answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jek_recluse [69]
1 year ago
8

Compensate for the risk. Delay an action. Reject the risk. Transfer the risk. A squad needs to cross a narrow footbridge across

a windy, mountain chasm to execute a critical mission. The squad leader is concerned about the hazards and associated risk, so he raises the issue to the platoon commander. The platoon commander directs that each member of the squad become linked to a single rope that is anchored to a nearside belay. This directive is an example of which type of risk control
Business
1 answer:
finlep [7]1 year ago
7 0

Answer:

Compensate for the risk

Explanation:

In the context of the scenario given , risk is defined as a form of exposure to a potential dangerous situation.

It is necessary for any person organization facing a risky situation to look for ways of minimizing or avoiding the risk in order to reduce related losses. Risks can be avoided through transfer , rejection , delayed action and compensating the risk,

The method of risk aversion described in the scenario is to compensate the risk.

Compensating the risk is a risk control method of using an alternative means to achieve a particular purpose in order to avoid the related risks to using the initial method.

You might be interested in
A company is selling bonds with a face value of $1,000 to raise money for a plant expansion. The bonds pay a coupon rate of 4% p
Ksivusya [100]

Answer:

10.26%

Explanation:

According to the scenario, computation of the given data are as follow:-

Net sales = $760

Face value of bonds = $1,000

Coupon rate = 4% = $1,000 × 4 ÷ 100

= 40

N = Number of Years = 5 annually = semiannually = 5 × 2

= 10 years

We assume, interest rate = 10% = 0.10

P = Coupon Rate ÷ 2 × (PVIFA,Interest Rate ÷ 2%,No. of Years) + Future Value(PVIF,Interest Rate ÷ 2%, No. of Years)

=$40 ÷ 2 × [1 - 1 ÷ (1 + Interest Rate)N] ÷ Interest Rate + Future Value[1 ÷ (1 + Interest Rate) × N]

=$40 ÷ 2 × [1-1 ÷ (1 + 0.10 ÷ 2)^10] ÷ 0.05 + $1,000 × [1 ÷ (1 + 0.10 ÷ 2)^10]

=$20 × [1 - 1 ÷ (1.05)^10] ÷ 0.05 + $1,000 × [1 ÷ (1.05)^10]

=$20 × [1 -1 ÷ 1.6288946] ÷ 0.05 + $1,000 × [1 ÷ 1.6288946]

= 420 × 7.72173 + $1,000 × 0.613913

= $154.4346 + $613.913

= $768.3476

= $768.35

But the given value is 760, so we assume interest rate = 11%

=$40 ÷ 2 × [1-1 ÷ (1 + Interest Rate)^N] ÷ Interest Rate + Future Value[1 ÷ (1 + Interest Rate)^N]

= $40 ÷ 2 × [1 - 1 ÷(1 + 0.11 ÷ 2)^10] ÷ 0.055 + $1,000 × [1 ÷ (1 + 0.11 ÷ 2)^10]

= $20 × [1 - 1 ÷ (1.055)^10] ÷ 0.055 + $1,000 × [1 ÷ (1.055)^10]

= $20 × [1 - 1 ÷ 1.70814446] ÷ 0.055 + $1000 × [1 ÷ 1.70814446]

= $20 × 7.5376255 + $1,000 × 0.5854306

= $150.75 + $585.43

= $736.18

At the Interest rate of 10% the price is more than $760 and at the Interest rate of 1% the price is less than $760. So the required rate lies in between 10% to 11%.

So required rate  

Yield To Maturity = Lower Interest Rate + (Difference Between Interest Rate) × Higher Price - Received Price ÷ Higher Price - Lower Price

= 1 0+( 11 - 10) × $768.35 - $760 ÷ $768.35 - $736.18

= 10 + 1 × $8.35 ÷ $32.17

= 10 + 0.26

= 10.26%

7 0
1 year ago
Merck & Company reported the following from its 2016 financial statements. $ millions 2013 2014 2015 2016 Accounts receivabl
kherson [118]

Answer:

a. Compute accounts receivable gross for each year.

  • 2013 $7,330
  • 2014 $6,779
  • 2015 $6,649
  • 2016 $7,213

b. Determine the percentage of allowance to gross account receivables for each year.

