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Shkiper50 [21]
2 years ago
15

Item 8Item 8 Rick’s Cafe is a new restaurant in town. It has Rick, (the owner), five waitstaff, two cooks, a busboy, and a hoste

ss. He is considering hiring a manager for the restaurant and asks for your thoughts. What advice would you give him?
Business
1 answer:
olga55 [171]2 years ago
4 0

Answer:

The cafe is small enough so a  middle manager is not required for maintenance as it can be maintained as a flat organization.

Explanation:

It has least number of employees. Hiring a middle manager will increase cost for the restaurant.

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Pearson Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity
Anuta_ua [19.1K]

Answer:

Cost of common equity is 16.49%

Explanation:

The WACC of weighted average cost of capital is the cost of a firm's capital structure. The capital structure of the firm can comprise of the following components namely debt, preferred stock and common stock.

For a firm which has only debt and equity, the WACC is calculated as follows,

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

Where,

  • w represents the weight of each component
  • r represents the cost of each component
  • we multiply the cost of debt (rD) by (1 - tax rate) to calculate the after tax cost of debt

Plugging in the values of the available components, we can calculate the cost of common equity to be,

0.1370 =  0.3 * 0.12 * (1 - 0.4)  +  0.7 * rE

0.1370 = 0.0216 + 0.7 * rE

0.1370 - 0.0216  = 0.7 * rE

0.1154 / 0.7  =  rE

rE = 0.164857  or  16.4857%    rounded off to 16.49%

4 0
2 years ago
For some reason, the seller of a home at 123 Mulberry Lane decided not to close on a sale transaction on closing day. The seller
Mumz [18]

Answer:

The buyer can sue for specific performance of the contract. In real estate, in order for the buyer to be able to sue for specific performance, he/she must have all the money (or mortgage) ready to finish the transaction. It is very difficult for someone to sue for damages for not wanting to complete the sale of a house because houses are unique in a way that similar houses in different neighborhoods or even streets might be worth a lot more or less.

When you sue for specific performance, the non-breaching party will request that the other party performs their side of the contract.

3 0
2 years ago
Thrifty Co. reported net income of $573,650 for its fiscal year ended January 31, 2020. At the beginning of that fiscal year, 10
Xelga [282]

Answer:

a. The basic earnings per share of common stock for year ended January 31, 2020 is $3.56 per share

b. If Thrifty Co.’s preferred stock were convertible into common stock, it would be required to calculate Dluted EPS.

Explanation:

a. In order to calculate the BEPS we would have to use the following formula:

BEPS = Net income available to common stockholders / Weighted Avg. no. of common stock

Net income available to common stockholders=$573,650

Weighted Avg. no. of common stock = 100,000 + (30,000 x 3/12)

Weighted Avg. no. of common stock = 107,500

BEPS = Net income available to common stockholders / Weighted Avg. no. of common stock

BEPS = $573,650 / 107,500

BEPS= $3.56 per share

b. If Thrifty Co.’s preferred stock were convertible into common stock, it would be required to calculate Dluted EPS.

5 0
2 years ago
Marin Products produces three products — DBB-1, DBB-2, and DBB-3 from a joint process. Each product may be sold at the split-off
sattari [20]

Answer:

  MARIN PRODUCTS

Selling after further processing

                                           DBB-1             DBB-2                 DBB-3

unit                                      16,000         24,000                36,000

Sales revenue after

processing                        $1,040,000    $1,200,000       $2,700,000

Joint Cost                          (757,895)          (1,136,842)        (1,705,263)

Separate processing cost  <u>(110,000)  </u>       <u>(44,000) </u>          <u> (66,000)</u>

Net Income                         <u> 172,105    </u>      <u> 10,158        </u>      <u>  928,737</u>

selling at slipt off point

                                           DBB-1             DBB-2                 DBB-3

unit                                      16,000         24,000                36,000

Sales revenue                  $400,000        840,000           1,980,000

Joint Cost                        <u>  (757,895) </u>        <u> (1,136,842)   </u>     <u>(1,705,263)</u>

Net Income                         <u> (357,895)    </u>      <u> (296,842)        </u>    <u> 274,737</u>

Decision : All products should be processed further in order to increase the profit of the company

Allocation of Joint Cost

Cost per unit = $3,600,000/76,000=  $47.37

DBB-1 =   $47.37*16,000 = $757,895

DBB-2 = $47.37*24,000 = $1,136,842

DBB-3 = $47.37*36,000 = $1,705,263

Explanation:

8 0
2 years ago
One bag of coffee beans is sold for $7 to a coffee shop that uses it to brew coffee which it sells to customers for a total of $
Alex787 [66]
The answer is"$24".

This is how we calculate this;
<span>One bag of coffee beans is sold for $7 to a coffee shop 
</span><span>which it sells to customers for a total of  = $15
</span><span>second bag of coffee beans is sold directly to joan for =  $9

</span><span>contribution to gdp from the purchases of coffee beans and coffee = 
$15 + $9 = $24


</span>Gross Domestic Product (GDP) is the broadest quantitative measure of a country's aggregate financial action. More particularly, GDP represents the money related estimation everything being equal and administrations created inside a country's geographic outskirts over a predetermined time frame.
6 0
2 years ago
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