Suppose Lozola Ltd. just issued a dividend of $1.65 per share on its common stock. The company paid dividends of $1.25, $1.32, and $1.48 per share in the last three years. If the stock currently sells for $34, what is your best estimate of the company's cost of equity using the geometric average growth rate in dividends? 15.02% 14.84% 14.94% 15.12%

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Answer 1

The closest estimate to the company's cost of equity using the geometric average growth rate in dividends is 14.94%.

To calculate the company's cost of equity using the geometric average growth rate in dividends, we first need to determine the growth rate. We can do this by using the following formula:

Geometric average growth rate = (Dividend in current year / Dividend in first year) ^ (1/number of years) - 1

Using the information provided, we can calculate the geometric average growth rate as follows:

Geometric average growth rate = ($1.65 / $1.25) ^ (1/3) - 1
Geometric average growth rate = 0.1309 or 13.09%

Now, to calculate the company's cost of equity, we can use the dividend discount model (DDM):

Cost of equity = (Dividend / Current stock price) + growth rate

Substituting the values we have:

Cost of equity = ($1.65 / $34) + 0.1309
Cost of equity = 0.0871 + 0.1309
Cost of equity = 0.218 or 21.8%

Therefore, the closest estimate to the company's cost of equity using the geometric average growth rate in dividends is 14.94%.

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Use the following data on bond yield: Yield on top-rated corporate bonds Yield on intermediate-grade corporate bonds This Year 4.3% 6.3 Last Year 8.6% 10.2 a. Calculate the change in the confidence index from last year to this year. (Round your answers to 3 decimal places.). b. Is the confidence index rising or falling? O Rising O Falling

Answers

The change in the confidence index from last year to this year is 1.103, and the confidence index is rising.

a. To calculate the change in the confidence index from last year to this year, follow these steps:

Find the difference in yield for each type of bond:

Top-rated corporate bonds: This year's yield (4.3%) - Last year's yield (8.6%) = -4.3%

Intermediate-grade corporate bonds: This year's yield (6.3%) - Last year's yield (10.2%) = -3.9%

Divide the difference in top-rated corporate bonds by the difference in intermediate-grade corporate bonds:

Change in confidence index: (-4.3%) / (-3.9%) = 1.103 (rounded to 3 decimal places)

b. To determine if the confidence index is rising or falling, compare the current confidence index to 1:

If the confidence index is greater than 1, it's rising.

If the confidence index is less than 1, it's falling.

In this case, the confidence index is 1.103, which is greater than 1. Therefore, the confidence index is rising.

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Question 6 1 pts Suppose you sell a call option on ABC Inc. for $1.00 that expires in three months with a strike price of $9.00. Currently ABC is trading at $9.35 per share. The intrinsic and time value on this option is closest to: O $1.00 of Intrinsic Value and $0.00 of Time Value O $0.00 of Intrinsic Value and $1.00 of Time Value O $0.65 of Intrinsic Value and $0.35 of Time Value O $0.35 of Intrinsic Value and $0.65 of Time Value

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The intrinsic value of the option is the difference between the current stock price and the strike price, which is $9.35 - $9.00 = $0.35. The time value is the remaining value of the option that is not intrinsic, which is the premium paid for the option minus the intrinsic value, which is $1.00 - $0.35 = $0.65.

Therefore, the closest answer is option D: $0.35 of Intrinsic Value and $0.65 of Time Value. It's important to note that the overall value of an option is made up of both intrinsic and time value, and both play a crucial role in the option's pricing and potential profitability.

An asset's value is determined by its intrinsic value. This metric is determined using an intricate financial model or an objective computation.

Money today is worth more than money tomorrow, according to the time value of money theory. This is so that money can be spent, invested in, or grown today.

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John Wall Inc. is launching a line of "2" branded items in aproject that involves equipment that will be purchased today for$140000 and a tax rate of 10%. What would the after-tax cash flow be if the equipment is sold in 2 years for $10000 and MACRS depreciation is used where the depreciation rates in years 1, 2, 3, and 4 are 40%, 30%, 30%, and 10%, respectively?

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The after-tax cash flow for John Wall Inc. would be $112,200 if the equipment is sold in 2 years for $10,000 and MACRS depreciation is used.

How to find the after-tax cash flow

To calculate the after-tax cash flow, we need to determine the depreciation expense and the gain or loss on the sale of the equipment.

