Starbucks wants to use the subjective approach to evaluate a new project. They are considering expanding their stores and renting office space to small business owners. They will have a separate reception area and online scheduling for those that want to use the office space. Starbucks has a WACC of 12%. What would be the WACC for this new project?
Category Examples Adjustment Factor
High risk New products 6%
Moderate risk Cost savings,
Expansion of existing products 0
Low risk Replacement of existing
equipment (4)
Mandatory Safety equipment n/a
Multiple Choice
A) 16%.
B) 12%.
C) 24%.
D) 18%.
E) It cannot be determined.
Answers
Answer:
D) 18%.
Explanation:
The WACC for this new project = Current WACC + Adjustment Factor (High Risk)
WACC for this new project = 12% + 6%
WACC for this new project = 18%
Note: Attached as picture shows the reason for the chosen Adjustment factor
Related Questions
The revenue cycle is a major cycle for most companies. Accounts receivable, revenue, and other accounts are tested through this cycle. Often there are misstatements found, including errors and/or fraud by the client.
CONCEPT REVIEW: It is important in testing any cycle, especially revenue, to realize that misstatements will occur and to try to distinguish between errors and fraud
1. Many instances of misstatement are based on the inappropriate recognition of_______
2. One way to avoid misstatement of revenue is to ensure the client has proper______
3. Revenues are deemed to be earned when the company has______ what it must do to fulfill its obligation
4. Side______ can substantially alter the terms of a sale.
5. _______ needs to be assured in order to recognize revenue.
Answers
Answer and Explanation:
1. The misstatement would depend on when there is inappropriate revenue recorded
2. For avoiding the revenue misstatement, the client should have to cut off the policies
3. The revenues are earned at the time when the company achieved or accomplished for fulfiling its obligation
4. The side agreements could modify the terms of sales
5. For recording the revenue, the collectibility needs to be confirmed
As a discipline, Governance is most closely related to:
Answers
Answer:
control
Explanation:
governance is the action or manner of governing.
Higher Ed Publishing is conducting market research to determine what customers think about its educational technology products. Which statement is the best example of how this company can use primary data to gauge customer opinions and interest in its products?
Answers
Answer:
It can conduct a telephone survey about its products.
Explanation:
Researches regarding the product, customer opinions and interests of the customers are obtained through the primary and secondary data collection. The collection of the such data helps in gathering the information and helping in the advancement of the product.
In the given excerpt, the company is using the primary data and collecting the information from the customers. The primary data here is gathered through the telephonic survey about the product. The opinions and interests of the customer are collected through market research.
1. Park Co. is considering an investment that requires immediate payment of $31,500 and provides expected cash inflows of $12,000 annually for four years. What is the investment's payback period?
2. Park Co. is considering an investment that requires immediate payment of $21,530 and provides expected cash inflows of $6,500 annually for four years. If Park Co. requires a 7% return on its investments. What is the internal rate of return?
3. Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $50,400 and has an estimated $10,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation.
Answers
Answer:
1. Park Co. is considering an investment that requires immediate payment of $31,500 and provides expected cash inflows of $12,000 annually for four years. What is the investment's payback period?
payback period = $31,500 / $12,000 = 2.625 years
2. Park Co. is considering an investment that requires immediate payment of $21,530 and provides expected cash inflows of $6,500 annually for four years. If Park Co. requires a 7% return on its investments. What is the internal rate of return?
using a financial calculator, the IRR = 8%
the IRR is the discount rate that makes a project's NPV = 0
3. Peng Company is considering an investment expected to generate an average net income after taxes of $3,400 for three years. The investment costs $50,400 and has an estimated $10,200 salvage value. Assume Peng requires a 10% return on its investments. Compute the net present value of this investment. Assume the company uses straight-line depreciation.
depreciation per year = ($50,400 - $10,200) / 3 = $13,400
net cash flows:
year 0 = -$50,400cash flow year 1 = $3,400 + $13,400 = $16,800cash flow year 2 = $3,400 + $13,400 = $16,800cash flow year 3 = $3,400 + $13,400 + $10,200 = $27,000NPV = -$50,400 + $16,800/1.1 + $16,800/1.1² + $27,000/1.1³ = -$50,400 + $49,442.52 = -$957.48
During the taking of its physical inventory on December 31, Barry's Bike Shop incorrectly counted its inventory as $222,138.00 instead of the correct amount of $184,409.00. The effect on the balance sheet and income statement would be:______.
a. assets overstated by $52,094.00; retained earnings understated by $52,094.00; and net income statement understated by $52,094.00.
b. assets overstated by $223,182.00; retained earnings understated by $171,088.00; and no effect on the income statement.
c. assets, retained earnings, and net income all overstated by $52,094.00.
d. assets and retained earnings overstated by $171,088.00; and net income understated by $223,182.00.
