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n200080 [17]
2 years ago
6

Pristine products, a wholesaler, uses a periodic inventory system. at year-end, pristine conducts a physical inventory count to

determine
Business
1 answer:
k0ka [10]2 years ago
6 0
<span>how much of their company's merchandise is being sold, how much of it has been damaged, how much has gone out of style or is out of season. Once the inventory is taken, Pristine products should be able to project how much product needs to be manufactured and sold going forward so that they do not work at a loss of profits.</span>
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Faris currently has a capital structure of 40 percent debt and 60 percent equity, but is considering a new product that will be
Gala2k [10]

Answer:

11.41%

Explanation:

Unlevered beta for new division:

= Levered beta ÷ [1 + (1 - tax) × D/E]

= 1.6 ÷ [1 + (1 - 40%) × (40 ÷ 60) ]

= 1.14

Beta for Faris's new division:

= Unlevered beta × [(1 + (1 - tax) × D/E]

= 1.14 × [1 + (1 - 40%) × (70 ÷ 30)]

= 2.74

Using CAPM,

Cost of equity, re = Rf + (beta × MRP)

                             = 8% + (2.74 × 5%)

                             = 21.71%

WACC:

= (wd × rd) + (we × re )

= (70% × 7%) + (30% × 21.71% )

= 11.41%

5 0
2 years ago
When an organization has an annual ceremony to reward the past year’s outstanding employees, this ritual is a manifestation of t
Alinara [238K]

Answer:

Espoused value.

Explanation:

The espoused value can be defined as the values ​​expressed on behalf of the organization. For example, the set of practices and procedures adopted by employees of an organization that provide positive results and value for a company.

Therefore, when an organization holds a ceremony to reward outstanding employees of the year, it is manifesting and promoting in the organizational culture the maintenance of moral conduct and corporate values ​​necessary to maintain and enhance positive standards of conduct to achieve organizational success .

4 0
2 years ago
A project is expected to create operating cash flows of $22,500 a year for three years. The initial cost of the fixed assets is
Llana [10]

Answer:

D. $5,208.11

Explanation:

Projected cash flow for each year for 3 years = $22,500

Initial cost = $50,000

Additional working capital required = $3,000

Year    Cash flow     PVIF @ 10%  Discounted Value         Total

0         - $50,000       $1               - $50,000                  -$50,000

0         - $3,000          $1               - $3,000                    -$3,000

1          $22,500       0.909           $20,452.5                 $20,452.5

2         $22,500        0.826            $18,525                      $18,525

3         $22,500       0.751             $16,897.5                  $16,897.5  

3          $3,000        0.751               $2,253                      $2,253

Total                                                                                $5,128.00

The nearest value is $5,208 and the difference is due to rounding off.

Correct option is

D. $5,208.11

4 0
2 years ago
Malcolm Company uses a weighted-average process costing system. All materials at Malcolm are added at the beginning of the produ
BARSIC [14]

Malcolm Company uses a weighted-average process costing system. All materials at Malcolm are added at the beginning of the production process. The equivalent units for materials at Malcolm would be the sum of Units in beginning work in process and units started.

Answer: Option (2) is correct

<u>Explanation:</u>

The weighted average process costing system is used in case of those processes of production which are standardized.

The beginning cost of work in the process is added to the cost during the period and then it is divided by total equivalent units to arrive at the average cost per unit. Now the equivalent units for material at Malcolm would be units in the beginning work in process and the units started.

7 0
2 years ago
Donny, of Donny's Doughnuts, bakes and sells 100 dozen doughnuts a day using one mixer and one fryer. His rival, Sunshine, of Su
Svetlanka [38]

Answer:

Which shop will benefit the most from its expansion?

  • B. Donny, because his workers currently have less available capital to work with

The law of marginal returns applies here, that is why Sunshine donuts didn't produce twice as many by using more machines

How much should Donny realistically expect his production to increase with the new equipment?

  • A. about 80 dozen

Similar to the additional production that Sunshine had in the past.

How much should Sunshine realistically expect her production to increase with the new equipment?

  • A. about 50 dozen

Maybe even a little more than 50 dozen, but definitely less than 80 or 100.

7 0
2 years ago
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