An entrepreneur buying a business gains advantages such as immediate cash flow, established customer base, existing supplier relationships, and proven business model, making financing and operations management easier than starting from scratch.
An entrepreneur who purchases an existing business rather than starting from scratch enjoys several advantages. First, the business is already established, potentially offering immediate cash flow and an existing customer base, which eliminates some of the risk and uncertainty associated with starting a new venture. Second, an acquired business often has a proven business model, and its previous success can be used to secure financing more easily compared to a startup that lacks a track record.
Moreover, when buying a business, the entrepreneur benefits from existing relationships with suppliers, employees, and customers. There is also an opportunity to leverage the business's reputation and brand, which can be more challenging to build from the ground up. On the practical side, the acquired business usually comes with necessary permits, licenses, and equipment, saving the entrepreneur valuable time and potential regulatory hurdles that are typical in the startup phase.
Entrepreneurs should remember that while buying a business can come with these advantages, it can also come with hidden pitfalls, such as undisclosed debts or a misaligned business culture. Careful due diligence is required to ensure that the perceived advantages materialize into actual benefits.
Find the present value pv of the given investment. an investment earns 2% per year and is worth $40,000 after 8 years.
Dma corporation has bonds on the market with 19.5 years to maturity, a ytm of 6.6 percent, and a current price of $1,043. the bonds make semiannual payments and have a par value of $1,000. what must the coupon rate be on these bonds? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places,
e.g., 32.16.)
DMA Corporation's bonds, with 19.5 years to maturity, a 6.6% yield to maturity, $1,043 current price, and $1,000 face value, have a 6.88% coupon rate, ensuring a stable return.
Here's a step-by-step calculation for determining the coupon rate on DMA Corporation's bonds:
1. Given values:
- Maturity period: 19.5 years
- Yield to Maturity (YTM): 6.6%
- Current market price: $1,043
- Face value: $1,000
2. Calculate the annual coupon payment using the YTM formula:
[tex]\[ \text{YTM} = \frac{\text{Coupon Payment}}{\text{Current Price}} \][/tex]
[tex]\[ 6.6\% = \frac{\text{Coupon Payment}}{1,043} \][/tex]
[tex]\[ \text{Coupon Payment} = 6.6\% \times 1,043 = 68.838 \][/tex]
3. Determine the coupon rate using the formula:
[tex]\[ \text{Coupon Rate} = \frac{\text{Coupon Payment}}{\text{Face Value}} \][/tex]
[tex]\[ \text{Coupon Rate} = \frac{68.838}{1,000} = 0.068838 \][/tex]
4. Express the coupon rate as a percentage:
[tex]\[ \text{Coupon Rate} = 0.068838 \times 100 = 6.88\% \][/tex]
Therefore, the coupon rate on DMA Corporation's bonds is 6.88%, indicating a fixed annual interest payment of $68.838 per bond for investors.
A favorable direct materials cost variance occurs when the actual direct
A favorable direct materials cost variance occurs when the actual direct materials cost is less than the standard cost set by the company. It is a financial concept relevant to managerial accounting, helping managers assess cost-efficiency in the production process.
A student has inquired about what constitutes a favorable direct materials cost variance. This financial concept arises within managerial accounting, a field that deals with the analysis and interpretation of financial information to aid in management decisions.
A favorable direct materials cost variance signifies that the actual cost of direct materials used in producing goods or services is less than the standard cost set by the company for those materials.
A direct materials cost variance can be calculated by subtracting the standard cost of direct materials that should have been used for the actual output from the actual cost incurred for those materials.
If this result is negative, that signifies a favorable variance. Conversely, if the result is positive, it indicates an unfavorable variance. Reasons for a favorable variance might include discounts from suppliers, a decrease in materials' prices, or effective cost-control measures.
Equate, a brand of health and beauty care products, is available only at walmart stores. equate is a ____ brand. producer private distributor generic conglomerate
Are preferred dividends deducted from net income when calculating earnings per share
C) Yes, preferred dividends are always deducted from net income when calculating EPS.
This is because EPS reflects the amount of profit available to common shareholders, and preferred dividends are paid out of the net income before any profits can be distributed to common shareholders.
Calculate Net Income: This is the total earnings after all expenses, including taxes and interest, have been deducted from total revenues.
Subtract Preferred Dividends: Since preferred shareholders have a higher claim on dividends, their fixed dividends are subtracted from the net income.
Divide by Outstanding Common Shares: The remaining earnings are then divided by the weighted average number of common shares outstanding during the period.
Complete question-
When calculating earnings per share (EPS), are preferred dividends deducted from net income?
A) No, preferred dividends are not deducted from net income when calculating EPS.
B) Yes, preferred dividends are deducted from net income only if they are paid.
C) Yes, preferred dividends are always deducted from net income when calculating EPS.
D) Preferred dividends are only deducted if the company has common stock outstanding
a popular cell phone company is known for its diverse work force. when the company had to make a decision on product positioning in a new market, managers of different ethnic groups had different views due to cultural differences. such conflicts were common in several decision making situations, which has become a critical issue in the company. in this scenario, _____ should be employed to minimize these differences among the managers.
"factors of production are the most likely to earn economic rent when they"
A profit-maximizing monopolist will continue expanding output as long as
Final answer:
A profit-maximizing monopolist will continue expanding output as long as marginal revenue exceeds marginal cost.
Explanation:
A profit-maximizing monopolist will continue expanding output as long as marginal revenue exceeds marginal cost
. This means that for each additional unit produced, the revenue generated will be greater than the cost incurred, resulting in increased profits.
Once the marginal revenue is equal to marginal cost, the profit-maximizing quantity is reached, and the monopolist should not expand further.
An allocation base that causes overhead costs to be incurred is called a(n):
Question help the muffin house produces and sells a variety of muffins. the selling price per dozen is $15, variable costs are $9 per dozen, and total fixed costs are $4,200. how many dozen muffins must the muffin house sell to breakeven?
Do any economic systems in the world reflect the purest forms of command or laissez-faire economies?
No, there is no any economic systems in the world that reflect the purest forms of command or laissez-faire economics.
Because in most economies, government plays an important role and if it is not, there is some kind of involvement of government is must be in the system. The government can use many ways to involve in the economic system.
Priscilla, who worked for a dry cleaner, came up with a great new idea for a type of press that speeded up the process immensely. she quit her job, hired labor and purchased materials, and manufactured a number of the presses. she sold the presses to her friend phil for resale. phil began advertising and distributing the press, but was notified by abc company that the sales violated its patent. after investigation, phil determined that abc had the better argument and demanded that priscilla refund the purchase price. priscilla declined on the basis that she had no idea that a patent on a similar press was in existence. who will likely win the dispute and why?
What are the five developmental tasks of young adulthood, and how can the accomplishing of one influence the accomplishing of any of the remaining four?
Final answer:
The five developmental tasks in young adulthood are completing school, leaving home, becoming financially independent, marrying, and having a child, each influencing the capability to accomplish the others in a deeply interconnected manner.
Explanation:
The transition into young adulthood is marked by the achievement of five critical developmental tasks: completing school, leaving home, becoming financially independent, marrying, and having a child. The accomplishment of one of these tasks can significantly impact the ability to achieve the others. For example, completing school can provide the knowledge and credentials necessary to secure employment, which in turn can lead to financial independence. Financial independence may make leaving home feasible, and also provides a stable foundation for marrying and starting a family. Each step can build on the previous ones, creating a chain of success in navigating young adulthood.
Furthermore, the intertwining of these tasks highlights the complex interplay between personal achievements and social expectations. As society evolves, so too may the definition and priorities associated with these milestones. Regardless, mastering these tasks is essential for personal development and societal contribution, reflecting a deep intertwining of individual growth and social constructs.
long-run equilibrium in perfectly competitive markets meets what two important conditions? productive efficiency allocative efficiency utility efficiency previousnext
In perfectly competitive markets, the long-run equilibrium achieves allocative and productive efficiency, leading to optimal resource allocation and maximum societal satisfaction. Other market structures are considered 'imperfect' if they fail to meet these efficiency conditions, which happens due to market imperfections like monopolies or oligopolies.
Explanation:Efficiency in Perfectly Competitive MarketsLong-run equilibrium in perfectly competitive markets meets two important conditions: allocative efficiency and productive efficiency. These conditions are significant because they ensure that resources are allocated to their best alternative use and that they provide the maximum satisfaction attainable by society.
Allocative efficiency occurs when the market produces at a point where price equals marginal cost (P=MC), indicating that the resources are being used to produce the goods and services most desired by society. On the other hand, productive efficiency is achieved when goods and services are produced at the lowest possible cost, which occurs when firms produce at the minimum of their average total costs (ATC).
Using these two concepts of efficiency, other market structures can be analyzed and labeled as 'imperfect.' An 'imperfect' market would be one in which these conditions of efficiency are not met simultaneously, which is typical in cases of monopoly, oligopoly, or monopolistic competition, where various imperfections prevent these efficiencies from being achieved.
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During the liquidation of the fgh partnership, a cash distribution was made to all the partners, who share profits and losses 60 percent, 20 percent, and 20 percent, respectively. assuming that the cash distribution referred to was made properly, how much would g receive if an additional $60,000 was distributed?
Buscorp wants to introduce a new procedure for processing customer requests. if this change will require employees to break old routines and adopt new role patterns, the preferred strategy for dealing with resistance to this change such as this is:
According to the text, undisciplined use of the pricing toolkit can lead to _____________ problems
For an investment in a stock, the probability of the return being –10.0% is 0.3, 10.0% is 0.4, and 30.0% is 0.3. given the probability distributions, what is the expected rate of return for the investment
Adrienne had contracted to convey real estate to rich. however adrienne died before the conveyance is completed. what is the status of the parties?
If a party to a contract dies before the completion, the contract may still be enforceable depending on the circumstances and applicable laws. The contract for the conveyance of real estate may be subject to the Statute of Frauds. If the conveyance was not completed before Adrienne's death, the contract may not be enforceable.
Explanation:The status of the parties in this situation would depend on the specific circumstances and the applicable laws of the jurisdiction. Generally, if a party to a contract dies before the completion of the contract, the contract may still be enforceable in some cases.
However, since the contract in question involves the conveyance of real estate, it is likely subject to the Statute of Frauds, which generally requires certain contracts, including contracts for the sale of land, to be in writing to be enforceable.
Therefore, in this case, if Adrienne had not completed the conveyance of the real estate to Rich before her death, it is possible that the contract would not be enforceable, and the transaction may not be completed.
Iso 14000 is a new computer training program designed to instruct operations managers on how to face different environmental challenges.
Glenda, a sales representative for revo appliances inc., had to deliver a presentation on her company's latest offering: an innovative food processor. her target clients were senior managers and chefs from a reputed restaurant. after her presentation, glenda faced tough objections from her clients who were skeptical about the product's necessity and usefulness. as a good salesperson, how should glenda respond to this situation?
Glenda should have product samples with her that allow her to let those who attented the presentation try them out for themselves. These senior managers and chefs can test the products use on their items that they need them to process daily for. Most appliances also come with a warranty of some type, so Glenda can explain the warranty in case of failure. By explaining how the item works, letting them use it by testing and offering a warranty the senior managers and chefs may be more inclined to try the product for their work places.
Leisha grew 4.5 inches and gained 3 pounds last year. about how many years old is leisha likely to be?
Gabriel is 25 years old, 6 foot 3 inches, and 185 pounds. he is an accomplished lacrosse player and continues to play in a competitive league. gabriel ____.
Whose art influenced the federal government to include a photographic unit in the farm securities administration?
Dorothea Lange had influenced the Farmer Security Administration with her art. They were able to contribute to society by setting up a Photography program, in showcasing the life of a farmer during the Great Depression. This program was able to move a lot of people with their pictures and documentations of the farmers.
A borrower is unsure whether to go with a fixed rate or adjustable rate loan. what kind of questions would you ask to help them decide?
What does law professor dorothy brown believe is one of the greatest benefits of the earned income credit?
The study of how growth-driven, performance-focused, early stage firms raise financial capital and manage operations and assets is called:
Land-based forces gravitate toward a control mindset endemic of a higher headquarters model. this demonstrates which key element to remember when working with other services?
What are two main goals in managerial accounting for reporting on and analyzing departments?
A high rate of _____ is resulted from nonuse of condoms