Answers
Answer:
c. assets, retained earnings, and net income all overstated by $37,729.
Explanation:
since the ending inventory was overstated by $222,138 - $184,409 = $37,729, it means that cost of goods sold was understated by that same amount. Since COGS were less, that resulted in higher operating income and net income.
Merchandise inventory will be overstated by $37,729 (current asset), while retained earnings will also be overstated by $37,729 since net income increases retained earnings.
Mary's team is located in different countries. Because of the time zone differences, it is difficult for the team to meet all together so their meetings are conducted ________.
Answers
Answer:
Asynchronously
Explanation:
With regards to the above, the meeting would be conducted asynchronously due to the different time zone in each team member's country. What this means that the meeting will not be taken place at the same time or in a real time due to the differences in time zones.
Where a meeting is conducted asynchronously, such would be easy to schedule because attendees would have to adjust their own time unlike synchronous meeting where everyone would be expected to clear their schedule for a specific time to hold the meeting.
Question 10 of 10
Harland just got his second major credit card, so his credit score rose from
671 to 711. According to the following table for a $150,000 mortgage, how
much less per year would Harland have to pay on a $150,000 mortgage with
the new credit score?
FICO
score
720-850
Interest
rate
5.59%
Monthly
payment
$860
700-719
5.71%
$872
$924
675-699
6.25%
7.40%
620-674
560-619
500-559
8.53%
$1039
$1157
$1238
9.29%
Answers
Answer: 2004
Explanation:
hello anyone know carson lueders
Answers
Answer:
Im not sure who he is
Explanation:
Derik was fired from his job at the grocery store. The grocery store told him that the reason he was fired was because of his multiple nose and facial piercings. Derik had the piercings done to show his support for an outspoken political activist who is fighting for social justice.
Answers
Incomplete question. The full question read;
Is this prohibited discrimination under the Alberta Human Rights Act?
1) Yes: the prohibited ground would be race, and the prohibited area would be employment.
2) Yes: the prohibited area would be expression, and the prohibited ground would be employment.
3) No: the prohibited area is employment, but there is no prohibited ground.
4) Yes: Derik's freedom of expression is directly involved.
Answer:
1) Yes: the prohibited ground would be race, and the prohibited area would be employment.
Explanation:
The Alberta Human Rights Act prohibits discrimination in a company's employment practices. In other words, the Alberta Act covers discrimination in the area of employment.
Also, the prohibited ground would be race, since the very practice of having multiple nose and facial piercings is usually done among a particular race.
Can a business succeed without having ALL four of the Factors of Production (Land, Capital, Labor and Entrepreneurs)? Why or why not?
PLS HELP ILL MAKE U BRAINLIEST
Answers
A business can run properly and the problems are solved considering only labor and capital and sometimes land in the production process.
Which secondary effect of advertising refers to a change in the customer’s opinion of the product over a period of time?
Answers
18)
Whiskey, gin, and vodka are examples of
spirits (3 pts).
Answers
Answer:
Vodka, gin, baijiu, shōchū, soju, tequila, rum, whisky, brandy and singani are examples of distilled drinks. Beer, wine, cider, sake and huangjiu are examples of fermented drinks.
Explanation:
The average number of times each dollar in the money supply is used to purchase goods and services is called:______.
a. the fractional reserve system.
b. the velocity of money.
c. the discount rate.
d. the quantity theory of money.
Answers
Answer:
o think the answer is the discount rate
The average number of times each dollar in the money supply is used to purchase goods and services is called the velocity of money.
What are the goods?The term Goods are products and resources that satisfy people's needs and wants. A good can be a natural science object, a provided service, or some accumulation of the two. Just about anything is good if it supplies some kind of benefit to consumers.
The velocity of money refers to The frequency with which an average dollar is spent on goods and services in a certain period of time is known as the velocity of money.
As a result, When the money supply and its velocity as a product grow more quickly than real GDP, prices rise.
Therefore, The right option (B) is correct.
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The money lost by not working is called
Answers
it's called bankrupt
MCDONALDS GIVE DIRECTIONS
Answers
Answer:
TAKE A LEFT
Explanation:
ON 123 SESAME STREET
yessssssssssssssssssssssss
The cost of capital of a company that uses 45 percent debt that has an after-tax cost of debt of 10 percent and 55 percent equity that has a cost of 15 percent is:_______.
