Link Motors’ required return is 13.30%.
The required return on Link Motors is calculated by taking the beta of the company, 1.30, and adding it to the risk-free rate, 3.00%, and then multiplying it by the expected return of the market, 10.00%.
Using this formula, the required return can be calculated as follows: 1.30 + (3.00% * 10.00%) = 13.30%.
This required return is the rate of return that investors expect to get from the company given the risks associated with it and the expected return of the stock market.
To explain further, the beta of the company is a measure of the risk associated with its stock. A beta of 1.30 implies that the stock is 30% more volatile than the stock market, and therefore investors require a higher return to compensate them for the extra risk associated with the stock.
The risk-free rate is the rate of return that an investor would get if they invested in a risk-free asset, such as a Treasury bill or bond. This rate is added to the beta as it is the baseline risk-free rate that investors expect to receive.
The expected return of the stock market is then multiplied by the risk-free rate and beta to get the required return. This expected return is the return that investors expect the market to provide in the future, and it is this return that the company must achieve to satisfy investors.
In conclusion, Link Motors’ required return is 13.30%, which is calculated by adding its beta of 1.30 to the risk-free rate of 3.00%, and then multiplying it by the expected return of the stock market, 10.00%. This required return is the rate of return that investors expect to get from the company given the risks associated with it and the expected return of the stock market.
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when a household makes a loan to a firm with the firm providing interest to the household, this is known as:
This is known as a loan from a household to a firm. When a household makes a loan to a firm, the firm is obligated to provide interest payments to the household. This can occur in different ways, depending on the specifics of the loan.
In general, when a loan is made from a household to a firm, the firm must pay the interest agreed upon at the start of the loan. Interest rates vary depending on the terms of the loan and can be fixed or variable. The interest payments are usually made in installments, either monthly, quarterly or annually.
The loan can be secured or unsecured. A secured loan is when the household pledges some asset (such as a house or car) as collateral for the loan. If the firm fails to repay the loan, the household can repossess the asset. An unsecured loan, on the other hand, does not require collateral. The household may also choose to make a loan to a firm with a lower interest rate, but with additional restrictions, such as the firm being unable to borrow more money or being prohibited from paying dividends until the loan is paid in full.
In summary, a loan from a household to a firm is an agreement between two parties whereby the firm is obligated to pay interest to the household in exchange for the money loaned. The terms of the loan can vary depending on the specifics of the agreement and whether or not collateral is involved.
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over the past year, price inflation has been 10%, but the price of a used ford escort has fallen from $6,000 to $5,000. the real price of a ford escort has fallen by:
The real price of a used Ford Escort has actually increased despite the fact that its nominal price has fallen from $6,000 to $5,000.
This is because inflation has been running at 10%, meaning that the general level of prices has increased by 10% over the past year. Therefore, the real value of $6,000 a year ago is now worth only $5,400 ($6,000 x 0.9), while the real value of $5,000 today is actually $5,500 ($5,000 ÷ 0.9).
So, in real terms, the price of a used Ford Escort has increased by $100 ($5,500 - $5,400) or approximately 1.9%.
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assuming that the amount of human capital per worker and technology are held fixed in each country, can you recommend a policy that would generate a doubling of real gdp per capita in albernia from $20,000 to $40,000?
Yes, we can recommend a policy that would generate a doubling of real GDP per capita in Albernia from $20,000 to $40,000. The policy that can be recommended is investment in physical capital. This can be explained as follows:Investment in Physical Capital: Physical capital is the amount of capital goods such as machinery.
Investment in physical capital will lead to an increase in the capital per worker, which will eventually result in an increase in the productivity of the workers. This will increase the output per worker and thus, result in an increase in the real GDP per capita. When the investment in physical capital takes place, the firms will be able to purchase new machinery and other tools which will help them in producing more efficiently.
In this way, the investment in physical capital will lead to the enhancement of the production capacity of the economy. With the increase in production capacity, resulting in an increase in the real GDP per capita. Therefore, investment in physical capital can help in generating a doubling of real GDP per capita in Albernia from $20,000 to $40,000.
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One of the basic ways in which services differ from products is that production and consumption are ______ from each other. Consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction.Multiple choice question.infinite
intangible
perishable
inseparable
One of the basic ways in which services differ from products is that production and consumption are inseparable from each other. Consequently, service providers often include options for the customer to become more involved in the production of the service, which usually results in greater customer satisfaction.
Inseparability is a characteristic of services that means that production and consumption cannot be separated from one another. The production of a service occurs at the same time as its consumption by the customer.
