A company that is already diversified may choose to broaden its business base by building positions in new related or unrelated businesses because
A. it has resources or capabilities that are eminently transferable to other related or complementary businesses.
B. the company's growth is sluggish and it needs the sales and profit boost that a new business can provide.
C. management wants to lessen the company's vulnerability to seasonal or recessionary influences.
D. unfavorable driving forces face the company's core business.
E. All of these.

Answers

Answer 1

A company that is already diversified may choose to broaden its business base by building positions in new related or unrelated businesses because of point A, B, C and D.

Purpose of Company Diversification

One of the leaders of business science, Harberg and Rieple said that there are several purposes of diversification. Among them:

1. Fulfilling Manager Personnel Ambition

This is closely related to the award received by the manager. When a company can diversify, the scope for managers will also become larger.

2. Controlling Distributors and Suppliers

The next goal of diversification is to make it easier for companies to control quality and price so they can compete.

3. Achieving a Synergy

The combination of various business segments can create synergies. Which will not be possible if each business works alone.

4. Prevent Competitors

A company that controls a strategic resource business gives it added value and prevents it from being controlled by its competitors.

5. Minimizing Risk

Investing in several types of businesses will make the risk of a business unable to affect the company as a whole. Because, it will also be balanced with returns from other businesses.

6. Give Added Value

A company can have added value only if the investment is made in the company and can provide benefits for the company. The method is similar to acquiring companies with strategic resources such as distributors who already have broad distribution channels or suppliers of key production materials.

Such diversification can provide added value to the acquired company.

Forms of Company Diversification

From its form, business diversification can be divided into several types. You can see the review below:

Vertical Diversification

This form of diversification can easily be said to be diversification from top to bottom. Where every company is free to market its products. For example, a livestock company sells its livestock products to several competing leather companies.

That way, the store doesn't just focus on selling shoe products to your company. However, it also sells products to its competitors.

Horizontal Diversification

Furthermore, there is horizontal diversification where you divide your business concentrically or conglomerate sideways. That is, each business unit has the same level and degree. The difference is the target market and also the needs of potential buyers.

For example, you produce several different types of goods because the needs of potential buyers are also different.

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Related Questions

California taxpayers are generally opposed to higher taxes. They tend to make exceptions and to support new taxes or higher tax rates when ______.
A. the economy is bad and there is a budget deficit that needs to be fixed
B. the taxes are dedicated for specific purposes C. there is a Democratic governor in charge
D. there is Republican governor in charge

Answers

California taxpayers are generally opposed to the higher taxes. They tend to make exceptions and to support the new taxes or higher tax rates when economy is bad and there is budget deficit that needs to be fixed.

Who is a taxpayer?

A taxpayer is an organization that has tax obligations. Today's taxpayers may own an identification or reference number that a government has provided to people or organizations. Income taxes and/or property taxes assessed against real estate owners are just two examples of the many various types of taxes (such as homes and automobiles). The workforce of a country is frequently referred to as a "taxpayer," as they pay taxes that fund government services and activities. The money that the people pay forms a part of the public funds, which are all the resources that the government uses or puts to use in order to satisfy present or future demands. Businesses are taxed in the same way as people are, thus their earnings and outgoings are taxable.

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A company relies on innovation as its main competitive advantage, and wants to maintain the confidentiality of its research and development projects. Which of the following is it most likely to use when hiring new staff? Select one a. Employment-at-will contracts. O b. Implicit contracts O c. Restrictive agreements O d. Non solicitation agreements

Answers

Restrictive agreements contains clauses which is most likely to be used when hiring a new staff

Restrictive Agreements are anti-competitive agreements reached between two parties with the intention of stifling competition in the market. These agreements can be made in writing or orally. Restrictive agreements are mentioned in Chapter I of the UK Competition Act 1998 and the Enterprise Act 2002, which also establish the anti-competitive nature of these agreements and ensure that penalties will be imposed as a result of such agreements.

If you want to make sure that your business is aware of what restrictive agreements are and how they are punished, it is essential to understand competition laws.

