement: "VolcanicBatteries will conscientiously

Pepsi [2]

Answer:

c. triple-bottom-line approach

Explanation:

The triple-bottom-line approach is a framework with 3 parts: financial, social, and environment. Performance evaluation is more than just financial, it also incorporates social and environmental impacts of the business.

Volcanic batterie's vision statement has represented these 3 bottom lines

Financial- VolcanicBatteries will conscientiously track its financial performance to ensure profits for its investors

Social- enhance its community through employment and supporting charities

Environmental- and dispose of waste in amanner that will not harm the environment

6 0

2 years ago

Janice is unsure about her future career path. She has grown up on her family farm, but she is also interested in medicine. Jani

vredina [299]

Answer:

D. not joining FFA and joining HOSA instead

Explanation:

7 0

2 years ago

Read 2 more answers

Identify the sales promotion technique based on the given scenario. Tara’s company has launched a new perfume. The company recen

Anestetic [448]

Loyalty Points From the Customers.

Explanation:

The company is trying to have loyalty points by reducing the gap between the customer and the organisation.

1. Since Tara's company has received bad publicity they are trying to improve as through various sales promotion techniques the customers perception towards the company and its product would change.

2. This would have a win-win situation at both the end. The Business would create not only monitory profits by also have loyal customers that are satisfies at the other end.

3 0

2 years ago