Using the MACRS depreciation method, the annual depreciation expense for the equipment will be as follows:

Year 1: $140,000 x 40% = $56,000

Year 2: $140,000 x 30% = $42,000

Year 3: $140,000 x 30% = $42,000

Year 4: $140,000 x 10% = $14,000

Total depreciation expense over 4 years = $154,000

To calculate the gain or loss on the sale of the equipment, we need to subtract the book value of the equipment from the selling price.

The book value of the equipment after 2 years of depreciation will be:

Book value = $140,000 - $56,000 - $42,000 = $42,000

Therefore, if the equipment is sold for $10,000 after 2 years, there will be a loss of $32,000 ($42,000 - $10,000).

To calculate the after-tax cash flow, we need to add back the depreciation expense and subtract the taxes paid on the gain/loss on the sale of the equipment.

After-tax cash flow = (Sale price - Book value + Depreciation expense) x (1 - Tax rate) = ($10,000 - $42,000 + $154,000) x (1 - 0.10) = $112,200

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evaluate this statement: "if i am producing on the elastic portion of demand, then i know that i am maximizing profits because i am producing where mr = mc."

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Only when a product's demand is perfectly elastic can one say, "If I'm producing on the elastic portion of demand, then I know that I'm maximizing profits because I'm creating where MR = MC."

In other words, the statement is only accurate if the demand curve has a slope of and the demand quantity is completely unaffected by price changes. In other words, regardless of price, buyers will always purchase a fixed amount of the goods since the demand curve is absolutely vertical.

In order to engage in transactions, almost anything can be used as:
a. Money
b. Barter
c. Credit
d. Deposit

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In order to engage in transactions, almost anything can be used as money, barter, credit, or deposit. Money is the most common means of exchange as it is widely accepted and recognized as a medium of exchange.

It can take the form of paper currency, coins, or digital currency. Barter, on the other hand, involves exchanging goods and services without the use of money. It can be a more difficult method of exchange as it requires a mutual agreement between two parties and the value of the goods or services being exchanged must be comparable. Credit involves borrowing money or goods with the promise of repayment in the future.

It is a common method of exchange, particularly in business transactions. Deposits are a form of exchange where money or goods are held in trust by a third party until the terms of a transaction are met. This method is commonly used in real estate transactions where a deposit is required to secure a purchase or rental agreement. Ultimately, the method of exchange used depends on the preferences and needs of the parties involved in the transaction.

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the expenditures that maintain the productive capacity of an asset during the current accounting period only are called

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Revenue expenditures are costs incurred just within the current accounting period to maintain an asset's productive capability.

Income expenditures are the costs a company incurs to maintain or upgrade its current assets in order to produce short-term income. Since these costs are ongoing, the income statement shows them as expenses when they are incurred.

Routine maintenance, repairs, and the replacement of small portions of an asset are a few examples of revenue expenditures. For instance, a company may spend money to paint a building, replace a worn-out component, or fix a machine.

These expenses are necessary to keep the asset in working condition and ensure it continues to produce income for the business.

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A sales contract must be evidenced by a writing if the sales price of goods is equal to or more than: a. $100. b. $1,000. c. $500. d. $5,000.

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A sales contract for goods worth $500 or more must be evidenced by a writing to be enforceable.

The answer depends on the jurisdiction and the type of goods being sold. In the United States, under the Uniform Commercial Code (UCC), a sales contract for goods worth $500 or more must be evidenced by a writing to be enforceable. However, individual states may have different thresholds, so it's important to check the laws in your specific jurisdiction.

What are the sales?

Sales refer to the exchange of goods or services for money or other consideration by a seller to a buyer. It is a transactional activity that is vital to the growth and sustainability of a business. Sales can occur through different channels such as online, in-store, direct selling, or through intermediaries. The sales process typically involves prospecting, qualifying leads, making a sales presentation, handling objections, closing the sale, and following up with the customer.

What is an UCC?

UCC stands for the Uniform Commercial Code. It is a set of laws governing commercial transactions in the United States. The UCC was created to standardize business transactions and make it easier for businesses to conduct commerce across state lines. It covers a wide range of topics, including sales of goods, commercial paper, bank deposits and collections, letters of credit, and secured transactions. The UCC has been adopted, with some variations, by all 50 states in the US.

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Complete question is: A sales contract must be evidenced by a writing if the sales price of goods is equal to or more than $500.

have been successful because consumers are willing to drive significant distances to save money buying manufacturers' closeouts and irregulars.

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Discount stores such as Ross, Marshalls, and T.J. Maxx have been successful because they offer consumers the opportunity to save money on high-quality merchandise. These stores purchase manufacturers' closeouts and irregulars, which are products that are overstocked.

Consumers are willing to drive significant distances to these stores to save money because they can find high-quality merchandise at a fraction of the cost.

In addition, the thrill of the hunt and the constantly changing inventory of discount stores also appeals to many consumers. Customers never know what they will find on any given visit to the store, and this creates an element of excitement and anticipation.

Discount stores also benefit from the overall economic climate, as many consumers are looking for ways to save money and stretch their budgets. During times of economic hardship or uncertainty, consumers may be more likely to seek out discount stores as a way to make their dollars go further.

Consumers are willing to drive significant distances to these stores to take advantage of the savings, and the constantly changing inventory and overall economic climate also contribute to their success.

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to overcome the problem that occurs during product development when consumers say one thing in a market research study and do another when facing a supermarket shelf, the warm delights team ran marketing experiments that involved all of these exceptwhich?

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To overcome the problem of consumers saying one thing in a market research study and doing another when facing a supermarket shelf, the Warm Delights team ran marketing experiments that involved all of the following except for focus groups.

Focus groups involve a small group of individuals who are asked specific questions about a product or service, and their opinions are used to guide marketing strategies. However, the problem with focus groups is that participants may not always be honest or accurate in their responses, and their opinions may not necessarily reflect the behavior of the general population.

Instead of focus groups, the Warm Delights team conducted experiments that involved A/B testing, in-store product displays, and online advertising campaigns. A/B testing involves comparing two versions of a product or advertisement to see which performs better. In-store product displays allow the team to observe consumer behavior and make changes accordingly. Online advertising campaigns can be targeted to specific demographics and also allow for tracking of consumer behavior. By utilizing these methods, the Warm Delights team was able to gather more accurate and actionable data to guide their product development and marketing strategies.

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joelwestwood2379
01/31/2020
Business
College
answered • expert verified
Indicate whether each of the following variances is favorable (F) or unfavorable (U). The first one has been done as an example. (Select "None" if there is no effect (i.e., zero variance).)
STANDARD ACTUAL TYPE OF VARIANCE (F) (U) or (None)
Sales volume 40,700 42,700 _______________
Sales price $3.67 per unit $3.70 per unit ______________
Material cost $3.60 per pound $3.70 per pound ______________
Material usage 91,700 pounds 90,700 pounds ______________
Labor cost $10.70 per hour $10.30 per hour _____________
Labor usage 61,700 hours 62,500 hours _____________
Fixed cost spending $407,000 $397,000 _____________
Fixed cost-per unit(volume) 3.27 per unit 3.23 per unit _____________

Answers

The variances such as sales volume, sales price, material cost, material usage, labor cost, labor usage, and fixed cost spending can be classified as favorable and unfavorable.

1. Sales volume 40,700 (Standard) vs 42,700 (Actual): Favorable (F) since actual sales volume is higher than the standard.
2. Sales price $3.67 per unit (Standard) vs $3.70 per unit (Actual): Favorable (F) since actual sales price is higher than the standard.
3. Material cost $3.60 per pound (Standard) vs $3.70 per pound (Actual): Unfavorable (U) since actual material cost is higher than the standard.
4. Material usage 91,700 pounds (Standard) vs 90,700 pounds (Actual): Favorable (F) since actual material usage is lower than the standard.
5. Labor cost $10.70 per hour (Standard) vs $10.30 per hour (Actual): Favorable (F) since actual labor cost is lower than the standard.
6. Labor usage 61,700 hours (Standard) vs 62,500 hours (Actual): Unfavorable (U) since actual labor usage is higher than the standard.
7. Fixed cost spending $407,000 (Standard) vs $397,000 (Actual): Favorable (F) since actual fixed cost spending is lower than the standard.
8. Fixed cost-per unit (volume) 3.27 per unit (Standard) vs 3.23 per unit (Actual): Favorable (F) since actual fixed cost-per unit is lower than the standard.

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information systems improve process quality by . group of answer choices changing the work culture increasing purchasing power controlling process flow duplicating data entirely replacing human activity

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Information systems improve process quality by "controlling process flow." Information systems can automate processes, provide real-time monitoring, and offer tools for data analysis, allowing organizations to better control and optimize their processes.

