Systematic and unsystematic risk exist in a stock. The non-systematic risk in a portfolio is reduced when two or more stocks are added.
Diversification refers to this. Non-systematic risk is nearly nonexistent in a well-diversified portfolio, and systematic risk is the only risk.
Because the portfolio is well-diversified and has a beta of 1.3, the correlation between it and the market is...
Portfolio that is well-diversified. a portfolio with a wide range of securities but little weight on any one of them. The systematic risk of the market as a whole is very similar to the risk of a well-diversified portfolio, and the unsystematic risk of each security has been diversified out of the portfolio.
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question workspace check my work an investor invests $50,000 in a new business. in three years, the investor sells her interest in the business for $75,000. what is her return on investment?
50% is her return on investment.
The computation of the return on investment is shown below:
As we know that
Return on investment is
= Return ÷ investment made
= ($75,000 - $50,000) ÷ ($50,000)
= ($25,000) ÷ ($50,000)
= 50%
Hence, the return on investment is 50%.
In a financial outlook, funding is the acquisition of products that are not consumed these days but are used in the future to generate wealth. In finance, funding is a monetary asset sold with the concept that the asset will provide earnings further or will later be bought at a higher price rate for an income.
Investments are usually bucketed into three major categories: stocks, bonds, and coins equivalents. there are many special forms of investments within each bucket. here are six sorts of investments you may not forget for a lengthy-term boom, and what you must realize about everyone.
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what is the predetermined overhead rate, and why do companies use this calculation to apply manufacturing overhead?
An allocation rate for manufacturing costs that are incurred indirectly during the production of a product is known as a predefined overhead rate (or several products). It is employed to predict the expenses of future manufacturing.
Because manufacturing overhead expenses are hard to track, businesses frequently utilize predetermined overhead rates instead. Normally, overhead costs are computed at the end of an accounting period, but managers need to be aware of this information before the end of the year so they can evaluate the performance of the business. In addition, compared to actual overhead costing, predetermined overhead rates make it simple to record production expenses.
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wood products inc. has provided the following data for the previous year: units sold during the previous year 12,000 units selling price per unit $125 direct materials per unit $25 direct manufacturing labor per unit $20 variable manufacturing overhead per unit $40 fixed manufacturing costs $150,000 budgeted production at the beginning of the year 15,000 units variable marketing cost per unit $5 fixed marketing cost $25,000 number of units in opening inventory 0 number of units in ending inventory 3,000 units what was the profit of wood products inc. for the previous year if the method of inventory costing adopted was absorption costing
$305,000, $360,000,$560,000,$275,000 are the profit of wood products inc. for the previous year if the method of inventory costing adopted was absorption costing.
An income that is distributed to the owner in a successful market production process is known as profit in accounting (business). Profit is a metric of profitability, which is of primary concern to the owner in the process of market production that generates money. Various profit metrics are frequently used.
The balance between income distribution and income generating is constant in market production. Every time during the review period, the earned income is allocated as economic value to the production's stakeholders. The profit is the portion of income creation that the owner is able to retain for themselves during the income distribution process. Since it translates into money and presents chances for expanding production, profit is one of the main drivers of economic prosperity. Earnings, earnings, and profit are all synonyms for income.
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when creating and maintaining an ethical culture, corrective action involves rewarding employees who comply with company policies and standards and punishing those who do not. group of answer choices true false
It is TRUE that, When creating and maintaining an ethical culture, corrective action involves rewarding employees who comply with company policies and standards and punishing those who do not.
According to Muel Kaptein, a professor of business ethics and integrity management at Rotterdam School of Management, ethical culture can be described as a collection of experiences, presumptions, and expectations of managers and employees about how the company discourages them from acting unethically and encourages them to do so. A variety of elements, including formal and informal systems, are included in the ethical context, which also includes ethical culture. In contrast to informal systems, which are unwritten policies, practices, and values that are pertinent to ethics, formal systems are the tangible organisational elements related to ethics that are purposefully designed and implemented (such as ethics programs). Since ethical culture is deeply ingrained in an organisation and its workforce, it is harder to measure than the formal components of ethics programmes (such as a code of ethics, helpline, and training).
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your clients, the manfreds, are first-time homebuyers. they barely scraped together their down payment and really want to minimize their cash outlay. they would prefer to avoid the home inspection and just have their parents look over the property, saving the $500 for other purposes. what should you tell them?
