Which is one of the greatest risks of being entrepreneur

Answers

Answer 1
Answer:

One of the greatest risks of being entrepreneur is the risk of business failure

What is one of the greatest risks of being entrepreneur?

One of the greatest risks of being an entrepreneur is the possibility of business failure. Starting a new business is inherently risky, as there is no guarantee that the business will be successful.

Entrepreneurs may invest significant time, money, and resources into their businesses, but still be unable to generate sufficient revenue to cover their costs or turn a profit. Business failure can be financially and emotionally devastating for entrepreneurs, as well as damaging to their reputation and future career prospects.

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How much would a person have to deposit now to be able to withdraw $550 at the end of each year for 20 years from an account that earns 11 percent?$3.785 95
$4 379 83
54 739 95
$5.076.55

Answers

Answer: $4,379.83

Explanation:

Given the following details:

Periodic payment = $550

Interest rate = 11%

Number of periods = 20 years

Present Value (PV) = P[(1 - (1 + r)^-n) / r]

Where

P = periodic payment = $550

r = Interest rate = 11% = 0.11

n = number of periods = 20

PV = 550[(1 - (1 + 0.11)^-20) / 0.11]

PV = 550[(1 - (1.11)^-20) / 0.11]

PV = 550[(1 - 0.1240339) / 0.11]

PV = 550[0.8759660 / 0.11]

PV = 550(7.9633281)

PV = 4379.8304

PV = 4379.83

Zebra Company reports the following figures for the years ending December 31, 2017 and 2016: What are the percentage changes from 2016 to 2017 for Net Sales, Cost of Goods Sold and Gross Profit, respectively? (Round your final answers to one decimal place, X.X%) A. 100%, 162.5%, 10.8% B. 37.8%, 10.8%, 162.5% C. 100%, 0.9%, 0.4% D. 162.5%, 37.8%, 10.8%

Answers

Answer:

B. 37.8%, 10.8%, 162.5%

Explanation:

1. Changes in Net Sales

We know,

Percentage changes in Net sales from previous year to current year =

(2017 Net income - 2016 Net income)/(2016 Net income)

Given,

Net Sales_(2017) = $62,000

Net Sales_(2016) = $45,000

Therefore,

Percentage changes in Net Sales = (62,000 - 45,000)/(45,000)

Percentage changes in Net Sales = 37.8% (Rounded to 1 decimal Places)

Therefore, Net sales changes 37.8% from 2016 to 2017.

2. Changes in Cost of Goods sold

We know,

Percentage changes in Cost of goods sold from previous year to current year = (2017 COGS - 2016 COGS)/(2016 COGS)

Given,

COGS_(2017) = $41,000

COGS_(2016) = $37,000

Putting the value in the above formula,

Percentage changes in COGS = (41,000 - 37,000)/(37,000)

Percentage changes in COGS = 10.8%

Therefore, Cost of goods sold changes 10.8% from 2016 to 2017.

3. Changes in Gross Profit

We know,

Percentage changes in Gross Profit from previous year to current year = (2017 Gross Profit - 2016 Gross Profit)/(2016 Gross Profit)

Given,

Gross Profit_(2017) = $21,000

Gross Profit_(2016) = $8,000

Hence,

Percentage changes in Gross Profit = (21,000 - 8,000)/(8,000)

Percentage changes in Gross Profit = 162.5%

Therefore, Gross Profit changes 162.5% from 2016 to 2017.

Rossdale Co. stock currently sells for $68.91 per share and has a beta of .88. The market risk premium is 7.10 percent and the risk-free rate is 2.91 percent annually. The company just paid a dividend of $3.57 per share, which it has pledged to increase at an annual rate of 3.25 percent indefinitely. What is your best estimate of the company's cost of equity?