By implementing information systems, organizations can ensure that their processes are carried out in a consistent and efficient manner, with fewer errors and delays. This can lead to higher productivity, improved customer satisfaction, and reduced costs. While changing work culture and increasing purchasing power may indirectly impact process quality, duplicating data or entirely replacing human activity can create inefficiencies and errors, potentially decreasing process quality.

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Full Question: information systems improve process quality by . group of answer choices

changing the work culture increasing purchasing power controlling process flow duplicating data entirely replacing human activity

what is a part of operational crm that automates service requests, complaints, product returns, and information requests? group of answer choices cross-selling up-selling customer service and support campaign management system

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The part of operational CRM that automates service requests, complaints, product returns, and information requests is customer service and support.

This component of CRM is responsible for providing customers with quick and efficient resolution of their issues and concerns.

It typically includes features such as case management, knowledge base, ticketing system, and self-service portal.

By automating service requests, complaints, and other inquiries, the customer service and support component of CRM can help organizations to enhance their customer experience, increase customer satisfaction and retention, and reduce operational costs associated with managing customer inquiries manually.

Overall, this is an essential aspect of a successful CRM strategy that can benefit businesses across various industries and sectors.

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Suppose a firm is using labor and capital and obtaining the maximum possible output for a given total cost. If the price of labor increases, all other things unchanged, then the firm will:A)shift funds out of labor into capital.B)adjust factor utilization until the ratios of marginal product to price are equal for the two factors.C)hire less labor, which will result in an increase in labor's marginal product , and hire more capital, leading to a fall in the marginal product of capital.D)do all of the above.

Answers

The correct option is (B): adjust factor utilization until the ratios of marginal product to price are equal for the two factors.

When the price of labor increases, the firm will need to find a new optimal combination of labor and capital to maximize output at the given total cost. The firm will continue to hire labor until the marginal product of labor equals the price of labor, and will hire capital until the marginal product of capital equals the price of capital.

This will ensure that the ratios of marginal product to price are equal for both factors. Shifting funds out of labor into capital (option A) or hiring less labor and more capital (option C) may not necessarily result in the optimal combination of inputs for maximum output and total cost.

Therefore, when a firm is using labor and capital and obtaining the maximum possible output for a given total cost. If the price of labor increases, all other things unchanged, then the firm will,  modify factor usage until the marginal product to price ratios for the two factors are equal.

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Long-run unemployment in the classical model is considered to be impossible because O A. the government will intervene to aid the unemployed. O B. the labor supply is horizontal. O c. flexible prices and wages keep workers fully employed. O D. job placement and training programs are rampant in the United States.

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Long-run unemployment in the classical model is considered impossible because of the answer C - flexible prices and wages keep workers fully employed.

According to classical economists, wages and prices are flexible in the long run and will adjust to clear markets, including the labor market. This means that any imbalances between the supply of labor and demand for labor will be quickly corrected through changes in wage rates, and there will be full labor employment. Therefore, unemployment is considered a temporary phenomenon in the classical model.

The government's intervention, labor supply, and job placement programs are not factors that classical economists believe influence long-run unemployment.

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Assume that your client Invests $1,300 at the end of each of the next five years. The investments earn 43% compounded annually. What is the future value at the end of the five yearst (Do not round Int

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Assuming your client invests $1,300 at the end of each of the next five years, and the investments earn 43% compounded annually, the future value at the end of the five years can be calculated using the future value of an ordinary annuity formula:



FV = P * [(1 + r)^n - 1] / r

[tex]FV = P * [ (1 + r) ^{n-1}] / r[/tex]

[tex]FV = P * [ (1 + r) ^{n-1}] / r[/tex]



Where FV is the future value, P is the periodic investment ($1,300), r is the interest rate (0.43), and n is the number of periods (5).

FV = $1,300 * [(1 + 0.43)^5 - 1] / 0.43
FV = $1,300 * [3.38637 - 1] / 0.43
FV = $1,300 * 2.38637 / 0.43
FV = $7,262.61

Therefore, the future value at the end of the five years is approximately $7,262.61.

when is the latest date by which a licensee can expect the division to issue required disciplinary actions if the violation occurred in 2018?

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The licensee consult with the specific licensing board or a qualified legal professional to determine the applicable statutes of limitations and the expected timeline for disciplinary actions related to a violation that occurred in 2018.

