Lowe’s companies, a retailer of home improvement products, reported cost of goods sold of $31,729 million for the fiscal year ended January 30,2009. It’s ported merchandise inventories of $7,611 million at the beginning of fiscal 2009 and 8,209 million at the beginning of fiscal 2009. It reported accounts payable to suppliers of $3,713 million at the beginning of fiscal 2009 and $4,109 million at the end of fiscal 2009. Compute the amount of cash paid to merchandise suppliers during fiscal 2009.

My research topic, How does Southwest Creation of sustainable competitive advantage over its rivals?

What would be the population for my study?

What would constitute an appropriate sample?

What methods would be appropriate for collecting data to answer this question/these questions?

I am opening a tutoring business using $5000 (D) of debt in the form of a loan from my bank at 12% (Rd) interest. I will also use $3000 (E) dollars of my own equity which I will assess at a cost of 11% (Rd). My tax rate will be 32% (T).

The WACC is as follows

WACC = [E/E+D]*Re + [D/E+D]*Rd (1-T)

WACC = [3000/(3000+5000)] x 0.11 + [5000/(3000+5000)] x 0.12 x ( 1 – .32)

WACC = (0.375 x 0.11) + (0.625 x .12) x 0.68

WACC = 7.9%

The main issue with varying the techniques for the cost of capital is ensuring that the appropriate method is selected. There are some methods that require estimates which are not necessary if the division or product has similarities and/or established costs in the organization. If this is the cases the WACC can be used. However, the WAC should not be used for all projects and divisions as some are inherently riskier and require additional attention and analysis. In this scenario, a riskier and more expensive investment would require additional capital and would receive a greater share of it without the in-depth consideration it deserves. Instead, the more expensive and riskier investments should be accounted for and analyzed using the Risk Adjusted Discount Rate (RADR) along with the use of a Project Beta. The RADR allows the organization to fully consider the increased risk a project has while the beta allows for the organization to use the decisions and history of similar industry participants to accurately account for some of the financial considerations that are necessary.

AFowler Disc2w4

I completely agree with your view that risk adjusted discount rate should be used to valueprojects which are inherently riskier than the risk associated with the company.Beta measures risk…

Herbert, Inc., acquired all of Rambis Company’s outstanding stock on January 1, 2012, for $642,000 in cash. Annual excess amortization of $11,200 results from this transaction. On the date of the takeover, Herbert reported retained earnings of $497,000, and Rambis reported a $280,000 balance. Herbert reported internal income of $54,750 in 2012 and $68,650 in 2013 and paid $10,000 in dividends each year. Rambis reported net income of $21,300 in 2012 and $35,200 in 2013 and paid $5,000 in dividends each year.Assume that Herbert’s internal income figures above do not include any income from the subsidiary.a-1.If the parent uses the equity method, what is the amount reported as consolidated retained earnings on December 31, 2013? Consolidated retained earnings$ a-2.What would be the amount of consolidated retained earnings on December 31, 2012 if the parent had applied either the initial value or partial equity method for internal accounting purposes? Consolidated retained earnings (initial value method)$ Consolidated retained earnings (partial equity method)$