The director of research has asked you to produce a pro forma valuation of a target company using leveraged buyout analysis. A company has $260 million of EBITDA. The transaction purchase price is 8.5 times EBITDA, and the equity contribution is 20%. If the transaction is completed, what will be the debt-to-EBITDA ratio

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Answer 1

6.8  will be the debt-to-EBITDA ratio.

EBITDA* 8.5=Transaction Value

(Transaction value * 0.8) / EBITDA = 6.8

EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance and is used as an alternative to net income in certain circumstances. However, EBITDA can be misleading because it does not reflect the cost of capital investments such as property, plant, and equipment.

This metric also excludes debt-related expenses by adding interest and tax costs to revenues. However, it is a more accurate measure of business performance as it is able to report profit before the effect of accounting and financial deductions.

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Related Questions

The Simpsons are buying a five-acre lot that was part of a much larger tract of acreage. When the owners of the large acreage decided to subdivide it, they needed to have a legal description created for the five-acre lot. What was used as the starting point for creating that legal description

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A survey was used as the starting point for creating that legal description.

A survey is a research method that collects data from a predefined group of respondents to gain information and insights on various topics of interest. They have multiple purposes and researchers can implement them in different ways, depending on the chosen methodology and research objectives.

Technically, research is a method of collecting and compiling information from a group of people, more commonly called a sample, to produce insights about an organization, company, or institution. This information or opinion gleaned from a sample is often a generalization of what a large population thinks.

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If the marginal factor cost is greater than the marginal revenue product of a resource, the producer can increase profits by laying off some units of the resource.

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In order to increase profits when the marginal cost is greater than the marginal revenue, some units can be laid off so this is TRUE.

How can profit be increased?

When the marginal revenue of a product is less than the marginal cost, then it means that too many units are being produced.

Profits can therefore be increased by laying off the production of some units of the resource which would reduce marginal cost.

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Dan is the President of a major corporation. He is hiring a new Vice President, and while he knows Lauren is the most qualified for the job, he selects George for the position. This is an example of ______.

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The fact that Dan picked George over Lauren even though Lauren was the most qualified shows homosocial reproduction.

What is homosocial reproduction?

This refers to when people employ or choose people for a position that they feel are more like them.

Dan selected George over Lauren because he felt that George was more like him and so could be trusted better.

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The line of authority in a private hospital, which is based on technical skill and expertise, is the

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The first line of authority in a private hospital, which is based on technical skill and expertise, is called :-

The Medical Line.

A medical regulatory authority is an organization recognized by the government of a country, state, province etc., as being responsible for: the registration/licensure of physicians, whereby such physicians are entitled to practice the profession of medicine

What is a line of authority?

Line authority flows down the chain of command. For example, line authority gives a production supervisor the right to direct an employee to operate a particular machine, and it gives the vice president of finance the right to request a certain report from a department head.

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Each of the following is a limitation of activity-based costing except that it decreases control over overhead costs. some arbitrary allocations continue. it can be expensive to use. it is complex and can be difficult to understand.

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Each of the following is a limitation of activity-based costing except that B) some arbitrary allocations continue.

Activity-based costing is an overhead cost allocation system that allocates overhead to multiple activity cost pools and assigns the activity cost pools to products or services by means of cost drivers that represent the activities use.

It has its limitations:

Some arbitrary allocations continue.It can be expensive to useIt is a fairly complex system and difficult to understand.

Activity-based costing is a costing approach that identifies sports in a business enterprise and assigns the fee of each pastime to all services and products consistent with the real consumption by way of each. consequently, this version assigns greater oblique charges to direct expenses in comparison to traditional costing.

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Niren Co. made modifications to a manufacturing machine that increased its productivity by 40%. Niren would classify this expense as a(n):

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Niren would classify this expense as a Capital Expense.

The book value of this van at the end of the second year would be ($25000 - $4000 - $4000)

$ 17000.

Capital spending, or capital spending, is the money an organization or company spends to buy, maintain, or improve fixed assets such as buildings, vehicles, equipment, and land.

Capital spending is the issuance of money, the use of collateral, and the purchase of new assets, the strengthening of existing assets, in the hope that a company will make a profit of one tax year or more. Occurs when you are in debt. Simply put, it represents an investment in a business.

Capital spending, also known as capital spending, includes the purchase of new equipment, machinery, land, factories, buildings or warehouses, furniture and fixtures, commercial vehicles and other items. , Software, or intangible assets such as patents and licenses.