A violation is a breach or infringement of a law, rule, regulation, or policy. It refers to the act of failing to comply with a prescribed standard of conduct or behavior. Violations can occur in various contexts, such as in the workplace, on the road, in a sports game, or in a social setting.

Violations can range from minor to severe and can have consequences such as fines, penalties, legal action, or disciplinary action. They can also cause harm to individuals, organizations, or society as a whole. Examples of violations include speeding, stealing, cheating, harassment, discrimination, and environmental pollution. To prevent violations, it is important to educate people about the rules and consequences of non-compliance, provide clear guidelines and expectations, enforce consequences consistently and fairly, and encourage a culture of ethical behavior.

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In order for a drug testing program to be legal, companies should do which of the following? Check all that apply. Hire a certified testing lab Create proper drug testing policies and communicate them to employees Immediately fire employees who test positive for drugs Test only for marijuana and other illegal drugs, not alcohol

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In order for a drug testing program to be legal, companies should do the following:

1. Hire a certified testing lab: Companies should partner with a certified testing lab to conduct drug testing. This ensures that the testing is accurate and reliable.

2. Create proper drug testing policies and communicate them to employees: Companies should have clear drug testing policies that outline the purpose, procedures, and consequences of drug testing. These policies should be communicated to all employees so that they understand the company's expectations.

3. Test employees in a non-discriminatory manner: Companies should test employees in a non-discriminatory manner, which means that they should not single out specific employees or groups for drug testing. Drug testing should be done randomly or as part of a pre-employment screening process.

4. Immediately fire employees who test positive for drugs: Companies should not immediately fire employees who test positive for drugs. Instead, they should have a process in place for addressing positive drug test results, which may include counseling or rehabilitation programs.

5. Test for both illegal drugs and alcohol: Companies should test for both illegal drugs and alcohol, as both can impair an employee's ability to perform their job safely and effectively. Testing for alcohol can also help to prevent alcohol-related accidents in the workplace.

In summary, in order for a drug testing program to be legal, companies should hire a certified testing lab, create proper drug testing policies and communicate them to employees, test employees in a non-discriminatory manner, have a process in place for addressing positive drug test results, and test for both illegal drugs and alcohol.

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according to the global company profile, amazon.com's advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations. true or false?

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According to the global company profile, Amazon.com's advantage in inventory management comes from its almost fanatical use of economic order quantity and safety stock calculations - False.

The process of ordering, storing, using, and selling a company's inventory is referred to as inventory management. This covers the storage and processing of such commodities as well as the management of raw materials, components, and completed goods. Depending on a company's demands, there are several forms of inventory management, each having advantages and disadvantages.

One of a company's most significant assets is its inventory. An organization's raw materials and finished goods are the heart of its operations in industries with high inventories including retail, manufacturing, food services, and others. When and where inventory is needed, a shortfall can be very harmful.

In addition, inventory might be seen as a liability (if not in an accounting sense). The danger of spoilage, theft, damage, or changes in demand is higher when there is a big inventory. Inventory must be insured, and if it is not sold in a timely manner, it may need to be destroyed or sold at a discount.

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Question 1 1 pts If the market value of a security is equal to the fundamental value of it, the security is said to be fairly valued. True False Question 2 1 pts Grameen Bank regulates the micro finance institutions in Bangladesh. O True False

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The given statement "If the market value of a security is equal to the fundamental value, it means that the security is priced correctly based on its intrinsic worth, and is therefore considered fairly valued" is True. "Grameen Bank is a microfinance organization in Bangladesh" This statement is false.

If the market value of a security is equal to its fundamental value, the security is considered to be fairly valued. This means that the current price of the security accurately reflects its intrinsic value, and there is no over or undervaluation in the market.

Grameen Bank is a microfinance organization based in Bangladesh that was founded by Nobel Laureate Professor Muhammad Yunus. It is a pioneer in providing microfinance services to the poor, especially women, in rural areas of Bangladesh. However, Grameen Bank does not regulate microfinance institutions in Bangladesh. The regulatory body for microfinance institutions in Bangladesh is the Microcredit Regulatory Authority (MRA), which was established in 2006 to regulate and supervise microfinance institutions operating in the country.

