what type of discount to resellers (brokers, distributors, wholesalers, retailers, etc.)

Answers

Answer 1

Resellers such as brokers, distributors, wholesalers, and retailers often receive volume-based discounts from manufacturers or suppliers.

Resellers play a crucial role in the distribution chain by connecting manufacturers or suppliers with end customers. To incentivize resellers and encourage them to purchase and distribute their products, manufacturers and suppliers often offer various types of discounts. One common type of discount provided to resellers is volume-based discounts. This means that resellers receive a lower price per unit or a percentage discount based on the quantity of products they purchase.

Volume-based discounts benefit resellers in multiple ways. Firstly, by offering lower prices for larger orders, manufacturers or suppliers encourage resellers to buy in bulk, enabling them to reduce their per-unit cost and increase their profit margins when selling to end customers. Secondly, these discounts help resellers remain competitive in the market. By receiving better pricing, resellers can offer more competitive prices to their customers, attracting more business and potentially gaining a larger market share. Lastly, volume-based discounts promote stronger relationships between manufacturers or suppliers and resellers, fostering long-term partnerships and mutual growth.

In addition to volume-based discounts, resellers may also receive other types of discounts, such as promotional discounts or seasonal discounts, which are offered for a limited period or during specific occasions. These discounts aim to drive sales and help resellers clear their inventory or capture the attention of customers during peak buying seasons. Overall, the discounts provided to resellers serve as effective tools to strengthen partnerships, boost sales, and ensure a smooth flow of products through the distribution channel.

Learn more about brokers here: brainly.com/question/14455739

#SPJ11


Related Questions

The interest rate charged to banks to borrow from the federal reserve is the _____

Answers

The interest rate charged to banks to borrow from the federal reserve is the discount rate.

The discount rate is known as the interest rate charged by the Federal Reserve on loans to banks. The Federal Open Market Committee consists of the Board of Governors, the President of the Federal Reserve Bank of New York, and the Presidents of five other regional Federal Reserve Banks.

The federal Funds Rate is the rate banks charge each other for lending the Federal Reserve money overnight. A country's central bank uses it in addition to other tools to promote economic stability by increasing or decreasing borrowing costs

Learn more about federal reserve here: https://brainly.com/question/25843620

#SPJ4

A change in depreciation method is treated as a change in estimate that is achieved by a change in accounting principle, and is accounted for:______.

Answers

A change in depreciation method is treated as a change in estimate that is achieved by a change in accounting principle, and is accounted for prospectively in the current and future periods.

The rules and regulations that businesses and other organizations must abide by when reporting financial data are known as accounting principles. These regulations standardize the terminology and procedures that accountants must employ, making it simpler to analyze financial data.

A unified set of accounting guidelines, methods, and standards known as generally accepted accounting principles (GAAP) were released by the Financial Accounting Standards Board (FASB).

The consistency that accounting principles establish enables more accurate and effective viewing of financial statements and reporting for businesses.

Learn more about accounting principles here

https://brainly.com/question/5399294

#SPJ4

Mike company reported beginning and ending total assets of $240,000 and $320,000, respectively. Its net sales for the year was $341,600. What was mike's asset turnover ratio?

Answers

Asset Turnover Ratio = Net Sales / Average Total Assets

=$341,600/ $280,000

=28%

The ratio of a company's sales or revenues to the value of its assets is known as the asset turnover ratio.

It serves as a gauge of how well a business uses its resources to generate money. As a result, asset turnover ratio can be used to gauge a business' performance. The performance of the company improves as the ratio rises. The asset turnover ratio might vary from one organization to another.

A low asset turnover ratio typically denotes issues with excess manufacturing capacity, subpar inventory management, and subpar tax collection methods. It is typically calculated annually for a certain financial year. The ratio of assets to total assets is typically higher in low-margin businesses.

To learn more about asset turnover ratio, click here

https://brainly.com/question/14959803?


#SPJ4

______ is paid communication with potential customers in a public medium, such as newspapers and television.Group of answer choicesJournalism

Answers

Advertising is paid communication with potential customers in a public medium, such as newspapers and television

This is further explained below.

What is Advertising?

Generally,  the activity of generating ads for commercial items or services, either as a job or as a hobby.

In conclusion, Advertising is the exchange of money for the use of a public medium, such as newspapers or television, to communicate with prospective clients.

Read more about Advertising

https://brainly.com/question/16257206

#SPJ1

Cindy’s car wash has average variable costs of $2 and average fixed costs of $3 when it produces 100 units of output (car washes). The firm's total cost is:______.
a. $100
b. 5200
c. $300
d. 5500

Answers

The firm's total cost is $500

AVC= 2

AFC = 3

ATC = AVC + AFC

= 2 + 3

=5

Output = 100

TC = ATC * OUTPUT

= 5 * 100

= 500

A firm is a for-profit enterprise, usually incorporated as a partnership, providing professional services such as legal and accounting services. The corporate theory assumes that firms exist to maximize profits

A company is a business that sells services or products, usually professional services, for profit. Business, on the other hand, refers to a business that engages in income-generating activities involving the sale of goods and services and includes all business divisions and structures.

Learn more about firm here:https://brainly.com/question/25623677

#SPJ4

To satisfy the Statute of Frauds, a written contract or agreement must contain a description of the consideration promised.

Answers

It is a true statement that a typical written contract or agreement must contain a description of the consideration promised in order to satisfy the Statute of Frauds.

What is the Statute of Frauds?

This refers to the legal concept that requires certain types of contracts to be executed in writing.

In the legal field, the Statute of Frauds covers contracts for the sale of land, agreements involving goods worth over $500 and contracts lasting one year or more.

Most times, the Statute of Frauds can be satisfied by any signed writing that:

identifies the subject matter of the contractis sufficient to indicate that a contract existsstates with reasonable certainty the material terms of the contract.

Read more about Statute of Frauds

brainly.com/question/14854791

#SPJ1

A large decrease in oil prices is an example of: _________
A. A positive inflation shock.
B. A negative inflation shock.
C. Inflation inertia.
D. Excessive aggregate spending

Answers

Answer:

d. Excessive aggregate spending

Which two business and technical challenges does implementing virtualization within a data center help businesses to overcome?

Answers

Two technical and business challenges include physical footprint as well as the power and air conditioning at the data center.

Initially, only one server was built within one machine with one operating system only . The server also required power and a cool environment, also a method of backup is required.

Virtualized servers always require more compatible and robust hardware than a standard machine because a computer or server which has been installed in a virtual machine commonly shares hardware with more than one servers and operating systems.

By placing more than one servers within the same physical case, more space is saved.

The proper licenses for operating virtual systems or applications or both is always required and also need the proper security applications and settings applied on them.

To know more about data center here:

https://brainly.com/question/14517816

#SPJ4

Intuitive decision making uses ____ to make decisions

Answers

Answer:

Judgment.

Explanation:

Intuitive decision making uses ____ to make decisions. Judgment.

Intuitive decision making uses judgement to make decisions. Correct answer is judgement.

What do you mean by Decision?

Process of deciding is known as decision.

Rational decision-making is based on reasoning, evidence, and facts. Choosing among possibilities without using logic or analysis is what intuitive decision-making entails. It entails making decisions based on emotions or inadvertently recalling a memory.

Using your instincts to guide your decision-making is part of the intuitive paradigm. When the team is knowledgeable about the topic, this model is suitable. Generally speaking, it is less organized than other models and depends on team members using prior knowledge to spot patterns and use related solutions.

Therefore, Judgement is used to make decision in Intuitive decision making.

Learn more about Decision, here;

https://brainly.com/question/29489697

#SPJ2

Which payment option can offer additional security like fraud protection? a. cash check b. debit card c. credit card

Answers

A credit card can offer additional security like fraud protection.

The answer is option C.

Credit cards provide higher consumer protections against fraud in comparison with debit playing cards related to a bank account. newer debit cards provide more credit score card-like protection, at the same time as many credit score playing cards no longer fee annual costs.

Debit cards can help you draw a budget directly out of your checking account. Debit cards generally offer more fraud protection than credit playing cards. Debit playing cards never require a signature to finalize a buy like credit score playing cards. Debit playing cards price higher hobby quotes on purchases than credit cards.

If a person used your debit card without your information or authorization, your liability is blanketed by way of the electronic finances Transfer Act, which gives you the right to assign fraudulent transactions.

Learn more about Credit cards here: https://brainly.com/question/6872962

#SPJ1

Answer:

credit card

Explanation:

In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:

Answers

The adjusted cash balance per the books on January 31 is $4,055

What is ETF?