It's better not to do this, you save $500 for now but later you'll pay a lot more for your lies. It's better to follow the rules to avoid the problem that is caused by your lies.
Policy is made to make you dicipline. Dicipline makes you to avoid the problem. Bad customers do exist, and they can take a lot out of us – morale, enthusiasm, energy, expenses. But unprofessional clients are manageable and can be dealt with in a professional strategy. Always remember that your personal and professional reputation is never worth risking. As marketers or manager, then we find a client who do thing like that, you should tell them the negative impact that they will get. Make your client understand about the impact, so with that way they will think twice to do the negative things.
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What term means that both management and employees strive to meet common objectives?.
The term that both management and employees strive to meet common objectives is mutual trust.
What is mutual trust?The confidence that each party will fulfill its obligations and behave as expected.
What is mutual trust in work place means?
It means that your employees enjoy a culture of honesty, psychological safety, and mutual respect. They're proud of where they work and are more willing to go above and beyond for your organization. Trust in the workplace will also help employees feel secure in their job, and in return will reduce the turnover rate.
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christie, incorporated, has identified an investment project with the following cash flows. yearcash flow1$ 1,08021,31031,53042,270 a.if the discount rate is 9 percent, what is the future value of these cash flows in year 4? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)b.if the discount rate is 12 percent, what is the future value of these cash flows in year 4? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)c.if the discount rate is 23 percent, what is the future value of these cash flows in year 4?
If the discount rate is 9 percent, the future value of these cash flows in year 4 is $5,480.30. If the discount rate is 12 percent,the future value of these cash flows in year 4 is $6,030.36. If the discount rate is 23 percent, the future value of these cash flows in year 4 is $7,275.42
a)-Future Value at 6.00%
Future Value = [$1,075 x (1 + 0.06)^3] + [$1,210 x (1 + 0.06)^2] + [$1,340 x (1 + 0.06)^1] + [$1,420 x (1 + 0.06)^0]
Future Value = [$1,075 x 1.191016] + [$1,210 x 1.1236] + [$1,340 x 1.06] + [$1,420 x 1.0000]
Future Value = $1,280.34 + $1,359.56 + $1,420.40 + $1,420
Future Value = $5,480.30
(b)-Future Value at 13.00%
Future Value = [$1,075 x (1 + 0.13)^3] + [$1,210 x (1 + 0.13)^2] + [$1,340 x (1 + 0.13)^1] + [$1,420 x (1 + 0.13)^0]
Future Value = [$1,075 x 1.442897] + [$1,210 x 1.2769] + [$1,340 x 1.13] + [$1,420 x 1.0000]
Future Value = $1,551.11 + $1,545.05 + $1,514.20 + $1,420.00
Future Value = $6,030.36
(c)-Future Value at 27.00%
Future Value = [$1,075 x (1 + 0.27)^3] + [$1,210 x (1 + 0.27)^2] + [$1,340 x (1 + 0.27)^1] + [$1,420 x (1 + 0.27)^0]
Future Value = [$1,075 x 2.048383] + [$1,210 x 1.6129] + [$1,340 x 1.27] + [$1,420 x 1.0000]
Future Value = $2,202.01 + $1,951.61 + $1,701.80 + $1,420.00
Future Value = $7,275.42
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a cost that does not affect the decision because it is not in the future or does not differ among alternatives is a(n) .
Irrelevant costs are those that do not differ between alternatives or do not have an impact on the decision because they are present-day costs.
What are Irrelevant costs?Any costs—positive or negative—that wouldn't be impacted by a management decision are irrelevant costs. As a result, irrelevant costs like fixed expenses and sunk costs are disregarded when that choice is made. A manager must, however, be able to recognize an unnecessary expense in order to perhaps rescue the company. For managers making decisions regarding the profitability of various alternatives, categorizing costs as irrelevant or relevant is useful. The choice being made has no bearing on costs that remain constant regardless of the option selected. It's critical to formally define and record costs that should not be taken into account when making a decision because they might be relevant costs in another management decision.
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in an online billing system, invoiceitem must have a price data member that cannot be less than zero. how can you ensure that this condition will be maintained?
You can ensure that the condition will be maintained by creating a Price class that has a data member named price. The Price class will have a method named setPrice that will take in a parameter named price. The setPrice method will check to see if the price is less than zero and if it is, it will throw an exception.