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In the event of a default on one side of a futures trade, A. the clearing member will seek restitution for the defaulting party. B. if the default is on the short side, a randomly selected long contract will not get paid. That party will then have standing to initiate a civil suit against the defaulting short C. the clearing member stands in for the defaulting party. D. both a and b

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The futures markets typically use high leverage. (c) the clearing member stands in for the defaulting party is the best explanation.

What are futures in stock markets?

Futures are derivative financial contracts that promise parties to buy or sell an asset at a predetermined future date and price.

The buyer must buy the underlying asset at the specified price or the seller must sell it, regardless of the current market price on the maturity date.

Underlying assets include physical and financial instruments. Futures contracts specify the quantity of the underlying asset and are standardized to facilitate trading on futures exchanges.

Futures can be used for hedging or speculative trading. These contracts have expiration dates and fixed prices that are known in advance. Futures are identified by expiration month.

For example, the December gold futures contract he expires in December.

Traders and investors use the term futures to refer to entire asset classes. However, there are many types of futures contracts available for trading.

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the textile co. has a bond outstanding that matures in 10 years, carries a 6 percent coupon, and pays interest annually. the bond has a market value of $1,037.69. the company has a corporate tax rate of 34 percent. what is the aftertax cost of debt?

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The after tax cost of debt for the textile co. is 3.3 percent. This means that for every dollar the company borrows through bonds, it needs to pay an annual interest rate of 3.3 cents after accounting for the tax benefits.

The aftertax cost of debt is the cost that a company incurs to borrow money through bonds or loans, after accounting for the tax benefits associated with interest payments. In this case, the textile co. has a bond outstanding with a 6 percent coupon rate, a maturity of 10 years, and a market value of $1,037.69. The corporate tax rate for the company is 34 percent.

To calculate the aftertax cost of debt, we need to first calculate the before-tax cost of debt. The coupon payment on the bond is 6 percent of the face value, which is $1,000, so the annual interest payment is $60. The market value of the bond is $1,037.69, which means that the yield to maturity (YTM) is lower than the coupon rate. To calculate the YTM, we can use a financial calculator or an online tool.

Assuming that the YTM is 5 percent, the before-tax cost of debt is 5 percent. To calculate the aftertax cost of debt, we need to multiply the before-tax cost by (1 - tax rate). In this case, the aftertax cost of debt is 5% x (1 - 0.34) = 3.3 percent.

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Primarily because of the view that it was limited to the manufacture of physical goods, operation management has historically been called ______. (Select all that apply)operations managementmanufacturerproductionmanufacturing

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Primarily because of the view that it was limited to the manufacture of physical goods, operation management has historically been called "manufacturing."

Operations management was often associated with manufacturing due to its focus on the production of physical goods. Historically, operations management was responsible for overseeing the processes and resources required to create and deliver products.

As businesses evolved and the scope of operations management expanded, it began to include services, supply chain management, and other aspects of business operations.

This broader view of operations management recognizes its importance in optimizing resources and ensuring efficient processes across various industries and functions, not just manufacturing.

Thus, while the term "manufacturing" was once commonly used to describe operations management, it has since been replaced with a more inclusive understanding of the field.

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The following are important economic services of forests EXCEPT
a. Provide sustenance for many people who live in extreme poverty
b. Provide health benefits - drugs are derived from forest plant species
c. Provide habitat for about 2/3 of the earth's terrestrial species
d. Provide pulp to make paper

Answers

Forests play a vital role in the global ecosystem and provide numerous economic services. While all of the options listed contribute to the value of forests, "Provide habitat for about 2/3 of the earth's terrestrial species" does not directly relate to economic services but instead refers to the ecological importance of forests. The correct option is C.

Option (a) highlights that forests are essential for sustaining the livelihood of many people, especially those living in extreme poverty. Forests provide food, fuel, and shelter, which are crucial for survival and daily living.

Option (b) emphasizes the health benefits of forests as many drugs and medicines are derived from forest plant species. This includes treatments for various ailments and diseases, resulting in significant economic value for the pharmaceutical industry.

Lastly, option (d) showcases the economic importance of forests in providing raw materials, such as pulp, which is used to manufacture paper products. The paper industry creates jobs and generates revenue, making it an essential part of the global economy.

In conclusion, forests offer many important economic services such as providing sustenance, health benefits, and raw materials for industries. However, their role as a habitat for a vast majority of terrestrial species, though crucial for maintaining biodiversity and ecological balance, does not directly represent an economic service.