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True or false: In lower-performing groups, team members offer more supportive statements than any other type of comment in their communications.

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False
conditions about lower-performing groups, team members offer more supportive statements than any other type of comment in their communications is a false statement.
A group of people with specific knowledge and complementary abilities who are goal-focused, cooperate, innovate, and regularly create superior results is referred to as a "high-performance work team." Through shared objectives, shared leadership, teamwork, open communication, defined role expectations and group operating guidelines, early conflict resolution, and a strong feeling of accountability and trust among its members, the group constantly pursues performance excellence with a strong feeling of mission and dedication to the team's members and the goal. Comparatively loftier performance targets than normal teams. Mutual accountability and an understanding of each member's duties both to the team and personally and a broad breadth of experience that enhances the skills of other team members.
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The three types of gross private domestic investment include all final purchases of machinery, equipment and tools; all construction; and changes in business

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The three types of gross private domestic investment include all final purchases of machinery, equipment, and tools; all construction; and changes in business inventories.

Private fixed investment and alternate in private inventories. it's far measured without a deduction for consumption of constant capital (CFC), consists of replacements and additions to the capital inventory, and excludes investment via U.S. citizens in other nations.

Gross private domestic investment includes the development of nonresidential systems, the production of equipment and software, non-public residential construction, and modifications in inventories.

Gross domestic private investment, as described in country-wide income accounts, could encompass the subsequent, except the government construction of recent highways and dams.

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Hans purchased a new passenger automobile on August 17, 2022, for $30,000. During the year, the car was used 40% for business and 60% for personal use. Determine his cost recovery deduction for the car for 2022.

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If Hans purchased a new passenger automobile on August 17, 2022, for $30,000. His cost recovery deduction for the car for 2022 is: $1,200.

Cost recovery deduction

Personal use property  car is  limited to 4,000 calculated as (10,000×.40) which represent the following:

Half year conventionYear in use Five year asset (auto)

Hence:

Cost recovery deduction:

Cost recovery deduction=(30,000×.10)×.40

Cost recovery deduction=3000×.40

Cost recovery deduction=$1200

Therefore If Hans purchased a new passenger automobile on August 17, 2022, for $30,000. His cost recovery deduction for the car for 2022 is: $1,200.

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Management, the board of directors, and ________ are the primary participants in corporate governance.

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Management, the board of directors, and shareholders are the primary participants in corporate governance.

Anyone who holds at least one share of a company's stock or unit in a mutual fund is referred to as a shareholder. The firm is primarily owned by its shareholders, who also have specific rights and obligations. With this ownership structure, they can benefit from a company's success.

These benefits take the shape of rising stock prices or dividend payments from financial gains. In contrast, when a corporation experiences a loss, the share price inevitably falls, which may result in financial losses for shareholders or portfolio reductions.

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The present value of $100 paid annually at year end for 20 years at 10% per year is:________.

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$851.36 will be the present value of money for $100 after 20 years. The concept of present value states that an amount of money today is worth more than the same amount in the future. We can say that the value of money today won't be same after 10 years.

Money that is not spent today may be expected to lose value in the future at some implied annual rate, which may be inflation or the rate of return on investment. The present value formula reduces the future value to today's dollars by taking into account either the implied annual rate of inflation or the rate of return that could be obtained if a sum was invested.

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Drag each label to the correct location on the chart. Match each government action with its purpose and impact on the economy.

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1. Charge a fee on airline tickets

2. Impose emissions standards for cars

3. Enforce antimonopoly laws

4. Pass worker health and safety laws

EXPLANATION

1) To increase national security, the government levies a fee on airline tickets. This increases ticket prices for consumers.

2) To ensure clean air, the government establishes emissions standards for cars. This policy is costly for companies to implement, and most companies pass this cost to consumers in the form of higher car prices.

3) To lower prices and provide more product options for consumers, the government enforces antimonopoly laws. These laws can potentially limit innovation by not allowing firms to make as much profit as possible.

4) To protect workers from harmful situations, the government passes worker health and safety laws. These laws limit how companies can use their resources. The costs to provide protective materials for employees can be passed on to consumers.

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______ is paid communication with potential customers in a public medium, such as newspapers and television.Group of answer choicesJournalism

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Advertising is paid communication with potential customers in a public medium, such as newspapers and television

This is further explained below.

What is Advertising?

Generally,  the activity of generating ads for commercial items or services, either as a job or as a hobby.

In conclusion, Advertising is the exchange of money for the use of a public medium, such as newspapers or television, to communicate with prospective clients.