Answers

Answer:

Cost of Equity 8.794%

Explanation:

We can solve for the cost of equity using the CAPM

Ke= r_f + \beta (r_m-r_f)  

risk free 0.0291

premium market = market rate - risk free 0.071

beta(non diversifiable risk) 0.88

 

Ke= 0.0291 + 0.88 (0.071)  

Ke 0.09158 = 9.158%

Or using the gordon dividend grow model

(divends_1)/(return-growth) = Intrinsic \: Value

D= 3.57

return = ?

growth 0.0325

stock = 68.91

(3.57)/(return-0.0325) = 68.91

we solve for return:

(3.57)/(68.91) + 0.0325 = return

return = 0,08430670 = 8.43%

Now we have two diferent rates, so we can do an average to get the best estimate cost of equity

(9.158 + 8.43)/2 = 8.794%

Final answer:

The company's cost of equity, based on provided data points and the Capital Asset Pricing Model (CAPM), is calculated to be 9.14% annually.

Explanation:

Cost of equity is typically estimated using the Capital Asset Pricing Model (CAPM). Under the CAPM, the cost of equity is a function of the risk-free interest rate, the equity's beta, and the expected market risk premium. In this case, we can substitue the given values into the CAPM equation, which is: Cost of Equity = Risk-free rate + Beta * Market Risk Premium. Therefore, the company's cost of equity can be calculated as: Cost of Equity = 2.91% + 0.88 * 7.10% = 9.14%. As for the dividends, they are growing at a rate of 3.25% annually, but they are not directly contributing to the company's cost of equity.

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Kinslow Manufacturing Company paid a dividend yesterday of $2.50 per share. The dividend is expected to grow at a constant rate of 5% per year. The price of Kinslow's common stock today is $25 per share. If Kinslow decides to issue new common stock, flotation costs will equal $2.00 per share. Keys' marginal tax rate is 34%. Based on the above information, the cost of retained earnings is;

Answers

Answer:

15.50%

Explanation:

The computation of the cost of retained earning is shown below:

As we know that

Price = Dividend × (1 + growth rate) ÷ (required rate of return - growth rate)

$25 = $2.50 × (1 + 0.05) ÷ (required rate of return - 5%)

$25 = $2.625  ÷ (required rate of return - 5%)

After solving the required rate of return is 15.50%

We simply applied the above formula to find out the cost of retained earning

Ray’s Satellite Emporium wishes to determine the optimal order size for its best-selling satellite dish (Model TS111). Ray has estimated the monthly demand for this model to be 230 units. This model costs Ray $396 to purchase from his supplier. His annual cost to carry inventory is 10% and he estimates that orders cost $38 to process. If Ray used an order quantity of 2000 instead of the optimal order quantity, how much money would he be wasting each year?

Answers

Answer:

It waster $74,941.2‬ per year

Explanation:

The procedure is as follow:

  1. We calcualte the Economic order Quantity
  2. Then we calculatethe cost for EOQ and current order size
  3. compare to know the loss for inefficiency in inventory

1.- EOQ

Q_(opt) = \sqrt{(2DS)/(H)}

D = annual demand 230 units x 12 month = 2,760

S= setup cost = ordering cost = 38

H= Holding Cost= 10% of unit cost 39.60

Q_(opt) = \sqrt{(2*2760*38)/(39.6)}

EOQ = 72.78028371 = 73

2.-  Calculate Cost:

EOQ cost:

orders 2,760 / 73 = 37.80 = 38 order x $38 each = $1,444

holding cost: 73 x 39.6 = $2,890.8

Total: 1,444 + 2,890.8 = 4,334.8

Current Cost:

orders: 2,760 / 2,000 = 1.* = 2 order per year x $38 each = $76

holding cost: 2,000 x 39.6 = 79.200‬

Total 79,200 + 76 = 79,276

3.- Difference:

79,276 - 4,334.8 = 74,941.2‬

About how frequently does Hope receive a paycheck?

Answers

A paycheck is a salary the employee or worker gets. Hope receives a paycheck every 2 weeks.

What is a paycheck?

A paycheck means the salary or wages an employee or worker gets for doing the work under their employment by the employer.

The frequency of a paycheck usually depends on the period of work. i.e a month in most cases but here Hope receives a paycheck every 2 weeks.

Therefore, the above statement aptly describes the paycheck.

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Answer:

every 2 weeks

Explanation: