A firm requires an investment of $18,000 and will return $25,000 after one year. If the firm borrows $10,000 at 6%, what is the return on levered equity?.
Answers
The return on levered equity is 80%
Investment required = $18,000
Return from the investment = $25,000
The amount borrowed by the firm = $10,000
Borrowing rate = 6%
A portion of the investment financed by equity -
= 18,000 - 10,000
= 8,000
Calculating the return to shareholders
= total return - the cost of debt =
25,000 - 10,000 × (1 + 6%)
= 25,000 - 10,600
= 14,400.
Calculating return on levered equity -
Return to shareholders/ Investment portion - 1
= 14,400 / 8,000 - 1
= 1.8 - 1
= 0.8
= 80%.
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Related Questions
to avoid supply chain problems, firms must manage relationships with their downstream suppliers and upstream customers
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Answers
To avoid supply chain problems, firms must manage relationships with their downstream suppliers and upstream customers. This statement is true.
When we talk about the supply chain, it refers to the network of companies, individuals, technologies, and resources that work together to bring a product or service to the market.The supply chain can be divided into two parts: upstream and downstream. The upstream part includes the suppliers of raw materials and components, while the downstream part includes the distributors, retailers, and end customers. Firms must manage relationships with both downstream suppliers and upstream customers to avoid supply chain problems.Let's take an example of a firm that manufactures mobile phones.
The firm's downstream suppliers are the component suppliers who provide raw materials for mobile phone manufacturing. If the component suppliers face any problem in supplying raw materials, the firm may face production issues that will lead to the delay in the delivery of mobile phones to the customers. This, in turn, can lead to a loss of sales and reputation. Hence, managing relationships with downstream suppliers is crucial for the success of the firm.
On the other hand, the upstream customers are the mobile phone distributors and retailers who buy the mobile phones from the firm. If the distributors and retailers face any problem in selling the mobile phones to the end customers, it can lead to a pile-up of inventory at the distributors' and retailers' end. This will lead to a reduction in demand for mobile phones, and the firm may have to cut down its production. Hence, managing relationships with upstream customers is equally important for the success of the firm.
In conclusion, managing relationships with both downstream suppliers and upstream customers is crucial for firms to avoid supply chain problems. By doing so, firms can ensure timely delivery of products to customers, reduce the risk of stockpile inventory, and maintain a good reputation in the market.
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Sydnee would like a chart to appear once in her report, but she is having trouble making this occur. She does not understand why the chart is showing multiple times in the report. What is most likely causing the problem?
The chart is placed in the header and footer of a database.
The chart is placed in the field of a database.
The chart is placed in a database with one group.
The chart is placed in a database with five groups.
Answers
Answer:
The chart is placed in a database with five groups.
Hope this helped.
The fundamental problem with the option ARM loan, as most commonly used, was that it created a rapid increase in the:
Answers
Based on loan and credit analysis, the fundamental problem with the option ARM loan, as most commonly used, was that it created a rapid increase in monthly payments.
This situation is often described as payment shock risk.
In this option ARM loan, the monthly payments increase based on many reasons like unscheduled recast when a negative amortization limit is attained.
Hence, in this case, it is concluded that the correct answer is "monthly payments."
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12. The type of line used to make a hairstyle appear longer and narrower is a(n):
a. open line
c. contrasting line
b. vertical line
d. curved line
Answers
Answer:
Vertical lines
Explanation:
In simple words, In hair fashion, vertical lines establish length and height. When the eye traces the lines up and down, they render a hairstyle look longer and narrower . Along the horizontal as well as vertical sides, diagonal rows are placed. They are also utilized to highlight facial expressions or diminish them.
Thus, from the above we can conclude that the correct option is A.
A business traveler joined the starwood preferred guest program in order to earn points each time he stayed overnight in a westin or sheraton hotel. Once he has accumulated enough points, he can trade his points in for a free night's stay. As a member of this program, the traveler receives periodic updates on new hotels and learns of ways to earn additional points. The marketing term that best describes this scenario is
Answers
This scenario is an example of loyalty marketing that rewards customers for their repeat business. Loyalty marketing programs, such as the Starwood Preferred Guest program, incentivize customers to stay at specific hotels or use specific services by offering rewards such as points or discounts.
These programs offer customers a number of benefits, including access to exclusive offers and benefits, priority booking and a simplified booking process. Points earned through the program can be exchanged for free stays, discounts or other rewards. By engaging customers multiple times, loyalty programs help foster better relationships between businesses and their customers, leading to increased customer loyalty and potential future business.