Unlike products, which can be manufactured and stored until they are purchased, services are created and used in real-time, meaning that their production and delivery happen at the same time.
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In the resource-based model, ______ is possible if all firms have access to the same resources and capabilities, which means that any competitive advantage acquired by a firm will be brief.
In the resource-based model, competitive parity is possible if all firms have access to the same resources and capabilities, which means that any competitive advantage acquired by a firm will be brief.
The resource-based model is a strategy used by businesses to enhance their operations and capabilities. It emphasizes that businesses should focus on the development and exploitation of the company's core competencies to gain an edge in the competitive landscape. Competitive parity is the situation where all companies competing in a specific sector possess the same level of resources and capabilities, making it impossible for any one company to gain a competitive advantage over the others.
Any advantage gained by a company is likely to be temporary because of the availability of these resources to competitors. As a result, it is critical to improve a company's core competencies to achieve a lasting competitive advantage.
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in response to the need to develop greater and greater mass markets for their products, american business in the 1920s relied especially on the new techniques of
"In response to the need to develop greater and greater mass markets for their products, american business in the 1920s relied especially on the new techniques of consumer advertising."
In the 1920s, American businesses realized that to increase sales and profits, they needed to reach a larger audience for their products. The rise of mass production made it possible to produce goods on a larger scale, but this alone was not enough. Companies began to use consumer advertising techniques to create demand for their products among the general public.
Advertisements were placed in newspapers, magazines, and on billboards, and radio broadcasts were used to promote products to a wider audience. These new techniques of consumer advertising were instrumental in creating a culture of consumerism that has persisted to this day.
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g how much of a stock's $32 price is reflected in pvgo if it expects to earn $4.65 per share, has an expected dividend of $2.50, and a required return of 0.20%? (round your answer to two decimal places).
Approximately 5.87 of the stock's $32 price is reflected in its PVGO ratio.
The Price to Value Growth Objective (PVGO) ratio is a measure of a stock's current market price in relation to its expected future earnings. In this case, the PVGO ratio is calculated by taking the stock's current price of $32, subtracting the expected dividend of $2.50, and then dividing by the expected earnings per share of $4.65, multiplied by 1 minus the required return of 0.2%.
The PVGO ratio is calculated as follows:
PVGO = ($32 – $2.50) / ($4.65 * (1 – 0.2%))
PVGO = 5.87
Therefore, approximately 5.87 of the stock's $32 price is reflected in its PVGO ratio, assuming that the expected earnings, dividend, and required return remain the same. This can be expressed as a percentage by dividing the PVGO ratio (5.87) by the stock's current price (32). This yields an approximate PVGO ratio of 18.4%, meaning that 18.4% of the stock's current market price is reflected in its PVGO ratio.
The PVGO ratio can be a useful tool for investors when evaluating stocks, as it provides insight into the stock's current valuation relative to its future earnings potential. By understanding the PVGO ratio, investors can make more informed decisions about whether or not to buy or sell the stock.
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your firm has net income of $234 on total sales of $1,120. costs are $630 and depreciation is $130. the tax rate is 35 percent. the firm does not have interest expenses. what is the operating cash flow? multiple choice $364 $360 $594 $234 $490
The operating cash flow for the firm is $594.
This can be calculated as follows:
Net Income: $234
Total Sales: $1,120
Costs: $630
Depreciation: $130
Tax Rate: 35%
Operating Cash Flow = Net Income + Depreciation - Taxes
= $234 + $130 - ($1,120 x 35%)
= $234 + $130 - $396
= $594
The Operating Cash Flow is $237. So, the correct option is (d) $234.
The given data is:
Net income = $234
Total sales = $1,120Costs = $630
Depreciation = $130
Tax rate = 35%
Operating cash flow refers to the amount of cash generated by a company from its operations before deducting operating expenses. It is calculated by adding back non-cash expenses such as depreciation to net income and then subtracting taxes.
Operating Cash Flow = Net Income + Depreciation - Taxes
Given, Net Income = $234, Depreciation = $130 and Tax rate = 35%
So, the Taxes = 35% of ($234 + $130) = 35% of $364 = $127.4
Now, let's put the values of Net Income, Depreciation, and Taxes in the formula of Operating Cash Flow.
Operating Cash Flow = Net Income + Depreciation - Taxes
Operating Cash Flow = $234 + $130 - $127.4
Operating Cash Flow = $236.6≈ $237
Therefore, the Operating Cash Flow is $237. So, the correct option is (d) $234.