Since bank service had been deducted from the bank, Maxis clothing had to deduct the same amount. When bank deducts any money, generally it notifies through text message or sometimes does not notify directly. Therefore, It had to be deducted from the cash book.

Through Electronic Fund Transfer (EFT), a payment had been made by the bank for Maxi clothing. Since the expense did not deduct from the cash book, the amount had to deduct it to get the adjusted book value.

Solution:

To find the adjusted book balance, we need the ending balance of the cash book:

Book balance                                  $4,725

Less: bank service charges                 (25)

Less: EFT                                             (380)

Less: NSF check returned by bank   (265)

Adjusted book balance                  $4,055

Maxi's accounts receivable paid him a check and the firm immediately added the amount to the cash book. When the accountant went for depositing the check, there were not sufficient fund (NSF). Therefore, the amount did not add to the bank balance. Hence, the firm had to deduct it again.

To learn more about ETF with the given link

https://brainly.com/question/15169791

#SPJ4

Question:

In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:

Cash balance per company books on January 30 $4,725

Deposits in transit at month-end $1,800

Outstanding checks at month-end $520

Bank service charges $25

EFT automatically paid monthly, not yet recorded by Maxi $380

An NSF check returned on a customer account $265

The adjusted cash balance per the books on January 31 is:

(A) $5,855

(B) $4,585

(C) $5,335

(D) $4,055

(E) $4,815

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to.

Answers

When manufacturing overhead costs are assigned to production in a process cost system, they are debited to a work in process account.

What Is a Work-in-Progress (WIP)?

Production and supply-chain management terms for partially finished goods that are awaiting completion include "work-in-progress" (WIP). Raw materials, labor, and overhead expenses expended for goods that are in different phases of manufacturing are referred to as "work in progress," or WIP. On the balance sheet, WIP is a part of the asset account for inventory. The finished goods account receives these costs after which they are ultimately passed to the cost of sales.

Learn more about manufacturing overhead accounts with the help of the given link:

brainly.com/question/8924167

#SPJ4

g Suppose the Federal Reserve begins to increase the supply of money at an increasing rate. What impact would that have on GDP, unemployment, and inflation

Answers

Expansionary monetary policy shifts AD to the right.

What is Expansionary monetary policy?Expansionary policy, often known as loose monetary policy, expands the availability of money and credit in order to stimulate economic growth. During difficult economic circumstances, a central bank may use expansionary monetary policy to reduce unemployment and stimulate growth.Impacts on GDP, unemployment, and inflation by the increase of supply of money:The Federal Reserve begins to grow the money supply at an increasing rate. The impact on GDP, unemployment, and inflation would be significant. AD is shifted to the right by expansionary monetary policy.

Therefore, expansionary monetary policy shifts AD to the right.

Know more about Expansionary monetary policy here:

https://brainly.com/question/18939014

#SPJ4

Imagine that you have a friend who has expressed interest in designing and programming video games. He loves to play video games, and he thinks it would be a lot of fun to be able to work in the industry behind his favorite hobby. What would you say to him to get him to understand the qualifications needed to work in video game design

Answers

In order to get to the core of developing and programming video games, one must have a thorough understanding of coding and computer programming, and it might take weeks, months, or even years to finish a game. Getting into the video game industry would need a lot of effort and patience on his part. Programming computers and mobile applications might require years of schooling to complete.

This is further explained below.

What is video game design?

Generally, Everything about a game is imagined by a videogame designer. This includes the storyline, the characters, the visuals, and the layouts. Designers get together with other groups to come up with a unified vision.

In conclusion, It should be brought to the audience's attention that getting to the fundamental level of creating and programming video games requires knowledge in coding and computer programming and that it takes weeks, months, or even years to finish developing a game in its entirety. In order for him to be successful in the video game production industry, he would need both time and patience. The education required to program computers and applications might take many years to complete.

Read more about video game design

https://brainly.com/question/15839474

#SPJ1

Which of the following could explain why a firm would decrease production of a good despite making significant accounting profit

Answers

The opportunity cost of an alternative foregone is greater could explain why a firm would decrease production of a good despite making significant accounting profit.

Opportunity costs are the potential gains that a person, investor, or company forgoes by selecting one option over another. Opportunity costs are by nature invisible, thus it is simple to miss them. Better choices may be made when a firm or individual is aware of the opportunities that can be lost by selecting one investment over another.