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True or false: Saving files to provide an audit trail and review any remediations is not at all critical.

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This is false. Saving files to provide an audit trail and review any remediations is not at all critical.

What is the audit trail?

This is the term that is used to refer to the record of changes that have occurred in a given database.

The audit trail is used to show the sequence of activities that have taken place that may have an effect in the database.

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If Johnson Marketing's capital gain on the sale of its business was $479,000, capital improvements were $227,000, and the adjusted basis in the property was $976,000, what was the sales price

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If the capital gain was $479,000, the capital expenditure was $227,000 and the adjusted basis price of the property was $976,000.

The Sales Price was $ 1,682,000.

What is Sales?

Sale is the act of selling a product, in most of the manufacturing companies sell their inventory to earn profits and this is how they generate revenue.

There are cases where company sell their assets that they use or are alternatively as capital investments, the case in the scenario is of a sale of a property, the property is sold at a price, the price is unknown but the amount of gain/ profit made at the sale is known and provided.

The amount of profit, capital expenditure and the adjusted basis price of the property is added to formulate the sales price for the property.

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________ carry a narrow assortment of product lines with deep assortments within those lines.

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Specialty stores carry a narrow assortment of product lines with deep assortments within those lines.

A specialty store is a store or a shop that carries a deep assortment of  styles, brands or the  models within a relatively very narrow category of goods.

Some examples of specialty stores are: florists, furniture stores, sporting goods stores, and  even bookstores are all considered as specialty stores.

There are some stores that sale only a single brand single type of goods for example a store selling only  Athlete's Foot means  only  the sport shoes  are sold are  considered as super specialty stores.

Retail stores only sell small quantity of items for quick consumption instead of selling for reselling them. Specialty stores can also sell a wide range of products but in a specific category of goods only.

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Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six workers and make sure they have all the materials they need to perform their duties. Cameron is likely to experience ________.

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Cameron is expected to produce 550 parts per day, but his machine is capable of only 480. He is also expected to supervise six workers and make sure they have all the materials they need to perform their duties. Cameron is likely to experience role overload.

Role overload is a specific stressor that reflects the perception that the demands of a job role exceed an individual's resources (Eatough et al., 2011). Therefore, role congestion can lead to resource exhaustion. This is a phenomenon that can be understood through a COR lens.

Role overload occurs when a person plays multiple roles at the same time and does not have the resources to perform them. It can develop not only from being mentally overwhelmed but also from being overwhelmed with time.

For example, if an employee leaves the company, it may be necessary to temporarily expand the role of another employee to accommodate the absence of the absent employee.

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the table to the right gives the per unit cost data for shirt manufacturer in a competitive industry. if the market price is $4.95

Answers

The profit made from transactions is mathematically given as

Pr=$238.70

What is the profit made from transactions?

Generally, the equation for Profit is  mathematically given as

Pr= (P-ATC)* Q

Therefore

Pr=(9.97-6.87) * 77

Pr=$238.70

In conclusion, The profit made from transactions are

Pr=$238.70

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After months of thinking about the new laptop she heard about from a friend, anna finally decides it’s time to buy it. In what stage of the customer journey is anna?

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The stage of the customer journey of Anna is the Purchase phase.

Awareness: the customer becomes familiar with the brand via channels, consisting of advertising and word-of-mouth. Consideration: realizing that they have a need that must be met, the customer actively considers whether or not to buy the product or service on offer. Purchase: the customer makes the purchase.

Customer's journey. is defined as the active research process someone goes through leading up to a purchase. It is called a journey because each one of your prospective customers will be at different points in their journey towards a purchase.

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Pair Programming in Perspective: Effects on Persistence, Achievement, and Equity in Computer Science

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Answer:

Pair programming is a form of collaborative learning in computer science that involves two students working together on a coding project. Pair programming may also facilitate interactions that improve the climate for women and student of colors, there by reducing equity gaps in achievements and persistence .

Effects on persistence :

Pair programming improves design quality ,reduces defects , reduces staffing risk, enhances technical skill, improves team communications and is considered more enjoyable at statistically significantly levels .

Achievements of pair programming :

More efficient it puts two programmers to develop a single program .

Fewer coding mistakes , it allows the driver to remain focus on the code begin written.

An effective way to share knowledge it allows programmers to get instant face to face instructions .

Equity in computer science :

Is an agile software development technique originating from extreme programming in which two developers team together on one computer .

The two people work together to design , code and text user stories .

