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Nimfa-mama [501]
2 years ago
5

Green Goddess Developers is a large nationwide landscape company with home offices in Libertyville, IL. The local media often gu

shes over the gorgeous landscaping that surrounds the 30-acre headquarters. At the back end of the complex are several large warehouses and garages that hold large equipment. The grounds surrounding the warehouses look like a park. Across the street from the garages are several shops and businesses. The CEO, Patty, often talks about how thankful she is that the town permits her to store equipment at that site, and vows to always maintain the premises for her neighbors, not to mention that she asks 100 employees to come to work there every day. Which of the following statements describes Patty's business philosophy?
A. Patty is more concerned about town politics than about the company profits. She should ask his employees if they would rather have that money in their pockets than on the lawns.
B. Patty is taking a business risk that her trucks and equipment will not make too much noise as they enter and exit the garages.
C. Patty is a nice woman whose company made a lot of money, so she is willing to spread it around.
D. Patty understands that even though it may cost a little more, stakeholder considerations are very important if you want your business to thrive.
Business
1 answer:
velikii [3]2 years ago
8 0

Answer:

the answer is C

Explanation:

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The director for S Corp. manufacturers of playground equipment, is considering a plan to expand production facilities in order t
Serggg [28]

Answer:

a. The company should not undertake the expansion because the WACC is lower than the desired rate of return of the company

b. Cost of Bonds

Year   Cashflow    [email protected]%      PV           [email protected]%     PV

               $                                 $                                  $

  0        (804)           1              (804)           1                 (804)

1-25     55.3            9.0770    501.96    14.0939        779.39

25       1,000          0.0923      92.3      0.2953          295.3

                                  NPV      (209.74)              NPV    270.69                    

Kd = LR     + NPV1/NPV1+NPV2    x (HR – LR)

Kd = 5       + 270.69/270.69 + 209.74   x (10 – 5)

Kd = 5       + 270.69/480.43 x 5

Kd = 7.82%    

c. Ke = D1/Po   + g

  Ke = $2 /$40 + 0.06

  Ke = 0.05 + 0.06

 Ke = 0.11 = 11%

d.   WACC = Ke(E/V) + Kd(D/V)

     WACC = 11(100/180) + 7.82(80/180)

     WACC = 6.11 + 3.48

     WACC = 9.59%

   

Explanation:

FIrst and foremost, we need to calculate cost of bond using internal rate of return formula. The current market price of the bond will be considered in year o. The cash inflows for year 1 to year 25 is the after tax coupon which is calculated using the formula R(1 -T). The coupon is 7% of N1,000 par value, which is $70. Then we will subject it to tax ie $70(1-0.21) = $55.3. The cashflow for year 25 is the par value. Then, we will discount the cashflows in order to obtain cost of bond.

Cost of equity is equal to dividend in year 1 divided by the current market price plus growth rate.

WACC is the proportion of each stock in the capital structure multiplied by cost of each stock.

Market value of the company = 80 + 100 = 180 since debt-equity ratio is 0.8 (80/100). Debt is 80 while equity is 100.

Since WACC is 9.59% and the desired return of the company is 11%. Thus, we will not undertake the expansion.

8 0
2 years ago
Knowing that a third party may use the information that Ray is providing, does Ray owe a duty of confidentiality to Onyx?
artcher [175]

Answer:

<em>B. Yes, although it may be breached in most states if there is a court order to do so.</em>

Explanation:

<em>Duty of confidentiality is a provision that has been put in place in most states, to enable clients open up freely if they need help. This allows professionals to take whatever actions necessary to carry out full service delivery when helping the client. </em>Some of these details include health status, a client-lawyer case story, a social media's access to users' personal details, etc. The law prohibits professionals from disclosing information made available to them by the client to a third party. This duty is held by many professional bodies like the medical body, legal body, among others. <em>This duty can be broken by law in situations where the client sues the professional, or when there is a legal court order to do so</em>.

3 0
2 years ago
Recharge corporation makes batteries. Sol is injured when the recharge battery in his phone burst into flames. Sold product liab
IrinaK [193]

<u>Answer:</u>

<em>Sold product liability suit against the maker, alleging a design defect, the court may consider an available alternative design </em>

<em></em>

<u>Explanation:</u>

At the core of the idea of faulty item configuration exemplified in the Restatement (Third) of Torts: Product Liability is the accessibility of a sensible elective plan that could have diminished or kept away from the danger of mischief. In any case, a product might be defective, regardless of whether no sensible elective plan exists, if it neglects to give possible directions or warnings of a predictable danger of damage. An ongoing choice of the Massachusetts Appeals Court represents the use of these standards.

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2 years ago
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"Assume that a seven-firm cartel supplies 500 million units of Whatailsya energy drink at a price of $5.00 per unit. Each firm s
vodomira [7]

Answer:

Incomplete question. Helpful details provided below.

Explanation:

A seven firm cartel implies a group of seven individual firms or companies that produce similar products who mutually agreed to supply certain amount of these products at a fixed price inorder to equally and fairly make profit.

In this case, the law of demand and supply applied resulting in a drop in price of Whatailsya because of excess supply.

7 0
2 years ago
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VLD [36.1K]
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7 0
2 years ago
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