There are several ways to ensure that the price data member of an invoice item cannot be less than zero. One way is to use a validation function that checks the value of the data member before it is set. Another way is to use a data member that is of a type that does not allow values less than zero, such as an unsigned int.
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in the maturity stage of the industry life cycle a. the product has reached full potential. b. profit margins are narrower. c. producers are forced to compete on price to a greater extent. d. a and b only. e. a, b, and c.
In the maturity stage of the industry life cycle the product has reached full potential, profit margins are narrower, and producers are.
At the maturity stage of an investment, the goal is to preserve capital and generate income. This can be accomplished through a variety of strategies, including investing in high-quality, dividend-paying stocks, bonds, and other profit-producing assets.
The key is to maintain a diversified portfolio that can weather market volatility and provide a steady stream of income. With a well-designed maturity stage investment plan, investors can enjoy a comfortable retirement while still achieving their financial goals.
Hence, the correct option is "E".
The question is incomplete, the complete question is:
In the maturity stage of the industry life cycle:
A. the product has reached full potential.
B. profit margins are narrower.
C. producers are forced to compete on price to a greater extent.
D. the product has reached full potential and profit margins are narrower.
E. the product has reached full potential, profit margins are narrower, and producers are
forced to compete on price to a greater extent.
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sharon is the policy owner of a $50 000 life insurance policy. her son, mike is the beneficiary. if sharon must obtain mikes signature in order to change the beneficiary, what kind of beneficiary designation is this
Sharon is the policy owner of a $50 000 life insurance policy. her son, mike is the beneficiary. If Sharon must obtain mikes signature in order to change the beneficiary. The kind of beneficiary designation is Irrevocable.
What is Irrevocable Beneficiary?
A person or organization named to receive the assets in a life insurance policy or a segregated fund contract is known as an irrevocable beneficiary.Even if they are divorced spouses, irrevocable beneficiaries cannot be changed after being chosen unless they consent to it.To ensure their inheritance or guarantee receiving child support, parents frequently designate their children as irrevocable beneficiaries.Making a beneficiary designation that cannot be changed can also be advantageous for estate planning, particularly if the insurance policy is placed in an irrevocable trust.Certain assured rights to assets kept in the policy or fund belong to an irrevocable beneficiary.To know more about irrevocable beneficiary refer:
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eva reviews daily reports to identify errors. then she meets with representatives from the purchasing and inventory departments to discuss ways to eliminate or prevent recurring problems.which type of motivational strategy is eva's organization using by allowing her to make decisions about her work?
Eva checks daily reports for mistakes. She then meets with representatives of the inventory and purchasing departments to talk about how to stop or avoid repeating issues.
What are inventory management and purchasing?The creation of customized approval rules by the purchase management system enables quick approvals and order placement for the prompt delivery of inventory stock. An organization's purchasing and inventory control processes are streamlined through purchase management to increase productivity and cut expenses.
fundamental inventory problems:
How much to order and when to order are the two fundamental inventory problems. The two fundamental problems in inventory management are quantity and timing.
Explain the inventory problem using an illustration:
The inventory problem is the broad issue of how much merchandise to keep on hand in case demand increases in the future. Losses are brought on by either stockpiling items for which there is no demand or by being unable to meet demand (for example, a store losing sales or soldiers running out of ammunition in battle).
The procedure for managing inventories:
No matter the size or kind of the firm, the fundamentals of inventory management are generally the same. Inventory management is a difficult process, especially for larger organizations. In inventory management, supplies are transported to a warehouse's receiving area and placed in stock areas or on shelves. These supplies are often in the form of raw materials or components.
Lot numbers, serial numbers, cost of goods, quantity of goods, and the dates when they move through the process are just a few of the data that inventory management employs to keep track of the products as they travel through the process.
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as the marketing vice president of her firm, faye is implementing a companywide pricing policy that all products must achieve a target profit margin of 10 percent so the firm can achieve its overall growth objectives. what type of company objective is this?
The objective that the company is following is referred to as a goal-oriented objective or profit-oriented objective.
What is profit oriented objective?A business goal is a goal or result that an organization wants to achieve. Business goals are measurable and effectively describe the actions required to accomplish a task.Common business goals are to increase profitability, increase productivity, improve customer service and experience, reduce employee turnover, establish and maintain a positive company culture, and even create more reach for your customers.A commercial price target means that a company strives to maximize the profit of each sale or service it offers and achieve long-term business profitability.It requires pricing to achieve the desired profit, return on sales, or return on investment. There are three profit-oriented pricing strategies such as:Target Profit Pricing. Target rate of return on the sales price.To know more about profit-oriented objectives refer to:
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while discussing the preliminary feasibility of a project, your colleague insists that figures used in the economic feasibility analysis be very accurate down to the last cent. his claim is appropriate and not uncommon. group of answer choices true false
While discussing the preliminary feasibility of a project, your colleague insists on the accuracy of the data used in the economic feasibility analysis down to the last cent. His assertion is appropriate and not unusual. It is false. Thus, the right answer is false.
What is a preliminary feasibility study?A preliminary feasibility study is used in due diligence work to assess whether to proceed with a thorough feasibility study and as a "reality check" to identify project areas that need greater attention. Once conceptual or preliminary engineering and mining design are accomplished, preliminary feasibility studies are conducted by incorporating known unit prices and calculating gross dimensions or quantities. A small group of multi-disciplined technical professionals execute preliminary feasibility studies with an accuracy of 20-30%.
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what is one general class or type of techinical indicators? in what type of market is it most useful? g
In general, technical indicators fit into five categories :trend,mean,reversion,relative strength,volume and momentum.
What do you mean by technical indicators?
Technical indicators are heuristic or pattern-based signals produced by the price, volume, and/or open interest of a security or contract used by traders who follow technical analysis.
By analyzing historical data, technical analysts use indicators to predict future price movements. Examples of common technical indicators include the Relative Strength Index(RSI),Money Flow Index(MFI),stochastics,moving average convergence divergence(MACD),and Bollinger Bands.
Technical indicators is most useful in stock market. It is used by traders to gain insight into the supply and demand of securities and market psychology. Together, these indicators form the basis of technical analysis, Metrics, such as trading volume, provide clues as to whether a price move will continue.
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a marketing research firm has instructed its research associates to collect primary data by stopping people at a shopping mall or busy street corner and request an interview on the spot. which contact method is being used by the researchers in this case? what probable risk may the researchers face while using this method?
In this case, researchers use the intercepted interview method to collect primary data.
Researchers run the risk of including non-probability samples when using this method.
What is primary data?Primary data refers to data collected directly by the researcher himself. Secondary data is data previously collected by someone else. Surveys, observations, experiments, questionnaires, interviews, etc. Government publications, websites, books, journal articles etc. Data originally collected by researchers for a specific purpose. Primary data is "pure" in the sense that it has not undergone statistical manipulation and is original. An example of primary data is the Indian Census. Health and social science researchers can obtain data by retrieving data directly from topics of interest. This data they collect refers to the called primary data. Another type of data useful to researchers is data that has already been collected by someone else.To learn more about primary data from the given link :
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osh was sued by his former business partner. he lost the case and has to pay his former partner $10,000. he has not yet done so and is refusing to do so. josh is applying for a mortgage for a new home. should he be worried about the lawsuit impacting his mortgage application
Absolutely, this kind of information is contained in one's credit report.
This term has credit meanings in the economic international, but credit score is usually described as an agreement settlement in which a borrower receives an amount of money or something of value and repays the lender at a later date, typically with the hobby.
For instance, when a person makes use of a Visa card to buy something, the card is taken into consideration as a form of credit score because the person consents to pay the financial institution back later. credit can be given in the form of cash and other approaches. it's far feasible to change goods and services for a deferred charge, a specific form of credit.
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mccabe corporation is expected to pay the following dividends over the next four years: $15, $11, $9, and $2.95. afterward, the company pledges to maintain a constant 4 percent growth rate in dividends forever. if the required return on the stock is 10.3 percent, what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
The number before the decimal is always the whole number component. It is 5 in this instance.If you are using scientific notation, you must be cautious with your words. The answer is $1.49.
For your second query, the decimal part is O.261. Believe it or not, O is the whole number portion if the sole part present was 0.261.A good question It can teach you a lot.A share currently costs $1.49.The stock’s current share price can be stated as follows: Current share price-D/(k-g) whereD1: Expected yearly dividend per share, where k = necessary rate of return and g = dividend growth rate.In our instance;(20+16+15+8.5)/4 D1=59.5/4=$14.875 k=15% g=5% Average dividend per share (D1)Replacing:Shares currently cost $14.875. (15-5)Price of shares as of today: 14.87/5Shares currently cost $1.49.
