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2 years ago

Question Six

Business

1 answer:

Gnom [1K]2 years ago

5 0

Answer:

90% confidence interval estimate of the mean depth of all the frame in the entire consignment is between a lower limit of 105.419 mm and an upper limit of 106.581 mm.

Explanation:

Confidence interval of mean is given as mean +/- margin of error (E)

mean = 106 mm

sample sd = 3.5mm

n is sample size = 100

degree of freedom = n-1 = 100-1 = 99

confidence level (C) = 90% = 0.9

significance level = 1 - C = 1 - 0.9 = 0.1 = 10%

critical value (t) corresponding to 99 degrees of freedom and 10% significance level is 1.6602

E = t × sample sd/√n = 1.6602×3.5/√100 = 0.581 mm

Lower limit of mean = mean - E = 106 - 0.581 = 105.419 mm

Upper limit of mean = mean + E = 106 + 0.581 = 106.581 mm

90% confidence interval is (105.419 mm, 106.581 mm)

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NBB's focus on sustainability, whimsy, and fun is clearly rooted in its Colorado-based culture and the ethos of its founders and

Assoli18 [71]

Answer:

To help expand New Belgium’s brand(NBB) image to consumers in different other parts of the country, NBB will have to link advertisements to the company’s social network pages. This would be the most efficient and effective way to stream advertisement to new countries, or different other parts of the country.

Explanation:

NBB carries a strength of knowing their brand. With an expansion making use of branding and communication strategies, they would have succeed in their goal of being a unique culture remaining committed to their initial mission of being a fun, socially, and environmentally responsible company. For the company to maintain its whimsical and personal touch with consumers, NBB should spring forth new ideas to communicate with consumers, this will keep the customers updated and make them interested in staying loyal to the company.

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2 years ago

A company’s stock is currently selling for 28.50. Its next dividend, payable one year from now, is expected to be 0.50 per share

melisa1 [442]

Answer: $22.22

Explanation:

We can use the dividend discount model to solve for this.

The formula is,

P = D1 / r - g

Where,

D1 = the next dividend

r = the expected return

g = the growth rate.

We do not have the expected return but we can calculate for it using the old stock price and growth rate. Making it x we have,

28.5 = 0.5 / x - 0.075

28.5 (x - 0.075) = 0.5

x = 0.5 / 28.5 + 0.075

x = 0.09254385964

x = 9.25 %

Now that we have the expected return we can calculate the new stock price with the new growth rate,

P = 0.5 / 9.25% - 7%

P = 22.2222222222

P = $22.22

The new stock price is $22.22

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2 years ago

Instead of trying to appeal to the entire marketplace, smart marketers and smart companies will try to find out ______.

tekilochka [14]

They will likely find out the customer’s liking and groups in which will serve best for their advantages of having to attract more consumers and to sell their products more. They will likely target this goal than to try appealing the market place because the customer will bring more advantages to the company or in field of business and market.

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2 years ago

Guido Properties owes First State Bank $60 million under a 7% note with two years remaining to maturity. Due to financial diffic

Mademuasel [1]

Answer:

Explanation:

The journal entries are shown below:

Notes payable A/c Dr $60,000,000

Interest payable A/c Dr $4,200,000

To Land A/c $32,000,000

To Gain on transfer of land $12,000,000

To gain on settlement of debt $20,200,000

(Being all transactions are recorded and the remaining balance is credited to the gain on settlement of debt)

The Gain on transfer of land is computed below:

= $44 million - $32 million

= $12 million

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2 years ago

LUVFINANCE, Inc. is estimating its WACC. It is operating at its optimal capital structure. Its outstanding bonds have a 12 perce

svetlana [45]

Solution :

Given :

The cost of the debt is yield to the maturity of the bonds.

The yield on the bond is 10%

The tax rate is 40%

After the tax cost of the debt = 10 ( 1- 0.4 )

= 6 %

Add floatation cost at the rate of 5% = 11%

Cost of the preferred stock = $\frac{\text{dividend}}{\text{price}}$

= $\frac{120}{12}$ = 10%

The cost of equity = risk free rate + β x market risk premium

= 3.72 + 0.94 x 6

= 9.36%

WACC is weighted average of the individual securities :

Particulars Value per No. of Market value Weight Cost of Product

security securities security

Bonds 1162 100,000 116,200,000 0.1578 11 1.73621298

Preferred 120 1,000,000 120,000,000 0.1629 10 1.6299918

stocks

Equity 100 5,000,000 500,000,000 0.6791 9.36 6.356968

736,200,000 1 WACC 9.7231730

Therefore, WACC of the firm is 9.72%

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1 year ago