Ghost, Inc. , has no debt outstanding and a total market value of $450,000. Earnings before interest and taxes, EBIT, are projected to be $57,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 16 percent higher. If there is a recession, then EBIT will be 24 percent lower. The company is considering a $215,000 debt issue with an interest rate of 8 percent. The proceeds will be used to repurchase shares of stock. There are currently 9,000 shares outstanding. The company has a tax rate of 25 percent, a market-to-book ratio of 1. 0, and the stock price remains constant.



Required:


a. Calculate return on equity (ROE) under each of the three economic scenarios before any debt is issued.


b. Calculate the percentage changes in ROE when the economy expands or enters a recession.


c. Assume the firm goes through with the proposed recapitalization. Calculate the return on equity (ROE) under each of the three economic scenarios.


d. Assume the firm goes through with the proposed recapitalization. Calculate the percentage changes in ROE when the economy expands or enters a recession.

Answer:

Here:

Explanation:

Purchase price of shares = 24000

total purchase cost = price of shares bought + broker fees total purchase cost = 24000 + 0.01*24000 =24240

selling price of shares = 29100

total selling cost = price of shares sold - broker fees total selling cost = 29100 - 35 = 29065

Net proceeeds = total selling cost - total purchase cost Net proceeds = 29065 - 24240 = 4825

Opportunity cost is the value of the next best alternative when a decision is made .

According to  economic  thinking, opportunity cost can be defined as the value of the next best alternative that must be given up as a result of choosing a specific alternative or  a specific action. In other words, opportunity cost represents the benefits that could have been gained by choosing an alternative option.

When making financial decisions, a person must consider not only the benefits of a particular choice, but also the possible costs. Opportunity cost is a critical concept in economics because it helps individuals and businesses make more informed decisions by weighing the costs and benefits of different options.

For example, if a person decides to spend $100 on a concert ticket, the opportunity cost of that decision would be the value of the next  alternative use of the $100, such as saving it or buying another product. Understanding the concept of opportunity cost can help people make better decisions by considering all available options.

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Answer:b

Explanation:

Proxy statements are materials submitted to shareholders for votes on corporate matters.

Proxy statements are documents submitted to shareholders of a company in preparation for an upcoming shareholder meeting or vote on corporate matters. These statements provide shareholders with important information regarding the matters to be voted upon, such as the election of directors, executive compensation, mergers and acquisitions.

Proxy statements include details about the proposals being presented, information about the company's management and board of directors, financial information, and any potential conflicts of interest. Shareholders who are unable to attend the meeting in person can appoint a proxy to vote on their behalf.

The purpose of proxy statements is to ensure that shareholders have access to relevant information and can make informed decisions when voting on corporate matters. These statements are regulated by the Securities and Exchange Commission (SEC) in the United States and are an important tool for shareholder engagement and corporate governance.

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Answer: correct option is A.

Explanation: A speculative risk can be defined as risk that is taken willingly either it results in profit or loss and the stocks involve in probability of gain and loss making it a speculative risk.

Stocks incur speculative risk. Therefore option A is correct.

A stock usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle their owners to a share of the company's assets and income in proportion to the number of shares they possess.

Common stock and preferred stock are the two primary categories of stocks.

Owners of common stock are entitled to dividends and the right to vote at shareholder meetings.

Common stockholders often do not have voting rights, while preferred stockholders typically get dividend payments ahead of time and are given preference over common investors in the event of a firm bankruptcy and asset liquidation.

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Answer:

true,

Explanation:

As long as the advertisements are not overly intrusive, most users opt to play free versions of online games with ads over paid versions that do not have ads under digital marketing. This statement is true.

Playing a video game online via means of internet browser or data services on electronic devices while connected to the internet, typically with other individuals.

Online games can be played on a variety of platforms, including PCs, laptops, and mobile phones, as well as specialized gaming consoles like PlayStations and Nintendo Switches.

Now a days for a digital marketing concept, online gaming is the best platform to launch and advertise the quality of products, gather the attention of potential customers.