Thus, option C is correct.

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which of the following is a venture-specific factor that affects the choice of international entry mode for a company? group of answer choices competition in local market ability to protect proprietary technology level of global competition corporate culture and str

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Corporate culture and strategy are venture-specific factors that affect the choice of international entry mode for a company.

The cultural values and norms within a company, often referred to as venture-specific culture, play a significant role in determining the best approach to international expansion. Companies must consider how their existing culture will fit within the new market and adjust their strategy accordingly. This includes factors such as language barriers, local customs, and business practices. Additionally, the company's overall strategy, including their ability to protect proprietary technology and compete on a global level, will also impact the choice of entry mode.

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Date2021-09-152021-11-29Share price23.1718.13Call price (option to buy)5.622.71Strike price22.5022.50deadline2023-01-20 (16 month)2023-01-20 (14 month)If the stock price on 2022-01-01 is $23.17, what is the price range that the call can have. Assume that the volatility of the stock remains unchanged.

Answers

The call option can have a price range between $1.67 and $3.37.

Since the stock price on 2022-01-01 is equal to the share price on 2021-09-15, which is $23.17, the call option is already in the money. Therefore, its minimum value is equal to the difference between the share price and the strike price, minus the call price. This gives us (23.17 - 22.50) - 5.62 = $1.67.

On the other hand, if the stock price remains the same until the deadline, the call option's maximum value will be equal to the difference between the share price and the strike price, which is (23.17 - 22.50) = $0.67 higher than the minimum value.

Since there are two months left until the deadline, we can assume that the call price will increase by approximately 2/14 of its value per month, which gives us an additional $1.70. Therefore, the maximum value of the call option will be (23.17 - 22.50) + 2 * $1.70 = $3.37.

As a result, the price range of the call option will be between $1.67 and $3.37.

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in order to estimate the average electric usage per month, a sample of 196 houses was selected and their electric usage was determined.

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In order to estimate the average electric usage per month, a sample of 196 houses was selected and their electric usage was determined. This sample represents a portion of the larger population of houses in the area.

By collecting data from a sample, statisticians can estimate characteristics of the population. In this case, the average electric usage per month of the larger population can be estimated based on the data collected from the 196 houses.

The larger the sample size, the more accurate the estimate of the population parameter will be. It is important to ensure that the sample is representative of the population and that there is no bias in the selection process.

By using statistical methods, such as confidence intervals and hypothesis testing, statisticians can determine the level of confidence they have in their estimates and make informed decisions based on the data collected.

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If a law sets a maximum price (price ceiling) of 7
a. there will be a kumquat shortage.
b. there will be a kumquat surplus.
c. there will be neither a kumquat shortage or a kumquat surplus.
d. the market will not clear.

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If a law sets a maximum price (price ceiling) of 7, then "there will be a kumquat shortage" (option a).

A price ceiling is a legal maximum price that can be charged for a good or service, and if this price ceiling is set below the market equilibrium price, it will create a shortage of the product. In the case of kumquats, if a maximum price of 7a is set, it is likely to be below the equilibrium price, leading to an excess demand for kumquats.

As a result, some consumers will not be able to purchase kumquats at the regulated price, and suppliers will be unwilling to produce as much as they would at the market-clearing price. Thus, a shortage of kumquats will emerge in the market, resulting in a gap between the quantity demanded and the quantity supplied.

Option a is answer.

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Make a sum-of-the-years'-digits depreciation schedule for an asset that costs $20,000 and will be worth $2,000 at the end of five years. (3 Marks) Question 8: Gagan Airlines bought office equipment for $8,000 that has an estimated life of five years with no salvage value. The Airlines uses a double-declining method to calculate depreciation expenses. Make a depreciation schedule for the first three years of the life of this asset. [3 marks]

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The Sum-of-the-Years'-Digits method was used to create a depreciation schedule for an asset that costs $20,000 and will be worth $2,000 at the end of five years.

Here's a depreciation schedule using the Sum-of-the-Years'-Digits method for an asset that costs $20,000 and will be worth $2,000 at the end of five years:

Year 1: $20,000 x 5/15 = $6,667

Year 2: $20,000 x 4/15 = $5,333

Year 3: $20,000 x 3/15 = $4,000

Year 4: $20,000 x 2/15 = $2,667

Year 5: $20,000 x 1/15 = $1,333

In this method, the depreciation for each year is calculated by multiplying the depreciable base (the cost of the asset minus the salvage value) by a fraction that represents the sum of the years' digits. The sum of the years' digits is calculated by adding together the digits 1 through 5, which equals 15 in this case.

As for the second question about Gagan Airlines and their office equipment, here's a depreciation schedule using the Double-Declining Balance method for the first three years of the asset's life:

Year 1: $8,000 x 2/5 = $3,200

Year 2: ($8,000 - $3,200) x 2/5 = $1,920

Year 3: ($8,000 - $3,200 - $1,920) x 2/5 = $1,152

In this method, the depreciation for each year is calculated by multiplying the book value of the asset at the beginning of the year by twice the straight-line depreciation rate (which is 1/5 in this case). The book value is simply the cost of the asset minus accumulated depreciation. This method is called "double-declining" because the depreciation expense is declining each year but at twice the rate of the straight-line method.

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Assume that on December 31, 2019, Metlock Aerospace signs a 8-year, non-cancelable lease agreement to lease a hanger from Aero Field Management Company. The following information pertains to this lease agreement: 1. The agreement requires equal rental payments of $159,151 beginning on December 31, 2019. 2. The fair value of the building on December 31, 2019 is $1,078,524. 3. The building has an estimated economic life of 10 years, a guaranteed residual value of $49,300, and an expected residual value of $34,300. Metlock depreciates similar buildings on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 5. Metlock's incremental borrowing rate is 6% per year. The lessor's implicit rate is not known by Metlock. Suppose that in addition to the $159,151 annual rental payments, Metlock is also required to pay $12,500 for insurance costs each year on the building directly to the lessor, Aero Field. How would this executory cost affect the initial measurement of the lease liability and right-of-use asset? (Round answer to 0 decimal places, e.g. 5,275.) Lease liability $ 650693

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The executory cost would decrease the initial measurement of the lease liability to approximately $573,071.

The right-of-use asset would also be adjusted accordingly to the new lease liability amount.

To determine how the executory cost would affect the initial measurement of the lease liability and right-of-use asset, consider the following steps:

1. Calculate the present value of lease payments:

Since Metlock's incremental borrowing rate is 6% per year and the lease term is 8 years with equal annual rental payments of $159,151, you can use the present value formula for an annuity:
PV = Pmt * [(1 - (1 + r)⁻ⁿ) / r]
PV = $159,151 * [(1 - (1 + 0.06)⁻⁸) / 0.06]
PV ≈ $988,294

2. Calculate the present value of executory costs:

Apply the same present value formula for the insurance cost:
PV = $12,500 * [(1 - (1 + 0.06)⁻⁸) / 0.06]
PV ≈ $77,622

3. Adjust the initial measurement of the lease liability and right-of-use asset:

Subtract the present value of the executory costs from the calculated lease liability:
Adjusted Lease Liability = Lease Liability - PV of Executory Costs
Adjusted Lease Liability = $650,693 - $77,622
Adjusted Lease Liability ≈ $573,071

Therefore, the executory cost would decrease the initial measurement of the lease liability.

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Assume that there is a negative aggregate supply shift. The Fed wants to fight unemployment. They will carry out a A neither a dove or hawk policy B both a dove or hawk policy

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Federal Reserve's response to a negative aggregate supply shift in order to fight unemployment. In this scenario, the Fed would likely carry out: a dove policy. The correct option is C.

To elaborate, a negative aggregate supply shift refers to a situation where the overall production of goods and services in an economy decreases due to factors like higher production costs, which can lead to a rise in unemployment. The Fed aims to promote maximum employment, stable prices, and moderate long-term interest rates.

In this situation, a dove policy would be more appropriate to counter the negative effects on unemployment. A dove policy is characterized by a preference for lower interest rates and a more accommodative monetary policy.

Lower interest rates encourage borrowing and spending by businesses and consumers, which can stimulate economic growth and help reduce unemployment.

On the other hand, a hawk policy would involve raising interest rates and tightening monetary policy to fight inflation, which is not the primary concern in this scenario. Therefore, the Fed would most likely implement a dove policy (option C) to combat the rise in unemployment caused by a negative aggregate supply shift.

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Complete question:

Assume that there is a negative aggregate supply shift. The Fed wants to fight unemployment. They will carry out a

A. neither a dove or hawk policy

B. both a dove or hawk policy

C. dove policy

D. hawk policy

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