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Discuss the importance of vision, mission, goals, and objectives setting within the context of the business environment.
PLEASE HURRY THIS IS A TEST
Answers
Answer:
All of these options are critical in setting the trajectory of the business. A vision statement is a brand looking toward the future and saying what it hopes to achieve through its mission statement. A mission statement clarifies what the company wants to achieve, who they want to support, and why they want to support them. Business goals define the "what" of a business's purpose whereas business objectives define the "how." Business goals typically only provide a general direction that a company will follow whereas business objectives clearly outline actionable steps.
Find the sales tax and total cost of a computer that costs $1500. The tax rate in the state of NJ is 7%.
Sales Tax = _____________
Total Cost = _____________
Show all your work or explain how you got that as your answer for a five star rating
Answers
Answer:
the sales tax on a computer that costs $1500 with a 7% tax rate in the state of NJ is $105, and the total cost of the computer with sales tax included is $1605.
Explanation:
To find the sales tax and total cost of a computer that costs $1500 with a tax rate of 7% in the state of NJ, we can use the following steps:
Step 1: Calculate the sales tax amount.
The sales tax rate is 7%, which means we need to find 7% of the cost of the computer. We can do this by multiplying the cost by 0.07:
Sales Tax = 0.07 x $1500
Sales Tax = $105
Therefore, the sales tax on the computer is $105.
Step 2: Calculate the total cost.
The total cost of the computer is the cost of the computer plus the sales tax. We can calculate the total cost as follows:
Total Cost = $1500 + $105
Total Cost = $1605
Therefore, the total cost of the computer with sales tax included is $1605.
In summary, the sales tax on a computer that costs $1500 with a 7% tax rate in the state of NJ is $105, and the total cost of the computer with sales tax included is $1605.
True or False: Simple linear regression works to predict future employment needs because when sales double, the level of employment necessary will always double as well.
Answers
The statement "simple linear regression works to predict future employment needs because when sales double, the level of employment necessary will always double as well" is false because it oversimplifies the relationship between sales and employment needs.
The employment needs of a business may depend on various factors beyond just sales, such as changes in technology, competition, and economic conditions. Furthermore, even when sales increase, the relationship between sales and employment needs may be affected by productivity gains or the availability of labor.
A more accurate prediction of employment needs would require a more comprehensive analysis of various factors that affect the demand for labor, such as market trends, labor market conditions, and business strategy, the statement is false.
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A client suffers a leg wound which causes minor blood loss. As a result of bleeding, the process of primary hemostasis is activated. What will occur during this process
Answers
During the process of primary hemostasis, several events occur to prevent further bleeding and initiate the formation of a platelet plug at the site of the leg wound:
1. Vasoconstriction: The injured blood vessel constricts to reduce blood flow and limit the bleeding.
2. Platelet adhesion: Platelets in the bloodstream adhere to the damaged vessel wall at the site of the wound. This is facilitated by the exposure of collagen fibers.
3. Platelet activation: Adhered platelets become activated, changing shape and releasing chemical signals called platelet agonists.
4. Platelet aggregation: Activated platelets bind to each other, forming aggregates and creating a temporary platelet plug at the site of the wound.
5. Formation of a platelet clot: The platelet plug is reinforced by the deposition of fibrin strands, which help stabilize the clot and prevent further bleeding.
Overall, primary hemostasis involves the initial response to vessel injury, including vasoconstriction, platelet adhesion, activation, aggregation, and the formation of a platelet plug to initiate the clotting process and control minor blood loss.
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______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???
Answers
Answer : Monopolistic competition
Answer:
Monopolistic Competition
Explanation:
In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.
the lp relaxation of a maximization integer linear programming (ilp) problem would represent a(n) (fill in the blank) on the optimal objective function value of the original ilp problem.
Answers
For maximization problems, the optimal relaxed objective function values is an upper bound on the optimal integer value
Continuous and integer variables are present in a Mixed-Integer Linear Programming (MILP) problem. Nonlinear equations are a component of Mixed-Integer Nonlinear Programming (MINLP), which calls for specialist MINLP solvers like APOPT. Although certain solvers, like CPLEX, Gurobi, or FICO Xpress, are specialist commercial solvers for MILP, MINLP solvers can also tackle MILP or ILP issues. GEKKO and APMonitor both fix MINLP issues.
The linear-programming models that have been discussed thus far all have been continuous, in the sense that
decision variables are allowed to be fractional. Often this is a realistic assumption.