Answers
Answer:
12.75 %
Explanation:
Cost of Capital is calculated on a Weighted Average basis. This is because there is a Pooling of Funds when it comes to financing projects. So Cost of Capital is the Return that is Required by providers of Long Term source of finance.
Cost of Capital = E/V × Ke + D/V × Kd
Where,
E/V = Market Weight of Equity
= 0.55
Ke = Cost of Equity
= 15%
D/E = Market Weight of Debt
= 0.45
Kd = Cost of Debt
= 10%
Therefore,
Cost of Capital = 0.55 × 15% + 0.45 × 10%
= 12.75 %
According to personality psychologists, leader traits will play a stronger role shaping leader behavior in what type of situations?
a. weak
b. all of these.
c. structured
d. bureaucratic
e. strong
Answers
Answer:
a. weak
Explanation:
Leadership traits are more exposed and open in weak situations. Naturally, a person’s traits cannot be hidden and plays a strong role in their leadership behavior. Thus, individuals personality traits are known to shape a leader behavior in weak situations.
Average cost pricing
1. will result in disappointing profits when the firm sells more than it expected to sell.
2. will never lead to a higher than expected profit.
3. takes the demand curve into account when calculating a price.
4. is most likely to result in the expected level of profit when demand is inelastic within the range of possible prices.
5. All of the above are true.
Answers
Answer:
4. is most likely to result in the expected level of profit when demand is inelastic within the range of possible prices.
Explanation:
Average cost pricing is most likely to result in the expected level of profit when demand is inelastic within the range of possible prices. The average cost pricing rule is a pricing strategy that regulators impose on certain businesses to limit the price they are able to charge consumers for its products/services equal to the costs necessary to create the product/service. This implies that businesses will set the unit price of a product relatively close to the average cost needed to produce it.
The economic and logical position of a firm in an oligopoly industry can be well understood through ___________.
Answers
Answer:
The economic and logical position of a firm in an oligopoly industry can be well understood through Concentration Ratios, which measure measure the proportion of total market share controlled by number of firms. When there is a high fixation proportion in an industry, financial specialists will in general recognize the business as an Oligopoly.
Explanation:
An oligopoly is a market structure in which a couple of firms overwhelm. At the point when a market is shared between a couple of firms, it is supposed to be exceptionally thought. Although a couple of firms overwhelm, it is conceivable that numerous little firms may likewise work on the lookout. Thinking about the market for air travel, significant air crafts like British Airways (BA) and Air France regularly work their courses with a couple of close contenders, yet there are additionally numerous little carriers providing food for the holidaymaker or offering expert administrations.
Because price and quantity supplied are directly related, we would expect the sign of the price elasticity of supply to be:_________
Answers
Answer:
Positive
Explanation:
Price elasticity is the measure to assess the responsiveness of the supply of a good or service after changing the price of the good or service.
According to basic principles of economics, the price and supply of good or services are directly proportional, it means that if the price increases the supply of good increases and vice versa. The sign of the price elasticity will be positive because they are directly related.
Form example
At Price $5 supply is 200 units
At price $6 supply 250 units
Calculate the change in price and change in supply as well.
Cange in price = ($6 - $5) / 5 = 0.2 = 20%
Cange in supply = 250 units - 200 units = 50 units / 200 unit = 0.25 = 25%
Price elasticity of supply = Change in supply / Change in price
Price elasticity of supply = 25% / 20%
Price elasticity of supply = 1.25
Hence, the sign is positive
For 2018, Gourmet Kitchen Products reported $23 million of sales and $18 million of operating costs (including depreciation). The company has $15 million of total invested capital. Its after-tax cost of capital is 10% and its federal-plus-state income tax rate was 35%. What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2018?
Answers
Answer:
$1,750,000
Explanation:
Calculation for how much value did management add to stockholders' wealth during 2018
First step is to calculate the Operating income
Operating income=23 million-18 million
Operating income= 5 million
Now let calculate the EVA=
EVA= (5,000,000 *(100-35%))-($15,000,000*10%)
EVA=($5,000,000*65%)- ($15,000,000*10%)
EVA=$3,250,000-$1,500,000
EVA=$1,750,000
Therefore the amount of value that the management add to stockholders' wealth during 2018 will be $1,750,000
If you become nervous in an interview and lose your train of thought, you should _____.
just keep talking
pause and take a deep breath
laugh it off
ask for a glass of water
Answers
Explanation:
pause and take a deep breath
Most state and local income taxes are either
Answers
Answer:
tax collected on the purchase price of goods or services
Explanation:
tax collected on the purchase price of goods or services
Most state and local income taxes are either tax collected on sales.
