Answer:Cost of New Equity ([tex]K_{e}[/tex]) = 20.75%
Explanation:
Banyan Company’s common stock currently sells([tex]P_{0}[/tex]) = $53.25
Growth rate is constant (g) = 8%
Expected dividend yield = 2%
Expected long-run dividend payout ratio = 20%
Expected return on equity (ROE) = 10%
Flotation cost(F) = 15%
We know that ;
Growth rate = (1-Dividend payout ratio) (ROE)
8% = (1-0.20)[tex]\times[/tex](0.10)
Cost of new equity (ke) = [tex][\frac{D_{1} }{P_{0}\times (1 - F) }] + g[/tex]
where;
F = Flotation cost
([tex]D_{1}[/tex]) = Expected Dividend
([tex]P_{0}[/tex]) = Current Stock price
g = Dividend growth rate
Calculating expected dividend:
Dividend yield = [tex][\frac{D_{1} }{P_{0}}[/tex]
15% = [tex][\frac{D_{1} }{53.25}[/tex]
[tex]D_{1}[/tex] = 15%[tex]\times[/tex] 53.25
Expected Dividend ([tex]D_{1}[/tex]) = $7.9875
Cost of New Equity ([tex]K_{e}[/tex]) = [tex][\frac{7.9875}{53.25\times (1 - 0.15) }] + 0.08[/tex]
= [tex][\frac{7.9875}{62.64}] + 0.08[/tex]
= 0.207 (or) 20.75%
Cost of New Equity ([tex]K_{e}[/tex]) = 20.75%
Actually Investors required rate of return i.e. ROE = 10% on the stock, but because of flotation costs the company must earn more than 10%.
Suppose you invest $5,000 per year, for 10 years, into an account with an annual rate of return of 7%. Deposits are made at the end of each year. Starting in the next year (Year 11), what is the maximum amount you can withdraw each year for the next 17 years, assuming the rate of return is now 6% per year?
Answer:
Explanation:
The timeline would be as follows:
During the first 10 years, we deposit 5,000 at 7% market rate.
Then we withdraw at the beginning of Year eleven during 17 year. The market price for this period is 6%
First Step amount at end of year 10
[tex]C * \frac{(1+r)^{time} - 1 }{rate} = FV\\[/tex]
[tex]5,000 * \frac{(1+0.07)^{10} - 1 }{0.07} = FV\\[/tex]
FV = $69,082.24
Then, we are going to calculate how much can be withdraw during 17 years
At the beginning of the period at 6% rate
[tex]C = PV \frac{rate}{1-(1+rate)^{-time} }/ (1+rate)[/tex]
From the PV formula, we clear the Cuota and then we divide by 1.06 because we are doing an annuity-due. The amount is withdraw at the beginning of the period. That's why we add a new element.
[tex]C = 69,082.24 \frac{0.06}{1-(1.06)^{-17} } /(1.06)[/tex]
C = 6220.32
Suppose that the total revenue received by a company selling basketballs is $600 when the price is set at $30 per basketball and $600 when the price is set at $20 per basketball. Without using the midpoint formula, identify whether demand is elastic, inelastic, or unit-elastic over this price range.
Answer: Demand is Unit - Elastic over this price range.
Explanation:
When total revenue remains the same over various price level then the demand curve is unitary elastic.
Unit-Elastic demand - It depicts a demand curve which is perfectly responsiveness to changes in cost. That is, the amount of demand changes as indicated by a similar percentage changes in prices.
A demand curve with an elasticity of 1 is called as unitary elasticity of demand.
Which of the following best illustrates the free rider problem?A. Since no one owns elephants and elephants are valued for their hide, meat and ivory, elephants can be hunted to extinction.B. For every purchase of a $30 fare card, you are entitled to five free bus rides.C. If your neighbors professionally landscape their front yards, it is likely that the market value of your property will increase.D. All three homeowners in a quiet cul-de-sac have expressed the desirability of security lighting in the common parking area. One of the homeowners installs the lighting and asks you to contribute toward the cost. You choose not to contribute.
Answer: Option (D) is correct.
Explanation:
The free rider problem arises when the burden of a shared product transfer on one person, since both are enjoying the utilities derived from that product.
Other person refuses to pay for the shared product's burden and having a free ride.
In this question, there are three home owners and all of them are interested for fixing a security lighting in the parking lot.
Since, one of the homeowners installed that lights and asked others to pay for the product as they are also getting utilities from the security lightning.
