Challenging Business Problems with Detailed Answers

a share of stock with a beta of 75 now sells for 50. at what price will the stock reach an equilibrium at which is is perceived as fairly priced today
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at the present time, perpetualcold refrigeration company (prc) has 15-year noncallable bonds with a face value of $1,000 that are outstanding. these bonds have a current market price of $1,136.50 per bond, carry a coupon rate of 12%, and distribute annual coupon payments. the company incurs a federal-plus-state tax rate of 25%. if prc wants to issue new debt, what would be a reasonable estimate for its after-tax cost of debt (rounded to two decimal places)? (note: round your ytm rate to two decimal place.)
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1 2 3 4 5 6 7 8 9 10 which describes the difference between a personal loan and a credit card? credit cards offer lump sums of money, while personal loans set a maximum amount a person can borrow. credit cards are secured loans for large amounts, while personal loans are unsecured for small purchases. personal loans offer lump sums of money, while credit cards set a maximum amount a person can borrow. personal loans are secured for small purchases, while credit cards are unsecured loans for large amounts.
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an existing general partnership, limited partnership and corporation may be converted to a limited liability company if which of the following requirements are met: a) an agreement of conversion is drafted that sets forth the terms of the conversion; b) the terms of the conversion are approved by all parties or by the number or percentage of owners required for the conversion; c) articles of organization of the new llc are filed with the secretary of state; d) all of the above.
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alexander's athletic apparel has 1,100 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2023. all remaining shares are common stock. the company was not able to pay dividends in 2023, but plans to pay dividends of $13,000 in 2024. required: 1. & 2. how much of the $13,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2024, assuming the preferred stock is cumulative? what if the preferred stock were noncumulative?
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which of the following is not a common internal control activity related to the acquisition of property, plant, and equipment? group of answer choices using a budget to forecast and control acquisitions and retirements. analyzing monthly variances between authorized expenditures and actual costs. requiring acquisitions to be authorized in relevant departments by the appropriate level of management. establishing a written company policy regarding the acquisition of raw material.
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cash and treasury securities $100 million fed funds sold $100 million residential mortgages 1-4 family $200 million commercial loans $600 million note: the residential mortgages all have a loan-to-value of between 60 and 80 percent. if the bank has capital of $50 million, what is the leverage ratio using the standardized approach?
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which of the following is characteristic of a decentralized control system? a. decentralized control system has a rigid organizational culture. b. in a decentralized control system, employees follow instructions, and do exactly as they are told. c. decentralized control system is based on the belief that people work best when they are committed to their organization. d. decentralized control system relies on task-related job descriptions. e. decentralized control system emphasizes extrinsic rewards.
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national food distributors is a wholesale firm that typically partners with small, family-owned firms such as gino's pizza that produces a high-quality, frozen-pizza using their family's recipe. gino's wanted to expand its distribution across the united states and chose national food distributors since they had established relationships with retailers and could negotiate placement of gino's pizza in grocery stores. which intermediary function is national food distributors providing in this example?
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at the beginning of 2019, robotics inc. acquired a manufacturing facility for $13.9 million. $10.9 million of the purchase price was allocated to the building. depreciation for 2019 and 2020 was calculated using the straight-line method, a 25-year useful life, and a $2.9 million residual value. in 2021, the estimates of useful life and residual value were changed to 20 total years and $690,000, respectively. what is depreciation on the building for 2021? (round answer to the nearest whole dollar.)
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xyz wants to outsource its call center activities to bby, a well-known company in india. as discussed in the class video on outsourcing, which of the statement about outsourcing is true a. xyz can never get economy of scale b. bby may have many clients of different natures c. bby can always provide custom-centric services to xyz clients d. xyz can not put resources on mission-critical tasks if they outsource to india
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in september, the board of directors of chaparral steel approved a stock split of 2-for-1. after the split, how many shares of chaparral steel stock will an investor have if he or she owned 450 shares before the split? (do not round intermediate calculations.)
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the content we consume through a digitally connected device is called . group of answer choices multichannel marketing digital media omnichannel marketing integrated marketing communications
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john is the head of a federal agency. his agency is lacking funds to support a new policy implementation, so it is allowed to borrow funds from another government agency. what are these funds a part of?
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the manager discovers that the brown gravy tastes very sweet during the daily taste test and does not meet the restaurant's standard. upon investigation, it looks as if the staff accidentally used sugar instead of salt in the recipe. the gravy should be .
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bite me inc., a fast-food chain, is implementing a multidomestic strategy. uranus inc., a company that manufactures jet fuel for commercial purposes, is pursuing a global-standardization strategy. how will the two companies most likely differ from each other?
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if a project has a profitability index greater than 1, a. the npv will also be positive. b. the irr will be higher than the required rate of return. c. the present value of future cash flows will exceed the amount invested in the project. d. all of the above.
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managers use budget reports to answer all of the following questions: multiple select question. why are variances unfavorable? are we using too much direct material? why are employees calling in sick so often? why is actual income higher than budgeted income?
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the center for performing arts had the following expenses: $5,000 of performances expense, $2,800 of fund-raising expense, $3,000 of instructional classes expense, and $1,700 of general and administrative expense. what is the program expense ratio (rounded)?
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which action triggers sales order processing in the fulfillment process? group of answer choices receipt of payment from customer receipt of goods from a vendor delivery of goods to the customer receipt of a customer purchase order picking goods for shipment
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all of the following are rationales for acquisitions except: a. positioning the firm for a tactical competitive move. b. achieving greater market power. c. overcoming significant barriers to entry. d. increasing speed of market entry.
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assume that a t-bill futures contract with a face value of $1 million is purchased at a price of $95.00 per $100 face value. at settlement, the price of t-bills is $95.50. what is the difference between the selling and purchase price of the futures contract?
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translation exposure is important because it multiple choice question. impacts the amount of gain or loss that arises over a period. insulates firms against exchange rate fluctuations. prevents firms from experiences losses due to exchange rate fluctuations.
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ellie's boutique has a bond issue outstanding that matures in 14 years. the bonds pay interest semi-annually. currently, the bonds are selling at 98% of face value and carry an 8% coupon. the firm's tax rate is 35%. what is the firm's after-tax cost of debt?
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