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Hunter-Best [27]
2 years ago
14

Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's in

ability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down. The reason given was the belief that this it was morally wrong to deprive the majority of the people of this experience. What type of ethical philosophy is represented in this case? Give an additional example of this type of ethical philosophy.
Business
1 answer:
mamaluj [8]2 years ago
8 0

Answer: Utilitarianism

Explanation:

Utilitarianism can he defined a moral theory that supports actions that boost overall pleasure or happiness and rebuff actions that lead to harm or unhappiness. A utilitarian philosophy aims to make the society a better place.

The maxim of utilitarianism is that a considerable amount of good should go to a considerable amount of people. Utilitarianism seeks to maximize well-being and happiness. Mama Diner's restaurant was closed because the principle of utilitarianism was not followed because handicapped students couldn't make use of bathroom stalls.

For example, if there is a new disease that kills people instantly when the affected person coughs around other people, the government might be forced to kill the person in order to save others.

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The accountant for the firm owned by Randy Guttery prepares financial statements at the end of each month. The following transac
Zina [86]

Answer:

See Explanation section

Explanation:

For T-Accounts, Match the color to see the transactions easily.

For others, the following images are the original answers.

6 0
2 years ago
Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for the
klemol [59]

Answer:

As the WACC is more than 7.5%, option D is the correct answer.

Explanation:

The weighted average cost of capital or WACC is the cost of a firm's capital structure. To calculate the WACC, we multiply the weight of each component of the capital structure by the cost of that component. The components of capital structure can be one or all of the following namely debt, preferred stock and common stock.

The formula for WACC is,

WACC = wD * rD * (1-tax rate)  +  wP * rP  +  wE * rE

Where,

  • w represents the weight of each component
  • r represents the cost of each component
  • D, P and E represents debt, preferred stock and common stock respectively

First we need to determine the cost of debt and equity for this firm.

We use the market value of debt and thus, rate for the calculation of WACC.

The cost of debt will be its yield to maturity as it is the current rate or cost. Thus, rD will be 6%.

The cost of equity can be determined using the constant growth model of DDM 's formula for prcie today.

P0 = D0 * (1+g) / (r - g)

80 = 5 * (1+0.05) / (r - 0.05)

80 * (r - 0.05) = 5.25

80r - 4 = 5.25

80r = 5.25 + 4

r = 9.25 / 80

r = 0.115625 or 11.5625%

WACC = 0.5 * 0.06 * (1-0.3)  +  0.5 * 0.115625

WACC = 0.0788125 or 7.88125%

As the WACC is more than 7.5%, option D is the correct answer.

8 0
2 years ago
Read 2 more answers
If a company adopts an accounts receivable factoring program, and accounts for the factoring as a sale of receivables, which of
horsena [70]

Answer:C. cash flow from operations may increase

Explanation:

A factoring system is one in which a firm sell his right to receive payments on it's receivable to a firm referred to as the factor as a discount in which the amount of discount represents the factor fees for taking up the risk.

The factor may be with or without recourse to the firm selling the receivable.

It's mostly entered into to reduce payment defaults and increase inflow of cash for operations.

The factor company does not need to be a consolidated company,it usually reduce the receivable and does not require a change in accounting principles.

4 0
2 years ago
Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths also provides installation service
olga2289 [7]

Solution:

The journal entries for Geraths in 2020

July 1st                                           Cr                 Dr

                                                No entry         No entry

September 1st                              Cr                       Dr

Cash                                                                     2000                    

Accounts receivable                                             400

Cost of goods sold                                                 1100

Inventory                                      1100

Unearned service revenue          554

Sales Revenue                             1846

October 15th                                   Cr                       Dr

Cash                                                                         400

Unearned service revenue                                     554

Service revenue                             554

Accounts receivable                      400

7 0
2 years ago
Kathy is a financial analyst in BTR Warehousing’s. As part of her analysis of the annual distribution policy and its impact on t
olya-2409 [2.1K]

Answer and Explanation:

The computation is shown below.

1. Value of the firm operations is

= Free Cash Flow × (1 + Growth Rate) ÷ (WACC - Growth Rate)

= $87 million  × (1 + 8%) ÷ (13% - 8%)

= $1,879.20

This is the answer but the same is not provided in the given options

2.  The intrinsic value of equity immediately prior to stock repurchase is

= Value of Firm's Operations + Value of Non Operating Assets - Value of Debt - Value of Preferred Stock

= $1,879.20 + $120 - $232 - $145

= $1,622.20

This is the answer but the same is not provided in the given options

3.  The intrinsic stock price immediately prior to stock repurchase is

= Intrinsic Value of Equity Prior to Stock Repurchase ÷ Number of Outstanding Shares

= ($1,622.20) ÷ (21.75 million shares)

= $74.58

This is the answer but the same is not provided in the given options

4. The number of shares repurchased is

= Cash Used for Repurchase ÷ Intrinsic stock price

= $120  ÷ $74.58

= 1.61

This is the answer but the same is not provided in the given options

5. The intrinsic value of equity immediately after stock repurchase is

 = Value of Firm's Operations - Value of Debt - Value of Preferred Stock

= $1,879.20 - $232 - $145

= $1,502.20

This is the answer but the same is not provided in the given options

6. The intrinsic stock price immediately after stock repurchase is

= Intrinsic Value of Equity After Stock Repurchase ÷ Number of Outstanding Shares after Repurchase

= ($1,502.20)  ÷ (21.75 million shares - 1.61 million shares)

= $74.59

This is the answer but the same is not provided in the given options

This statement is false because if the stock price changes after a firm conducts its share repurchase, then there are arbitrage opportunities. Thus, the price of the stock remains the same after a repurchase

6 0
2 years ago
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