The success of Andy Bichlbaum's spoof partnership program between the NYPD and McDonald's was due to its timely message, creative approach, social media amplification, and grassroots mobilization.
Andy Bichlbaum's successful spoof partnership program between the New York Police Department (NYPD) and McDonald's for free Happy Meals can be attributed to several factors:
1. Timely and Relevant Message: The partnership program was launched during a period of controversy surrounding the NYPD's stop-and-frisk policy, which was criticized for unfairly targeting minority communities. The spoof program capitalized on this controversy by highlighting the irony of the NYPD partnering with a fast-food chain to give away free Happy Meals, suggesting that the NYPD was incentivizing unhealthy eating habits rather than promoting public safety.
2. Creative and Humorous Approach: The partnership program utilized a humorous and satirical approach to convey its message, which resonated with a wide audience. The use of a fake website and fake press releases, as well as the distribution of fake coupons for free Happy Meals, generated buzz and media coverage, further amplifying the program's message.
3. Social Media Amplification: The partnership program's success was also due to its ability to leverage social media platforms to spread its message. The use of hashtags, viral videos, and online petitions helped to generate public interest and support for the campaign.
4. Grassroots Mobilization: The partnership program also benefited from the participation of grassroots activists and organizations, who helped to spread the message and build public support for the campaign.
Overall, the success of the spoof partnership program between the NYPD and McDonald's can be attributed to its timely and relevant message, creative and humorous approach, social media amplification, and grassroots mobilization.
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What was in the sealed box from the Virginia Company in England that the settlers
A opened once they arrived?
B guns and weapons for protection from Indians
C gold
D the names of the seven men who would be the leaders
E a map that showed where the gold was
Answer:
B
Explanation:
Answer:
The Virginia Company sent a list of seven qualified men who could serve on a council and be the leaders. The company leaders did this because they knew the men would have a hard time agreeing on who should be the leaders.
Explanation:
The money that is promised to be paid in a promissory note is called the ______________.
Question 7 options:
a)
Interest rate
b)
Payee
c)
Principal
d)
Amount
Answer:
The answer to your question is payee
The electric field in a particular space is with in meters. Consider a cylindrical Gaussian surface of radius that is coaxial with the -axis. One end of the cylinder is at , the other end of the cylinder is at . What is the net charge contained by the cylinder
The net charge contained by the cylinder is zero. This is because the electric field is perpendicular to the Gaussian surface.
Gauss's law states that the flux of an electric field through a closed surface is proportional to the net charge enclosed by the surface. In this case, the Gaussian surface is a cylinder, and the electric field is perpendicular to the surface. This means that the flux of the electric field through the surface is zero, and the net charge enclosed by the surface must be zero.
The electric field is perpendicular to the Gaussian surface because the electric field is directed along the -axis, and the Gaussian surface is a cylinder coaxial with the -axis. This means that the electric field lines are parallel to the surface of the cylinder, and the flux of the electric field through the surface is zero.
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If the price of a pencil is $1.00 and the price of a pen is $2.00, what is the relative price? If the pencil
is $1.50 and the pen is $3.002 If the pencil is $2.00 and the pen is $3.00?
If the price of a pencil is $1.00 and the price of a pen is $2.00. 3 dollars will be the relative price.
$1 + $2 = $3
A price relative is the ratio of the charge of a selected product in a single period to the rate of the identical product in a few different period. In buying power parity (PPP) comparisons a rate relative refers to the ratios of the equal product in two international locations.
The nominal price of a great is its value in phrases of cash, including bucks, French francs, or yen. The relative or actual rate is its fee in terms of some other suitable, carrier, or package of goods.
Relative-price movements convey critical facts approximately the scarcity of specific items and offerings. A growing relative charge suggests that call for is outstripping deliver (or that supply is falling at the back of call for), while a falling relative price denotes just the other.
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Click this link to view O*NET's Work Activities section for Postsecondary Education Administrators.
Note that common activities are listed toward the top, and less common activities are listed toward the bottom.
According to O*NET, what are common work activities performed by Postsecondary Education Administrators?