But they refuses to contribute towards cost of security lightning in the parking lot. Hence, they are free riders.
The free rider problem is best illustrated by the homeowner who benefits from the security lighting installed by another homeowner in their shared parking area but refuses to contribute to its cost. A free rider benefits from a public good without contributing to its provision, which can lead to unfair distribution of costs. This, in turn, may discourage the provision of public goods.
Explanation:The option that best illustrates the free rider problem is 'D. All three homeowners in a quiet cul-de-sac have expressed the desirability of security lighting in the common parking area. One of the homeowners installs the lighting and asks you to contribute toward the cost. You choose not to contribute.'
A free rider is a person who benefits from a public good or service without contributing to its cost. This concept often applies to services or goods provided by governments or communities, but anyone can be a free rider when not contributing to a shared cause. In the example, the person who chooses not to contribute to the cost of the security lighting but still benefits from its presence is a free rider. This phenomenon can lead to the unfair distribution of costs and benefits, and may deter the provision of public goods and services.
To further explain, in common goods situations such as forests, fisheries, or air quality, where the goods are not excludable and may be finite, everyone has access. The 'tragedy of the commons' occurs when self-interested parties deplete those resources while acting in their own immediate self-interest, leaving nothing for future generations. In this case, the 'commons' is the security lighting, and the 'tragedy' unfolds when one party refuses to contribute, yet benefits from the light.
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Suppose a recent college graduate's first job allows her to deposit $150 at the end of each month in a savings plan that earns 6%, compounded monthly. This savings plan continues for 15 years before new obligations make it impossible to continue. If the accrued amount remains in the plan for the next 15 years without deposits or withdrawals, how much money will be in the account 30 years after the plan began? (Round your answer to the nearest cent.)
Answer:
$107,054.45
Explanation:
rate 6% annual compounded monthly so the monthly rate will be 0.5%
The situation will be the following
first we have
Annuity of 150 for 15 years x 12 = 180 months and 6% /12 = 0.5% rate
Then
this ammount will be generate interest for 15 more years
Annuity of $150 during 180 period at 0.5% = $43,623
Then 43,623 for 180 period at 0.5% = $107,054.45
If C(x) is the cost of producing x units of a commodity, then the average cost per unit is c(x) = C(x)/x. Consider the cost function C(x) given below. C(x) = 2,000 + 170x + 4x3/2 (a) Find the total cost at a production level of 1000 units. (Round your answer to the nearest cent.)
Answer: $2,98,491.106 ⇒ Total cost of production
Explanation:
Given that,
Total cost of production at x = 1000 units
C(x) = 2000 + 170x + 4[tex]x^{\frac{3}{2} }[/tex]
C(1000) = 2000 + 170(1000) + 4[tex]1000^{\frac{3}{2} }[/tex]
= 2000 + 170000 + 126491.106
= $2,98,491.106 ⇒ Total cost of production
So, above is the cost of producing 1000 units.
Construct a 95% confidence interval for the population mean, μ. Assume the population has a normal distribution. A sample of 20 part-time workers had mean annual earnings of $3120 with a standard deviation of $677. Round to the nearest dollar.
To construct a 95% confidence interval for the population mean, μ, use the formula: (sample mean - (2 * (sample standard deviation / √n)), sample mean + (2 * (sample standard deviation / √n))). The confidence interval for the given sample is ($2850.55, $3389.45).
Explanation:To construct a 95% confidence interval for the population mean, μ, we can use the formula: (sample mean - (2 * (sample standard deviation / √n)), sample mean + (2 * (sample standard deviation / √n))). In this case, the sample mean is $3120 and the sample standard deviation is $677. Since the sample size is 20, we divide the standard deviation by √20. Plugging in the values, we get a confidence interval of ($2850.55, $3389.45). Therefore, we can estimate with 95% confidence that the true population mean annual earnings is between $2850.55 and $3389.45.
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The projected benefit obligation (PBO) is best described as thea. Present value of benefits accrued to date based on future salary levels.b. Present value of benefits accrued to date based on current salary levels.c. Increase in retroactive benefits at the date of the amendment of the plan.d. Amount of the adjustment necessary to reflect the difference between actual and estimated actuarial returns.
Answer: the correct answer is a. Present value of benefits accrued to date based on future salary levels.
Explanation: The actuarial formula used to calculate the Projected Benefit Obligation takes into account future increases in pension contributions that would take place as the employee's salary increases. For a company the PBO is an estimate of the pension liability.