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Which best describes inserting a table using the Table Gallery?
The user can click on Insert Table.
There are many options on how to include a table.
The user can make a quick selection of the number of rows and columns present.
The user can click to use an Excel spreadsheet.
Answers
Answer:
2
Explanation:
A gas tax imposed by some states in which those who use the roads more pay more to maintain them is based on the _____ principle.
Answers
The principle that's illustrated by the gas tax is known as the benefit received principle.
What's a tax?It should be noted that a tax is a compulsory payment that generate revenue to the government.
In this case, a gas tax imposed by some states in which those who use the roads more pay more to maintain them is based on the benefits received principle.
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what is typically considered to be the weakest link in emergency incident decision making?
Answers
The weakest link in emergency incident decision making is often communication.
Communication is typically considered to be the weakest link in emergency incident decision making. During a crisis, effective and timely communication is crucial for coordinating response efforts and ensuring that all relevant information is shared among the individuals and organizations involved. However, various factors can impede the flow of communication and compromise decision-making processes.
One key challenge is the sheer complexity of emergency incidents, which often involve multiple agencies, personnel from different disciplines, and varying levels of authority. In such situations, the need for clear and concise communication becomes even more critical, as misunderstandings or misinterpretations can lead to misinformed decisions or delays in response.
Additionally, the high-stress nature of emergency incidents can impact communication effectiveness. Under pressure, individuals may struggle to articulate their thoughts clearly or may misinterpret information received, leading to confusion or miscommunication. Moreover, the presence of conflicting priorities, information overload, and time constraints can further hinder effective communication during emergencies.
To address this weak link, it is crucial to prioritize effective communication strategies and establish clear protocols and channels for sharing information. This includes utilizing standardized communication systems and technologies, conducting regular training and exercises to enhance communication skills, and fostering a culture of open and transparent communication within emergency response teams.
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2. Which two of the following are most likely to be advantages of taking on a
bob franchise rather than setting up as a sole trader or private limited
company?
Select two ANSWET'S.
A The franchisor provides a tried and tested product to sell
B The franchisor pays the franchisee to set up in business
The franchisee receives ongoing help and support from the franchisor
D The franchisor is responsible for paying the taxes of the business
1 Franchisees do not need to have so many business skills as people who set
up on their own
Answers
Answer:
A).The franchisor provides a tried and tested product to sell
C ). The franchisee receives ongoing help and support from the franchisor
Explanation:
A franchise is an arrangement where an established and successful business person( franchisor) licenses a third party( franchisee) to set up an independent branch similar to the franchisor business. The franchisor permits the franchisee to use their brand name, colors, processes, and procedures and sell their products. Therefore, the franchisee's branch will be similar in all aspects to the other franchisor's branches.
The franchisor provides technical, operational, and managerial support to the franchisee. The franchisee pays an initial fee and a percentage of monthly sales to the franchisor to open a franchise business.
4. Which of the following statements is true about debits?
a) Debits show an increase in what a company owns or a decrease in what it owes.
b) A debit to an asset account shows a decrease.
c) A debit to a liability account shows an increase.
d) Debits show a decrease in what a company owns or an increase in what it owes.
Answers
Answer:
I believe the answer is d
as the qwl movement evolved, it fostered a new phase of activities known as
Answers
The QWL movement evolved and fostered a new phase of activities known as Total Quality Management (TQM).
The quality of work life (QWL) is a multi-dimensional concept that covers an individual's job, work environment, home, community, and social existence. According to the QWL model, a high-quality work environment improves job satisfaction and, as a result, overall satisfaction.In other words, QWL may be defined as a relationship between workers and their work environment. This connection has a direct impact on the employee's job satisfaction, productivity, absenteeism, and the general sense of well-being at work.
TQM is a management method for long-term success through customer satisfaction. TQM's primary goal is to satisfy customers by continuously enhancing the quality of their products, services, processes, and the entire organization's infrastructure. TQM's primary purpose is to enhance quality and productivity while reducing waste and expenses.
The TQM approach comprises the following seven elements: Customer-focused leadership, Employee engagement, Continuous improvement, Integrated systems, Data-based decision-making, Strategic planning, and Communication.
However, it's also worth mentioning that the QWL and TQM concepts are both highly focused on human resource management. The QWL model focuses on improving the quality of employees' work experience, while TQM focuses on using a quality culture to improve organizational outcomes.