Thus if free versions have less interruption due to advertisements paid versions of games will not be opted more.

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Answer:

In negative self talk, filtering is when a person Focuses only on their problems, ignoring their successes

Explanation:

In negative self talk, filtering is when a person is being negative filtering positive stuff and turning it to something negative instead.

For example if someone passes a test but instead of being proud they feel as if they could have tried harder or gotten a higher grade, that person is filtering their success into negative things.

Hope this helps, Have a great day! :D

In negative self-talk, filtering is when a person focuses only on their problems, ignoring their successes. Thus, option A is the correct option.

When your inner voice is too critical and negative, it is said to be engaging in negative self-talk. It is gloomy and emphasizes the negative. Your self-esteem is damaged, and you are prevented from realizing your potential. It might give you the impression that you will fail even before you begin. Repetitive negative self-talk frequently doesn't correspond to reality.

Rumination, which is repeated with intrusive unpleasant thoughts, might result from it. You will experience negative thoughts about yourself most of the time. This might get you down, and it can be difficult to get back up once you're down. People with anxiety or depression frequently exhibit negative self-talk. It might be overwhelming and impossible to escape from the incessant negative talk.

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Answer:

An increase in income will increase tax revenue because the more taxes and tax write-offs will lead to more in tax returns.

Explanation:

The more income you make the more taxes you will pay, after write-offs you will end up earning more back in tax returns than you would if you made less

Answer:

because the influence is an important

Answer:

Embrace technology

Explanation:

an entrpenuer is not likely to close there business, and if she already has more work than she can manage whilst also keeping good customer relations then she would not let go of her assistant, and she cannot manage a larger inventory. technology will be more efficient and accurate, therefore the most logical choice would be to embrace technology

The option that does not describe an end-cap is E. They are most often used with a free-form layout.

An end-cap is a display located at the end of an aisle in a retail store. It is designed to attract customer attention and promote specific products. End-caps have high visibility and are strategically placed to increase product sales. Retailers use end-caps to merchandise seasonal, temporary, or promotional items, as well as high-margin products. They are commonly used with a free-form layout, allowing flexibility in product placement and arrangement.

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Labor demand elasticity refers to the responsiveness of employers in a particular industry to changes in the wages of their workers.

If an economist finds that labor demand is more elastic in industry x compared to industry y, it means that employers in industry x are more sensitive to changes in wage rates than those in industry y. Several factors could explain this finding. For instance, if industry x is highly competitive, employers in this industry may be more likely to adjust their labor demand in response to changes in wages in order to remain profitable. Conversely, if industry y is less competitive, employers in this industry may have more bargaining power, and therefore be less sensitive to changes in wages. Additionally, industry x may have more substitutes for labor, such as technology or automation, which could also explain the higher elasticity of labor demand in this industry compared to industry y.

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To increase the quantity sold by 50%, the seller needs to reduce the price by $0.2 if the elasticity of demand is 5.

Here are the steps involved in solving this problem:

Percentage price reduction = (Percentage increase in quantity sold) / (Elasticity of demand)

Calculate the percentage increase in quantity sold: 50% / 100% = 0.5

Divide the percentage increase in quantity sold by the elasticity of demand: 0.5 / 5 = 0.1

Multiply the result by the initial price to find the amount of price reduction needed: 0.1 * $2 = $0.2

Therefore, the seller would need to reduce her price by $0.2 in order to increase the quantity sold by 50 percent.

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The correct answer is C. I and II only. The Fed determines rates I and II only.

The Federal Reserve (Fed) is responsible for setting the fed funds rate and the discount rate. The fed funds rate is the interest rate at which banks lend and borrow funds from each other overnight to meet reserve requirements. It is a key rate that influences short-term interest rates and serves as a benchmark for various financial instruments.

The discount rate, on the other hand, is the interest rate at which eligible financial institutions borrow funds directly from the Federal Reserve Bank. It is typically higher than the fed funds rate and serves as a tool for the Fed to control monetary policy and provide liquidity to banks.

The overnight repo rate, indicated in option III, is not directly determined by the Fed. The overnight repo rate is the rate at which financial institutions borrow or lend funds in the overnight repurchase agreement (repo) market, which involves the sale of securities with an agreement to repurchase them later.

Therefore, the Fed determines rates I (the fed funds rate) and II (the discount rate), but it does not determine rate III (the overnight repo rate). Hence, the correct answer is C. I and II only.

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Answer: Making initial development private saves the government from funding all of the research.

Explanation:

A grant refers to an amount of money that is financial assistance thats given by the government or an organization to an individual or firm for a specific purpose. A grant is different from a loan as it isn't meant to be paid back.

Government award grants for the development of technologies, community projects, home insulation etc.

With regards to the question, a government – sponsored grants for the private development of new technologies may result in a lower national debt when the government makes the initial development private thereby saving the government from funding all of the research.

The correct option is C. A company does not have an established brand image to protect.

Outsourcing can be advantageous for a firm that does not have an established brand image to protect. By outsourcing certain activities or functions to specialized service providers, the firm can leverage the expertise and resources of these external partners to enhance its operations without diluting or risking its own brand identity.

Outsourcing allows the firm to focus on its core competencies and strategic activities while benefiting from the efficiency and expertise of external providers in non-core areas.

Options A, B, and D are not necessarily indicative of advantages for outsourcing. Option A suggests a high degree of coordination, which may be better achieved through in-house operations. Option B highlights high technological uncertainty, which might call for internal control and expertise.

Option D implies financial distress, which may necessitate cost-cutting measures but may not specifically align with outsourcing as the best solution.

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When a salesperson approaches you to sell a cemetery plot, this is considered a specialty product.

Specialty products are goods or services that are unique or specific and typically require special purchase considerations. They often cater to a niche market with specific needs or preferences.

Cemetery plots fall into this category because they are a specialized product designed for a specific purpose and have limited demand compared to everyday consumer products.

The purchase of a cemetery plot involves careful decision-making, as it is a significant and long-term investment. Buyers may consider factors such as location, amenities, pricing, and personal preferences when selecting a cemetery plot.

Due to the unique nature of cemetery plots, they are generally sold through specialized sales channels and require personalized sales approaches.

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When a salesperson approaches you to sell a cemetery plot, this is considered a specialty or niche product. Specialty products are unique or specialized items that cater to a specific market segment or customer need.

In this case, the cemetery plot is a specialized product that targets individuals or families who are looking for burial arrangements or pre-planning their final resting place. It is not a product that has mass appeal or widespread demand like everyday consumer goods.

Niche products are generally very hard to sell as they have a very small target market segment and also because they have very limited niche uses. That can't be applied in other uses. Therefore making such objects very hard to sell.

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Mighty Delivery Service completed various transactions in December 2024, including receiving cash and a truck, purchasing insurance and office supplies, providing delivery services for customers, and paying employee salaries, among other things.

Mighty Delivery Service had the following transactions during December 2024:

1. Received $15,000 cash and a truck with a fair value of $20,000 in exchange for issuing shares of common stock to Rico Mighty.
- Debit: Cash $15,000; Truck $20,000
- Credit: Common Stock $35,000

2. Paid $560 cash for a four-month insurance policy beginning December 1.
- Debit: Prepaid Insurance $560
- Credit: Cash $560

3. Paid $600 cash for office supplies.
- Debit: Office Supplies $600
- Credit: Cash $600

4. Performed delivery services for a customer and received $1,800 cash.
- Debit: Cash $1,800
- Credit: Service Revenue $1,800

5. Completed a large delivery job, billed the customer $3,100 and received a promise to collect the $3,100 within one week.
- Debit: Accounts Receivable $3,100
- Credit: Service Revenue $3,100

6. Paid employee salary of $700.
- Debit: Salaries Expense $700
- Credit: Cash $700

7. Received $13,000 cash for performing delivery services.
- Debit: Cash $13,000
- Credit: Service Revenue $13,000

8. Received $900 in advance for delivery service to be performed later.
- Debit: Cash $900
- Credit: Unearned Revenue $900

9. Collected $3,100 cash from customer on account.
- Debit: Cash $3,100
- Credit: Accounts Receivable $3,100

10. Purchased fuel for the truck, paying $300 on account.
- Debit: Fuel Expense $300
- Credit: Accounts Payable $300

11. Performed delivery services on account, $900.
- Debit: Accounts Receivable $900
- Credit: Service Revenue $900

12. Paid office rent of $1,200 for the month of December.
- Debit: Rent Expense $1,200
- Credit: Cash $1,200

13. Paid $300 on account.
- Debit: Accounts Payable $300
- Credit: Cash $300

14. Paid cash dividends of $2,700 to stockholders.
- Debit: Retained Earnings $2,700
- Credit: Dividends $2,700

After adjusting entries, Mighty Delivery Service had the following adjusted trial balance:

- Debit: Cash $27,740; Accounts Receivable $2,250; Office Supplies $150; Prepaid Insurance $400; Truck $19,600; Accumulated Depreciation-Truck $600; Accounts Payable $150; Salaries Payable $700; Unearned Revenue $100; Common Stock $35,000; Retained Earnings $0; Service Revenue $20,950; Salaries Expense $1,000; Depreciation Expense-Truck $300; Insurance Expense $160; Fuel Expense $450; Rent Expense $1,200; Supplies Expense $140
- Credit: $27,740

Using this adjusted trial balance, we can prepare the following financial statements:

Income Statement:

- Service Revenue $20,950
- Expenses: Salaries Expense $1,000; Depreciation Expense-Truck $300; Insurance Expense $160; Fuel Expense $450; Rent Expense $1,200; Supplies Expense $140
- Total Expenses $3,250
- Net Income $17,700

Balance Sheet:

- Assets: Cash $27,740; Accounts Receivable $2,250; Office Supplies $150; Prepaid Insurance $400; Truck $19,600; Less: Accumulated Depreciation-Truck $600; Total Assets $49,540
- Liabilities: Accounts Payable $150; Salaries Payable $700; Unearned Revenue $100; Total Liabilities $950
- Stockholders' Equity: Common Stock $35,000; Retained Earnings $13,590; Total Stockholders' Equity $48,590
- Total Liabilities and Stockholders' Equity $49,540

In summary, Mighty Delivery Service had various transactions during December 2024, and after adjusting entries, we can prepare the Income Statement and Balance Sheet to determine the company's financial performance and position.

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Paycor's redesign of its training from face-to-face to blended learning is an example of technology-based training initiative.

Technology-based training refers to the use of digital tools, platforms, and resources to deliver training content and facilitate learning. In the case of Paycor, transitioning from face-to-face training to blended learning involves incorporating technology into the training process, combining online modules, virtual sessions, and interactive multimedia resources with traditional classroom or instructor-led training.

Blended learning combines the advantages of both online and in-person training methods, providing flexibility, scalability, and personalized learning experiences. It allows employees to access training materials at their own pace and convenience while also providing opportunities for real-time interaction and discussion with trainers or peers.

By adopting blended learning, Paycor aims to enhance the effectiveness and efficiency of its training initiatives, ensuring that employees receive comprehensive and engaging training experiences. The use of technology-based training approaches can help organizations optimize learning outcomes, track progress, and adapt training content to the evolving needs of their workforce.


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Answer:

A. Loan payments on a small business loan

Explanation:

One cost of starting your own business is loan payments on a small business loan.

A company finds that as it adds workers, each worker adds less and less output to the production process. The average cost must go up.

The unit price realized in a production cycle is called the average cost. This is an estimate of the typical costs incurred in the production of a good.

Depending on the number of units produced, this cost may vary. In general, as the producer uses more and more efficiency, the average cost will decrease as the number of units produced increases.

Although creating each additional unit becomes more expensive as the manufacturer approaches the theoretical capacity of its production plant, the average cost begins to increase.

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The given statement "firmographics consist of the company size, location, and objective" is true as Firmographics, often known as company demographics, are categories of traits used to categorize potential employers.

Company size and location are two common firmographics. Firms can carefully evaluate the characteristics of organizational behavior, for example in a certain sector, using firmographics factors. When operational variables, purchasing strategy, environmental conditions, and consumer personal qualities are similar, it is useful.

Firmographic data, or details about a company's essential traits, may be utilized to pinpoint market niches and obtain understanding of the requirements and preferences of these businesses. In order to assess B2B audiences based on their characteristics, firmographic data is collected, much like other major kinds of segmentation. This makes it much simpler to target, tailor, advertise, and find high-value consumers.

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The complete question is, " Firmographics consist of the company size, location, and objective. True or False."

The correct option is B) decreases in interest rates by the central bank

Based on the given data, the nation is encountering favorable financial conditions with genuine GDP assessed at $150 billion, for all intents and purposes unaltered costs, and a moo unemployment rate of 3%. In such a situation, the foremost fitting arrangement for assisting advancement would be a diminish in intrigue rates by the central bank.

Bringing down intrigued rates can fortify financial development and speculation in a few ways:

1. Empowering borrowing and speculation:

Lower intrigue rates make it more alluring for businesses and people to borrow cash for venture purposes. This expanded borrowing and venture can goad financial action and contribute to GDP development.

2. Expanded customer investing:

Lower intrigued rates can lead to diminished borrowing costs for shoppers, making it more reasonable to fund big-ticket buys, such as homes or cars. This could invigorate shopper investing, which may be a noteworthy driver of financial development.

3. Boosting trade development:

Decreased intrigued rates can lower the taken toll of capital for businesses, making it more doable for them to extend operations, contribute to unused ventures, and contract more laborers. This will contribute to work creation and encourage diminish the unemployment rate.

4. Invigorating trades:

Lower intrigued rates can lead to a devaluation within the country's cash, making its exports more competitive within worldwide advertising. This will offer assistance to boost export-oriented businesses and contribute to the by and large GDP.

In this manner, out of the options given, a diminish in intrigued rates by the central bank would be the foremost fitting approach for making strides in the financial conditions depicted. 

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The primary motivation behind most business-related cybercrime is C. economic gain.

Cybercriminals are typically driven by the prospect of illicit profit from their activities, targeting businesses to steal valuable data, commit fraud, or disrupt operations to demand ransom.

While the other options can occasionally be factors, they're less common motivations for cybercrime. Cybercriminals exploit digital vulnerabilities to access confidential information, like credit card details, intellectual property, or sensitive corporate data, which can then be sold or used for fraudulent purposes. Additionally, ransomware attacks lock businesses out of their systems until a ransom is paid, generating substantial income for these criminals. While embarrassing a firm or its management, limiting international globalization, or overthrowing a government might be the goal in some cases, these are not the usual motivations. Most cybercriminals are simply seeking ways to make money illegally and quickly.

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Answer: B

Explanation:

It shows that ur responsible enough to handle a crisis and that u have experince

Answer:

agree with this

.................................

Answer:

just for fun

Explanation:

real friends are those who open their mouth to just insult there bestij

One of the following strategies will result in your paying NO interest to the credit card company is paying off your entire balance every month by the due date.

Credit cards provide you with a line of credit that you can use for purchases, debt transfers, and/or cash advances, with the requirement that you repay the loan amount over time.

When using a credit card, you must make at least the minimum payment on the debt each month by the due date.

Thus, the correct option is C, paying off your entire balance every month by the due date.

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Intrinsic rewards can be more satisfying to a worker than extrinsic ones, because internal motivation is something natural that does not depend on external stimuli.

There is a set of characteristics that helps in motivation in the work environment. Intrinsic rewards correspond to job satisfaction. To be achieved, the employee needs to feel valued and fulfilled with their responsibilities at work.

Extrinsic rewards are related to external motivations, such as a good salary and bonuses.

Therefore, motivation is essential in the workplace, as it stimulates employee productivity, satisfaction and integration.

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