Check all that apply.
making decisions and solving problems
operating vehicles
communicating with supervisors, peers, or subordinates
establishing and maintaining interpersonal relationships
repairing and maintaining electronic equipment
drafting, laying out, and specifying technical devices, parts, and equipment
Answer:
BDE
Explanation:
Answer:
A C D
Explanation:
Click to see additional instructions Henry invested $7,200 exactly 2 years ago. In exactly 4 years from now, he expects his investment to be worth $12,500. If he is correct, what would his compounded average annual growth rate be? [Keep at least 3 decimals in intermediate steps. Express your answer in percentage terms, rounded to 2 decimals ie. 2.2
Henry's compounded average annual growth rate would be approximately 13.04%.
To calculate the compounded average annual growth rate, we can use the formula:
Growth Rate = (Final Value / Initial Value)^(1 / Number of Years) - 1
In this case, Henry invested $7,200, and after 4 years, he expects the investment to be worth $12,500. Therefore:
Initial Value = $7,200
Final Value = $12,500
Number of Years = 4
Growth Rate = ($12,500 / $7,200)^(1 / 4) - 1
Let's calculate the growth rate:
Growth Rate = (1.73611111111)^(0.25) - 1
= 1.13040266961 - 1
= 0.13040266961
To express the growth rate in percentage terms, we multiply it by 100:
Growth Rate (in percentage) = 0.13040266961 * 100
≈ 13.04%
Therefore, Henry's compounded average annual growth rate would be approximately 13.04%.
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why does saturn have the coldest surface temp?
Answer:
distance from the Sun
Explanation:
because of Saturn's tilt, the southern and northern hemispheres are heated differently, causing seasonal temperature variation.
A company started the year with $10,000 of inventory. Purchases for resale during the year were $20,000. Inventory on December 31 is $5,000. What's the cost of goods sold
The inventory indicates that the cost of goods sold will be $25000.
How to calculate the cost of goods soldIt should be noted that the cost of goods sold ic calculated through the formula:
= Opening inventory + Purchases - Closing inventory
= $10000 + $20000 - $5000
= $25000
Therefore, the cost of goods sold is $25000.
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The cost of goods sold (COGS) is a crucial financial metric for a company, as it directly relates to the cost of producing the goods or services that a company sells. In your case, you're looking at a retail or wholesale type of business, where COGS involves the purchase cost of the inventory items that were sold during the year.
Here is how you would calculate the cost of goods sold in your situation:
1. Beginning Inventory: This is the value of all the goods available for sale at the beginning of the year. In your case, it's $10,000.
2. Purchases: During the year, the company purchases additional goods to sell. In your case, this amount is $20,000.
3. Available for Sale: The total cost of every item that the company could possibly sell during the year is the beginning inventory plus the purchases. So, in your case, that's $10,000 (beginning inventory) + $20,000 (purchases) = $30,000.
4. Ending Inventory: This is the value of all goods still available for sale at the end of the year. In your case, it's $5,000.
5. Cost of Goods Sold (COGS): This is calculated by subtracting the ending inventory from the total available for sale. Essentially, if you started with a certain amount of goods, added more, and then ended with a certain amount, the difference must be what was sold during the year. In your case, it's $30,000 (available for sale) - $5,000 (ending inventory) = $25,000.
So, your Cost of Goods Sold (COGS) for the year is $25,000. This means the company spent $25,000 during the year on inventory that it sold.
Internal channels of business communication are designed to reach _____.
1) within the business itself
2) coworkers and upper management within the company
3) a small, targeted group of consumers
4) a large percentage of the consumer market
Answer: coworkers and upper management within the company
Explanation:
Internal channels of business communication are designed to reach coworkers and upper management within the company.
Internal communication is simply the communication that takes place between the workers in a company and the top management. It is an open communication strategy that is used in order to carry everyone along and also achieve organizational goals.
Match each example of a study to the type of method used. researchers develop a survey and ask the same questions to 40,000 randomly selected people. researchers interview or survey the same 1,000 families every 5 years over a 40-year period. researchers conduct long interviews with open-ended questions with 40 couples. researchers observed 15 families in their homes over a period of 1 year. researchers survey family members on how many hours per week they spend doing various tasks or ask them to keep a diary of what they do every 30 minutes over an entire day over a period of a week.
Answer:
1. Researchers develop a survey and ask the same questions to 40,000 randomly selected people. - Sample Survey
Sample surveys involve using a subset of the population that is randomly selected as the basis for the research.
2. Researchers interview or survey the same 1,000 families every 5 years over a 40-year period. - Longitudinal survey
In a Longitudinal survey, participants are observed and studied at regular intervals over a period of time which can either be long or short term.
3. Researchers conduct long interviews with open-ended questions with 40 couples. - In-depth Interviews
In-depth interviews aim to find out as much on a topic as possible and as such can take some time to complete. Questions are usually open ended so subjects can express themselves fully.
4. Researchers observed 15 families in their homes over a period of 1 year. - Observation
Observational study involves observing the subjects often in their natural settings.
5. Researchers survey family members on how many hours per week they spend doing various tasks or ask them to keep a diary of what they do every 30 minutes over an entire day over a period of a week. - Time use studies.
Time use studies are studies on the way people spend their time which is what the researchers here hope to find out.
Who is responsible for operational matters and monitoring day-to-day events?
A) supervisors
B) middle management
C) stockholders
D) top management"
The group responsible for operational matters and monitoring day-to-day events is A) supervisors.
Supervisors play a crucial role in overseeing daily activities, ensuring that tasks are completed efficiently, and addressing any issues that may arise within the organization. Middle management, stockholders, and top management have different responsibilities within the company.
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Should I start my final exam? im kinda scared ill get a bad grade lol. anyways, I hope everyone is doing great.
Answer:
do it lol putting more words because its requireddddd
Answer:Yes you should and dont be scared just try your hardest. Also i am doing great what about you ?
Explanation:
a firm should always stop producing if its average ______ cost is ______ price.
A firm should always stop producing if its average variable cost is higher than the price.
This is because the firm would be losing money on each unit produced and sold, which is not sustainable in the long run. It would be more profitable for the firm to shut down production and cut its losses rather than continuing to operate at a loss. However, if the price is higher than the average variable cost, the firm should continue to produce as it would be earning a profit on each unit produced and sold. In this case, the firm would be maximizing its profits by producing at the point where marginal revenue equals marginal cost. Therefore, it is essential for the firm to continuously monitor its costs and prices to make informed decisions about production and profitability.
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The out-of-pocket expenses incurred in producing a good are also known as:a. wages and prices.b. fiduciary costs.c. explicit costs.d. capital costs.e. implicit costs.
Option C: explicit costs. These are the direct and tangible expenses that a company incurs in producing a good or service, such as raw materials, labor costs, and rent.
Explicit costs are a subset of total cost, which also includes implicit costs such as opportunity costs. Opportunity costs refer to the value of the next best alternative that must be forgone in order to produce a good or service. For example, if a company decides to produce product A, the implicit cost is the revenue that could have been earned by producing product B instead.
In summary, the out-of-pocket expenses incurred in producing a good are known as explicit costs, which are a subset of total cost that also includes implicit costs such as opportunity costs.
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PLEASE SEND HELP ASAP
Planning for regional natural disasters at work is _______.
a.
good practice
b.
unnecessary
c.
too cautious
d.
unsafe
Please select the best answer from the choices provided
A
B
C
D
Answer:
A. good practice
Explanation:
planning for these disasters can help reduce damage,injuries,even death.
Answer:
A
Explanation:
Just in case something were to happen it would be good to know where to go and what to do. It can prevent deaths and injuries if the real thing were to happen.
What is profit in an economic system?
A. Profit is the investment a producer makes in the economy to achieve financial gain.
B. Profit is the net change in the value of the economy due to an exchange.
C. Profit is the financial gain resulting from an exchange.
D. Profit is the investment a consumer makes in the economy to achieve financial gain.
Answer:
I think D is correct answer
The profit in the economic system is the investment made by the consumer for accomplishing the financial gain.
The information related to the profit is as follows:
It is the surplus that comes after deducting the cost from the revenue made. It is the investment that should be made by the consumer for attaining financial gain.Therefore all the other options are incorrect.
Thus we can conclude that profit in the economic system is the investment made by the consumer for accomplishing the financial gain.
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if the issuer wanted to be assured of the best chance of getting a aaa rating on the securitization, what could they do?
If the issuer wanted to be assured of the best chance of getting a AAA rating on the securitization, they could make semi-annual interest payments or repay the principal amount when due.