Mart, Inc., is a public company whose shares are traded in the over-the-counter market. At December 31, Year 2, Mart had 6 million authorized shares of $5 par value common stock, of which 2 million shares were issued and outstanding. The equity accounts at December 31, Year 2, had the following balances:
Mart, Inc., a publicly traded company, had six million authorized shares and two million issued and outstanding shares of $5 par value common stock by the end of Year 2.
Explanation:Mart, Inc. is a publicly traded company in the over-the-counter market. As of December 31 in Year 2, Mart had 6 million authorized shares of $5 par value common stock, of which 2 million shares were issued and outstanding. Authorized shares represent the maximum number of shares that a company can legally issue. Mart's 6 million authorized shares suggest that the company is currently able to distribute a lot more shares than it actually has.
Issued and outstanding shares, mentioned as 2 million for Mart, are shares that have been sold and are currently owned by investors. They represent ownership in the company. Thus, out of 6 million possible, 2 million shares have been sold and then held by investors at the end of Year 2.
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A wallet contains five $10 bills, three $5 bills, and seven $1 bills (nothing larger). If the bills are selected one by one in random order, what is the probability that at least two bills must be selected to obtain a first $10 bill? (Round your answer to three decimal places.)
Answer: The probability that at least two bills must be selected to obtain a first $10 bill is 0.67.
Explanation:
Let X be the number of trials to get first $10 bill
p ⇒ is the probability of getting $10 bill, that is,
= [tex]\frac{5}{15}[/tex]
In this question, X follows the geometric distribution,
The geometric distribution gives the likelihood that the first event of progress requires k independent trials, each with progress likelihood p. In the event that the likelihood of success on every trial is p, at that point the likelihood that the kth trials (out of k preliminaries) is the first success is
{\displaystyle \Pr(X=k)=(1-p)^{k-1}p} {\displaystyle \Pr(X=k)=(1-p)^{k-1}p}
for k = 1, 2, 3, ....
P( X ≥ 2 ) = ?
P( X ≥ 2 ) = 1 - P( x < 2 )
P( x < 2 ) = P( x = 1 ) = [tex]\frac{5}{15}[/tex] × [tex](1 - \frac{5}{15} )^{1 - 1}[/tex]
So,
P( X ≥ 2 ) = 1 - 0.33
= 0.67
The probability that at least two bills must be selected to obtain a first $10 bill from a wallet containing five $10 bills, three $5 bills, and seven $1 bills is approximately 0.238 or 23.8%.
Explanation:The probability we need to calculate here is related to the first $10 bill not being selected on the first draw, but rather on the second or later draws. There are a total of 15 bills in the wallet (5 $10 bills, 3 $5 bills, and 7 $1 bills).
To begin with, we can consider the probability of not drawing a $10 bill on the first draw. There are 10 bills that are not $10 bills and 15 total bills, giving a probability of 10/15, which simplifies to 2/3 or approximately 0.667.
To do this, you'd be basically ignoring the $10 bills for the first draw, thinking as if they are not there at all and you are picking up from the other bills ($5 or $1). But since the question asks for the condition where you must select at least two bills in order to obtain a $10 bill, it implies that you get a $10 bill on your second draw. Assuming that you didn't pick a $10 bill in your first draw, for the second draw, you are left with 14 bills in total out of which 5 are $10 bills. Therefore, the probability for getting a $10 bill on the second draw is 5/14, which simplifies to approximately 0.357.
So, the combined probability of these two events happening in sequence (not picking a $10 bill on the first draw and then picking a $10 bill on the second) is the product of these two probabilities, according to the rule of product in probability theory, which gives us approximately 0.667 * 0.357 = 0.238 or 23.8% when converted into a percentage. Therefore, the probability that at least two bills must be selected to obtain a first $10 bill is approximately 0.238 or 23.8%.
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Swifty Corporation issued 3,100 5%, 5-year, $1,000 bonds dated January 1, 2017, at face value. Interest is paid each January 1. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2017. (b) Prepare the adjusting journal entry on Dec 31, 2017, to record interest expense. (c) Prepare the journal entry on Jan 1, 2018, to record interest paid.
Answer:
(A)
cash 3,100,000
bonds payable 3,100,000
(B)
interest expense 155,000
interest payable 155,000
(C)
interest payable 155,000
cash 155,000
Explanation:
(A) the bonds were issued at par value so no discount or premium should be aknowledge
(B) 3,100 bonds x 1,000 face value x 5% interest = 155,000 interest expense
this interest expense is not paid at dec 31th so it is interest payable
(C) write-off the payable and the decrease in cash for the amount paid.
A company has the following balance sheet. What is its net operating working capital? Cash $ 10 Accounts payable $ 30 Short-term investments 30 Accruals 10 Accounts receivable 50 Notes payable 50 Inventory 40 Current liabilities 90 Current assets 130 Long-term debt 60 Net fixed assets 100 Common equity 30 Retained earnings 50 Total assets $230 Total liab. & equity $230 Select one: a. $130 b. $100 c. $40 d. $60 e. $230
Answer:
d. $60
Explanation:
operating assets - operating liabilities = net operating working capital
First:
cash 10
ar 50
inventory 40
operating assets 100
Then:
account payable 30
accruals 10
operating liabilities 40
Calculate:
operating assets 100 - operating liabilities 40 = net operating working capital
net operating working capital = 60
The company's net operating working capital (NOWC) is $60, which is calculated by subtracting the current liabilities excluding notes payable ($40) from the operating current assets ($100).
Explanation:To determine a company's net operating working capital (NOWC), we need to subtract its current liabilities excluding any notes payable from its operating current assets. The operating current assets include Cash ($10), Accounts Receivable ($50), and Inventory ($40), which total to $100. The current liabilities excluding notes payable are Accounts Payable ($30) and Accruals ($10), which total to $40. Therefore, the NOWC is $100 (operating current assets) - $40 (current liabilities excluding notes payable) = $60.
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Centurion Alarms recently declared a 10 percent stock dividend. Prior to the stock dividend, the equity section on Centurion's balance sheet was: Common stock (100,000 shares outstanding, $1 par value) $100,000 Additional paid-in capital 60,000 Retained earnings 90,000 Total common shareholders' equity $250,000 Centurion's stock currently sells for $4 per share. After the stock dividend is paid, the amount in the Common stock account should be _______ and the amount in the Retained earnings account should be ______. $110,000; $50,000 $100,000; $90,000 $140,000; $50,000 $100,000; $50,000 $90,000; $110,000
I believe the answer would be $110,000; $50,000
In an eight-hour day Nicolas can catch 24 pounds of fish or he can repair 15 cars. In an eight-hour day Alejandro can catch 27 pounds of fish or he can repair 18 cars. If both men decide to follow their comparative advantage then Nicolas will gain from trade if he can sell 100 units of the good he is specializing in for at least ____ units of the other good. Enter a number rounded to 2 decimal places as necessary.
Answer:
Explanation:
Here Nicolas will gain comparative advantage only when he is selling the good he is specializing in and he would specialize in that good which would have lower opportunity cost for him. So the first step that we have to do here is to find out for which good Nicolas will have lower opportunity cost.
For Nicolas who in 8 hours can either catch 24 pound of fish or repair 15 cars,
the opportunity cost for catching 1 fish is = 15/24 = .625
the opportunity cost for repairing 1 car is = 24/15 = 1.6
So from the above observation we can say that for Nicolas catching fish has lower opportunity cost for him , so he should specialize in catching fish.
Therefore the term of trade for Nicolas would be
1 fish = .625 cars ,
if he can catch and sell 100 units worth of fish then he would have to give up 62.5 cars and then only he will gain from trade,
1 x 100 fish = .625 x 100
100 fish = 62.5 cars.
Answer: 63 units
Explanation:
Comparative advantage: A country has a comparative advantage in producing a commodity, if the opportunity cost of producing a commodity in terms of other commodity is lower in that country as compared to the other country.
Nicolas Comparative advantage:
(1) Opportunity cost of repairing 1 car = [tex]\frac{24}{15}[/tex]
= 1.6
So, 1.6 pounds of fish have to be foregone for repairing 1 car.
(2) Opportunity cost of catching 1 pound of fish = [tex]\frac{15}{24}[/tex]
= 0.625
So, 0.625 units of car repair have to be foregone for catching 1 pound of fish.
Alejandro Comparative advantage:
(1) Opportunity cost of repairing 1 car = [tex]\frac{27}{18}[/tex]
= 1.5
So, 1.5 pounds of fish have to be foregone for repairing 1 car.
(2) Opportunity cost of catching 1 pound of fish = [tex]\frac{18}{27}[/tex]
= 0.666
So, 0.666 units of car repair have to be foregone for catching 1 pound of fish.
Hence, above calculations shows that Nicolas has a comparative advantage in catching fish because Nicolas has a lower opportunity cost of catching 1 pound of fish than Alejandro.
Whereas, Alejandro has a comparative advantage in repairing cars because Alejandro has a lower opportunity cost of repairing 1 car than Nicolas.
If Nicolas wants to catch 1 pound of fish so he have to foregone 0.625 cars repair.
so, if he can sell 100 pounds of fish as he is specialized in this good, then he have to foregone:
⇒100 × 0.625 = 63 cars repair
Bank of America’s _____________ provides information such as its interest expense, or the interest the bank paid depositors, and its interest income, or the interest it earned by investing deposits over a period of time. This document also states the bank’s other revenues and expenses for the time period. 1. leverage ratio 2. activity ratio 3. income statement 4. balance sheet
Answer:
3. income statement
Explanation:
Bank of America’s income statement provides information such as its interest expense, or the interest the bank paid depositors, and its interest income, or the interest it earned by investing deposits over a period of time. This document also states the bank’s other revenues and expenses for the time period.
The income statement is the document which provides details of Bank of America's interest expense, its interest income, and other revenues and expenses over specific time period.
Explanation:The document that provides information such as the interest expense, or the interest the bank, in this case Bank of America, paid to depositors, along with its interest income and its other revenues and expenses for a particular time period is known as its income statement.
This financial statement is essential for providing a detailed overview of the bank's financial performance, including its ability to earn income from its assets and pay off its liabilities within a specified period. The income statement provides investors and other stakeholders with information on the bank's earnings, costs, and net profit or loss.
To provide some context, while an income statement showcases the bank's revenues and expenses, a balance sheet lists assets and liabilities. This means the balance sheet offers a more static view of the bank's financial situation at a specific point in time, whereas the income statement is more about the flow of transactions.
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Woidtke Manufacturing's stock currently sells for $29 a share. The stock just paid a dividend of $2.60 a share (i.e., D0 = $2.60), and the dividend is expected to grow forever at a constant rate of 6% a year. (a) What stock price is expected 1 year from now? Do not round intermediate calculations. (b) What is the estimated required rate of return on Woidtke's stock? Round your answer to the nearest cent.
Answer: Price after 1 year = $24.83
Explanation:
Return = [D1/P0 ]+ g
= [(3*1.08)/23] + 0.08
= 22.09%
We assume the return is same for next year as well.
Thus,
r = [D2/P1] + g
22.09% = (3*1.082/P1) + 8%
P1 = $24.83
Thus, price after 1 year is $24.83
What stock price is expected 1 year from now? $ 37.1
What is the estimated required rate of return on Woidtke's stock? 15.50%
Explanation:A stock market is where investors meet to buy and sell shares. Stocks are an equity investment represented the part ownership in the corporation and entitles you to part of that corporation's earnings and assets
A dividend is the payment by a corporation to its shareholders, as a distribution of profits. A shareholder is individual or institution legally owns one or more shares of stock in corporation.
Stock price or share price is the price of a single share of a number of saleable stocks of a company, derivative or other financial asset.
Woidtke Manufacturing's stock currently sells for $29 a share. The stock just paid a dividend of $2.60 a share (i.e., D0 = $2.60), and the dividend is expected to grow forever at a constant rate of 6% a year.
(a) What stock price is expected 1 year from now? Do not round intermediate calculations.
[tex]29*1.06 = 37.1[/tex]
$ 37.1
(b) What is the estimated required rate of return on Woidtke's stock? Round your answer to the nearest cent.
[tex]=\frac{(2.60*1.06)}{29} + 0.06\\[/tex]
[tex]= 15.50[/tex] %
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Dollar Shave Club is an ecommerce start-up that delivers razors to its subscribers by mail. By doing this, Dollar Shave Club is using a(n) _____ to disrupt an existing market.A. innovation ecosystem B. architectural innovation C. business model innovation D. incremental innovation
Your question asks what innovation Dollar Shave Club is using to disrupt the existing market they're currently in.
Answer: C. Business model innovationThe reason why answer choice "C. Business model innovation" would be the correct answer is because this is what Dollar Shave Club is doing to get business.
With their business model, they're showing customers that even though there are many other shaving brands out there, they should choose them because of what they're offering to its customers.
Their business model is a $5 monthly subscription that sends the customer a package of shaving goods, while other shaving companies aren't doing what they're doing.
With their subscription, they're showing customers that they should choose their business out of the other shaving businesses out there.
I hope this helps!Best regards,MasterInvestorDollar Shave Club used business model innovation to disrupt the existing razor market by providing a subscription-based service. This approach, which leveraged technology and a new business model, is part of a larger trend that has reshaped various industries, such as storage and transportation.
Explanation:Dollar Shave Club is employing a business model innovation to disrupt the pre-existing market. This innovative approach involves providing a subscription-based service that delivers razors to consumers. This is a disruptive type of innovation because Dollar Shave Club rethought the traditional retail model of selling razors, instead offering convenient, direct-to-consumer mail delivery.
This is part of a larger trend of businesses leveraging technologies and new business models to reshape markets and industries. Other examples include the use of cloud-based storage platforms which eliminated the need for physical portable storage, and the impact of ride-sharing services on the taxi industry.
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A school PTA wants to rent a dunking tank for its annual school fundraising carnival. The cost is $85.00 for the first three hours and then $19.50 for each additional hour or part thereof. How long can the tank be rented if up to $185 is budgeted for this expense?
Answer:
it can be rented for 8 hours
Explanation:
From the available amount we are discounting the starting value:
185 -85 first three hours 100
We are left with $100 for the extra hours
100/19.5 = 5 additional hours
so the total hours would be the first three plus five additional for a total of eight hours.
Shannon purchases reams of copy paper for $1.75 and sells them for $4.25. Her business is all on the internet, so she works from home and has minimal business expenses. She pays shipping costs of $1.18 per ream. She has one other employee that she pays $1,200 per month plus a commission of 8% of sales revenue. What is Shannon’s unit contribution margin?
Answer:
The contribution margin per unit is 0.98$
Explanation:
[tex]Sales \: Revenue - Variable \: Cost = Contribution \: Margin[/tex]
4.25 revenue
1.75 copo paper
1.18 shipping cost
.34 sales commision
3.27 total variable cost
Contribution 4.25 - 3.27 = 0.98
The contribution margin per unit is 0.98$ This is what is left after paying the variable cost.
Elephant, Inc.'s cost of goods sold for the year is $2,000,000, and the average merchandise inventory for the year is $129,000. Calculate the inventory turnover ratio of the company. (Round your answer to two decimal places.)
Answer:
Inventory TurnOver = 15.50
Explanation:
[tex]\frac{net \: sales}{average \: Inventory} = Inventory \: TurnOver[/tex]
Where:
[tex]average \: Inventory = (beginning \: Inventory+ ending \: Inventory) \div 2[/tex]
In this case we are given with the average inventory so we can pass directly to calculate the turnover
2,000,000/129.000 = 15.50387597
J-Chron's board of directors periodically meets with the CFO of the company. The CFO reports on the financial status of a company project, after which the board inquires about the project's compliance with legally-required accountings principles. It asks no other questions about the project. Which of the following is true? A) The board is meeting all of its vigilance requirements. B) The board is not meeting any basic vigilance requirements. C) The board is meeting legally-required vigilance standards, but not necessarily those which would protect shareholders' interest. D) The board is not legally required to meet vigilance requirements.
Answer:
The answer is (C) The board is meeting legally-required vigilance standards, but not necessarily those which would protect shareholders' interest.
Explanation:
Based on the question, it is clear that the board of directors is only ensuring that the accounting methods used to report the current company’s project are in line with any legal regulations that are applicable to the project. No questions in regards to the current progress of the project, such as how the budget is used; what it is used for; are the funds used appropriately, are being considered by the board. This means that the board is not carefully considering the shareholders’ interest, who might not be entirely on board with the project if it is not going as well as it should have, or if it is costing more than the value of the project itself.
Final answer:
The J-Chron's board of directors is meeting legally-required vigilance standards by inquiring about compliance with accounting principles but it may not be fully protecting shareholder interests without broader inquiries into the project.
Explanation:
When assessing the scenario where the J-Chron's board of directors only inquires about a company project's compliance with legally-required accounting principles and not other aspects of the project, we can determine that the board is partially fulfilling its oversight role. The board is responsible for the corporate governance of a company and is supposed to ensure that the company operates in the best interest of shareholders. Simply checking for compliance with accounting principles would meet legally-required vigilance standards but may not fully protect shareholders' interests as it lacks a broader inquiry into the project's performance, risks, management, and strategic alignment with company goals.