  • 2013 1.99%
  • 2014 2.26%
  • 2015 2.48%
  • 2016 2.70%

c.                                                             2013         2014       2015      2016

adjusted allowance for                         $173         $160        $157      $170      

doubtful accounts

Balance sheet adjustments:

allowance for doubtful accounts          $27            $7          -$8       -$25

accounts receivable net                      $7,157     $6,633   $6,476   $6,993

deferred tax liability                            -$9.45      -$2.45      $2.8      $8.75

retained earnings                                 $9.45       $2.45     -$2.8     -$8.75

Income statement adjustments:

bad debt expense                                  $27            $7          -$8       -$25

income tax expense                            -$9.45      -$2.45      $2.8      $8.75  

net income                                            $9.45       $2.45     -$2.8     -$8.75

Explanation:

                                                                 2013         2014       2015      2016

Accounts receivable, net                       $7,184     $6,626   $6,484   $7,018

Allowance for doubtful accounts            $146        $153        $165      $195

four year average of allowance for doubtful accounts = (1.99 + 2.26 + 2.48 + 2.7) / 4 = 2.36%

8 0
2 years ago
Zimmer-centerpulse is the world's largest producer of replacement hips and knees for orthopedic surgery. they are particularly i
mylen [45]

The correct answer is Demography

Zimmer-Centerpulse is the world’s largest producer of replacement hips and knees for orthopedic surgery. It is particularly interested in marketing in the southwestern United States, where a large aging population lives.

The demography most directly explains its continued growth.

8 0
2 years ago
Rent Versus Buy. Alex Guadet of Nashville, Tennessee, has been renting a two-bedroom house for several years. He pays $900 per m
JulsSmile [24]

Answer:

Rent Versus Buy. Alex Guadet of Nashville, Tennessee

b. Computation of Interest payable by Alex during the first year of the loan:

Interest = Net Mortgage amount x rate of interest

= ($148,300 x 5%)

= $7,415

Explanation:

a) Data and Calculation:

Mortgage amount = $150,000

Principal Reduction         1,700

Net Mortgage          $148,300

b) Mortgage Interest is calculated as the Mortgage amount minus any reduction in the principal amount, multiplied by the interest rate.  The interest represents the cost of capital that Alex pays for taking a mortgage on the property.  For the bank, the interest represents the benefit for lending the mortgage loan to Alex.

8 0
2 years ago
Upton Umbrellas has a cost of equity of 11.6 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40 perc
matrenka [14]

Answer:

WACC = 9.86%

so correct option is d. 9.86%

Explanation:

given data

cost of equity = 11.6 percent

bonds = 6.2 percent

bonds sell = 103.2 percent

debt book value = $408,000

total assets book value= $952,000

market to book ratio = 2.74 times

to find out

what is the company's WACC

solution

we get here first Total book value of equity that is express as

Total book value of equity = Total assets book value - Total debt book value   .................1

Total book value of equity  = 952000 - 408000

Total book value of equity = $544000

and here market to book ratio  is

market to book ratio  = \frac{market\ value}{book\ value}

so market value of equity = (2.74 × 544000) = $1490560

and  

After tax cost of debt = 6.2 (1 - tax rate)

After tax cost of debt = 6.2 (1 - 0.4)

After tax cost of debt = 3.72%

and

Market value of Debt = 408000 × 103.2%  

Market value of Debt   = $421056

so

Total market value = $1490560 + $421056

Total market value is =$1911616

and  

WACC will be

WACC = Respective costs × Respective weights

WACC =  \frac{1490560}{1911616}11.6 + 3.72\frac{421056}{1911616}

WACC = 9.86%

so correct option is d. 9.86%

4 0
1 year ago
Other questions:
  • Ron is the it director at a medium-sized company and is constantly bombarded by requests from users who want to select customize
    6·1 answer
  • Cullumber Company has these comparative balance sheet data: CULLUMBER COMPANY Balance Sheets December 31 2017 2016 Cash $ 16,350
    11·1 answer
  • An on-premises workload consists of a single server with an Apache instance and a MySQL database. The Solutions Architect plans
    6·1 answer
  • A candy manufacturer is interested in the distribution of colors in each of its packages of candy sold. What should the research
    11·1 answer
  • Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 pe
    15·1 answer
  • CT Stores has debt with a book value of $325,000 and a market value of $319,000. The firm's equity has a book value of $526,000
    13·1 answer
  • The company has net sales revenue of $7.4 million during 2018. The company's records also included the following information: As
    8·2 answers
  • Tailoring movies slightly to appeal to different markets, such as editing Iron Man 3 for China, best reflects which kind of inte
    14·1 answer
  • On January 1, 2020, the Oriole Company had $2,990,000 of $10 par value common stock outstanding that was issued at par and Retai
    14·1 answer
  • Which of these is not a responsibility of homeownership?a) Being a courteous neighborb) Getting appraisals done annuallyc) Keepi
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!