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Prime cost is directly related to production. So, per unit prime cost can be calculated easily. While on the other hand, overhead does not have direct relationship with production. So, to calculate per unit cost, overhead is classified according to functions.” Explain this statement and also summarize all the overheads according to their functional classification.
Answers
Basically, a firm's prime cost equals the total direct costs of production which includes the cost of raw materials and labor.
The prime cost equation is {Cost of raw materials + Direct labor}The overhead cost refers to those cost incurred while running a firm but can not be linked to creation of a product or service.
Overhead expenses is the cost remaining after deduction of direct labor, direct materials and direct expenses.
In conclusion, the prime cost and overhead cost are both significant in production of finished goods.
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Sales returns and allowances is a ______ account and is ______ when goods are returned by customers for a refund.
Answers
Sales returns and allowances are a Contra revenue account and are debited when goods are returned by customers for a refund.
The debit is to Sales Returns and Allowances (-SE) which will offset the original credit to Sales Revenue (+SE) for the returned goods.
Net Sales on the income statement equals the: (Sales Revenue - the Sales Returns and Allowances) a Contra Revenue account.
The Sales Returns and Allowances account reduces the Sales Revenue account on the income statement. It is a Contra-Revenue account as it increases on the debit side like an expense, however, it isn't always disclosed with selling and administrative expenses or the cost of Goods Sold expense.
Your question is incomplete. Please read below for the missing content.
Sales Returns & Allowances is a ____ account and is _____ when goods are returned by the customers for a refund.
liability; credited
contra-revenue; credited
revenue; credited
contra-revenue; debited
contra-asset; debited
contra-asset; credited
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TRUE/FALSE. Age structure, geographic distribution, income distribution, interest rates, and process innovations are all elements of concern when studying the demographic segment of the general environment.
Answers
The given statement, "Age structure, geographic distribution, income distribution, interest rates, and process innovations are all elements of concern when studying the demographic segment of the general environment." is false because based on information like age and gender, demographic segmentation is a precise method of identifying an audience.
Demographic segmentation is a precise kind of audience identification based on data elements such as age, gender, marital status, family size, income, education, race, employment, country, and/or religion. It is one of the four major forms of marketing segmentation and is possibly the most often utilized strategy. Instead of targeting a whole market or a large client base, a brand will utilise this strategy to appeal directly to a specific fraction of the market.
Companies may spend their resources and time more effectively if they divide the market into smaller parts, each having a common variable. They can better grasp the commonalities between persons in the audience to decide which ideas they are likely to react to.
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the problem and solutions both compete with each other . why ?
Answers
The problem and solution both compete with each other because they both are opposite in nature.
Why problem and solution compete each other?Problem and solution are two different things from each other, as problem is the undefined way of something that is much negative approach whereas solution is the way of finding the result of something or problem is positive statement.
Thus, because they both are opposite in nature.
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Write a question keep it simple
Answers
Answer:
Why do people break up if they love each other?
Explanation:
sorry it's not simple lol
Paying yourself first, sticking to a budget, pacing yourself, living within your means, and knowing where your cash goes are all _______.
Answers
When we pay ourselves first, stick to a budget, pace ourselves, and live within our means, these are all financial planning measures.
What is financial planning?This refers to spending money in such a way that we will be able to achieve our long-term goals.
It involves paying yourself first in the form of savings, pacing yourself in spending such that you live within your means, and sticking to a budget that works for you.
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It’s in the picture pleaseee I need this today
Answers
Answer:
Could you make it bigger?
Answer:
What are u asking
Explanation:
What shows how goods, services, and money move in an economy in order to
better organize all the moving parts in order to see the big picture of an
economic situation?
Circular Flow of Economic Activity
O Supply Chart
O Cost Benefit Analysis
Gross Domestic Product
Answers
The model that shows how goods, services, and money move in an economy in order to better organize all the moving parts is the Circular Flow of Economic Activity.
What is the Circular Flow of Economic Activity?This is a model that shows how goods and services as well as money, moves in the economy.
It shows how Businesses are able to get factors of production such as money, from households and then use this to produce goods and services.
They then sell those goods and services to households who use money that they gain from being hired by the businesses to buy those products.
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If mcmurphy had the opportunity to use the facility to make a different product that would have a total contribution margin of $168,000, mcmurphy should:_____.
Answers
If McMurphy had the opportunity to use the facility to make a different product that would have a total contribution margin of $168,000, he should evaluate the potential profitability and feasibility of the alternative product.
