All categories

2 years ago

Superb Ltd. Is a well diversified company engaged in development of real estate, tourism and

Business

1 answer:

Fittoniya [83]2 years ago

8 0

Answer:

Since the company's debt level is very low, then it should probably issue new debt. The advantage of issuing debt is that debt is always cheaper than equity. E.g. the company issues a bond with a 10% coupon rate and the corporate tax rate is 30%. The after tax cost of debt = 10% x (1 - 30%) = 7%.

Issuing bonds with a 10% coupon rate is not something impossible, and actually the interest rate is pretty high. Some companies issue bonds at 4 or 5%. But to raise new capital offering a return on equity of 7% or less is extremely odd and difficult. Generally, the cost of equity of normal corporations tends to be about twice as higher as the cost of debt.

You might be interested in

Stickley furniture

solniwko [45]

Answer:

1. Repetitive and continuous

2. Call

3. How, what, and when

4. Material problem

Explanation:

The work of Stickley furniture is described as repetitive and continuous. This is because, the company will continue to be producing the same kind of furniture continuous, This will be so because, furniture have a limited number of make. For example, furniture are chairs, tables, cabinet, stool and shelf. These things will be continually produced by the company.

The company will be able to keep track of job status and location through call.

Meanwhile, when the company received an order. The questions they will ask are, what type of furniture they want? When they want it?, How they want it delivered, is it in batches? Where they want it delivered?

7 0

2 years ago

In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in ca

Sloan [31]

Answer:

Accounting Break-Even

Case 1 = $14,350 Case 2 = $8,485.71 Case 3 = $214.375

Cash Break-Even

Case 1 = $11,766.67 Case 2 = $1342.86 Case 3 = $168.75

Explanation:

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

Accounting Break-Even = (Fixed Cost + Depreciation Cost) ÷ (Price Unit -Variable Unit)

Case 1 - ($7,060,000 + $1,550,000) ÷ ($3075 - $2,475)

= $8,610,000 ÷ $600

= $14,350

Case 2 - ( $47,000 + $250,000) ÷ ($96 - $61)

= $297,000 ÷ 35 = $8,485.71

Case 3 - ($2,700 + $730) ÷ ($21 - $5)

= $3,430 ÷ $16 = $214.375

Cash Break Even = Fixed Cost ÷ (Price Unit - Variable Unit)

Case 1 - $7,060,000 ÷ ($3075 - $2,475)

= $7,060,000 ÷ $600

= $11,766.67

Case 2 - $47,000 ÷ ($96 - $61)

= $47,000 ÷ $35 = $1342.86

Case 3 - $2,700 ÷ ($21 - $5)

= $2,700 ÷ $16 = $168.75

6 0

1 year ago

Nola and Charles both own party planning firms in the small town of Trident, IA. Because they are the only party planners in tow

Sonbull [250]

Answer:

Nola and Charles Collusion at Trident, IA.

Helping or Impeding Scenarios:

Helping Scenarios:

4. Nola and Charles are regulars at the same coffee house. They talk regularly

5. Charles and Nola both charge a fixed per person price for a party

Impeding Scenarios:

1. Charles develops a signature appetizer that becomes the must have in Trident

2. A party planning school opens and the new graduates are ready to plan!

3. Nola lowers her price on national television

6. Nola's marginal cost is lower than Charles's.

7. Most of the parties are given by Trident's largest employer, a water bottling plant.

Explanation:

Nola and Charles can only enter a collusion agreement secretly because it is illegal. Since the agreement is secret, it is not enforceable in the court of law. The tendency for Nola and Charles to be entangled in the prisoner's dilemma is very high. It is also not possible for them to protect their collusion for very long because they have different cost bases and core competencies that derail collusion on a sustainable large scale. Graduates of party organization and other market participants, including the large firm that hosts most of the parties in the area will end the collusion before long.

4 0

2 years ago

The manager of the only bowling alley in town wants to know how often the average person in his town goes bowling. He leaves a q

nalin [4]

Answer:

<h2>In this case,the survey method or the questionnaire method employed by the bowling alley manager can be an effective method of data collection through a reasonably considerably sample size and composition.</h2>

Explanation:

In statistical data collection process,the questionnaire method is considered to be one of the most suitable and preferred methods or techniques of data collection considering various types of research topics.
The questionnaire method of data collection can save considerable amount of time and effort and financial to reach and cover the actual target population of the concerned research as the researcher can just distribute the questionnaire copies randomly to various people within the target population of research or study thereby, avoiding the hassle of personally approaching people and getting responses.
Furthermore, questionnaire method can ensure coverage of relatively large sample size within less time period and without having to spend excessive financial and material resources. Hence, in this case, the manager of the bowling alley can simply put a questionnaire form at the entrance and request the members to fill it up at their own convenience and personal will.,which could save him the practical hassles of approaching each individual member for responses.

6 0

2 years ago

A marketing manager wants to build a strong relationship with the customers and to customize messages without high costs. He und

Colt1911 [192]

Answer:

Direct marketing and interactive marketing.

Explanation:

In a case of direct marketing here, they do research, identify customers, select media (TV, direct mail, internet), and create a campaign. But rather than guess whether the message worked, they track the consumer's response. How many people (and of what age, ethnic group, income level) called the number in the catalog, clicked the button on the website, or went to the store for their gift with purchase. This is because direct marketers can measure the results, they can make the next campaign even better.

While in the other hand, interactive marketing explained to be the fastest growing form of marketing where sellers do chats and explanations that comes off as convincing approach of their products to their buyers, this could be physically or online.

4 0

2 years ago