The capital structure of a company is greatly influenced by opportunity cost analysis. To make up for the investment risk, a company must pay costs when issuing debt and equity capital, but each has an opportunity cost as well. Loan repayment funds, for instance, cannot be used to purchase stocks or bonds, which have the potential to provide a return on investment.

To learn more about opportunity cost here,

https://brainly.com/question/13036997

#SPJ1

Projects where management has a choice in implementing them are called _____ projects.

Answers

They are called non-discretionary project.

A discretionary project is one that needs a governmental entity to apply judgement or consideration in determining whether the project will be authorized or if a permit will be provided.

Non-discretionary projects are those that must be completed or funded by law, policy, health and safety, or court order. These are the steps you must take. For example, reacting to court orders or external proposals such as rights-of-way applications or drilling licenses.

Non-Discretionary Items are expenditures due by the Partnership for taxes, utilities, insurance, debt service, and costs, as well as other payments owed by the Partnership under contracts or agreements.

Therefore, the blank is to be filled by non-discretionary project.

To know more about non-discretionary project click here:

https://brainly.com/question/16485027

#SPJ4

When Nestor's U.S.-based company purchased a manufacturing facility in China, the company decided to increase the output of the facility by adding an overnight shift. The workers refused to work the overnight hours and eventually the U.S. owner agreed to return to a regular work schedule and output levels dropped. Which aspect of business is being affected by culture

Answers

Aspect of business is being affected by culture is production.

What is production?

Production can be defined as the process of manufacturing or producing goods from raw material to finished products and it can as well be defined as the amount of goods or products manufactures at a particular period of time.

Hence, since the company want to increase output by introducing night shift and production will be affected if the worker refuse to work overnight hours as the output will reduce.

Learn more about production here:https://brainly.com/question/16755022

https://brainly.com/question/25899399

#SPJ1

International trade is fundamentally a?

Answers

International trade is fundamentally a win win situation.

What is international trade?

International trade is the process by which goods and services are traded between countries. People and countries have access to goods and services that are either unavailable or more expensive domestically because to global trade.

The exchange of money, goods, and services across international boundaries or regions is a result of a need or desire for certain commodities or services. The bulk of countries' gross domestic products benefit greatly from this trade.

The most common types of trade restrictions are tariffs, quotas, and nontariff barriers. In international trade, a tariff is an import tax imposed by the federal government that raises the price of the good for the customer. Often referred to as fees or import duties, tariffs usually begin by placing restrictions on certain goods.

Learn more about international trade here

https://brainly.com/question/15115779

#SPJ1

A department that incurs costs, generates revenues, and is responsible for effectively using department assets is considered a(n):

Answers

A department that incurs costs also it generates revenue and is also responsible for effectively using the departmental assets is considered as an investment center.

What is an Asset?

An asset is controlled by the organization and which can result in future cash inflows for the organization. Assets are of two types intangible and tangible assets.

Using the perfect set of tangible and intangible assets a department generates revenue.

Learn more about Asset at https://brainly.com/question/27208886

#SPJ1

Answer: Cost Center

Explanation:

The ROI calculation will indicate: Select one: a. the overall quality of a company's earnings. b. the invested capital generated from each dollar of income. c. the sales dollars generated from each dollar of income. d. the percentage of each sales dollar that is invested in assets. e. how effectively a company used its invested capital.

Answers

The ROI calculation will indicate (C) how effectively a company used its invested capital.

What is ROI?Return on investment, often known as return on costs, is a ratio of net income to investors. A high ROI indicates that the benefits of the investment outweigh the costs. ROI is used as a performance indicator to evaluate the efficiency of an investment or to compare the efficiencies of several investments.What is ROI calculation?A computation that compares the monetary value of an investment against its cost. (profit minus cost) / cost is the ROI formula. If you earned $10,000 from a $1,000 investment, your return on investment (ROI) would be 0.9, or 90%. This is commonly obtained by using an investment calculator.The ROI calculation will show how well a business utilizes its invested capital.

As the description says, the ROI calculation will show how well a business utilizes its invested capital.

Therefore, the ROI calculation will indicate (C) how effectively a company used its invested capital.

Know more about ROI here:

https://brainly.com/question/15726451

#SPJ4

Complete question:

The ROI calculation will indicate:

A. the percentage of each sales dollar that is invested in assets.

B. the sales dollars generated from each dollar of income.

C. how effectively a company used its invested capital.

D. the invested capital generated from each dollar of income.

E. the overall quality of a company's earnings.

The definition of Blank______ states: the difference between money coming into a country (from exports) and money leaving the country (from imports) plus money flows coming into or leaving a country from other factors such as tourism, foreign aid, military expenditures, and foreign investment.

Answers

The definition of Balance of Payments states:

The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investment.

What is Balance of Payments ?

The balance of payments is a tool in international trade that demonstrates the financial transaction made by a particular country with foreign countries. Its most often includes export, import and transfer payments.

Theoretically, it should be zero as a country's assets should equal the liabilities. However, in practice, that is not always the case, as the country's debits and credits can create a discrepancy in the balance of payments, which creates a surplus or deficit.

A favorable balance of payment means that a country exports exceed imports. B.O.P records economic transactions of goods and services as well as other payments such as international aid, capital flow, and international remittances. A Favorable or positive balance of payment means that the aggregate of country foreign inflow exceeds outflows.

Thus, we can say that above  definition state Balance of Payments.

Learn more about Balance of Payments on:

brainly.com/question/14681358

#SPJ4

Resource providers use accounting information to identify companies with high earnings potential because those companies are better able to ______.

Answers

Resource providers use accounting information to identify companies with high earnings potential because those companies are better able to make payment for goods or resources they buy and also have the ability to repay debt.

Why is company with high earning potential sought for?

Companies with high earnings potential have the capability to manage their company.

Banks and other agencies look to working with them because they have a viable business tat brings in money from where they can also get their own share if they invest with them.

Therefore,

Resource providers use accounting information to identify companies with high earnings potential because those companies are better able to make payment for goods or resources they buy and also have the ability to repay debt.

Learn more on accounting below

https://brainly.com/question/26692726

#SPJ1

What level of market coverage is typically used for products like honest tea beverages? a.selective distribution b.physical distribution c.exclusive distribution d.intensive distribution

Answers

The  level of market coverage is typically used for products like honest tea beverages physical distribution. option b

What is Market coverage?

Market coverage involves the critically analyzing the market place to determine how an individual or organization will posses the market.

It is also called market share of an individual, where the total amount of people the market is able to hold as customers determines the coverage.

It can be measured based on how large the market is and the goods and services they sell.

The individual can use promotional strategy of a product as an approach. For beverages, physical distribution of the product can be done to attarct more customers.

Therefore, The  level of market coverage is typically used for products like honest tea beverages physical distribution. option b

Learn more on market coverage below

https://brainly.com/question/15160709

#SPJ1

Uunder which installments option does the annuitant select the amount of each payment, and the insurer determines how long they will pay benefits?

Answers

Under the installments for a fixed period annuity settlement option, the annuitant selects the time period for the benefits; the insurer determines how much each payment will be. This option pays for a specific amount of time only, and there are no life contingencies.

Identical payments are made over underneath a specific time body determined by means of the annuitant (e.g. 5, ten, or 20 years). If the annuitant dies in advance of the forestall of the rating period, the annuitant's beneficiary will collect the stableness of the remaining payments due.

A lifestyle insurance preference can be determined on an agreement below which the coverage proceeds are left on deposit with the coverage employer to accrue hobby and are paid to the beneficiary in identical bills for a specific quantity of years.

Annuity fine” or “Annuity duration sure” is while payments are disbursed to you for a hard and fast time frame. In most instances, you could pick out a period beginning from five years to 30 years with a length of superb annuity.

Learn more about annuity settlement here https://brainly.com/question/14376447

#SPJ1

To avoid problems with schedules and deadlines, contractors are held accountable with _________ clauses in the contract for failure to perform up to standard.

Answers

To avoid problems with schedules and deadlines, contractors are held accountable with penalty clauses in the contract for failure to perform up to standard.

Party who comes in contract to perform certain tasks and breach the compensation  in case the contract is failed to be completed is called a penalty clause resulting to the payment of certain penalty to the aggrieved party.

There are certain deadlines, schedules given by contractors so they could complete the task on time resulting to failure of performance upto a standard can lead a penalty .

The sum payable is the agreed amount or completion of work with providing spare days .

To learn more about penalty clause here,

https://brainly.com/question/14252597

#SPJ1

In ________ cultures, economic systems tend to provide incentives and rewards for a person's private business initiatives.

Answers

In individualist cultures, economic systems tend to provide incentives and rewards for a person's private business initiatives.

economic incentives in private business

Monetary structures in individualist societies frequently offer incentives and rewards for an individual's private running of a business. Economic incentives are motivations to do particular things. They urge people to go after their financial goals. Money is a financial incentive to start a business or look for employment. Improvement can be encouraged by the number of tax breaks, grants, and Economic incentives. Incentives are exemptions, credits, deductions, or exclusions that lower a company's burden to the state or federal government in exchange for taking specific actions.
Learn more about economic incentives in private business on
https://brainly.com/question/18089158

#SPJ4

A taxing jurisdiction has a mill rate of 14.7. what is an owner’s tax bill if his assessed value is $250,000?

Answers

A taxing jurisdiction has a mill rate of 14.7. the owner’s tax bill would be $3,675.00. Over 55,000 jurisdictions make up the United States. The taxing authority that imposes the tax is known as a jurisdiction. A tax jurisdiction code is used to identify each jurisdiction.

The place where the transaction will be taxed is specified by this code. The tax jurisdiction code is a key that, along with the tax code and other factors, defines the tax amount and how the total tax amount is split between the several taxing authorities for payment. For calculating procedure TAXUSJ,

The system can handle up to four jurisdiction levels, and for TAXUSX, up to six jurisdiction levels. Each level of jurisdiction has a unique jurisdiction code.

To learn more about taxing jurisdiction , click here

https://brainly.com/question/14179714

#SPJ4

Where would you go to review your client’s expense account to see if any transactions have been miscategorized?

Answers

If I had to review your client’s expense account to see if any transactions have been miscategorized, I would go to reclassify transactions in accountant tools.

By avoiding opening each transaction and reclassifying each one separately, this tool saves a ton of time.

You can choose a group of transactions and reclassify them into another account using the Reclassify Transactions feature in QuickBooks Online Accountant (QBOA).

The Reclassify Transactions tool searches a set of transactions based on a sort from either the Profit and Loss view or the Balance Sheet view.

This feature only filters to one of the two, not both at once.

Remember that you can change the classification from Profit and Loss to Balance Sheet or vice versa.

Hence, to review your client’s expense account to see if any transactions have been miscategorized we go to reclassify transactions in accountant tools.

Learn more about balance sheet:

https://brainly.com/question/17151793

#SPJ1

When purchase costs of inventory regularly decline, which method of inventory costing will yield the lowest gross profit and income

Answers

LIFO method of inventory costing will yield the lowest gross profit and income.

The last in, first out (LIFO) approach for inventory accounting is utilized.

According to LIFO, expenses are deducted starting with the expenditures of the most recent goods that were bought (or produced).

Only in the United States is LIFO practiced, and it is governed by generally accepted accounting rules (GAAP).

The average cost approach and first in, first out (FIFO) are other techniques for accounting for inventories.

When prices are rising, using LIFO often reduces net revenue but offers tax benefits.

Hence, When purchase costs of inventory regularly decline, the LIFO method of inventory costing will yield the lowest gross profit and income.

Learn more about FIFO:

https://brainly.com/question/24137318

#SPJ1

Dinklage corp. has 6 million shares of common stock outstanding. the current share price is $84, and the book value per share is $5. the company also has two bond issues outstanding. the first bond issue has a face value of $145 million, a coupon rate of 5 percent, and sells for 95 percent of par. the second issue has a face value of $130 million, a coupon rate of 4 percent, and s

Answers

The answers to the questions are given below.

A. The company's capital structure weights on a book value basis are:

Equity = 9.84%Debt = 90.16%

B. The company's capital structure weights on a market value basis are:

Equity = 64.55%Debt = 35.45%

What is the calculations about?

A. The company's capital structure weights on a book value basis are:

Firm's Outstanding common stock = 6 million shares

Current share price = $84

Book value per share = $5

Hence, Total equity book value = $30 million (6,000,000 x  $5)

Total equity market value = $504 million (6,000,000 x $84)

First bond's face value = $145 million

Coupon rate = 5%

Selling price = 95% of par

Market value of first bond = $145 x 95%

                                    = $137.75 million

The Second bond's face value = $130 million

Coupon rate = 4%

Market value = $130 x  107% = $139.1 million

Total market value of bonds = $276.85 million ($137.75 + $139.1)

Book value of bonds = $275 million ($145 + $130)

Therefore, the company's capital structure by book value:

Equity = $30 million

Debt = $275 million

So, Total firm's value = $305 million

Hence:

Equity = $30/$305 x  100 = 9.84%

Debt = $275/$305 x  100 = 90.16%

B. Hence company's capital structure by market value:

Equity = $504 million

Debt = $276.85 million

Total firm's value = $780.85 million

Therefore:

Equity = $504/$780.85 x 100 = 64.55%

Debt = $276.85/$780.85 x  100 = 35.45%

See full question below

Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $84, and the book value per share is $5. The company also has two bond issues outstanding. The first bond issue has a face value of $145 million, a coupon rate of 5 percent, and sells for 95 percent of par. The second issue has a face value of $130 million, a coupon rate of 4 percent, and sells for 107 percent of par. The first issue matures in 24 years, the second in 9 years. Both bonds make semiannual coupon payments.

Required:

a. What are the company's capital structure weights on a book value basis?

b. What are the company's capital structure weights on a market value basis?

Learn more about Equity  from

https://brainly.com/question/23546765

#SPJ1

Other Questions
: Consider the following code snippet: vector vectdata; vectdata.push_back (90); What is the size of the vector vectdata after the given code snippet is executed? loh 90 2 the main factor that causes the difference between quiet and explosive eruptioons is T/F: the local group of galaxies is dominated by the presence of spiral galaxies. (2 points) as a low-mass main-sequence star runs out of fuel in its core, it grows more luminous. how is this possible? an organization with a divisional structure can usually respond more quickly to environmental changes than one with a functional structureT/F The implicit exchange rate between two currencies when both are quoted in some third currency is called a(n):Select one:1. open exchange rate.2. cross-rate.3. backward rate.4. forward rate.5. interest rate. Find the power dissipated in the 11.7 ohmresistor in the figure. The 0.909 T uniformmagnetic field is directed into the plane of thecircuit and the 39.2 cm long conductor movesat a speed of 4.97 m/s. Find the power dissipated in the resistor. Answer in units of mW. Beginning in middle childhood, children's self-descriptions start to emphasize __________.Answers: specific behaviors and observable traits, industry over inferiority, competencies, their own physical attributes A certain loan program offers an interest rate of 4.5%, compounded continuously. Assuming no payments are made, howmuch would be owed after six years on a loan of $1300?Do not round any intermediate computations, and round your answer to the nearest cent.$X 5?000B Which pair of compounds will form hydrogen bonds with one another? (A) CH4 and H2O (B) CH4 and NH3 (C) HF and CH4 (D) H20 and NH which other beatles-type liverpool band was managed by brian epstein? a. gerry and the pacemakers b. billy j. kramer and the dakotas c. the dave clark five d. freddy and the dreamers The following is a hypothetical TLC plate of the final product in Lab 14, the preparation of p-nitroanilinc. Answer the questions based on the TLC plate. (a) Did the reaction go to completion? (i.e. was all the staring material used up? Explain briefly. (b) Was the desired product obtained? Explain. (c) Was the product one pure compound or a mixture? Explain briefly. (d) Was the final product one pure compound? (8 pts) Lane 1 = pure acetanilide starting material Lane 2- pure para-nitroaniline .Lane 3 pure ortho-nitroanlineLane 4 unrecrystallized product Lane 5 = recrystallized product what must hunters be able to do in order to properly identify game? what is the major product of the following reaction? nh3 nabr4 Solving a linear programming model and rounding the optimal solution down to the nearest integer value is the best way to solve a mixed integer programming problem.a. Trueb. False heavy dependence on ______ taxes makes for an income-elastic tax structure. If the clock rate is increased without changing the memory system, the fraction of execution time due to cache misses increases relative to total execution time.True/False Determine the number of molecules in 28.6 grams of SO. If the volume of a cube is 17,576 ft. what is the surface surface area of the cube Plato would conclude that a mechanic who can fix your car but cannot explain how he fixed it or what was wrong with it has O none of these options are correct a justified beliet logos knowledge Question 27 2 pts Which fallacy has been committed in the following example: "Astronomers study stars. Nicole Kidman is a star. Therefore, astronomers study Nicole Kidman." equivocation O slippery slope false dilemma red herring