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2 years ago

True or false?

Business

1 answer:

Nimfa-mama [501]2 years ago

5 0

Answer:

Both statements are False

Explanation:

Statement a

As with higher debt involved the expected return on investment is more on equity. But reducing debt up till a certain level is beneficial in that condition, but there is an ideal debt to equity ratio of 1 - 1.5, it varies upon the industry requirements and conditions.

Although the theory which states that reducing debt will reduce cost of equity and of debt is false as there is a tax benefit on debt which states that cost is always less of debt.

Statement b

Financial distress and bankruptcy has several reasons to occur, and one of them is borrowing.

It do not depend on the level of borrowings, whether moderate or high, borrowings demand compulsory payment in the terms of interest due, which leads to a burden on the company. This also increases the demand of shareholders.

Thus, the statement is false.

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Kathy wants to buy a condominium selling for $95 comma 000. The taxes on the property are $1500 per year, and homeowners' in

kumpel [21]

Answer:

Check the answers below!

Explanation:

There is just one question despite the exercise requires completition of 7 additional numerals.

a. Required down payment = Price of the condominium * interest rate required by the bank.

$95.000 * 20% = $19.000

b. 28% of adjusted monthly income is:

(5000-145)*28%=

1359.4

c. Monthly payments of principal and interest for a 25-year loan.

Using PV of ordinary annuity formula,

with PV of the bank loan =96000*80%=76800

d.Total monthly payment=

671+((346+1400)/12)=

817

e.YES---- 817 < 1359.4

f. Amt. of First payment on the loan applied to the principal:

671-(76800*0.00792)=

62.74

ie.$ 63

g.Total amount she pays for the condominium with a 25-year conventional loan(without including taxes & homeowners' insurance)

671*12 mths. *25 yrs. =

201300

h) So, Total interest paid for the 25-year loan:

201300-76800=

124500

No.of periods=25*12=300

at monthly interest of 9.5%/12=

76800=Pmt.*(1-1.00792^-300)/0.00792

Solving the above, we get the monthly payment as 671

5 0

2 years ago

During the current year, Brewer Company acquired all of the outstanding common stock of miller Inc. paying $12,000,000 cash. The

Lesechka [4]

Answer:

See the explanation below:

Explanation:

The merged details are first sorted as follows:

Details Book Value ($) Fair Value ($)

Accounts receivable 1,800,000 1,625,000

Inventories 2,700,000 4,000,000

Property Plant and Equipment 9,000,000 11,625,000

Accounts payable 3,000,000 3,000,000

Bonds payable 4,500,000 4,125,000

The calculation will now be done using the fair value as follows:

Total fair value of assets = $1,625,000 + 4,000,000 + 11,625,000 = $17,250,000

Total fair value of liabilities = $3,000,000 + 4,125,000 = $7,125,000

Fair Value of Miller Inc. Equity = $17,250,000 - $7,125,000 = $10,125,000

Goodwill from the acquisition = $12,000,000 - $10,125,000 = $1,875,000

The journal entries will look as follows:

Details Dr ($) Cr ($) 

Goodwill 1,875,000

Miller Inc. Equity acquired 10,125,000

Cash 12,000,000

To record the acquisition Miller Inc.

7 0

2 years ago

1. OB helps managers explain, predict, and influence behavior in the workplace. Identify behaviors that you are most interested

SashulF [63]

Answer:

Part 1).

The behavior that I am most involved in amplification, forecasting and persuading in the office is motivation between the team followers and staffs.

One the key persistence of association behavior is to manage staffs efficiently. This means that the employee administration is a large part of OB. In doing that administrations need to employee competent personnel and make sure they are sufficiently motivated. While the motivation can be of diverse types (internal and external), the administration of the motivation is what makes staffs efficient and creative. Thus in order to achieve effectiveness and productivity on association level, I believe it is significant to manage worker motivation efficiently.

There are various representations that can be used for this determination. For example, Maslow’s hierarchy, Herzberg’s’ theory, etc.

Part 2).

One of the significant steps to eliminate biases and preconceptions is to admit their presence and to vigorously avoid them. The staffs should receive discernment and diversity training on a regular basis. In addition to this stages of possible judgement/bias such as signing, raises, task, etc. needs to be totally objective. The valuation of staffs or possible personnel should follow objective procedure and assessment criteria.

This should allow plummeting, if not removing, the bias and judgement in the day to day process of the team and the association.

7 0

2 years ago

Stanford Corporation has four categories of overhead. The expected overhead costs for each category for next year are as follows

aliina [53]

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 2,325,000 / 20,000

Predetermined manufacturing overhead rate= $116.25 per direct labor hour

Now, we can allocate overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 116.25*375

Allocated MOH= $43,493.75

b)

Total cost= 5,000 + 7,500 + 43,493.75

Total cost= $55,993.75

c)

Selling price= 55,993.75*1.3

Selling price= $72,791.88

d)

First, we need to calculate the activities rate:

Maintenance= 210,000 / 10,000= $21 per machine hour

Materials handling= 90,000 / 2,000= $45 per material move

Setups= 75,000 / 100= $750 per setup

Inspection= 150,000 / 4,000= $37.5 per inspection

Now, we can allocate overhead:

Maintenance= 21*150= 3,150

Materials handling= 45*4= 180

Setups= 750*2= 1,500

Inspection= 37.5*3= 112.5

Total allocated costs= $4,942.5

8 0

1 year ago

What process guides your entry and closing points? 1. Reducing the randomness of your approach 2. Pragmatic 3. Facilitate adapta

Airida [17]

Answer:

1. Reducing the randomness of your approach

Explanation:

Reducing the randomness of your approach guides your entry and closing points

8 0

2 years ago