Benson's, Inc has an overall cost of equity of 10.24 percent and a beta of 1.2. The firm is financed 100 percent with common stock. The risk-free rate of return is 4 percent
What is an appropriate cost of capital for a division within the firm that has an estimated beta of 1.5?
A) 11.6 percent
B) 11.8 percent
C) 12.0 percent
D) 12.4 percent
E) 12.8 percent
B
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Which of the following guidelines is not a presentation that pro forma financial information should adhere to?
a. It should describe the transaction or event that is reflected in the pro forma financial information. b. It should describe significant assumptions used to develop the pro format adjustments. c. It should make clear that the pro forma financial information is indicative of results that would have been achieved had the transaction or event actually taken place at an earlier time. d. It should describe any significant uncertainties about those assumptions.
On December 31 of the current year, Plunkett Company reported an ending inventory balance of $211,500. The following additional information is also available:? Plunkett sold and shipped goods costing $37,300 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $211,500. ? Plunkett purchased goods costing $43,300 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $211,500. ? Plunkett's ending inventory balance of $211,500 included $14,300 of goods being held on consignment from Carole
Company. (Plunkett Company is the consignee.) ? Plunkett's ending inventory balance of $211,500 did not include goods costing $94,300 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end. Based on the above information, the amount that Plunkett should report in ending inventory on December 31 is: A. $205,500 B. $197,200 C. $191,200 D. $168,200 E. $153,900
What was remarkable about the Refuse Act of 1899?
a. It was one of the very rare environmental protection acts prior to the 1960s. b. It sought to protect the environment but actually made things worse. c. It was entirely created and passed by a citizen’s movement. d. It was sponsored by businesses, not citizens.
What is the advantage to sending a proposal via email?
A) The writer has the opportunity to include a strong business case B) The proposal can be summarized in the email C) Additional information not covered in the proposal can be included D) The receiver can print hardcopies of sections of the proposal, depending on interest E) Costs and risks do not need to be included in the final proposal as they would be covered in the email