The highest rating that any of the main credit rating agencies may give to an issuer's bonds is AAA. Because its issuers are easily able to pay financial obligations and have the lowest default risk, AAA-rated bonds have a high level of creditworthiness.
Since bonds with a AAA rating are thought to have the lowest default risk, they often have the lowest yields among bonds with comparable maturities (lower risk = lower return).
When a bond issuer does to pay its debts on time, whether it be principle repayment or semi-annual interest payments, this is referred to as "defaulting." Government debt and corporate bonds are assigned AAA ratings.
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can anyone please help me please
Answer:
1. extracurricular
2. cocurricular
3. curricular
4. curricular
5. cocurricular
Explanation:
1. Daniel doing community service by cleaning up outdoor trails is an extracurricular activity because it doesn’t have nothing to do with his academics/school.
2. Debra participating in a hospital program for nursing students is cocurricular because she is practicing techniques she learned in her nursing class.
3. Rhett taking a foreign language class at his middle school is curricular because this is a class Rhett takes at school.
4. You are correct. Ernestina taking a photography class in school is curricular because this class takes place at her high school.
5. Brant joining a student organization for future teachers is cocurricular because he is studying to be a teacher.
Partner selection, alliance design, and post-formation alliance management are essential to a successful alliance. Many alliances fail due to problems in post-formation management. IKEA is the world's largest furniture retailer. It has many non-equity alliances with suppliers and manufacturers around the world. IKEA also makes strategic use of non-equity alliances and stakeholder partnerships to participate in finding solutions to social and environmental challenges. As a Strategy Consultant, you want to find more information and data about IKEA. Search the following sources of data; The Wall Street Journal, The Economist, Business Week, Fortune, The New York Times, theepochtimes.com, Inc.com, Forbes.com, PRNewswire.com, Bloomberg.com, Reuters.com, Fastcompany.com for more data (qualitative and quantitative) about IKEA's active partnerships (strategic alliances) and acquisitions. Search what IKEA has done in the past ten years. Your data collection will provide you insights to answer the following questions: 1- In what ways does IKEA participate in strategic alliances? 2- What non-equity alliances have shown success? 3- How do these partnerships relate to maintaining IKEA's competitive advantage as the world's largest furniture retailer? As you have learned about CSR- Corporate Social Responsibility and firm value creation earlies in the course, answer the following questions: 4- Define what constitutes success for IKEA and success for the nonprofit partner. 5- What resources and capabilities does each party bring to the alliance? Refer to Exhibit 9.4 How to Make Alliances Work to consider which of these governance considerations would be most relevant to this particular type of non-equity alliance. 6- With M&A in mind, find out if IKEA has acquired other companies in the past ten years? Explain why IKEA has decided to acquire other companies. Does the acquisition bring a Competitive Advantage to IKEA? Explain how.
IKEA purchased Task Rabbit to provide consumers with an extra service. IKEA's acquisition of companies has helped the company enter new markets and offer new products. IKEA gains a competitive advantage through the purchase of businesses by boosting its product line and growing its market.
1. IKEA has many non-equity alliances with suppliers and manufacturers worldwide. IKEA also makes strategic use of non-equity alliances and stakeholder partnerships to participate in finding solutions to social and environmental challenges. IKEA's strategic alliances include partnerships with several NGOs and businesses. They work together on sustainability initiatives, with each partner contributing their expertise.
2. IKEA's non-equity alliances include partnerships with several NGOs and businesses. They work together on sustainability initiatives, with each partner contributing their expertise. The Better Cotton Initiative is one of IKEA's successful non-equity partnerships. The initiative, which began in 2010, includes IKEA and many other retailers who collaborate with cotton farmers to promote the use of sustainable cotton farming practices.
3. Through its partnerships, IKEA can increase its product offerings and address social and environmental issues, which gives them a competitive advantage in the marketplace. IKEA has a reputation for being an environmentally conscious company, which has helped it appeal to customers who value sustainability. By working with NGOs and other businesses on sustainability initiatives, IKEA strengthens its reputation as an eco-friendly company.
4.Success for IKEA can be measured in terms of financial performance and sustainability metrics, such as reduced waste and emissions. Success for the nonprofit partner would be measured in terms of how much their mission was advanced. For example, a nonprofit working to increase access to clean water would consider the success of the partnership based on how many people gained access to clean water.
5. IKEA brings its expertise in furniture manufacturing and retail, while its nonprofit partners bring their expertise in social and environmental issues. Governance considerations that would be relevant to this particular type of non-equity alliance include partner selection and alliance design.
6.IKEA has acquired several companies in the past ten years, including Task Rabbit, a company that connects customers with freelancers to complete tasks. The acquisition of companies brings a Competitive Advantage to IKEA by increasing its product offerings and expanding its reach.
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United Research Associates (URA) had received a contract to produce two units of a new cruise missile guidance control. The first unit took 4,000 hours to complete and cost $40,000 in materials and equipment usage. The second took 3,600 hours and cost $32,000 in materials and equipment usage. Labor cost is charged at $20 per hour. The prime contractor has now approached URA and asked to submit a bid for the cost of producing another 20 guidance controls. Use and a. What will the last unit cost to build? (Round your answer to the nearest dollar amount.) b. What will be the average time for the 20 missile guidance controls? (Round your answer to the nearest whole number.) c. What will the average cost be for guidance control for the 20 in the contract? (Round your answer to the nearest dollar amount.)
The average cost for guidance control for the 20 in the contract is $112,000, rounded to the nearest dollar amount.
a. Calculation of last unit cost to buildThe cost of producing the first unit of the cruise missile guidance control is $40,000 and it took 4,000 hours to complete. Therefore, the labor cost for the first unit can be calculated as:
4,000 hours × $20/hour = $80,000
For the second unit, the cost was $32,000 and it took 3,600 hours to complete.
Therefore, the labor cost for the second unit can be calculated as: 3,600 hours × $20/hour = $72,000
The average cost per guidance control for the 20 units in the contract = $2,240,000/20 units = $112,000 .
Thus, the total labor cost for both the units = $80,000 + $72,000 = $152,000
Therefore, the average labor cost per hour = $152,000/7,600 hours = $20/hour
Hence, the cost of producing the last unit can be calculated as:
(20 hours × $20/hour) + $32,000 = $400 + $32,000 = $32,400
Therefore, the last unit will cost $32,400 to build.b.
Calculation of the average time for the 20 missile guidance controls
To calculate the average time for the 20 missile guidance controls, we can use the average time per unit of the first two units.
The total time taken to produce the first two units = 4,000 + 3,600 = 7,600 hours
Therefore, the average time per unit = 7,600 hours/2 units = 3,800 hours
Thus, the average time to produce 20 missile guidance controls = 3,800 hours × 20 units = 76,000 hours
Therefore, the average time for the 20 missile guidance controls is 76,000 hours, rounded to the nearest whole number.c.
Calculation of the average cost for guidance control for the 20 in the contract
The total cost of producing the first two units = $40,000 + $32,000 = $72,000
The total labor cost for the first two units = 4,000 hours × $20/hour + 3,600 hours × $20/hour
= $80,000 + $72,000 = $152,000
Therefore, the total cost to produce the first two units including labor = $72,000 + $152,000 = $224,000
The cost per unit for the first two units = $224,000/2 units = $112,000
Therefore, the total cost of producing 20 units can be calculated as:20 units × $112,000/unit = $2,240,000
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Think about the process of estimating value for a publicly traded common stock. In general, would it take more time or less time than conducting a real estate appraisal?a) less timeb) more time
In general, estimating the value of a publicly traded common stock is likely to take less time than conducting a real estate appraisal. Correct option is A.
This is because publicly traded stocks are traded on an exchange, where their value is determined by the interaction of supply and demand. The price of a stock reflects the collective perception of its value by all market participants, based on a wide range of factors including the company's financial performance, market trends, and investor sentiment.
In contrast, a real estate appraisal typically involves a detailed analysis of a specific property, taking into account its location, condition, size, and other unique features. The appraisal process may also involve a review of recent sales of comparable properties and an analysis of market trends in the local area.
All of these factors can take more time to gather and analyze than the information needed to estimate the value of a publicly traded stock.
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If Country B can produce beans at a lower opportunity cost than Country A, then Country B has a(n) _____________ over Country A in the production of beans.
a) great natural and human resources.
b) large stock of capital.
c) absolute advantage.
d) comparative advantage.
Answer:
Comparative Advantage
Explanation:
I took the quiz and it was correct. :)
when the investment banker sells the new securities on commission without guaranteeing the sale of the whole issue, the process is called:
Without ensuring the sale of the entire issue, the investment banker sells the new securities on commission under the following circumstances: Best effort.
Investment banking refers to particular business operations of a financial services firm or corporate division that involve advisory-based financial transactions on behalf of private persons, public companies, and public authorities. Such a bank, which is more commonly linked with corporate finance, might help raise money by underwriting or serving as the client's agent in the issue of debt or equity instruments. An investment bank may also offer support services to businesses engaged in mergers and acquisitions (M&A), such as market-making, equities and derivatives trading, FICC services (fixed income instruments, currencies, and commodities), or research (macroeconomic, credit or equity research). Along with their businesses for investment research, the majority of investment banks continue to run prime brokerage and asset management divisions. The Bulge Bracket (highest tier), Middle Market (mid-level businesses), and Boutique Market categories make up the industry (specialized businesses). Investment banks don't accept deposits, in contrast to commercial and retail banks. The Glass-Steagall Act, which was passed in 1933, kept investment banking and commercial banking separate in the US until it was repealed by the Gramm-Leach-Bliley Act in 1999. G7 nations and other industrialized nations generally do not retain such a division. The Volcker Rule claims some institutional separation of investment banking services from commercial banking as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act of 2010).
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An investment project offers $4,350 per year forever, with the first payment occurring one year from now. if the interest rate is 6%, what would you pay to participate in this project?
You would pay $72,500 to participate in this investment project, given a 6% interest rate.
How to find the amount one would pay to participate in this investment project to determine the amount one would pay to participate in this project, the following formula is used;
PV = A/r where,
PV = Present Value of the investment project
A = Annual payment
I = Interest rate
PV = 4350/0.06
PV = $72,500
Therefore, the amount that one would pay to participate in this project is $72,500.To determine the present value of the investment project that offers $4,350 per year forever, with the first payment occurring one year from now, with an interest rate of 6%, and the amount that one would pay to participate in this project would be $72,500.
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Five years ago Tosev Inc. issued 30-year, $1,000 par value, semi-annual coupon bonds with a coupon rate of 9.10 percent. The bonds originally sold at a price of $1,010.32 per bond. Currently, those bonds have a market price of $1,118.15 per bond. The Chief Financial Officer of Tosev is currently considering issuing new bonds. These bonds will have a par value of $1,000, semi-annual coupon payments, a term of 25 years and a coupon rate of 8 percent. Due to differences in the legal provisions of the bonds, the Chief Financial Officer estimates that the yield to maturity on the new bonds will be one percent higher than the current yield to maturity on the old bonds. Based on the Chief Financial Officer's estimate, what would be the price per bond of the new bonds today?
A. $ 817.44
B. $ 896.67
C. $ 901.19
D. $1,000.00
E. $1,118.15
Which of the following statements is most correct?
A. If a bond's yield to maturity exceeds its annual coupon rate, then the bond will be trading at a premium.
B. If interest rates increase, the relative price change of a 10-year coupon bond will be greater than the relative price change of a 10-year zero coupon bond.
C. If a coupon bond is selling at par, its current yield equals its yield to maturity. (Hint: a bond's current yield equals annual coupon payment divided by current price).
D. Both a and c are correct.
E. None of the answers above is correct.
---------------------Explanation:
Which of these are benefits of a job as the term is used in this lesson? (1
O a high hourly wage
O an office in a great neighborhood
O working for a good cause
O a 401(k) plan
Answer:
high Hourly wage
Explanation:
Answer:
D. a 401(k) plan
Explanation:
9 48. The stages of human development are: 1.Clear and distinct 2.Varied from person to person 3.Easily navigated 4.Only physical traits
Answer:
2. VARIED FROM PERSON TO PERSON
Explanation:
please help!!!!!!!!!!!
Answer:
(1) Customers rating a new car model on social media - External info
(2) Company info
(3) External info
(4) Company info
Explanation: Company information is basically explaining information abt the product or what it is they're selling. External information is the feedback or in other terms "review" on a companies item. Hope this helped <3
(The #'s are the examples in the boxes starting from left to right btw)
Pandora Manufacturing has 7.6 million shares of common stock outstanding. The current share price is $46, and the book value per share is $3. The company also has two bond issues outstanding. The first bond issue has a face value of $68.6 million and a coupon rate of 6.3 percent and sells for 109 percent of par. The second issue has a face value of $58.6 million and a coupon rate of 6.8 percent and sells for 107.5 percent of par. The first issue matures in 7 years, the second in 28 years.
The company’s stock has a beta of 1.3. The risk-free rate is 2.4 percent, and the market risk premium is 6.3 percent. Assume that the overall cost of debt is the weighted average implied by the two outstanding debt issues. Both bonds make semiannual payments. The tax rate is 22 percent. What is the company’s WACC?
the WACC for Pandora Manufacturing is roughly 9.96%. along with the ratios of equity and debt in the company's capital structure, must be determined in order to compute the WACC for Pandora Manufacturing.
Let's begin by using the CAPM to determine the cost of equity:
Risk-Free Rate + Beta + Market Risk Premium = Cost of Equity Cost of Equity = 2.4% + 1.3 * 6.3%
Equity Cost = 10.29%
Let's now compute the cost of debt. We need to figure out the yield to maturity for each of the two outstanding bond issues:
Coupon for the initial bond issue: 6.3% * $4.3278 million x $68.6 million
Price = 109% * $74.794 million x 68.6 million
Maturity equals 7 years times 2, or 14 semiannual intervals.
YTM = 3.17%
Coupon for the second bond issue: 6.8% times $58.6 million=$3,988,850,000
Price = 107.5% * $63,055 million x $58.6 million
Maturity = 28 years x 2 = 56 semi-annual intervals
YTM = 3.46%
We must determine the share of each bond issue in the total debt of the corporation in order to determine the weighted average cost of debt:
Total Debt is equal to $127.2 million ($68.6 million plus $58.6 million).
$68.6 million / $127.2 million ($Initial Bond Issue) = 0.5396
Second Bond Issue Percentage = 58.6 million / 127.2 million = 0.4604
The formula for calculating the weighted average cost of debt is as follows: Weighted Average Cost of Debt = Percentage of First Bond Issue * YTM of First Bond + Proportion of Second Bond Issue * YTM of Second Bond.
Average Weighted Cost of Debt = 3.32%
Using the following formula, we can now determine the WACC:
WACC is equal to the product of the equity stake, cost of equity, and debt stake.
The expense of debt (1 - Tax Rate)
Market Value of Equity / Total Market Value equals the proportion of equity.
Market Value of Equity is equal to 7.6 million shares multiplied by $46 per share, or $349.6 million.
$349.6 million plus $74.794 million plus $63.055 million equals $487.449 million in total market value.
Equity as a percentage equals $349.6 million / $487.449 million, or 0.7166.
Percentage of Equity = 0.2834 - Proportion of Debt = 1.
WACC = 0.7166 * 10.29% + 0.2834 * 3.32% * (1 - 22%)
WACC = 7.37% + 2.59%
WACC = 9.96%
Thus, the WACC for Pandora Manufacturing is roughly 9.96%.
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If mason wants to consider his short-term and long-term goals, which questions should he ask? check all that apply. will other kids think my new bike is cool? do i want the bike this month, or should i wait and buy it during the summer? will buying the bike keep me from reaching another goal, like buying a car? do i really need the bike, or can i get by with my old one for a while longer? how many of my friends have new bikes?
Should I buy the bike this month, or put off the purchase until the summer when prices are often lower?
Will purchasing the bike prevent me from accomplishing another objective, such as purchasing a car?
Do I truly need the bike, or can I get by with my old one for a little longer?
This is further explained below.
What are long-term goals,?Generally, You may think of what you intend to achieve in the far future as a long-term objective. Time and careful preparation are needed for achieving long-term objectives. They are not activities that you will be able to do this week or even this year. Long-term objectives are often seen as being attained in a period of at least many years.
In conclusion, Do I want to buy the bike this month, or should I wait until the summer to make the purchase?
Will purchasing the bike prevent me from accomplishing another objective, such as getting a new car?
Do I really need a new bicycle, or can I get by with the one I've had for a little longer?
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