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what does the discounted payback period ignore? group of answer choices the time value of money cash flows beyond the payback period the cost of the project. both a and b.
The discounted payback period ignore the cash flows after the payback period.
What is discounted payback?
A capital budgeting technique used to assess a project's profitability is the discounted payback time. By discounting the future and taking into account the time value of money, a discounted payback period calculates how many years it will take to recover the initial investment. The measure is employed to assess a project's viability and profitability.
Because it only considers a single, upfront investment and ignores the time value of money, the more straightforward payback period formula, which merely divides the overall cash outlay for the venture by the average annual cash flows, doesn't give a reliable response to questions of whether or not to take on a project.
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what involves presenting an accurate and positive image of the firm to those it is recruiting for jobs.
A realistic job presentation (RJP) is a presentation of positive and negative information about the job and the organization to potential applicants.
A realistic job overview (RJP) is a tool that informs the candidate about the job and the organization, both in terms of pros and cons.
The goal is to show applicants a real picture of the job and the organization. Recruitment is always two-way. However, most organizations ask applicants a thousand questions, so there is usually little time left to inform the candidate.
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describe one characteristic of the streaming market that is similar to a characteristic of a perfectly competitive market.
While in perfectly competition, businesses generate somewhat different commodities, in perfect competition, businesses produce identical goods.
Take into account a farmers market where every seller is selling the same brand of jam. perfectly is not much difference between them since they all use the same recipe and set the same price for their goods. The following conditions are considered to be present for a firm to be in ideal competition: Every company in the sector produces the same items, and both buyers and sellers have access to all the information they need to make informed decisions about the goods they are buying and selling.
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Rick invests $7,174 in an account that earns an annual interest rate of 3%. what will be the balance of the account in 18 years if the interest is compounded monthly?
With annual interest rate o f3% compounded monthly, his balance in 18 years will be $12,302.34
The formula for the future value is given by:
FV = PV (1 + r)ⁿ
Where:
r = interest rate per period
n = number of periods
PV = present value
Parameters given in the problem:
PV = $7,174
r = monthly interest = 3%/12 = 0.0025
n = 18 years x 12 = 216 months
Plug these parameters into the formula:
FV = 7,174 (1 + 0.0025)²¹⁶
= 12,302.34
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jackson holds a real estate broker license with an mlo endorsement. how many hours of continuing education must he complete each year to renew this endorsement?
They have to complete 20 hours of training, pass a test, give their fingerprints to NMLS&R, and give their permission for a credit report to be pulled.
In Texas, how many continuing education units are required to renew a real estate license?During each two-year license period, license holders are required to complete 18 hours of CE. For a total of 18 hours, CE must consist of four hours of Legal Update I, four hours of Legal Update II, three hours of Contract-Related coursework, and seven hours of elective CE courses.
In California, how long do I have to renew my real estate license?Four-year Licenses are issued for a period of four years and should be renewed prior to the license's expiration date. About 60 days before the license expiration date, the DRE sends a renewal reminder letter to the licensee's record mailing address.
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whereas traditional cost accounting systems just assign the costs associated with research and development, expediting, and purchasing to overhead, activity-based costing systems would assign those costs to:
Activity-based costing systems would assign the costs associated with research and development, expediting, and purchasing to the relevant activities that generate those costs.
For example, the cost of research and development would be assigned to the research and development activity, the cost of expediting would be assigned to the expediting activity, and the cost of purchasing would be assigned to the purchasing activity. This would provide a more accurate allocation of costs and would give managers better information for decision-making.
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why are consumers more likely to pay to download some digital content, like music and books, and less likely to pay for other content, like sports and news?
Spending money to obtain digital content like music or novels is typically more cost-effective over time than news or sports information.
Since the beginning of time, books and music have not only served as a means of disseminating knowledge but have also provided an escape from the monotony of everyday work. However, the world is changing quickly these days, and the internet has a crucial role to play in the contemporary tech-based period. The Covid-19 pandemic encouraged us to spend more time online.
We rely on digital content for everything from our careers to getting away from work. The only area we have to flee during this pandemic moment when we are unable to move around freely is the virtual realm. According to the most recent figures, customers are more inclined to pay for the download of music and books than for sports or news.
Being in the quarantine had a significant negative impact on our mental health, which may be one of the main causes of that, according to the pandemic effect. Many people find that listening to music helps them relax. We may generally improve our language skills and use creative thinking by listening to music and reading literature. While sports-related information is more likely to motivate us to go out and urge us to live a healthy and active lifestyle, news enables us to stay informed about the state of the world. However, the current circumstance tempers this feeling of anticipation. Additionally, music and books can both be listened to repeatedly.
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which of the following is not a financial budget? a. budgeted income statement. b. production budget. c. budgeted balance sheet. d. cash budget.
Option C. budgeted balance sheet is not a financial budget system in the given list of budget system.
Budget:
Budget refers an estimate of how much money you'll make and spend over a certain period of time, such as a month or year.
Given,
Her we have the list of budget system.
Now, we need o identify which one is not a financial budget.
In order to find the non financial budget, we must know the definition of financial budget,
Financial budget states that the process of calculating how much money you will earn during a particular period of time, and planning how much you will spend, save, and borrow.
According to this definition, we have identified that the budgeted balance sheet is not a financial budget.
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suppose managers of a firm know that the company is approaching financial distress. should the managers borrow from creditors and issue a large one-time dividend to shareholders? how might creditors control this potential transfer of wealth?
This is typical because their funds are secured by a contract with a debtor and guaranteed against the property. Secured debts are given priority over all other claims to liens.
Financial distress: What Is It?When a company or person is experiencing financial difficulty, it indicates they are unable to meet their financial obligations because they are unable to generate enough revenue or money. This is frequently brought on by high fixed costs, a significant proportion of illiquid assets, or revenue sources that are vulnerable to downturns in the economy. Financial difficulties might arise as a result of poor spending habits, high debt burdens, legal proceedings, or job loss.
How do creditors affect a company?Creditors have an impact on both the quantity and speed of money entering and leaving an account. Both large and small businesses need to comprehend them and how they interact with one another.
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consider two firms, with and without, that have identical assets that generate identical cash flows. without is an all-equity firm, with 1 million shares outstanding that trade for a price of $24 per share. with has 2 million shares outstanding and $12 million in debt at an interest rate of 5%. in a perfect capital market, the stock price for with is closest to: a) $8.00 b) $24.00 c) $6.00 d) $12.00
The capital structure theory of Modigliani and Miller states that a company's valuation is unaffected by its capital structure. A company's capital structure is how it funds its operations.
A company can raise money for its operations through equity or debt. This theory is based on some presumptions, and according to these presumptions, a company's capital structure has no bearing on whether it chooses to finance its operations with debt or equity.
The total value of With and Without must be the same as under MM's perfect capital market, assuming MM's perfect capital conditions are met.
What are the Modigliani-Miller model's four main assumptions?
The Modigliani-Miller Theory only holds under four conditions: there are no taxes, there are no costs associated with bankruptcy, symmetric information, and equal borrowing costs.
What are the MM theory of capital structure's presumptions?
Companies that operate in a world of perfectly efficient markets are assumed to pay no taxes, securities trading is carried out without incurring any transaction costs, bankruptcy is possible but incurs no costs, and information is perfectly symmetrical.
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Identify the economic goal of sales management.
Every nation aims for economic growth and
employment _________ for all its citizens.
The correct economic goal of sales management is: “Every nation aims for economic growth and employment Rights for all its citizens.”
What does economic goal mean?Economic stability is the most crucial objective. This is because maintaining economic stability makes it possible to accomplish other macroeconomic goals.
Price fluctuations due to an unstable economy may cause inflation or deflation, which will affect the currency effect. Economic goals are not always compatible with one another.
The cost of achieving any one goal or set of goals is having fewer resources available to devote to the other goals. Every country strives for economic development and equal job opportunities for all of its residents.
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the cost-benefit-risk analysis is a set of practical procedures for guiding public expenditure decisions. used by the private sector to determine whether certain projects should be undertaken. difficult when benefits and costs are hard to evaluate. all of the above.
The cost-benefit-risk analysis is a set of practical procedures for guiding public expenditure decisions difficult when benefits and costs are hard to evaluate.
Comparing the anticipated or predicted costs and benefits (or opportunities) connected expenditure with a project choice in order to assess whether it makes sense from a business standpoint is known as a cost-benefit analysis. For instance: The cost to build a new product will be $100,000, and sales of $100,000 per unit are anticipated (unit price = 2). Therefore, 200,000 advantages are sold. The straightforward CBA calculation for this project is 200,000 in financial benefit minus 100,000 in cost, which results in a net benefit of 100,000.
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