The use of Program board ultimately intends to support is option B. Program predictability.
The use of a Program board is ultimately intended to support program predictability by providing a visual representation of all the work streams, dependencies, milestones, and progress across the program.
This helps the team to stay aligned, identify and manage risks, and make informed decisions to ensure timely delivery of features and successful program outcomes.
While problem-solving and feature delivery are important aspects of program management, they are not the primary focus of a Program board. Dependency management is also a critical element of program management, which is supported by the use of a Program board, but it is not the ultimate intention.
A Program Board is primarily used to support program predictability by visualizing the flow of work, identifying dependencies, and facilitating effective communication among team members. This helps teams to better plan, coordinate, and track the progress of their projects, ultimately leading to more predictable and successful outcomes.
Therefore, the correct answer is option b. program predictability.
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the retail marketing mix has four elements that must be managed by the firm: product and service assortment, retail prices, promotion, and distribution
The retail marketing mix consists of four key elements: product and service assortment, retail prices, promotion, and distribution. These elements are crucial for a firm to effectively manage and enhance its retail marketing strategy.
The product and service assortment refers to the range of products and services offered by a retailer. It involves selecting the right mix of merchandise and services to meet the needs and preferences of the target customers.
Retail prices play a significant role in the marketing mix as they influence customer perception, demand, and profitability. Retailers need to determine appropriate pricing strategies that consider factors such as costs, competition, customer value, and market trends.
Promotion involves the activities undertaken by retailers to communicate and persuade customers about their products and services. This element encompasses advertising, sales promotions, public relations, personal selling, and digital marketing efforts.
Distribution is concerned with the movement of products and services from the retailer to the end consumer. It involves decisions related to the location and layout of physical stores, online presence, supply chain management, inventory control, and order fulfillment processes
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Even when economic indicators show that the economy is down, small businesses often thrive. Think of a small business in your community that would do well, even if people did not have a lot of extra money to spend, and explain the advantages it has over larger businesses.
Answer:
A drug store is a type of business that is likely to do well even in an economic recession.
This is because drug stores sell an essential good, that often has a high price, and that is needed by many people, specially those who suffer from chronic diseases.
In other words, people will likely reduce their consumption of many other goods before reducing their consumption of prescription drugs.
please type what belongs in the highlighted squares
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To get the total revenue for the fourth quarter add the revenue for the month that apply
October revenue + $500 000
November revenue + $425 000
December revenue + \(\\)860 000
the sum total is = 1,011,000
therefore the fourth quarter revenue is $1,011,000
To calculate EBITDA subtract the expenses from the revenue
Revenue $6500 000
Expenses - $5375 000
EBITDA = 1, 125, 000
therefore the EBITDA is $1, 125, 000
To calculate Total Market Capitalization, multiply the number of share by the price per share we divide the
Number of shares \(\\)2500 000
price per share x \(\\) 23 77
= $5,942500, 000
therefore the Total Market Capitalization is $5,942500, 000
To calculate the earning per share divide the earning by the number of shares
Earning $5000 000 / Number of shares $2500 000 = 2
therefore the earning per share is 2
What is EBITDA?The abbreviation. EBITDA for stands for earnings before interest, taxes, depreciation, and amortization in business. EBITDA is very vital in understanding a business's ability to generate cash flow for its owners and use for judging a company's operating performance.
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Enumerate the reasons why there is no universally accepted definition of the term entrepreneur.
Answer:
There is no universal definition of entrepreneurship because it is unique from person to person. ... However a person sees a business venture may or may not be exactly the same as to how somebody else sees it.
Explanation:
if the state administrator determines that a securities offering has been made on unfair terms, he or she may do all of the following except:
If the state administrator determines that a securities offering has been made on unfair terms, he or she may do all of the following except suspend the registration statement without providing an opportunity for a hearing (Option A).
The state administrator has the authority to suspend the registration statement if they determine that the securities offering has been made on unfair terms. However, they must provide an opportunity for a hearing before taking this action. This is to ensure that the issuer of the securities offering has a chance to defend themselves and provide evidence to support their case.
The state administrator may also notify the issuer of any proposed action and take any actions based on findings of fact and conclusions of law. These actions are within the state administrator's authority and are designed to protect investors from unfair terms in securities offerings.
Note: The question is incomplete. The complete question probably is: If the state administrator determines that a securities offering has been made on unfair terms, he or she may do all of the following except: A) suspend the registration statement without providing an opportunity for a hearing B) suspend the registration statement only if an opportunity for a hearing is provided C) notify the issuer of any proposed action D) take any actions based on findings of fact and conclusions of law.
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Why are ethics important in the workplace?
Answer:
Ethics is important in a workplace because :
a) It creates a positive and safe work environment.
b) It helps to instill professional behavior in employees
c) It helps to maintain orderliness in an organization and prevents chaos from happening.
d) It prevents discrimination or favouritism in organizations.
e) Workplace Ethics ensures that all employees are treated fairly.
f) Workplace Ethics improves the relationships of employees with one another and this lead to the development of team work amongst employees.
Explanation:
Ethics at a workplace or Workplace Ethics can be defined as the standards or regulations that are put in place by a firm or organisation that helps to guide the behavior or attitude of employees at work such that safe work ambience is created and employees relate in a professional manner to one another.
Examples of Workplace Ethics are:
a) Punctuality
b) Honesty
c) Loyalty
d) Productivity
e) Dependability
Ethics at the workplace in important because:
a) It creates a positive and safe work environment.
b) It helps to instill professional behavior in employees
c) It helps to maintain orderliness in an organization and prevents chaos from happening.
d) It prevents discrimination or favouritism in organizations.
e) Workplace Ethics ensures that all employees are treated fairly.
f) Workplace Ethics improves the relationships of employees with one another and this lead to the development of team work amongst employees.
Answer: professional organizations
Explanation: took the test (:
Franchising involves ______. Multiple choice question. professionally managed and centrally coordinated channels designed to achieve economies and maximize impact one firm's marketing channel being used to sell another firm's products a contractual arrangement between a parent company and another entity that is allowed to operate a business under an established name a channel member bypassing another member to sell or buy product directly
Answer:
a contractual arrangement between a parent company and another entity that is allowed to operate a business under an established name.
Explanation:
Franchise is a license consisting of a contractual arrangement between a parent company and another, that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.
One of the main advantages of a franchise is that, franchisers such as McDonald do not require additional capital and development expenses to have their businesses being situated in a foreign market or country, as they only required to issue licenses to franchisors who are interested in being part of their business by paying a fee.
Hence, franchise is a license that allows individuals or group of people knowledge, processes, trademarks to provide a service.
In conclusion, franchising involves a contractual arrangement between a parent company and another entity that is allowed to operate a business under an established name
2. Complete the table to describe the coverage provided by each type of auto
insurance. (8 points)
I
Type of insurance
Bodily injury liability
Property damage liability
Collision coverage
Comprehensive coverage
Description of coverage
3. Write a paragraph (3-4 sentences) describing three types of risk a young adult
might face if they don't have enough insurance or don't have insurance at all. In your
response, explain how insurance can financially protect a young adult from each
type of risk. (6 points)
The completed table for the type of coverage in the type of insurance is given below:
Bodily injury liability: This type of insurance covers the costs of any bodily injury that you may cause to another person in an accident. This can include medical expenses, lost wages, and other damages.
Property damage liability: This type of insurance covers the costs of any damage that you may cause to another person's property in an accident. This can include damage to a vehicle, a fence, or a building.
Collision coverage: This type of insurance covers the costs of any damage to your own vehicle in an accident, regardless of who is at fault. This can include repairs or replacement of your vehicle.
Comprehensive coverage: This type of insurance covers damage to your vehicle caused by events other than a collision, such as theft, fire, or natural disasters.
What are the risks of an adult without insurance?A young adult who does not have enough insurance or does not have insurance at all faces many risks. One risk is incurring significant financial debt due to the cost of damages and medical expenses resulting from an accident.