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The ability to negotiate a mutually advantageous outcome with people from other cultures is a characteristic of a business professional with?

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The ability to negotiate a mutually advantageous outcome with people from other cultures is a characteristic of a business professional with high cultural intelligence.

If a business professional has a characteristic of high cultural intelligence, this knowledge helps them to relate to others with empathy and understanding, and this characteristics brings advantageous outcome while negotiating.

Cultural intelligence is a measure of one's ability to work with and adapt to members of other cultures. The ability to approach cross-cultural business relationships is a characteristic of high cultural intelligence.

Hence, a business professional with high cultural intelligence is attuned to the beliefs, and values of people from different cultures.

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In 2009, the national center for statistics and analysis estimates alcohol was involved in _____ of fatal crashes.

Answers

Answer:

The answer to your question is 42%

Explanation:

In 2009, the national center for statistics and analysis estimates alcohol was involved in 42% of fatal crashes.

I hope this helps and have a good day!

A technological innovation in the production of electronic goods causes the supply for electronic goods to increase.

Answers

A technological innovation in the production of electronic goods causes the supply for electronic goods to increase. This statement is True.

What is technological innovation?An expanded definition of innovation is technological innovation. Although innovation is a fairly well-defined notion, many people—especially those in the academic and corporate worlds—understand it to mean different things.Innovation is the addition of extra steps to creating new services and goods for the market or the general public that satisfy unmet demands or handle issues that have not been solved in the past.Instead of addressing the entire organization's business model, technological innovation, on the other hand, concentrates on the technological components of a product or service. It is crucial to make clear that innovation is not solely a product of technology.

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The contribution margin as a percentage of sales is referred to as the contribution margin or CM . (Enter only one word per blank)

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As a proportion of sales, contribution margin (CM) is referred to as the CM. the claim is correct. This is detailed in further detail below.

What is the profit margin?

In general, the contribution margin shows the entire money available after variable expenses to pay for fixed expenditures and provide a profit for the company.

As a result, "contribution margin," or "CM," refers to the contribution margin stated as a percentage of total sales. is based on facts

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What level of market coverage is typically used for products like honest tea beverages? a.selective distribution b.physical distribution c.exclusive distribution d.intensive distribution

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The  level of market coverage is typically used for products like honest tea beverages physical distribution. option b

What is Market coverage?

Market coverage involves the critically analyzing the market place to determine how an individual or organization will posses the market.

It is also called market share of an individual, where the total amount of people the market is able to hold as customers determines the coverage.

It can be measured based on how large the market is and the goods and services they sell.

The individual can use promotional strategy of a product as an approach. For beverages, physical distribution of the product can be done to attarct more customers.

Therefore, The  level of market coverage is typically used for products like honest tea beverages physical distribution. option b

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A business is thinking about investing in a new piece of equipment. The expected of return helps the business make the decision about whether or not to invest.

Answers

Answer:

Your explanation is very very reasonable but I’m still not understanding what’s the question.

Explanation:

If your employer gives you a raise that is less than the inflation rate, then your real salary will have declined. True or false?.

Answers

True, If your employer gives you a raise that is less than the inflation rate, then your real salary will have declined.

What is Inflation?

In the field of economics, inflation refers to an overall rise in the cost of goods and services throughout a nation. Each unit of currency can purchase fewer products and services as the overall price level rises, hence inflation is characterized by a decline in the buying power of money.

How do rising prices impact salaries?

Investment decreases when inflation rises, and over time, the capital stock also decreases. Although consumption may also decrease, this has no immediate impact on the growth of capital. In addition to lowering GDP, diminishing capital stock also lowers worker productivity. Real wages, therefore, decrease as labor demand drops.

Therefore, If your employer gives you a raise that is less than the inflation rate, then your real salary will have declined is a true statement.

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How much would you pay (today) for a $500,000 growing perpetuity that begins in 1 year. Assume the annual discount rate (I/Y) of 5.5% and a 1.00% annual growth in the perpetuity payment that you will receive.

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The amount of cash payable for the growing perpetuity today is $11,111,111.11

What is a growing perpetuity?

A growing perpetuity is an investment opportunity that pays its holder cash flows on periodic basis, such that the subsequent cash flows grow at a constant rate forever.

The present value of the growing perpetuity means the amount that needs to be paid today in order to be entitled to the annual cash flows that grows at the constant rate forever.