Option C) The board is meeting legally-required vigilance standards, but not necessarily those which would protect shareholders' interest, is the statement that seems most accurate in this setting. To provide thorough governance, the board should actively pursue a range of inquiries going beyond legal compliance toward assessing all aspects of a project's implications for the company's health and success.
Adrian Atwood, a senior manager at MNC, spends a lot of his time assigning group members to particular tasks and scheduling their work such that deadlines are achievable. Adrian also sets high expectations for standards of performance, and holds regular meetings to ensure that productivity and quality are up to the mark. In the light of the Ohio State Studies, this indicates that Adrian, as a leader, is ________.
Answer:
According to the Ohio state studies , we can say that the Adrian as leader is high in initiating structure.
Explanation:
Initiating structure can be defined as the particular degree to which a leader would define his or her role and also specify and organize the role of employees too, in order to achieve the organizations goals.
Adrian is also doing the same thing here, as she has given a lot of time in assigning employees their particular tasks and scheduling their work , in such a way that goals are achieved.
Augie purchased one new asset during the year (five-year property) on November 10, 2019, at a cost of $660,000. She would like to use the § 179 election and will also take additional first-year depreciation. The income from the business before the cost recovery deduction and the § 179 deduction was $600,000. Determine the maximum cost recovery deduction available on this asset for 2019.
The maximum cost recovery deduction for Augie's new asset in 2019 is $1,040,000.
Explanation:1. Section 179 Deduction:
Augie can use the § 179 election to deduct up to $1,040,000 of the asset's cost in the year of purchase (2019).
This limit applies to qualified business property, which the new asset likely qualifies as.
2. Additional First-Year Depreciation:
Augie can also take additional first-year depreciation under the Modified Accelerated Cost Recovery System (MACRS).
The depreciation deduction for the first year depends on the asset class, but it typically ranges from 20% to 30%.
Combining the Deductions:
Augie can claim the full § 179 deduction of $1,040,000, even if it exceeds the asset's cost.
This deduction will reduce her taxable income for 2019.
She can also claim any additional first-year depreciation allowed by MACRS.
Racicky was in the process of buying 320 acres of ranchland. While that sale was being negotiated, Racicky signed a contract to sell the land to Simon. Simon paid $144,000, the full price of the land. But Racicky went bankrupt before he could complete the purchase of the land, let alone its sale. Which of these remedies should Simon seek: expectation, restitution, specific performance, or reformation?
Answer:
The correct answer here is Restitution.
Explanation:
The remedy which is available here to Simon is restitution ( termed as Restitutionary damages), according to this remedy a injured party ( Simon in this case ) would be compensated for the losses or damage that he has suffered because of the actions of the defendant ( Racicky in this case ). So here Racicky has to submit any gain that he has received by causing damage to the Simon.
Here expectation can't be the answer because Racicky is now bankrupt and specific performance can't be the answer because Racicky is not the owner of the land , he hasn't bought it because he has gone bankrupt.
In Myanmar, six laborers, each making the equivalent of $ 2.50 per day, can produce 40 units per day. In China, ten laborers, each making the equivalent of $ 2.25 per day, can produce 48 units. In Billings comma Montana, two laborers, each making $ 60.00 per day, can make 102 units. Based on labor cost per unit only, the most economical location to produce the item is China , with a labor cost per unit of $ . 05. (Enter your response rounded to two decimal places.)
Answer:
$0.520
Explanation:
To find the relative labor cost in each country, simply divide the production number by the total value used in the labor force (with all employees).
In China: $ 2.25 x 10 workers = $ 25 dollars a day with labor.
The cost per unit of production will be: 25/48 = $0.520
When you take out a mortgage your home becomes the collateral. true or false
Answer:
True
Explanation:
A mortgage loan is done to purchase or create real state or by existing property owners to raise funds for any purpose, in both cases, while putting a lien on the property being mortgaged.
The collateral will be the property, because is the item pledged to guarantee the repayment of a loan.
Foreclosure or repossession:
The act upon which the lender will take possession and sell the property to pay off the loan in the event the borrower fails to perform the payment in terms.
On his way home from work, Phil stopped at a shopping center. He parked in front of the dry cleaner, where he could pick up his suit. He did not have to move his car because next door was a gift shop where he could pick up a gift for his niece. Conveniently enough, next door to that store was a supermarket, where he purchased essentials like milk and cornflake cereal. Phil was shopping in what type of shopping center? Lifestyle center Mixed-use development center Enclosed shopping mall Power center Neighborhood center
Your question asks what type of shopping center Phil is shopping at.
Answer: Neighborhood CenterThe reason why "Neighborhood Center" would be the correct answer is because the stores that Phil is going to is more "convenient."
The stores that Phil went to: dry cleaner, gift shop, and supermarket are all stores that are more convenient to customers. Neighborhood centers have stores that are more convenient to customers, due to the fact that they people would be shopping for essential items that would go well with ones well being or for the house.
Since the stores that Phil shopped at are convenient stores, and neighborhood centers have convenient stores, this means that Phil is shopping at a Neighborhood center.
I hope this helps!Best regards,MasterInvestorChile and Argentina each produce jellybeans and peanut butter, using labor as their only resource. Each country has 1,000 hours of labor. In Chile, an hour produces a pound of jellybeans and 2 hours produce a pound of peanut butter. In Argentina, an hour produces a pound of jellybeans and 3 hours produces a pound of peanut butter. When they do not trade with each other, Chile consumes 600 pounds of jellybeans and 200 pounds of peanut butter, and Argentina consumes 400 pounds of jellybeans and 200 pounds of peanut butter. Which country has an absolute advantage in jellybean production?
Answer: Neither country have a absolute advantage in jellybean production.
Explanation:
Absolute Advantage: A country has a absolute advantage in producing a commodity if the production of that commodity requires less labor hours than the country.
In this question, neither country is having absolute advantage in jellybean production because in both the countries labor hour requirement in producing a pound of jellybean is 1 hour.
Therefore, labor hour requirement is same in both countries, so, neither country is having absolute advantage in jellybean production.
When Walt Disney Company's executives were planning to build a theme park in France, they firmly believed that the success of McDonald's and Coke, as well as their own success in Tokyo, ensured the runaway success of their plans. Disney policies prohibit sale or consumption of alcohol inside their theme parks, which they also implemented in France. This proved to be a failure since consuming wine with the midday meal is a long-established custom in France. This is most likely a classical example of what?
Answer:
This is a example of the variable "Costumer preferences of a product " in the marketing mix
Explanation:
This is most likely a classical example of a failure in the product design when Walt Disney Company's executives made the marketing mix planning to build a theme park in France. The executives must consider the customer preference at each country to discover what people need and desire and fulfill that in the best possible way to succeed in.
The Walt Disney Company's failed policy in France is a classic example of a cultural faux pas, demonstrating the pitfalls of disregarding local customs in international business.
Explanation:When the Walt Disney Company planned to build a theme park in France and decided to implement a policy prohibiting the sale or consumption of alcohol, which contrasts with the French tradition of consuming wine with meals, they encountered a classical example of a cultural misstep, often referred to as a cultural faux pas. This misjudgment highlights the importance of understanding and respecting local customs and traditions when conducting business internationally. The company's expectation of success based on the success of American brands such as McDonald's and Coke ignored the unique cultural nuances that can greatly influence business outcomes.
Helmsman Products sells a special type of navigation equipment for $ 1 comma 200. Variable costs are $ 800 per unit. When a special order arrived from a foreign contractor to buy 40 units at a reduced sales price of $ 1 comma 000 per unit, there was a discussion among the managers. The controller said that as long as the special price was greater than the variable costs, the sale would contribute to the company's profits and should be accepted as offered. The vice president, however, decided to decline the order. Which of the following statements supports the decision of the vice president? A. The company will need to hire additional staff to execute this order. B. The order is not likely to affect the regular sales. C. The variable costs of $ 800 includes variable costs of packing the product. D. The company is operating at 70% of its production capacity.
Answer:
A. The company will need to hire additional staff to execute this order.
Explanation:
Since it is a special order, that too with a lower sale price, will affect the normal sales, and for this in order to make this order viable and not affect normal sales we need additional staff. Normal sales are domestic in nature, variable packing cost for international transfer will be additional to normal variable cost of $800 as would not be included, it does not matter whether currently the company is operating at 70% capacity as total fixed cost will be same additional variable cost based on number of units will be incurred then contribution margin will provide for profit, thus
Therefore The statement supporting Vice President is
A. The company will need to hire additional staff to execute this order.
A capital budgeting technique that can be computed by subtracting a project's initial investment from the present value of its cash inflows discounted at a rate equal to a firm's cost of capital is called net present value. True or false.