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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.

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The following changes took place last year in Pavolik Companyâ€™s balance sheet accounts:

irinina [24]

Answer:

1. $260

2. $103

Explanation:

1. Calculation to determine the net cash provided by operating activities for the year

PAVOLIK COMPANY

STATEMENT OF CASH FLOWS PARTIAL (USING INDIRECT METHOD)

FOR THE YEAR ENDED

Particulars Amount

Cash flow from operating activities

Net Income $100

Adjustments to reconcile net income to net cash provided by operating activities

Adjustment for non cash effects

Depreciation $82

Loss on sale of land $21

Gain on sale of investments -$25

Change in operating assets & liabilities

Increase in accounts receivable -$24

Decrease in inventory $58

Increase in prepaid expenses -$19

Increase in accounts payable $62

Decrease in accrued liabilities -$24

Increase in income taxes payable $29

Net cash flow from operating activities (a) $260

Therefore Using the indirect method the net cash provided by operating activities for the year is $260

2. Preparation of a statement of cash flows for the year

PAVOLIK COMPANY

STATEMENT OF CASH FLOWS (USING INDIRECT METHOD)

FOR THE YEAR ENDED

Particulars Amount

Cash flow from operating activities (a) $260

Cash Flow from Investing activities

Property,plant and equipment purchased -$395

Long term investment sold $46

Land sold $24

Net cash Flow from Investing activities (b) -$325

(-$395+$46+$24)

Cash Flow from Financing activities

Cash dividends paid -$18

Common stock purchased -$96

Bonds issued $204

Net cash Flow from Financing activities (c) $90

(+$204-$18-$96)

Net Change in cash c=a+b+c -$25

Beginning cash balance $128

Closing cash balance $103

($128-$25)

Therefore the statement of cash flows for the year is $103

4 0

2 years ago

Why do communities resist programs to educate the public about hurricane hazards? they don't believe they have a hurricane probl

laila [671]

Communities resist programs to educate the public about hurricane hazards because they don't believe they have a hurricane problem; it hasn't happened as long as they can remember.

3 0

2 years ago

How does Wanda's strategy of being a high-quality provider take advantage of the shifts in consumer demand for healthy dog treat

Katen [24]

Answer:

In the description section underneath the overview per the particular context is illustrated.

Explanation:

Wanda's philosophy about becoming a distributer of enhance performance resulted in increased market demand due to consumer perception that her goods are stronger and therefore more advantageous.
This contributes to consumption growth, moving the consumer surplus towards Wanda's goods to the right, contributing towards increased costs.
One more scenario maybe though in the immediate future, her Wanda commodities demonstrate no positive effects, resulting throughout a decline in terms of trade.

Throughout this situation, Wanda might answer by genuinely changing the productivity of the latter's goods including displaying a certain clinical significance to obtain a competitive advantage for customers.

7 0

2 years ago

What is the correct strategy that Alejandra must use to deliver a negative message?

Serga [27]

Answer:

Apologize and come up with a new plan. Of course, you need to apologize, if you don't then that becomes a problem. (especially if they are a Karen.) After apologizing start to explain what you are going to do about it. For Example Refunds, Store Credit, Replacement, Etc. To start off. Then fix the problem. Also, tell them that you are going to do so and so to fix it. Like creating anew toy or whatnot. Hope this helps!

6 0

2 years ago

Ross has taken a new job at a restaurant. he is now in charge of the lunch shift. he helps determine the menu, works on marketi

umka21 [38]

The best option to choose is the Chief Chef or the Executive Chef. This type of chef is the one who is in charge of <span>the decision-making. He is the leader of the kitchen brigade. </span>

6 0

2 years ago