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bank's loan officer rates applicants for credit. The ratings are normally distributed with a mean of 200 and a standard deviation of 50. If an applicant is randomly selected, find the probability of a rating that is between 170 and 220. Round your answer to four decimal places. Click to view page 1 of the table. Click to view page 2 of the table. O A. 0.2257O B. 0.1554O C. 0.0703 0 O D. 0.3811

Answers

The probability of rating between 170 and 220 is 0.3811.

What is meant by probability?

Probability is synonymous with possibility. It is a mathematical branch that deals with the occurrence of a random event. The value ranges from zero to one. Probability has been introduced in mathematics to predict the likelihood of events occurring.

Probability is defined as the degree to which something is likely to occur. This is the fundamental probability theory, which is also used in probability distribution, in which you will learn about the possible outcomes of a random experiment. To determine the likelihood of a single event occurring, we must first determine the total number of possible outcomes.

Let the given values be

Mean = 200

Standard Deviation = 50.

Points given= 170 and 220.

We should find z-score first,

Z1 = (170-200)/50 = -0.6 will be 0.2743

Z2 = (220-200)/50 = 0.4 will be 0.6591

The probability of a rating between 170 and 220 will be:

= 0.6554 - 0.2743

= 0.3811

The probability of a rating between 170 and 220 exists 0.3811.

Therefore, the correct answer is option D. 0.3811.

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Consider the following scenario to understand the relationship between marginal and average values. Suppose Dmitri is a professional basketball player, and his game log for free throws can be summarized in the following table. Fill in the columns with Raphael's free-throw percentage for each game and his overall free-throw average after each game.
Game Game Result Total Game Free-Throw Percentage Average Free-Throw Percentage
1 8/10 8/10 80 80
2 6/10 14/20 3 1/5 15/25 4 3/5 18/30 5 8/10 26/40 On the following graph, use the orange points (square symbol) to plot Raphael's free-throw percentage for each game individually, and use the green points (triangle symbol) to plot his overall average free-throw percentage after each game.

Answers

Using marginal and average values the average must be falling.

Game    Game result    Total     Free throw      Average throw
1                   8/10            8/10          80                         80
2                  6/10           14/10          60                         70
3                   1/5             15/25         20                         60
4                   3/5            18/30         60                         60
5                   8/10          26/40        80                          65

The average is falling when the marginal is below average. When the marginal is higher than the mean, the mean is increasing. The Mc would cut the average from below and at the minimum of average if the two were equal.

Then the average must be falling.

When MC is above ATC, ATC must be rising
MC intersects ATC from below and at its minimum.

Marginal value- The value of the last unit of consumption to a consumer is known as marginal value. It is the value of the good to the consumer who purchased the good but receives the least value from consumption in an industry demand curve. That is, the consumer value of the first unit that would no longer be purchased if the price increased.


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Tariffs do all of the following except _____.

Answers

Tariffs do all the following but does not provide domestic goods an advantage over imported ones.

What does Tariffs mean?

Tariffs are taxes or fees levied on imported goods and services from another country. They are commonly used to protect domestic industries from foreign competition by raising the price of imported goods relative to domestic goods. Tariffs can also be used by governments to generate revenue.

What does  Domestic industries mean?

Domestic industries refer to businesses or companies that operate within the borders of a single country. They are typically characterized by their focus on local markets and the use of local resources and labor. Examples of domestic industries include manufacturing, retail, and services.

Therefore we can say that the correct answer will be option (A) as it is the only option which does not provide any thing to Tariffs.

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If you were to behave according to the rational choice model when confronted with a loss of $25 on the same day in which you receive an unexpected gift of $25, you would:a. value the loss of $25 more heavily than the gift of $25.b. value the gift of $25 more than the loss of $25.c. See the two events as exactly offseting and thereby of no consequence in your overall welfare.d. discount the loss and value the gain so that you feel you have gained welfare.

Answers

If you were to behave according to the rational choice model when confronted with a loss of $25 on the same day in which you receive an unexpected gift of $25, you would see the two events as exactly offsetting and thereby of no consequence in your overall welfare.

Having reason or understanding. : relating to, based on, or agreeable to reason : reasonable. Rational behavior refers to a decision-making process that is based on making alternatives that result in the optimal level of advantage or utility for an person. the belief of rational behavior means that human beings would instead take actions that advantage them versus movements which might be impartial or harm them.

This concept states that people use their self-interests to make selections that will provide them with the greatest gain. human beings weigh their options and make the choice they think will serve them first-rate. How people decide what is going to serve them high-quality is dependent on private options.

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currency depreciation, on the other hand, is bad news if your company imports raw materials to manufacture finished goods. the cost of raw materials increases as currency weakens, which leads you to either raise the pricing of your completed products and risk the consequence of lower demand or bring down your profit margins.

Answers

Currency depreciation refers to a decline in its value when compared to other currencies. Economic fundamentals, interest rate differences, political unrest, or investor risk aversion are a few causes of currency devaluation.

Currency depreciation is typically a result of bad economic fundamentals in a nation, such as persistent current account deficits and high inflation rates. Currency depreciation, if controlled and progressive, increases a country's export competitiveness and may eventually reduce its trade deficit. However, a sudden and significant currency decline may frighten foreign investors who worry the currency could fall much further, prompting them to withdraw their portfolio investments out of the country. These steps will increase the currency's downward pressure.

One of the main reasons for currency depreciation is easy monetary policy, together with excessive inflation. A huge amount of money searches for the best yield while interest rates are low. Currency depreciation may start as a result of anticipated interest rate differentials. As excessive inflation might result in currency devaluation, central banks will raise interest rates to combat it.

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A project manager can identify personnel who will be directly responsible for each task in the project's development by using aNo:
Select one:
A.
Work package report.
B.
Milestone designation chart.
C.
Responsibility assignment matrix.
D.
Merrill report.

Answers

A project manager can identify personnel who will be directly responsible for each task in the project's development by using a C. Responsibility assignment matrix.

An obligation assignment matrix (RAM) in assignment control, also referred to as a RACI chart or RACI matrix, information all of the necessary stakeholders and clarifies obligations amongst move-practical teams and their involvement level in a challenge.

A responsibility mission matrix (RAM), also referred to as a RACI matrix or linear responsibility chart (LRC), describes the participation of numerous roles in finishing tasks or deliverables for a challenge or business technique.

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In a recent city meeting, it was agreed that the city was going to build a new town hall. Long-term bonds, intergovernmental transfers, and public donations will be used to construct and maintain the building. The major discussion was how to record the donations meant to fund ongoing maintenance costs. One group wants to set up a permanent fund for the principle of the investments and use a special revenue fund to account for the earnings of the investments and their use. The other group wants to use a private purpose trust fund for the principle and interest.

Answers

Long-term bonds and also other things are also the main things that have been accustomed to the long-term pattern of money and also everything.

What is the Long term bonds?

Two main advantages of longer-term bonds are diversification from stocks and (ii) consistent returns. These traders do not require the benefit of diversification that longer bonds provide because of the little equities exposure in this sort of portfolio.

A longer-term bond entails a larger risk of falling in price due to higher interest rates overall as well as a greater chance that rising inflation could lower the value of payments. For the majority of long-term investors, bonds with maturities between one and ten years are sufficient.

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A group of eight marketing agents is asked to design the next feature on a smartphone because an existing feature is outdated. The group begins the brainstorming session at 9 a.m. by reviewing the agenda. The agenda states that the brainstorming session will last until 5 p.m. There is only one scheduled break at noon for lunch.

Answers

To improve the group's brainstorming, the group leader should establish short brainstorming session.

Brainstorming is a team problem-solving method to generate ideas to solve a clearly defined design problem. Brainstorming is one of design thinking techniques used in the ideation phase. Brainstorming involves spontaneous contributions from all its participants to construct creatives ideas and solutions.

Brainstorming is used to develop new concepts to solve problems by looking from innovative ways through combining an informal approach to problem-solving with lateral thinking. Brainstorming allows the group to avoid group think, where the team is in need for consesus and affecting the members' individual judgement.

There are 8 rules to follow for conducting an effective brainstorming:

Set a time limit, between 15-60 minutesBegin with a target problem/idea and stay on the topicRefrain from any judgment/criticism since the ideas would be unlimitedEncourage weird and wacky ideas and ban the killer phrasses to keep everyone feel free to blurt out their ideasAin for quantity, not quality. Try to produce as vary ideas as possible.Build on others' idea with the trigger of "and"Stay visual, use diagram or sticky notes to help brings the ideas to lifeAllow one conversation at a time to show equal respect for everyone present

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Complete Question:

A group of eight marketing agents is asked to design the next feature on a smartphone because an existing feature is outdated. The group begins the brainstorming session at 9 a.m. by reviewing the agenda. The agenda states that the brainstorming session will last until 5 p.m. There is only one scheduled break at noon for lunch.

To improve the group's brainstorming, the group leader should ____

the demand for housing is characterized by a regular pattern of increasing to a peak, then falling. when the demand reaches a low point, it then repeats the pattern. this pattern usually takes place over a three- to five-year period. this is an example of which type of demand pattern? question 13 options: autocorrelation step change trend seasonality and cycles

Answers

Demand planning integrates inventory management, supply chain management, and sales forecasting to accomplish this goal.

What Is Demand Planning?To ensure that your company is able to meet client demand as efficiently as possible, demand planning involves examining sales as well as consumer patterns, historical sales data, and seasonality data.Demand planning integrates inventory management, supply chain management, and sales forecasting to accomplish this goal. It begins by predicting future demand using information from both internal and external sources. As a result, you can determine how much goods to buy or produce in order to satisfy that demand by using that projection to guide your sales and operations strategy.By assisting businesses in finding the ideal balance between adequate inventory levels and consumer demand, effective demand planning generates profit and increases customer happiness. That's not a simple objective, especially when it calls for cooperation throughout your entire firm. But the effects on business are important. Excess inventory restricts working capital, raises inventory carrying costs, and raises the likelihood that you'll be left holding low-value or outdated stock.

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an investment that does not require periodic rebalancing and which does not require the investor to actually change assets allocation. t/f

Answers

This is a true statement in that the type of investment that does not require periodic rebalancing as well as which does not require the investor to actually change assets allocation is known as a 'Target Date Fund'.

A Target Date Fund refers to a class of mutual funds that periodically rebalance asset class weights to optimize the investor's risk and returns for a predetermined time frame.  Typically, the funds are created to build gains in the early years by focusing on riskier growth stocks; then they aim to retain those gains by weighting towards safer, and more conservative choices as the target date approaches.

"

Complete question is:

an investment that does not require periodic rebalancing and which does not require the investor to actually change assets allocation is known as a target data fund.

True

False

"

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In the above diagram, the correct multiplicities designated with the number 1 is which of the following? 0,11,10,*1,**,*

Answers

In the above diagram, the correct multiplicity designated with the number 1 is 1..1.

The variety of times a given component appears in the factored form of the equation of a polynomial is known as multiplicity. The 0 associated with this element, x=2, has multiplicity 2 because the aspect (x−2) happens two times. The x-intercept −1 is the repeated answer of thing (x+1)3=zero.

If the multiplicity is peculiar, the graph will cross the x-axis at that zero. this is, it will trade sides, or be on contrary facets of the x-axis. If the multiplicity is even, the graph will contact the x-axis at that 0. this is, it'll stay at the same facet of the axis.

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lila is a marketing manager for tremont manufacturing. her boss asked her to evaluate a new-product idea. one of the things lila wants to determine is how much of this product her firm would have to sell in order to break even. in order to compute this break-even level of sales, she will need to know the price of the good, the total fixed costs, and variable cost of producing each unit.

Answers

Which among the following best illustrates why businesses using average-cost pricing could lose money?

What is a manufacturing example?

What is a Manufacturing Example? Manufacturing is the process of creating new goods from components or raw materials. Automotive businesses, bakeries, shoemakers, and tailors are all examples of manufacturing since they all produce goods rather than provide services.

What does manufacturing serve as a means for?

What Does Manufacturing Have as a Goal? The process of transforming a raw substance into a finished, physical product is known as manufacturing. Making a process more effective while it transforms certain resources into other resources, frequently with the intention of becoming sold to a client, is what manufacturing includes.

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Blink, Inc. has a 1,000 shares of $10 par, %5 preferred stock, and 20,000 shares of $10 par common stock issued and outstanding. If the board of directors authorizes a $20,000 dividend, the payment to common shareholders will total19500; $10 x .05 x 1,000 shares = 500. Total dividend is $20,000. $20,000 - $500 = 19,500 common shareholders

Answers

Additional Paid-In-Capital.

A shareholder of an organization is a character or criminal entity that is registered by means of the employer because of the legal proprietor of shares of the percentage capital of a public or non-public organization. Shareholders can be day-to-day participants in an enterprise.

Someone who owns shares in an agency and consequently gets a part of the agency's income and the right to every day vote on how the agency is managed: Shareholders might be voting on the proposed merger of the groups next week.

Shareholders are owners of the agency, technically element-owners if there is more than one, however, they aren't constantly involved in the going-for walks of the commercial enterprise that duty is left every day by the administrators and corporation management. however, organization directors also can be shareholders.

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the process of analyzing customers who have stopped buying to determine why is known as customer behavior modification. True/False ?

Answers

Answer:

Hello! I'm not in college, or business class for that matter. However, I want to try to help! :)

Based on brief research, I think it's:

FALSE

I really hope I helped you... GOOD LUCK :)

Explanation:

one benefit of investing in a no-load fund over a load mutual fund would be (found in discussion of no-load funds):

Answers

A mutual fund that does not impose a commission or sales fee is known as a no-load fund. Due to the shares being distributed directly by the investment business rather than by a third party, there are no costs involved.

Load funds are mutual funds that levy a commission or sales fee. As long as you have your money invested for a certain amount of time, often five years, no-load funds typically don't charge any sales fees or commissions.

The argument for a load fund is that investors are paying a sales intermediary, such as a broker, financial planner, investment adviser, or other professionals, for their time and knowledge in choosing a suitable fund. Paying these fees annoys some investors.

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When a project starts with a high priority but it is canceled because its rank erodes or crashes during its project life cycle. This is an example of what type of project closure?
Changed priority

Answers

When a project starts with a high priority but it is canceled because its rank erodes or crashes during its project life cycle. This is an example of Changed priority.

About project closure

In closing a project that is implemented, not all projects end exactly as scheduled, a project may be terminated for several reasons.

There are 5 conditions for ending a project, namely normal, premature, perpetual, failed, and change priorities.

Normal – A project that ends normally is a project that finishes according to the original plan. The scope of the project was achieved with the established cost, quality and schedule, although there may be some variations and modifications in the course of the implementation of the project. The completed project will be handed over to the sponsor and will then be released for use by the customer, the end of the project will be marked with celebration and appreciation for the work done by the people involved.

Premature – At certain times, the project team may be encouraged to finish the project early even though the product or system may not include all the features and functionalities planned at the start. Even though there is pressure to finish the project early, the risks of this decision must be carefully considered by all stakeholders of the project.

Perpetual  – Sometimes it will appear that the project will continue as long as the system or product lasts, which means that the project will not end.  Perpetual projects may be the result of delays in project implementation or scope and MOV that were never clearly defined or agreed upon from the outset of project implementation. Then, the sponsor or team may try to add some features or functionality to the product or system, which may then lead to an extension of time or additional required resources, thus increasing the costs to be incurred by the organization.

Failed – Sometimes, some projects do fail. In general, projects fail when adequate attention is not paid to either the process, the technology, or the people involved. Even though the MOV of a project may have determined the project's value to the organization, costs and time will beat that value when the costs incurred to complete the project are greater than the benefits that will be provided.

Changed Priorities – In some circumstances, a project may be terminated as a result of changing priorities. Economic and financial reasons may indicate that resources are no longer available for project completion, or management has decided to shift resources to a higher priority project.

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True or False: important factors in purchasing include the cost of goods purchased, the quality of goods and services, and the timing of deliveries of goods or services.

Answers

The given statement is true.

Cost, quality, and timing of deliveries of products or services are all significant aspects to consider when making a purchase.

What is the purchasing of goods and services to meet the needs of the supply chain?

Buying goods and services involves sourcing, acquiring, and paying for them. The logistics involved in acquiring goods, such as shipping and warehouse management, as well as the process of turning the acquired goods into finished products and distributing them to customers, are all covered by supply chain management.

Quality of good and service, availability of resource, availability of alternative resource, level of competition.

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Excerpts from Neuwirth Corporation's comparative balance sheet appear below:Ending Balance Beginning BalanceCash and cash equivalents $44,000 $ 34,000 Accounts receivable $31,000 $ 35,000 Inventory $72,000 $ 75,000 Which of the following is the correct treatment within the operating activities section of the statement of cash flows using the indirect method?

Answers

The change in Accounts Receivable is added to net income; The change in Inventory is added to net income.

What is net income?

Net income (NI), also known as net profits, is calculated by deducting sales from cost of goods sold, selling, general and administration costs, operating expenses, depreciation, interest, taxes, and other expenses. This number can be used by investors to gauge how much a company's revenue exceeds its expenses. This number, which serves as a gauge of a business' profitability, may be seen on the income statement.

Net income is used by businesses to calculate their earnings per share. Net income is usually referred to as the bottom line by business analysts since it is the figure at the bottom of the income statement. Analysts in the UK call NI profit attributable to shareholders.

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If the corporate income tax induces businesses to reduce their capital investment, then
A. corporate shareholders benefit from the tax.
B. workers bear some of the burden of the tax.
C. the tax achieves the goal of vertical equity.
D. the tax does not have any deadweight loss.

Answers

If the corporate income tax induces businesses to reduce their capital investment, then  workers bear some of the burden of the tax. Hence, option (b) is relevant.

Give a brief account on corporate tax.

A corporation's profits are subject to a corporate tax. Taxes are deducted from a company's taxable income, which is determined by subtracting revenue from costs for selling and marketing, general and administrative (G&A), research and development, depreciation, and other operating expenses. Corporate tax rates differ greatly amongst nations, with some having low rates that are regarded as tax havens. The effective corporate tax rate—the amount a firm actually pays—is typically lower than the statutory rate, which is the declared rate before any deductions. Many different tax deductions, government subsidies, and loopholes can be used to lower corporate taxes.

The Tax Cuts and Jobs Act (TCJA), which President Donald Trump signed into law in 2017 and which took effect in 2018, resulted in the current flat 21% federal corporate tax rate in the United States. Before, the top corporate income tax rate in the United States was 35%.

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a company has been invited to invest $4 million in a partnership and receive a guaranteed total amount o of $10 million after 6 years. by corporate policy the marr is always established at 2% above the cost of capital. the inflation rate during the 6 year is expected to average 4% per year. if the real interest rate paid on capital is 12% per year, is this investment economically justified

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For each year of a machine's maximum remaining useful life of two years, it has an equivalent annual value of $-200,000. If kept for 1, 2, or 3 years, a suitable replacement is found to have equivalent annual worth values of $-300,000, S- 225,000, and $-275,000, respectively. Use an annual interest rate of 18%.

What is annual value?annual value means, in relation to any land, the rent at which the land might reasonably be expected to be let from year to year, if the tenant undertook to pay all usual tenant’s rates and taxes and to bear the costs of the repairs and insurance and other expenses, if any, necessary to maintain the land in a state to command that rent.An amount equal to the rent at which any property might reasonably be expected to let from year to year if the tenant undertook to pay licence duties (if any), and the landlord undertook to pay the rates and fees and to bear the cost of repairs, insurance and other expenses (if any), necessary to maintain the property in a state to command that rent or the actual rent received if this is greater than the rent at which the property might reasonably be expected to let.

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alvarez company is preparing the company's statement of cash flows for the fiscal year just ended. the following information is available:

Answers

Free money drift (FCF) is the money a corporation generates after taking into consideration money outflows that help its operations and maintain its capital assets.

In other words, free cash drift is the money left over after a corporation will pay for its operating costs (OpEx) and capital expenditures (CapEx).

What is cash glide formula?

Cash Flow = Cash from running activities +(-) Cash from investing activities +(-) Cash from financing things to do + Beginning cash balance. Here's how this formula would work for a organization with the following assertion of cash: Operating Activities = $30,000. Investing Activities = $5,000.

The money flow declaration must be prepared on a month-to-month foundation in the course of the first year, on a quarterly basis for the 2nd year, and yearly for the third year.

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Innovation involves using old knowledge to transform organizational processes or create commercially viable products and services. A. TrueB. False

Answers

False. Innovation involves using new knowledge to transform organizational processes or create commercially viable products and services. Because an innovation must always use new knowledge.

Innovation is a renewal of various resources so that these resources have more benefits for humans. The innovation process is heavily influenced by advances in technology and science because these two things make it easier to produce something new and different.

Basically the benefit of innovation is to perfect or improve the function of using a product or resource so that humans get more benefits. Innovation occurs in various fields of life, starting from the world of business, education, communication, and so on. This innovation process occurs continuously in human life because of the desire to make things easier and faster. One example of innovation is the development of telephones that change and become more sophisticated from time to time.

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assume that a company has a beta of .88 and the risk-free rate is 5%. if the market risk premium is 7%, calculate cost of equity capital, using the capital asset pricing model

Answers

The cost of equity capital for the company using the capital asset pricing model will be 6.51 percent.

The computation of the cost of equity capital of the firm can be done using the provided information, and the calculation of the same has been shown below using the given values into the generalized formula.

Cost of equity capital = (Risk-free Rate + Beta) x Risk Premium

Cost of equity capital = (0.05 + 0.88)×0.07

Cost of equity capital = 0.93x0.07

Cost of equity capital = 0.065

Therefore, the cost of Equity Capital will be 0.065.

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After experiencing a surge in demand, a baler decides to expand her menu and production abilities, In order to accomplish this, she must obtain a 20 year loan from the local bank. Suppose there is uncertainly about future inflation. All else equal, how could this uncertainly harm the barker?

Answers

The bank may not give them a long term loan because they are unsure of how inflation will impact the value of the loan. This is how, it would harm the baker. Therefore, the third option is the correct answer.

The Wholesale Price Index's (WPI) annual percentage change in value is known as inflation. It accurately calculates the change in a basket of products and services' prices over the course of a year.

A mismatch between the supply and demand of money, adjustments to the cost of manufacturing and distribution, or an increase in product taxes are all causes of inflation. The value of currency falls during an inflationary period, or when the cost of goods and services increases. This implies that each unit of cash now has a lower purchasing power.

In the given question, since there is doubt regarding future inflation and since inflation affects interest rates, there is also uncertainty regarding those rates in the future. Therefore, the bank might not choose the set interest rate that he should impose on the baker.

As a result, the bank might not provide him a long-term loan since they are unsure of how inflation will affect the interest rate and, consequently, the loan's value. Therefore, third option is the correct answer.

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Complete question:

After experiencing a surge in demand, a baker decides to expand her menu and production abilities, In order to accomplish this, she must obtain a 20 year loan from the local bank. Suppose there is uncertainly about future inflation. All else equal, how could this uncertainly harm the baker ?

The baker will have to pay capital gains taxes on the interest from the loan.The baker will have to pay less interest than expected.The bank may not give them a long term loan because they are unsure of how inflation will impact the value of the loan.The baker will create money illusion when the bank gives them the loan.

As the war in Iraq continued with no end in sight, comparisons with the American experience in another overseas conflict that tore the country apart in the 1960s began to reappear. Fill in the blanks to complete the passage describing the similarities between these two wars. Drag word(s) below to fill in the blank(s) in the passage. In both the Iraq War and the Vietnam War, American policy was made by officials who possessed little or no knowledge of the countries to which they were sending troops. In both instances, as the war continued, public opinion and many American citizens (and military advisers) considered the war a Spanish American success climbed fell Korean lost cause

Answers

Vietnam War and the Iraq War both. In both cases, public opinion shifted as the war went on, and many Americans (as well as military advisors) believed the conflict was hopeless.

Due to the policies adopted by leaders who had little to no knowledge of the locations where their soldiers were being sent, the Vietnam War and the Iraq War were compared because of this. Both times, the government encountered fierce opposition and a deterioration in public opinion. These factors led to the war being regarded as a lost cause.

Between 151,000 and 1,033,000 Iraqis perished in the first three to five years of the conflict, according to estimates. The war resulted in at least 100,000 civilian deaths and tens of thousands of military fatalities (see estimates below). The majority of fatalities happened between 2004 and 2007 as a result of insurgency and civil wars. Then, from 2013 to 2017, there was a war in Iraq.

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What the type of ad in which a broker attempts to promote or solicit real estate activity without disclosing the fact that they are a licensed real estate broker?
Blind ad

Answers

A: Blind ad is the type of ad in which a broker make an attempt to promote or solicit real estate activity without revealing the fact that they are a licensed real estate broker.

A blind ad is a type of advertisement which contains no identifying information about who is placing the ad. For instance, a few examples of blind include an ad in the newspaper selling an automobile; an unknown employer advertising an upcoming job position; a sign with a picture of a house, and a phone number to call on for more information.

The situation where a broker places an ad to promote or solicit real estate activity without disclosing their identity that they are a licensed real estate broker is known as a blind ad.

"

Complete question:

What the type of ad in which a broker attempts to promote or solicit real estate activity without disclosing the fact that they are a licensed real estate broker?

A. Blind ad

B. Open ad

C. Box ad

D. None of them

"

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in texas the court of criminal focuses on criminal cases, while the texas court focuses on civil cases.

Answers

In Texas, the Texas Supreme Court is the state's highest court for civil cases, while the Court of Criminal Appeals is the state's highest court for criminal cases.

Which Texas court hears civil cases exclusively?

An amendment to the Texas constitution in 1891 established the fundamental framework of the state's current judicial system. The amendment established the Court of Criminal Appeals, which renders the last decision in criminal cases, and the Supreme Court, which is the highest state appellate court for civil matters.

Which Texas courts have jurisdiction over both criminal and civil law?

District courts have original jurisdiction over all felony criminal cases, divorces, property title disputes, lawsuits involving election contests, civil claims involving $200 or more in damages, and other cases for which jurisdiction has not been assigned to another trial court.

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Supermarkets typically display merchandise on four shelves. Heavy, bulky items are stocked on the ____ for safety reasons.

Answers

Supermarkets typically display merchandise on four shelves. Heavy, bulky items are stocked on the a. bottom shelf for safety reasons.

Supermarkets need to store merchandise in such a manner that it is visible to the customers and also safe enough. For this purpose, the superstores have shelves that have four compartments.

The heavy, bulky assets or items are always stocked on the bottom shelf. This is because to prevent the upper shelves from breaking and damaging the shelves underneath. Also, heavy items are most likely to get fallen when being taken. Hence, in order to prevent other items in the supermarket from damage, heavy items are displayed on the bottom most shelf.

Although a part of your question is missing, you might be referring to this question:

Supermarkets typically display merchandise on four shelves. Heavy, bulky items are stocked on the ____ for safety reasons.

a. bottom shelf

b. top shelf

c. third shelf

d. second shelf

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