The formula for the present value formula of a growing annuity is as below:

PV=D1/(r-g)

D1=first cash flow=$500,000

r=discount rate=5.5%

g=growth rate=1.00%

PV=$500,000/(5.5%-1.00%)

PV=$11,111,111.11

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Which type of agreement is one in which performance by one party depends on the occurrence of an uncertain event

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A gambling agreement is one in which performance by one party depends on the occurrence of an uncertain event.

A gambling contract is a contract to participate in a game of chance. In a gambling contract, the two parties bet something, specifically money, to get a chance to win a prize or amount. Contracts related to legitimate gambling activities are valid only if gambling is legal.

Gambling contracts are also known as gambling contracts. Gambling contracts or transactions are generally illegal and cannot be enforced. Therefore, such a contract is invalid from the beginning. A gambling contract is invalid regardless of the form of the contract and the laws governing or prohibiting it.

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Several times during the winter, supervisor Clyde goes ice fishing with Bubba, one of the workers in his department. After fishing they often have a few beers together. When it comes time for Clyde to write a performance evaluation of Bubba, Clyde faces the ethical dilemma of ________.

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Several times during the winter, supervisor Clyde goes ice fishing with Bubba, one of the workers in his department. After fishing they often have a few beers together. When it comes time for Clyde to write a performance evaluation of Bubba, Clyde faces the ethical dilemma of conflict of interest.

An ethical dilemma is what?

Any alternative that requires the agent to violate or compromise on their ethical norms presents an ethical problem in a decision-making situation.

We note that the following three characteristics can be used to categorize ethical dilemmas:

The agent must have a decision to make or be given an option.There must be multiple options open to the agent.The agent understands that every option forces them to give up some personally held ethical principle or value.

Ethics are inherently contradictory, hence they do give rise to ethical problems. Employees may encounter situations where lying or breaching the law appears to serve other vital goals like increasing pay or avoiding layoffs.

What kinds of ethical dilemmas are there?

In the course of carrying out their tasks and obligations, agents may run across a variety of ethical problems, including the following:

Epistemic conundrumsSelf-imposed conundrumWorld-imposed conundrumA conflict of obligationProhibition conundrum.

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If a monopoly firm suddenly lost its barriers to entry and faced new competition, yet consumers thought that the former monopolys products were somewhat different than its new competitors, then? More member __________ is desirable; clinical findings do not support the idea that more is always better. The phases of meiosis that can result in the most variation in the four resulting daughter cells are:_______ Which of the following is equal to the fraction below?(5/9)^8A. 8(5/9)B. 5^8/9C. 5/9^8D. 5^8/9^8 Which division of time on the geologic time scale is the longest?OA. A periodOB. An eonC. An epochOD. An eraSUBMIT The constant of 2/3 cupcakes per minute means that in a minute, 2/3 of a cupcake is made. Given the graph of w(x), w(2) = ?(the graph is below) What is the time goal for initiation of fibrinolytic therapy 1. 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They had their own songs, called spirituals, that expressed theirfeelings. Unfortunately, enslaved persons did not have their own churches, but were forced to attend white-led plantation churches.Choose the sentence that corrects a historical inaccuracy in the passage.O Enslaved African Americans in the South embraced the polytheistic religions of their ancestors.Many African Americans became ministers and formed their own congregations.The song form called "the blues" expressed African Americans' deep spiritual dissatisfaction.The stories of resurrection and the afterlife were most important to enslaved persons in the South. Why stars are shows like twinkling in the skys!Reply please! Potassium carbonate dissolves as follows: K2CO3(s) 2k (aq) CO3^2-(aq). What volume in liters of 1.0 m k2co3 solution is required to provide 0.50 moles of k (aq)? i need help!!!!!!!!!!!!!! how many pound are in 40 ounces. this is off or i ready. please help me!!! Read the excerpt from Narrative of the Life of Frederick Douglass.I was eager to hear any one speak of slavery. I was a ready listener. Every little while, I could hear something about the abolitionists. It was some time before I found what the word meant. It was always used in such connections as to make it an interesting word to me. If a slave ran away and succeeded in getting clear, or if a slave killed his master, set fire to a barn, or did any thing very wrong in the mind of a slaveholder, it was spoken of as the fruit of abolition. Hearing the word in this connexion very often, I set about learning what it meant. The dictionary afforded me little or no help. I found it was "the act of abolishing;" but then I did not know what was to be abolished. Here I was perplexed.Douglasss purpose in this excerpt is toargue against abolition.explain his discovery of abolition.teach the history of abolition.define the word abolition. 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