What is Tax?Tax are levy or due paid by an individual, organization or firm. It is paid to the government purse and the money is used by the government for their spending.
The payment is compulsory and the amount to aly is determined by the government.
Therefore, most state and local income taxes are either tax collected on sales.
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The SWOT analysis helps in the development of marketing plans.
True
False
Answers
Answer:
True
Explanation:
The SWOT analysis is a very helpful tool when developing a marketing plan, because it not only establishes the strengths, weaknesses, opportunities, and threats of the outer and inner enviroment in which the company is involved, but it also results in different strategies that combine two or more of these factors.
Finally, from the strategies that result from the SWOT analysis, marketing plans are developed. For example, if one SWOT strategy is market penetration in a particular country, then a whole marketing plan has to be layed out to make the strategy possible.
Gomez Corp. uses the allowance method to account for uncollectibles. On January 31, it wrote off an $1,600 account of a customer, C. Green. On March 9, it receives a $1,100 payment from Green.
1. Prepare the journal entry or entries for January 31
2. Prepare the journal entry or entries for March 9; assume no additional money is expected from Green.
Answers
Answer: Please see explanation for answers
Explanation:
1. Journal entry to record bad debt on January 31st
Date Account Titles and Explanation Debit Credit
Jan. 31st Allowance for doubtful account $1,600
Account receivables ( Customer C. Green) $1.600
2. Journal entry to record recovery of bad debt on March 9
A) To reinstate Amount previously written off
Date Account Titles and Explanation Debit Credit
March 9 Account receivables ( Customer C. Green) $1,100
Allowance for doubtful account $1,100
B) To record payment of account
Date Account Titles and Explanation Debit Credit
March 9 Cash $1,100
Account receivables( Customer C. Green) $1,100
A recipe for macaroni and cheese calls for 18 ounces of cheddar cheese to make 32 four-ounce portions. How much would cheddar would be needed to produce 40 eight-ounce portions?
Answers
Answer: 45 ounces of cheddar cheese is required to make 40 eight-ounce portions.
Explanation:
To find : Quantity of cheddar cheese required to make 40 eight-ounce portions.
Given: Quantity of cheddar cheese required to make 32 four-ounce portions. = 18 ounces
⇒ Quantity of cheddar cheese required to make 1 four-ounce portions. = [tex]\dfrac{18}{32}[/tex] ounces.
⇒ Quantity of cheddar cheese required to make 1 eight-ounce portions. = [tex]2\times \dfrac{18}{32}[/tex] ounces.
[tex]=\dfrac{18}{16}[/tex] ounces.
⇒ Quantity of cheddar cheese required to make 40 eight-ounce portions =
[tex]40\times\dfrac{18}{16}=45[/tex]
Hence, 45 ounces of cheddar cheese is required to make 40 eight-ounce portions.
Piper Pipes has the following inventory data: July 1 Beginning inventory 20 units at $120 5 Purchases 120 units at $112 14 Sale 80 units 21 Purchases 60 units at $115 30 Sale 56 units Assuming that a periodic inventory system is used, what is the cost of goods sold on a LIFO basis?
a. $15,392.
b. $15,412.
c. $7,328.
d. $7,348.
Answers
Answer:
COGS= $15,412
Explanation:
Giving the following information:
July 1 Beginning inventory 20 units at $120
July 5 Purchases 120 units at $112
July 14 Sale 80 units
July 21 Purchases 60 units at $115
July 30 Sale 56 units
First, we need to calculate the number of units sold:
Units sold= 136
To calculate the cost of goods sold using LIFO (last-in, first-out), we need to use the cost of the last units incorporated into inventory:
COGS= 60*115 + 76*112
COGS= $15,412
Résumés should be prepared using the following guidelines:
12-point font
uniformly designed
white space to improve readability printed on quality paper
Answers
Answer:
I personally selected all of them, not sure if it's right or not because my teacher didn't tell me for some reason, but it's worth a try.
Explanation:
On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bouquet and a plaque at a banquet every year. This is an example of:
Answers
Answer:
Ceremony
Explanation:
Ceremony which can as well be reffered to as Rites and Rituals in an organization can be regarded as a pre-planned events which has social, formalities as well as latents purposes. This manifest purpose have effect on how the organization is working and in aiding the acheiving the organizational goals. It involves motivation of employee in the organization by giving bout award to the outstanding among them. For instance, On the foundation day of an organization, the president of the organization awards exceptionally performing employees with a bouquet and a plaque at a banquet every year is an example of a ceremony.
When the demand is equal or lower than the minimum efficient scale, multiple production facility locations are preferred. True False
Answers
Answer:
True
Explanation: