The WACC is used to _______ the expected cash flows when the firm has ____________. Select one: a. decrease; short term financing on the balance sheet b. discount; short term financing on the balance sheet c. discount; debt and equity in the capital structure d. increase; debt and equity in the capital structure

Answer:

c

Explanation:

WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate)

weight of debt = D / (D + E)  

It is used to discount the expected cash flows when the firm has debt and equity in the capital structure. It is suitable because in the calculation of WACC, debt and equity are included

In order to sell a product at a profit the product must be priced higher than the total of what it costs you to build the unit, plus period expenses, and plus overhead. At the end of last year the broad cost leader Chester had an Elite product Cake. Use the Inquirer's Production Analysis to find Cake's production cost, (labor materials). Exclude possible inventory carrying costs. Assume period expenses and overhead total 1/2 of their production cost. What is the minimum price the product could have been sold for to cover the unit cost, period expenses, and overhead

On January 2, 2017, Concrete Master Construction, Inc. issued $500,000, ten-year bonds for $574,540. The bonds pay interest on June 30 and December 31. The face rate is 8% and the market rate is 6%. What is the carrying value of the bonds after the first interest payment is made on June 30, 2017

Use the following information: Windswept, Inc. 2017 Income Statement ($ in millions) Net sales $10,160 Cost of goods sold 8,210 Depreciation 510 Earnings before interest and taxes $1,440 Interest paid 122 Taxable income $1,318 Taxes 461 Net income $857 Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $320 $350 Accounts payable $1,730 $1,610 Accounts rec. 1,180 1,080 Long-term debt 1,190 1,390 Inventory 2,080 1,830 Common stock 3,520 3,520 Total $3,580 $3,260 Retained earnings 730 980 Net fixed assets 3,590 4,240 Total assets $7,170 $7,500 Total liab.& equity $7,170 $7,500 What is the quick ratio for 2017?a. 89 times.b. 1.81 times.c. 1.14 times.d. 88 times.e. 2.02 times.

You are sitting next to a person in business class on a flight from Los Angeles to Sydney, Australia. You mention to that person that you got your ticket two months ago for only $12,500. The person responds that she bought her ticket two days ago for $7,800. This sometimes happens because airlines often use an approach called:

While attending a show you are disturbed by a child behind you who talks incessantly while repeatedly kicking the back of your seat.You respond by occasionally turning around and fidgeting in your seat.What type of conflict-management style are you exhibiting?
A) collaboration
B) competition
C) accommodation
D) avoidance
E) withdrawal

Match these terms with their definitions.

a. The rate that reflects the provisions of the debt instrument, the credit standing of the borrowing business, and the current conditions in the credit markets and the economy as a whole.
b. The rate found in the debt contract that determines the amount of the interest payment.
c. Occurs when a bondâs issue price exceeds its face value.
d. The amount that must be repaid at maturity.
e. A type of liability which requires the issuing entity to pay the face value to the holder on the maturity date and to pay interest periodically at a specified rate.
f. Occurs when a bond is issued for an amount that is less than the principal.
g. Term referring to the date that a bondâs principal has to be repaid.

1. Bond.
2. Contract, coupon, stated rate.
3. Discount.
4. Face value, par value, principal.
5. Market rate, yield.
6. Maturity.
7. Premium.

In preparation for developing its statement of cash flows for the year ended December 31, 2018, Millennium Solutions, Inc. collected the following information:

Payment for the early extinguishment of long-term notes (book value: $100 million) $108.1
Sale of common shares 352.1
Retirement of common shares 244.1
Loss on sale of equipment 4.1
Proceeds from sale of equipment 16.1
Issuance of short-term note payable for cash 20.1
Acquisition of building for cash 14.1
Purchase of marketable securities (not a cash equivalent) 10.1
Purchase of marketable securities (considered a cash equivalent) 2.1
Cash payment for 3-year insurance policy 6.1
Collection of note receivable with interest (principal amount, $22) 26.1
Declaration of cash dividends 66.1
Distribution of cash dividends declared in 2020 60.1

Required:
a. Prepare the investing activities section of Millennium's statement of cash flows for 2018.
b. Prepare the financing activities section of Millennium's statement of cash flows for 2018.

Kaspar Industries expects credit sales for January, February, and March to be $205,200, $266,800, and $316,800, respectively. It is expected that 75% of the sales will be collected in the month of sale, and 25% will be collected in the following month. Compute cash collections from customers for each month.
Collections from Customers
Credit Sales January February March
January
February
March

Instead of issuing securities, Artificial Intelligence Inc. pursues other sources of funds. To obtain venture capital financing, the firm will most likely:_______.a. pool funds to invest in a business venture. b. give up a share of its ownership. c. borrow funds to be returned on a designated maturity date. d. pay periodic dividends.

Ricky is not in a consumer equilibrium. Given the prices of goods, Ricky has allocated all his income such that his marginal utility per dollar spent is ________ for ________ goods.

Vincenzo Martin and Sasha Boudrakis have started a new firm, The Fan Base. Vincenzo is a well-known marketing guru who advises major league sports franchises on how to maximize the revenue from their teams' brands and logos. Sasha, meanwhile, is mostly silent in the operation. He has invested $2 million to get The Fan Base off the ground, and in return he receives 25% of the firm's annual profits. The Fan Base is organized as a Group of answer choices corporation. limited liability company (LLC). sole proprietorship. general partnership. limited partnership.

Rudd Clothiers is a small company that manufactures tall-men's suits. The company has used a standard cost accounting system. In May 2017, 11,250 suits were produced. The following standard and actual cost data applied to the month of May when normal capacity was 14,000 direct labor hours. All materials purchased were used.
Cost Element Standard (per unit) Actual
Direct materials 8 yards at $4.40 per yard $375,575 for 90,500 yards
($4.15 per yard)
Direct labor 1.2 hours at $13.40 per hour $200,925 for 14,250 hours
($14.10 per hour)
Overhead 1.2 hours at $6.10 per hour $49,000 fixed overhead $37,000 variable
overhead (fixed $3.50; variable $2.60)
Overhead is applied on the basis of direct labor hours. At normal capacity, budgeted fixed overhead costs were $49,000, and budgeted variable overhead was $36,400
Compute the total, price, and quantity variances for (1) materials and (2) labor. (Round answers to 0 decimal places, e.g. 125.)

A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A and B, have been identified, and the associated costs and revenues have been estimated. Annual fixed costs would be $36,000 for A and $31,000 for B; variable costs per unit would be $7 for A and $11 for B; and revenue per unit would be $18.

Requied:
a. Determine each alternativeâs break-even point in units.
b. At what volume of output would the two alternatives yield the same profit?
c. If expected annual demand is 10,000 units, which alternative would yield the higher profit?

15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's outstanding stock. In this acquisition transaction, how much goodwill should be recognized

The BRS Corporation makes collections on sales according to the following schedule:45% in month of sale50% in month following sale5% in second month following saleThe following sales have been budgeted:Sales April $ 160,000May $ 180,000June $ 170,000Budgeted cash collections in June would be:___________a) $170,800b) $166,500c) $170,000d) $174,500

Problems and Applications Q8 Suppose that the government decides to issue tradable permits for a certain form of pollution. In terms of economic efficiency in the market for pollution, having the government auction the permits off is distributing them to firms. True or False: If the government chooses to distribute the permits, the allocation of permits among firms does not matter for efficiency, but it would affect the distribution of wealth. True False

The process for converting present values into future values is called________________.

The discount rate is the interest rate banks charge their best customers. the interest rate banks charge each other for overnight loans. the interest rate the U.S. Treasury pays on Treasury Bills. the interest rate the Fed charges to banks for loans from the Fed.

Describe the key stages in integrating total quality management into the strategy of an international petrochemical company

Crossfade Corp. has a bond with a par value of $2,000 that sells for $1,956.84. The bond has a coupon rate of 6.84 percent and matures in 24 years. If the bond makes semiannual coupon payments, what is the YTM of the bond

Huprey Co. is the defendant in the following legal claims. For each of the following claims, indicate whether Huprey should (a) record a liability, (b) disclose in notes, or (c) have no disclosure.

Suppose two factors are identified for the U.S. economy: the growth rate of industrial production, IP, and the inflation rate, IR. IP is expected to be 4% and IR 6%. A stock with a beta of 1 on IP and 0.4 on IR currently is expected to provide a rate of return of 14%. If industrial production actually grows by 5%, while the inflation rate turns out to be 7%, what is your best guess for the rate of return on the stock? (Round your answer to 1 decimal place.)

Sandra is purchasing a home with a first mortgage loan for $548,250, which is the conforming loan limit for the area where she lives at the time that she secures approval. Her interest rate is not a prime rate, and in order to determine if it triggers the threshold for higher-priced mortgage loans, her creditor must determine if the APR for the loan exceeds the average prime offer rate by:

Your non-technical manager is delighted with the idea of referring to common vulnerabilities by their nicknames, such as "Heartbleed" instead of CVE-2014-0160 or "Shellshock" instead of CVE-2014-6271, and insists that no one can possibly remember those long CVE names. Present reasons both for and against this conclusion. Which side of the issue do you agree with, explain your opinion and reasoning. This should be written as a recommendation email to your manager with a list of backup sources at the bottom. When you list these sources, include more information than only a URL.

Budgeted sales in Acer Corporation over the next four months are given below: Budgeted sales September October November December $120,000 $140,000 $180,000 $160,000 Thirty percent of the company's sales are for cash and 70% are on account. Collections for sales on account follow a stable pattern as follows: 50% of a month's credit sales are collected in the month of sale, 30% are collected in the month following sale, and 20% are collected in the second month following sale. Given these data, cash collections for December should be:

Consider to communities: Alpha and Omega. Alpha has 10 residents, 5 who earn $60,000 and 5 who earn $20,000. Omega also has 10 residents, 5 who earn $300,000 and 5 who earn $50,000
Part 1. The income inequality ratio in Alpha is and the income inequality ratio in Omega is
Part 2. Alpha and Omega each have 10 residents. The top two residents in Alpha have an average income of $90,000, and the bottom two residents in Alpha have an average income of $30,000. The top two residents in Omega have an average income of $250,000, and the bottom two residents in Omega have an average income of $50,000. How much would the top two residents in Alpha have to earn in order for Alpha to have the same income inequality ratio as Omega? The top two Alpha residents would need to earn $ each Part 3 (1 point) Suppose Alpha's community grew to 15 residents with the following incomes: 2 residents' income $175.000 300,000 260,000 65,000 1 resident's income 1 resident's income 3 residents' income 3 residents' income 2 residents' income 1 resident's income 1 resident's income 1 resident's income 26,000 105,000 650,000 18,000 140,000 The new income inequality ratio in Alpha is:_____. (Round to two decimal places.)

To overcome information overload, supervisors should: ________.a. give employees all the information and let them sift out what is useful and what is not b. not ask for feedback, because employees know what is expected c. be sure that employees are paying attention d. keep repeating instructions

Describe the reason that accrued expenses often require adjusting entries but not in every situation. g

Inflation can impose significant costs and adversely distort economic systems. Indicate whether the costs and distorting effects exemplify menu costs, shoe leather costs or unit of account costs. a. discourages people from holding money. b. can reduce the quality of economic decisions. c. can lead to stores listing prices in more stable currencies. d. spending time converting money into something that better holds value. e. makes money a less reliable source of measurement. f. can cause distortion to the tax system. g. causes difficulty in firms and individuals financial planning. h. causes costs associated with changing prices in stores.1. Menu costs.2. Shoe-leather-costs. 3. Unit-of-account costs.

Given the following data:
Selling price per unit $ 2.00
Variable production cost per unit S $ 0.30
Fixed production cost $ 6,000
Sales commission per unit $ 0.20
Fixed selling expenses $ 1,500
How much is the break-even point in dollars?
A) $6,000
B) $4,000
C) $8,000
D) $10,000
E) None of the above