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Products sold by companies in the United States to consumers in China are exports.
True
O False
Answer:
True
Explanation:
Which economic effect does a central bank hope to achieve by buying back large amounts of treasury security
A. It hopes to reduce the amount of money available for lending.
Explanation:
Usually, the central bank(Federal reserve) control the supply of money in circulation in the economy so that the nation's economy would be healthy. One of the ways through which the federal reserve controls the quantity of money in circulation is by selling or purchasing of government securities through a process known as open market operation.
If the federal reserve sells government securities such as treasury bills, in large quantities, its aim is to reduce the amount or quantity of money available to commercial banks for lending, hence mop up the quantity of money in circulation.
Also, if the federal reserve buys government securities, its aim is to make more money available in large quantities to commercial banks and other institutions, hence have more cash to lend people.
The economic effect that central bank are trying to effect by the process of buying back large amounts of treasury security is bring reduction to amount of money available for lending.
Treasury notes as well as bonds are securities that brings about payment of fixed rate of interest which is usually done every six months till the security reach a stage of maturity.The central bank do buy large amounts of treasury security so that the money that can be available for lending can be reduced.Therefore, this process are put in place to balance the economy.
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Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Borrowed $40,000 cash from National Bank. 3. Earned cash revenues of $48,000 for performing services. 4. Paid cash expenses of $25,000. 5. Paid a $1,000 cash dividend to the stockholders. 6. Acquired an additional $20,000 cash from the issue of common stock. 7. Paid $10,000 cash to reduce the principal balance of the bank note. 8. Paid $53,000 cash to purchase land. 9. Determined that the market value of the land is $75,000.
what is the balance in the retained earnings account immediately after event 3 is recorded?
Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation. $118,000 is the balance in the retained earnings account.
The amount of profit a business keeps after paying all of its direct and indirect expenses, income taxes, and dividends to shareholders is known as retained profits.
This is the percentage of the company's equity that may be utilized, for example, to fund the purchase of new machinery, research and development, and marketing.
Cash + Land = $49,000 + $53,000 = $102,000 in assets.
Notes Payable + Liabilities = $30,000.
Retained Earnings plus Common Stock equals Shareholders' Equity, or $50,000 plus $22,000, or $72,000.
Shareholders' Equity + Liabilities = $30,000 + $72,000 = $102,000
Thus, the following is true for the accounting equation:
Liabilities plus shareholders' equity equal $102,000 as assets.
We have to find retained earning after the third event, so:
Common stock = 30,000
Add: Borrowed cash = 40,000
Add: earned cash revenue = 48,000
Total retained earnings = 118,000
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PLEASE DO NOT ANSWER IF O DO NOT KNOW!!!
How could an Environmental Science and Protection Technician and an Environmental Engineering Technician be compared?
The careers are basically the same because both focus on protecting the environment.
Both focus on protecting the environment, but an Environmental Science and Protection Technician uses equipment to reduce the impact of issues while an Environmental Engineering Technician performs tests to identify issues.
Both focus on protecting the environment, but an Environmental Science and Protection Technician performs tests to identify issues while an Environmental Engineering Technician uses equipment to reduce the impact of issues.
The careers are different and belong to different career pathways within Manufacturing.
Answer:
It is C. Both focus on protecting the environment, but an Environmental Science and Protection Technician performs tests to identify issues while an Environmental Engineering Technician uses equipment to reduce the impact of issues.
Explanation: I did some research by looking up what all of them do and after looking quite a bit it seems the most logical answer would be C.
If it isn't C. Then its for sure B.
Both focus on protecting the environment, but an Environmental Science and Protection Technician performs tests to identify issues while an Environmental Engineering Technician uses equipment to reduce the impact of issues.
What is Environmental Science?An interdisciplinary academic subject called environmental science combines physics, biology, and geography to research the environment and provide solutions to environmental concerns.
During the Age of Enlightenment, environmental science developed from the disciplines of natural history and medicine. Today, it offers an interdisciplinary, integrated, quantitative approach to the study of environmental systems.
More social sciences are incorporated into environmental studies in order to better understand human interactions, viewpoints, and environmental policy. Engineering for increasing environmental quality in all areas is the emphasis of environmental design.
The capacity to relate spatial and temporal correlations and quantitative analysis are essential skills for environmental scientists. Archives from all throughout the world provide extensive records of historical concern for environmental issues.
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I immediately need help with this please help me someone please solve it for me it’s pretty urgent if u write unnecessary things I’ll report so pleasee
Hello there ☺️,
Please check the attached image of the answer.
By Benjemin ☺️
Raven Inc. sells a single product for $45. Variable costs include $27.65 for each unit plus a $7 selling expense per unit. Fixed costs are $210,910 per month. a. What is the contribution margin percentage? b. What is the break-even sales revenue? c. What sales revenue is needed to achieve a $242,650 per month profit?
a) the contribution margin percentage is 23%. b) The break-even sales revenue is $916,956.52. c) The sales revenue to achieve $242,650 per month profit is $2,083,905.
a. Contribution margin percentage:
The formula to calculate contribution margin percentage is Contribution Margin / Sales Revenue × 100
Contribution Margin per unit = Selling Price per unit – Variable cost per unit
Contribution Margin per unit = $45 - $27.65 - $7 = $10.35
Contribution Margin percentage = Contribution Margin per unit / Selling Price per unit × 100 = $10.35 / $45 × 100 = 23%
b. Break-even sales revenue: Break-even point is the point where the total revenue earned equals the total costs associated with the sale of the product. The formula to calculate break-even sales revenue is Break-Even Sales Revenue = Fixed Cost / Contribution Margin Ratio
Contribution Margin Ratio = Contribution Margin per unit / Selling Price per unit = $10.35 / $45 = 0.23
Break-Even Sales Revenue = $210,910 / 0.23 = $916,956.52
c. Sales revenue to achieve $242,650 per month profit:
The formula to calculate sales revenue to achieve $242,650 per month profit is:
Sales Revenue = Variable Cost + Fixed Costs + Profit
Sales revenue = Variable Cost + Fixed Costs + Profit = (Sales revenue per unit - Variable cost per unit) × Units + Fixed Costs + Profit
Sales revenue per unit = $45
Variable cost per unit = $27.65 + $7 = $34.65
Contribution Margin per unit = $45 - $34.65 = $10.35
Profit = $242,650Units = (Fixed Cost + Profit) / Contribution Margin per unit
Units = ($210,910 + $242,650) / $10.35 = 46,309.18 (rounded off to the nearest whole number)
Sales revenue = $45 × 46,309 = $2,083,905
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Let's take a look at precipitation over the course of a year in High Springs ( a small town north of Gainesville, near the Sante Fe River). (Please note that they start the year at O - October.) Which statement best describes the center for the boxplots?
Answer:
- The medians for the summer months of June, July, August, and September are higher than for the other months.
Explanation:
The statement prescribing 'the medians within the months of summer June, July, August, and September are higher in comparison for the other months' correctly describes the halfway for the boxplots. This displays that the precipitation during these months due were higher due to the high temperature and intense water cycle.
Which of the following are automatically withheld from paychecks?
Which method of business integration is classified as a "holding company" of three or
more unrelated sectors of companies' stock? (Hint: we said in class that they're doing a
"stock project"...for real.)
A-horizontal
B-vertical
C-multinational
D-conglomerate
The method of business integration that is classified as a "holding company" of three or more unrelated sectors of companies' stock is
D-conglomerate.What is conglomerate?A conglomerate is a type of business that consists of a group of companies that are involved in different industries or sectors. A conglomerate may be formed by a holding company, which is a company that does not produce goods or services itself but owns other companies' stocks. The holding company exists to manage and control these companies, each of which operates independently in its respective industry.
Unlike a vertical or horizontal integration, where a company seeks to control the entire supply chain or a particular stage of production within an industry, a conglomerate is typically involved in unrelated businesses that have little or no connection with one another.
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Nathan wants a formula to return "YES" if the value in cell A1 is less than the value in cell B1, and to return "No" otherwise. Which of the following functions should he use?
Answer:
IF function
Explanation:
The options to the question are missing; however, I'll assume the question related to Microsoft Office Excel.
To do the task in the question, Nathan can only make use of the IF function.
This is so, because the question relates to conditional statement.
The full if statement is:.
=IF(A1 < B1, "YES","NO")
Question 7
Supply Side Economics is the approach that advocates regulation on industry
O True
O False
martina is managing a campaign that isn't trending toward the intended goal. what is the recommended approach?
When managing a campaign that isn't trending toward the intended goal, the recommended approach is to analyze and identify the reasons behind the underperformance and then take appropriate actions based on the findings. Here's a step-by-step approach to consider:
Review the campaign: Evaluate the campaign's performance by analyzing key metrics, such as conversion rates, click-through rates, engagement metrics, and other relevant KPIs. Compare the actual results with the desired goals to determine the extent of underperformance.
Identify the factors: Investigate the possible reasons behind the campaign's underperformance. Examine different aspects, including targeting, messaging, creative elements, landing pages, audience reach, timing, competition, or external factors that may have influenced the campaign.
Analyze data: Dive deeper into the campaign data to identify patterns, trends, or specific segments that are performing below expectations. Look for insights and correlations that can shed light on what aspects of the campaign need improvement.
Make adjustments: Based on the analysis, make targeted adjustments to the campaign strategy and tactics. This could involve refining the target audience, optimizing ad creatives or messaging, adjusting bidding or targeting parameters, or experimenting with different platforms or channels.
Test and iterate: Implement the changes and closely monitor the campaign's performance. A/B testing or running smaller-scale experiments can help determine which adjustments have a positive impact. Continuously track the campaign's progress and make further adjustments as needed.
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esselte is a swedish-based company that sells office supplies. it went public when it was founded, and it remained public until 2002 when it was taken private. now that esselte is private, it:
As Esselte went public when it was founded and it remained public until 2002 when it was taken private, now that it is private, it no longer sells stock to the public.
What Is Private Company Stock?In business, a private company are privately-held commercial entity. While it can issue shares of stock, these shares are not offered to the general public and are not listed on a public stock exchange. The private company stock includes the shares issued by the company to employees or investors.
For example, as startups often use equity to compensate employees during the early stages when cash flow is limited, the public companies also use equity compensation programs. All these programs are designed to motivate the employees by tying a portion of their pay to the company's earnings.
A private company does not have to provide financial information to investors or shareholders. Due to often smaller size of private companies, they typically issue fewer shares of stock and that can make the shares less liquid and difficult to sell.
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List specific suggestions to ensure the onboarding process meets the four C’s.
The following are some specific suggestions to ensure the onboarding process meets the four C's: Clarification, Connection, Compliance and Culture.
The onboarding process is the process of integrating new employees into the organization and ensuring that they have the necessary tools, knowledge, and skills to perform their jobs effectively. The process of onboarding can be challenging, particularly for companies that have high turnover rates. The following are some specific suggestions to ensure the onboarding process meets the four C's:
Clarification: During the onboarding process, it is important to clarify the roles and responsibilities of the new employee. This will help them understand what is expected of them and how they fit into the organization. In addition, it is essential to provide clear instructions on how to use the necessary tools and technology to perform their job effectively.
Connection: Connection is vital to the onboarding process. It is essential to ensure that the new employee feels welcome and is comfortable in their new environment. This can be achieved by assigning a buddy or mentor to the new employee. The buddy or mentor can provide guidance and support, answer questions, and help the new employee adjust to the new environment.
Compliance: Compliance is another essential aspect of the onboarding process. It is essential to ensure that the new employee understands the company's policies, procedures, and regulations. This will help them avoid making costly mistakes and ensure that they are complying with all applicable laws and regulations.
Culture: Culture is an essential aspect of any organization. It is essential to ensure that the new employee understands the company's culture and values. This can be achieved by providing information about the company's history, mission, and vision. It is also important to provide information about the company's social events and community involvement, which can help the new employee feel like they are part of the company's culture.
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The notation is Y = GNP = national income C = consumption I = private investment G = government spending X = exports M = imports T = taxes There is an intimate relationship between a country's BCA and how the country finances its domestic investment and pays for government expenditures. Given this, which of the following is a true statement? Multiple Choice All of the options If (S − I) < 0, it implies that a country's domestic savings is insufficient to finance domestic investment. If (T − G) < 0, it implies that a country's tax revenue is insufficient to finance government spending. When BCA is negative, it implies that government budget deficits and/or part of domestic investment are being finance with foreign-controlled capital.
The true statement is D. When BCA is negative, it implies that government budget deficits and/or part of domestic investment are being financed with foreign-controlled capital.
The above statement is based on the intimate relationship between a country's Balance of the Current Account (BCA) and how the country finances its domestic investments and pays for government expenditure.
Explanation:
National income = Y = GNP
Consumption = C
Private Investment = I
Government spending = G
Exports = X
Imports = M
Taxes = T
Therefore, the BCA = X-M = (S-1) + (T – G)
Where BCA = Balance of Current Account
Thus, the Balance of the Current Account (BCA) should be positive to avoid deficit-financing of government budgets.
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Suppose a company takes a long position in 20 December oil futures contracts on June 8 when the futures price is $58. It closes out its position on November 10. The spot price and futures price at this time are $65 and $62. The company is hedging 20,000 barrels, and uses a hedge ratio of 0. 8. Each contract is for 1,000 bbl. Q1: How many futures contracts should the firm hedge
The firm should help diversify 20,000/1,000 = 20 futures contracts because each contract is for 1,000 barrels and the company is trying to hedge 20,000 barrels.
What is the short definition of a company?A company structure that is distinct from its owners legally is a company. Due to additional reporting and higher-level legal obligations, the business structure is more complex and has higher setup and administrative costs.
What makes it a company, and why?A company is what is used to describe a business because its employees want to add value. The word "produce," that either means to direct forth or bring forward, has its roots in Latin. The word "corporation" first appeared in Old French, which is a synonym for "compaignie" or "companionship." The word "business" also has Old English roots, where busy and -ness were combined.
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wyatt oil has assets with a market value of $600 million, $70 million of which are cash. it has debt of $250 million, and 20 million shares outstanding. assume perfect capital markets. if wyatt oil distributes the $70 million as a dividend, then its stock price after the dividend will be closest to: $12.50 $26.50 $17.50 $14.00
The stock price after the dividend distribution will be closest to $14.00 (option d).
To calculate the stock price after the dividend distribution, we need to consider the impact of the dividend on the equity value of the company.
Current equity value = Assets - Debt
= $600 million - $250 million
= $350 million
Current stock price = Equity value / Number of shares outstanding
= $350 million / 20 million
= $17.50
If Wyatt Oil distributes $70 million as a dividend, the equity value of the company will decrease by that amount, as it is being paid out to shareholders.
New equity value = Current equity value - Dividend
= $350 million - $70 million
= $280 million
New stock price = New equity value / Number of shares outstanding
= $280 million / 20 million
= $14.00
So, the stock price after the dividend distribution will be closest to $14.00 (option d).
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what annual interest rate would you need to earn if you wanted a 2175 per month contribution starting 1 month from toda
Assuming a fixed period of 10 years, the annual interest rate required to earn a $2175 monthly contribution starting one month from today is approximately 6.98%.
To determine the annual interest rate required to earn a $2175 monthly contribution starting one month from today, we need more information about the duration of the contributions and the compounding frequency.
Assuming that the contributions will continue for a fixed period and are compounded monthly, we can use the formula for the present value of an annuity to solve for the interest rate:
PV = PMT x [(1 - (1 + r/12)^(-n)) / (r/12)]
Where PV is the present value of the annuity, PMT is the monthly contribution, r is the interest rate (in decimal form), and n is the number of months.
Substituting the given values, we have:
PV = $2,175 x [(1 - (1 + r/12)^(-12)) / (r/12)]
Solving for r, we can use trial and error or an iterative method to find the interest rate that makes the present value of the annuity equal to zero.
Assuming a fixed period of 10 years, the annual interest rate required to earn a $2175 monthly contribution starting one month from today is approximately 6.98% (rounded to two decimal places). However, the exact interest rate required would depend on the duration of the contributions and the compounding frequency.
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A pleasant smile, eye contact, and a firm handshake are examples of _____.
A.crafting a logical argument
B.probingdone
C.nonverbal communication
D.consultative selling
Answer:
Nonverbal Communication
Firm A’s capital structure contains 20% debt and 80% equity. Firm B’s capital structure contains 50% debt and 50% equity.
Both firms pay 7% annual interest on their debt. Firm A’s shares have a beta of 1.0 and Firm B’s beta of 1.375. The risk-free rate of interest equals 4%, and the expected return on the market portfolio equals 12%.
Required A. Calculate the WACC for each firm assuming there are no taxes.
B. Recalculate the WACC figures assuming that the two firms face a marginal tax rate of 34%. What do you conclude about the impact of taxes from your WACC calculations?
C. Explain the simplifying assumptions managers make when using WACC as a project discounting method and discuss some of the common pitfalls when using WACC in capital budgeting.
D. What are the important direct and indirect costs of bankruptcy? Which of these, do you think, are the most important in discouraging maximum debt use by corporate managers?
Calculate the WACC for each firm assuming there are no taxes: For Firm A: Debt weight (D/V) = 20%, Equity weight (E/V) = 80%, Debt cost (rd) = 7%
Equity cost (re) = Beta(A) * (Market Return - Risk-Free Rate) = 1.0 * (12% - 4%) = 8%
WACC(A) = (D/V) * rd + (E/V) * re
= 20% * 7% + 80% * 8%
= 1.4% + 6.4%
= 7.8%
For Firm B:
Debt weight (D/V) = 50%
Equity weight (E/V) = 50%
Debt cost (rd) = 7%
Equity cost (re) = Beta(B) * (Market Return - Risk-Free Rate) = 1.375 * (12% - 4%) = 10.5%
WACC(B) = (D/V) * rd + (E/V) * re
= 50% * 7% + 50% * 10.5%
= 3.5% + 5.25%
= 8.75%
B. Recalculate the WACC figures assuming that the two firms face a marginal tax rate of 34%:
For Firm A:
Tax rate (T) = 34%
WACC(A) = [(D/V) * rd * (1 - T)] + (E/V) * re
= [20% * 7% * (1 - 34%)] + 80% * 8%
= [20% * 0.0462] + 80% * 8%
= 0.00924 + 6.4%
= 6.40924%
For Firm B:
Tax rate (T) = 34%
WACC(B) = [(D/V) * rd * (1 - T)] + (E/V) * re
= [50% * 7% * (1 - 34%)] + 50% * 10.5%
= [50% * 0.0462] + 50% * 10.5%
= 0.0231 + 5.25%
= 5.2731%
From the WACC calculations, we can observe that the impact of taxes is to lower the WACC for both firms. This is because the interest expense on debt is tax-deductible, reducing the after-tax cost of debt.
C. Simplifying assumptions managers make when using WACC as a project discounting method include:
Constant capital structure: The WACC assumes a constant capital structure over the project's life, which may not hold true in reality. Risk-free rate and market return: The risk-free rate and market return are assumed to remain constant, while in practice, they can fluctuate.
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8) How can using a credit card affect your credit score in a good way? In a bad way?
Answer:
Explanation:
Good way: using your credit card and paying off the balance each month and on time can increase your credit score. Also, having a large credit limit affects the credit positively
Bad way: paying your balances late or not at all is bad for your credit.
Why is it important to use the right strategies to beat competition?:
Answer:
Therefore, competitive strategy is essential for the survival of the product in the market. Having a new competitive strategy to beat rival companies or their products by renaming or redesigning their products will help the company to be more profitable and create an image new on the market.