To make an informed decision, McMurphy should consider various factors, such as the demand and market potential for the new product, the production costs involved, the availability of resources and expertise required, and any potential risks or challenges associated with entering a different product line.
If the potential contribution margin of $168,000 is higher than the current product's contribution margin or offers promising growth prospects, McMurphy may consider shifting production to the new product. However, it is crucial to assess the overall profitability, market conditions, competition, and potential synergies or conflicts with the existing product line before making a final decision.
Ultimately, McMurphy should weigh the potential financial gains, market opportunities, and the feasibility of producing the alternative product to determine if it aligns with the company's strategic objectives and long-term profitability.
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what kind of business organization are caleb and anna operating under now?
Answers
Answer:
Sole proprietorship
Explanation:
Sole proprietorship, general partnership or limited partnership
denti-way systems, a manufacturer of dental appliances, invented and patented a new x-ray machine that radically reduced maintenance and operational issues. responding to global demand, it decided to sell the machines manufactured at its plant in the united states to various markets across the globe. since the product features provided by denti-way were not provided by any other competitor, denti-way did not feel any pressure for cost reductions. which strategy is most likely being pursued by denti-way? group of answer choices international localization global standardization transnational nationalization
Answers
The most likely strategy being pursued by Denti-way based on the given information is option (a) international
Based on the information provided, it seems that the strategy being pursued by Denti-way is internationalization. This is because Denti-way is selling its products manufactured in the US to various markets across the globe, which indicates an effort to expand its business internationally. Additionally, the fact that Denti-way is not feeling pressure for cost reductions suggests that it is not necessarily focused on adapting its products or operations to specific local markets, which is a key characteristic of localization.
Global standardization and transnational strategies both involve balancing standardization and adaptation to local markets, which does not seem to be the case for Denti-way based on the given information. Nationalization involves the government taking control of a company or industry, which is not applicable to this scenario.
Therefore, the correct option is (a) international
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The legal owners of publicly traded companies are called ______.
Multiple choice question.
a. executives
b. business holders
c. shareholders
d. stock brokers
Answers
The legal owners of publicly traded companies are called shareholders.
Shareholders are the legal owners of publicly traded companies.
They own shares of the company's stock, which represents their ownership interest and gives them certain rights and privileges, such as voting rights and the right to receive dividends. Shareholders can be individuals, institutional investors, or other entities that hold shares in the company.
Apologies for the confusion in my previous response. The correct term for the legal owners of publicly traded companies is shareholders. Shareholders hold ownership in the company through their ownership of shares of stock. They have certain rights and privileges, such as voting rights, the right to receive dividends, and the ability to participate in the company's decision-making processes. Shareholders can be individuals, institutional investors, or other entities that hold shares in the company. They are considered the ultimate owners of the company and bear the risks and rewards associated with their ownership.
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The legal owners of publicly traded companies are called shareholders. Shareholders are the legal owners of publicly traded companies.
They own shares of the company's stock, which represents their ownership interest and gives them certain rights and privileges, such as voting rights and the right to receive dividends. Shareholders can be individuals, institutional investors, or other entities that hold shares in the company. Apologies for the confusion in my previous response. The correct term for the legal owners of publicly traded companies is shareholders. Shareholders hold ownership in the company through their ownership of shares of stock. They have certain rights and privileges, such as voting rights, the right to receive dividends, and the ability to participate in the company's decision-making processes.
Shareholders can be individuals, institutional investors, or other entities that hold shares in the company. They are considered the ultimate owners of the company and bear the risks and rewards associated with their ownership.
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Select all that apply On December 1, Christy Co. accepted a 60-day, 6%, $1,000 note due January 30. On December 31, the appropriate year-end adjusting entry was made. On January 30, the note was honored and paid in full. The entry to record receipt of payment on January 30 (assuming no reversing entry was made) would include a credit to: (Check all that apply.) Multiple select question. Notes Receivable for $1,000. Cash for $1,010. Interest Revenue for $5. Interest Revenue for $10. Interest Receivable for $5.
Answers
Answer:
Notes Receivable for $1,000. Cash for $1,010. Interest Revenue for $5. Interest Receivable for $5.
Explanation:
The journal entry to record the receipt of the payment is shown below:
Cash Dr $1,010
To Interest receivable $5 ($1,000 ×6% × 30 days ÷ 360 days)
To Interest revenue $5
To Note receivable $1,000
(being the receipts is recorded)
here cash is debited as it increased the assets and credited the interest receivable, interest revenue and note receivable as it increased the assets and revenue accounts