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who do you hire for the it director position? select an option from the choices below and click submit.
An IT director is responsible for leading an organization's technology department, developing and implementing strategic plans, managing budgets and resources, ensuring network security and reliability, and supervising the IT team's daily operations.
Furthermore, an IT director is responsible for overseeing and directing the organization's overall technology infrastructure, including all hardware, software, and communications systems.
To be qualified for the position of IT director, the candidate must have a minimum of a bachelor's degree in information technology, computer science, or a related discipline. A master's degree in a relevant field, as well as industry certifications, such as the Certified Information Systems Security Professional (CISSP) or the Project Management Professional (PMP) designation, are also preferred.
Qualifications for the IT director position are heavily influenced by the nature and requirements of the organization. An IT director with experience in healthcare, for example, would be more appealing to a healthcare organization than an IT director with experience in education.
However, in addition to having the necessary technical qualifications, an IT director must be a strategic thinker, a good communicator, and an effective manager of teams and resources.
In conclusion, when selecting an IT director, it is essential to consider the qualifications required for the specific organization and to search for a candidate who possesses the necessary technical and soft skills. Furthermore, the position of IT director is critical, and the candidate must be capable of making critical decisions and overseeing the organization's technology infrastructure.
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Uncollectible accounts expense and recordkeeping costs are two potentially significant costs of extending _____ to customers.
Uncollectible accounts expense and recordkeeping costs are two potentially significant costs of extending credit to customers.
Uncollectible accounts expense is a form of expenditure that arises as a result of uncollectible accounts. An uncollectible account is an account receivable that a firm believes it will be unable to collect. Uncollectible accounts arise for a variety of reasons, including bankruptcies, fraud, and customers who refuse to pay. As a result, it is a potential cost of doing business that should be accounted for.
Recordkeeping is the process of storing and maintaining an organization's financial and accounting documents. These records can be kept either electronically or in hard copy format. Recordkeeping is a crucial component of any organization because it aids in the accurate calculation of financial statements and tax liability, among other things.
Both uncollectible accounts expense and recordkeeping costs are significant because they account for potential losses to a company's bottom line. Extending credit to customers might be a lucrative way to increase sales and improve customer loyalty, but it comes with a risk of default.
Recordkeeping costs, on the other hand, are an unavoidable cost of doing business because accurate and up-to-date financial information is required for regulatory compliance, taxation, and the tracking of key performance indicators. As a result, both of these expenses must be factored into a company's financial planning and strategy.
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has been contracted to build an addition on the joyners' house. it built half of the addition and then unexpectedly announced that it was not going to finish the job. such a desertion of work is called:
A desertion of work is called breach of contract. When a company is contracted to build an addition on the Joyner's house and fails to complete the job, they have breached the contract and must be held accountable for the unfinished work.
In a breach of contract situation, the contracting parties have a responsibility to mitigate the damages caused by the breach. The Joyner's may be able to recover some or all of the money that was paid to the contractor as well as other costs incurred from the breach.
Depending on the circumstances, the contractor may also be responsible for other losses, such as the cost to hire a new contractor to finish the job.
It is important to always have a written contract in place before starting any project, and to ensure that both parties understand and agree to all the terms and conditions of the contract.
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ranee is a businessperson who works for a successful and admired fortune 500 company. about how often is ranee likely to encounter ethical issues in the workplace?
Ranee is likely to encounter ethical issues in the workplace on a regular basis in the Fortune 500 company.
Ranee working for a Fortune 500 company is likely to encounter ethical issues in the workplace frequently. Ethics refers to the principles, beliefs, and values that govern behavior. Ethical concerns occur in the workplace as a result of a clash of interest between different individuals or a difference in values among individuals.
The Fortune 500 company will have ethical standards in place that need to be adhered to, as well as any applicable industry regulations. Ranee should take these into account when making decisions and be aware of any potential ethical issues that could arise. It is important for Ranee to always be mindful of her decisions and the possible consequences of those decisions.
There can be several ethical issues in the workplace such as:
Conflicts of interest arise when an individual is torn between two conflicting interests, one of which may be influenced by personal gain, such as the opportunity for a promotion or a significant raise. As a result, they may be forced to choose between their personal interests and their job responsibilities.The act of stealing someone else's work and presenting it as one's own is known as plagiarism. This is a significant problem in the workplace and can be found in reports, projects, and presentations among other things.Bullying and harassment can be physical or verbal, and it can occur in a variety of settings. Employees or even employers can be subjected to harassment, making the work environment uncomfortable for them.Theft, whether it is physical, such as stealing company assets, or intellectual, such as misusing company intellectual property, is considered an ethical issue in the workplace.Lying to customers, colleagues, or supervisors is considered an ethical issue in the workplace because it goes against the values of honesty and trust, which are essential to a successful work environment.Learn more about Ethical issues:
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After three years at the Massachusetts Institute of Technology, Renaud realizes that he doesn't want to finish school but really wants to be a chef. When Renaud mentions that he is considering leaving university for culinary school, his parents insist that he stay for one more year to get his degree. Which statement is TRUE? Renaud's parents are wrong: the marginal benefit to Renaud of another year of university is greater than the marginal cost of university Renaud's parents are correct: if he leaves university, he has wasted three years of tuition. It is impossible to tell who is correct. Renaud's parents are wrong: the marginal benefit to Renaud of another year of university is less than the marginal cost of university
The statement that "Renaud's parents are wrong: the marginal benefit to Renaud of another year of university is less than the marginal cost of university" is the correct answer because if Renaud continues to study in university for one more year, he will incur the cost of tuition fees, and the additional benefit that he would receive will not match the cost of tuition fees.
As per the given statement in the question that Renaud is studying in the Massachusetts Institute of Technology and after three years, he realized that he doesn't want to finish school but wants to be a chef. When Renaud mentions that he is considering leaving university for culinary school, his parents insist that he stay for one more year to get his degree.
Thus, this scenario can be used to explain the marginal benefit and marginal cost analysis of the decision made by Renaud's parents. Marginal cost and marginal benefit analysis Marginal analysis can be defined as the evaluation of the additional cost and additional benefits that arise from an activity, decision or choice. Marginal benefit refers to the additional benefit that a person gets from the additional unit of an activity, decision or choice.
Marginal cost refers to the additional cost that arises from an additional unit of an activity, decision or choice. The situation in the question involves the marginal benefit and marginal cost analysis of the decision of staying in the university for one more year.
Renaud's parents insist that he stays for one more year to get his degree. If he stays for one more year, the marginal cost will be the tuition fee of the university for one year and the marginal benefit will be the degree that he will receive after completing his course. If he decides to leave the university for culinary school, the marginal cost will be the amount of tuition fee paid for three years and the marginal benefit will be the training and education he receives from the culinary school that will help him pursue his passion for cooking.
Economic Analysis of the given situation It can be concluded that the marginal benefit of another year of university to Renaud is less than the marginal cost of university. Renaud has realized that he has a passion for cooking, and his parents' insistence on him to get the degree would not have any significant benefit to him.
If Renaud continues to study in university for one more year, he will incur the cost of tuition fees, and the additional benefit that he would receive will not match the cost of tuition fees. Hence, his parents' insistence on him to stay for one more year is not appropriate, and Renaud's decision to leave the university to pursue his passion for cooking is the right choice for him.
Therefore, the statement that "Renaud's parents are wrong: the marginal benefit to Renaud of another year of university is less than the marginal cost of university" is the correct answer.
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a company is considering buying a component part that they currently make using some existing equipment. relevant costs to this sourcing decision include .
A company is considering buying a component part that they currently make using some existing equipment. The relevant costs to this sourcing decision include:
salvage valuealtnerative uses.What does relevant costs means for an equipment?Relevant costs for equipment refer to the costs that are directly related to the decision of whether to purchase, retain, or dispose of a piece of equipment. These costs can include the purchase price of the equipment, any installation or delivery costs, maintenance and repair costs, and disposal or salvage value.
It is important to consider these relevant costs when making decisions about equipment as they can impact the overall profitability of a company. For example, if a piece of equipment has a high purchase price but also has a long lifespan and low maintenance costs, it may be more cost-effective in the long run to purchase the equipment.
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8. suppose we find that the price elasticity of demand for a product is 3.5 when its price is increased by 2 percent. we can conclude that quantity demanded: a. increased by 7 percent. b. decreased by 7 percent. c. decreased by 9 percent. d. decreased by 1.75 percent.
The correct answer is option C: decreased by 9 percent. Price elasticity of demand measures the responsiveness of quantity demanded to a change in price.
It is calculated as the percentage change in quantity demanded divided by the percentage change in price.
In this case, we know that the price elasticity of demand is 3.5 when the price is increased by 2 percent. This means that for every 1 percent increase in price, quantity demanded decreases by 3.5 percent (since 3.5/1 = 3.5).Therefore, a 2 percent increase in price would lead to a 7 percent decrease in quantity demanded (since 2 x 3.5 = 7).
So, the new quantity demanded would be 100 - 7 = 93 percent of the original quantity demanded.
Therefore, the percentage decrease in quantity demanded is (100 - 93) = 7 percent.
Hence, the correct option is C: decreased by 9 percent.
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would you prefer a fully taxable investment earning 8.1 percent or a tax-exempt investment earning 6.1 percent? (assume a 24 percent tax rate.)
When making an investment decision, you must consider the tradeoff between risk and return. A fully taxable investment earning 8.1 percent will generate higher returns than a tax-exempt investment earning 6.1 percent, however, the return on the taxable investment will be subject to taxes.
Assuming a 24 percent tax rate, the after-tax return on the fully taxable investment will be 6.096 percent, while the after-tax return on the tax-exempt investment will be 6.1 percent.
The decision to invest in the fully taxable investment or the tax-exempt investment will depend on the investor's individual circumstances and the amount of risk they are willing to take. Investors with higher risk tolerance will typically favor the fully taxable investment, as it provides higher potential returns.
However, investors with lower risk tolerance may prefer the tax-exempt investment, as it offers a guaranteed rate of return with no tax liability.
In addition to the tax implications, investors should also consider other factors such as the amount of liquidity, flexibility, and the stability of the investment before making a decision. Each type of investment carries unique benefits and risks that must be weighed against one another to determine the best investment strategy.
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sasha bought a townhouse last year. she just got a tax bill from the county showing the value of her house and the amount of tax she owes. what kind of tax does sasha owe?
Sasha bought a townhouse last year. She just got a tax bill from the county showing the value of her house and the amount of tax she owes. Sasha owes property tax for her townhouse.
What is a townhouse?A townhouse is a terraced or semi-detached urban house, often several stories tall. Townhouses are often identical in design and are owned by individual families or individuals. The inhabitants of each townhouse have their own separate entrance, and there are no interior corridors or elevators in townhouses.
What is tax?A tax is a financial charge imposed by the government on an individual's or legal entity's revenue or property. The tax is charged by the government to fund various public services.
What is property tax?A tax charged by the government on land, houses, buildings, and other real estate is known as a property tax. This tax is determined by the value of the real estate being taxed.
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one of the three criteria that must be met for a share purchase plan to be noncompensatory is that all employees who meet limited employment qualifications may participate in the plan on a.the basis of education. b.an equal basis. c.a basis of seniority. d.the basis of pay.
One of the three criteria that must be met for a share purchase plan to be noncompensatory is that all employees who meet limited employment qualifications may participate in the plan on an equal basis. The correct option is b.
A share purchase plan is referred to as noncompensatory when the transaction occurs on equal terms for all participating employees. In other words, there should not be any preferential treatment or incentive given to one employee over another.
The three criteria that need to be met to have a noncompensatory share purchase plan are as follows:
1. The plan is available to all employees: The eligibility to participate in the plan must be extended to all employees who meet the employment qualifications specified in the plan document.
2. The terms of the plan do not discriminate: All employees participating in the plan must be treated equally with respect to the amount of stock they are allowed to purchase and the price at which they can purchase it.
3. The plan must not be linked to the employee's compensation: The plan's purchase price should not be less than the fair market value of the stock on the grant date, and the purchase price should not be discounted based on the employee's compensation or job classification.
Therefore, the correct option is (b) an equal basis because all employees must participate in the plan on an equal basis in a noncompensatory share purchase plan. The three criteria mentioned above must be met to have a noncompensatory share purchase plan, and employees participating in the plan must be treated equally.
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abby is a broker who was hired to sell a 3-family house. the house is owner-occupied with the remaining two units being rented out. how would you characterize abby's 3-family listing? residential property since it has four or fewer units.
The characterization of the house that Abby has would be residential property since it has four or fewer units.
What is a residential property?Abby's 3-family listing would typically be considered a residential property since it has four or fewer units. Residential properties are typically defined as properties used for living purposes, such as single-family homes, townhouses, condominiums, and multi-family homes with four or fewer units.
In contrast, properties with five or more units are usually classified as commercial properties and may require different regulations, financing options, and insurance policies. However, the exact classification of a property may depend on local regulations and practices, so it is important for Abby to confirm the classification of the property and any relevant regulations with the local authorities.
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willie offers to sell his house to leopold for $100,000. leopold says he is interested but unsure. he offers willie $200 to hold the offer open for three weeks to let him think about it. willie agrees and takes the $200. which phrase best describes willie and leopold's deal?
Options contract best describes willie and Leopold's deal as per the given records and information.
An option contract is an agreement between two parties to facilitate a potential trade in the underlying security at a pre-determined price, called the strike price, before or on the expiration date.
An options contract is an agreement between two parties to facilitate a potential transaction in an asset at a pre-determined price and date.
The terms of an option contract specify the underlying security, the price at which that security can be traded (the strike price), and the expiration date of the contract. For stocks, the standard contract is 100 shares, but the number of shares can be adjusted for stock splits, special dividends, or mergers.
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a project with an initial cost of $59,200 is expected to provide annual cash flows of $11,500 over the 6-year life of the project. if the required return is 8.2 percent, what is the project's profitability index?
The profitability index (PI) quantifies the allure of a project or venture. The project's initial investment is divided by the present worth of anticipated future cash flows to determine the PI.
What is meant by profitability index?The profitability index shows whether an investment should increase or decrease the value of the business. Through the cost of capital, it considers both the potential cash flow risk and the time value of money. When capital is rationed, it is helpful for ranking and selecting between initiatives.
The ratio between the original investment made in a project and the present value of anticipated future cash flows is known as the profitability index. The greater the revenue index, the more advantageous and alluring a project is thought to be.
NPV = -59,200+\sum_i=1^6 11,500/(1.082)^i
NPV = -$6,357.91
PI = (59,200 - 6,357.91)/59,200
PI = 0.89
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which of the following situations represents a limitation, rather than a failure, of internal control? a movie theater cashier sells reduced-price tickets to full-paying customers and pockets the difference. a jewelry store employee steals a small necklace from a display cabinet. a bank teller embezzles several hundred dollars from the cash drawer. a purchasing employee and an outside vendor participate in a kickback scheme.
A purchasing employee and an outside vendor participate in a kickback scheme situations represents a limitation, rather than a failure, of internal control , Option 4)
Out of the given situations, the theft of a small necklace by a jewelry store employee could be considered a limitation of internal control. While the jewelry store may have had control procedures in place such as security cameras and locked display cases, these procedures were not sufficient to prevent the theft of the necklace.
The other situations described represent failures of internal control. The movie theater cashier's actions represent a failure to segregate duties and reconcile transactions, while the bank teller's actions represent a failure to properly safeguard assets and reconcile cash. The purchasing employee and vendor's actions represent a failure to properly screen vendors and ensure that purchases are made at fair market value.
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Full Question: which of the following situations represents a limitation, rather than a failure, of internal control?
a movie theater cashier sells reduced-price tickets to full-paying customers and pockets the difference. a jewelry store employee steals a small necklace from a display cabinet. a bank teller embezzles several hundred dollars from the cash drawer. a purchasing employee and an outside vendor participate in a kickback scheme.the entry to record the revenue recognized from the service portion of a bundle sale that was collected in advance is recorded with a debit to and a credit to . multiple choice question. accounts receivable; service revenue service revenue; cash cash; service revenue deferred revenue; service revenue
The entry to record the revenue recognized from the service portion of a bundle sale that was collected in advance is recorded with a debit to "Deferred Revenue" and a credit to "Service Revenue".
What is the revenue about?When a business collects payment from a customer in advance for services that will be provided in the future, the payment is recorded as a liability called "Deferred Revenue" (also known as unearned revenue or deferred income). The reason for this is that the company has not yet earned the revenue and has an obligation to provide the service at a later date.
Therefore, When the company delivers the service, it can then recognize the revenue earned by debiting "Deferred Revenue" and crediting "Service Revenue". This entry effectively removes the liability from the balance sheet and records the revenue earned on the income statement.
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true or false an employee can file a claim of sexual harrassment even the supervisor took no adverse
True. An employee can still file a claim of sexual harassment even if the supervisor did not take any adverse action. The behaviour alone can create a hostile work environment and be grounds for a complaint.
It is true that an employee can submit a claim of sexual harassment even if the supervisor did not take any adverse action. In such circumstances, the behaviour itself might create a hostile work atmosphere that can be labelled a form of harassment. Harassment may take various forms, including unwelcome sexual approaches, statements, and gestures that make an employee feel uncomfortable or frightened. If an employee feels subjected to such behaviour, they have the right to report it to their company or human resources department. Regardless of whether the supervisor took any unfavourable action, employers are required by law to look into cases of sexual harassment and take the necessary measures.
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what type of equilibrium is required in order for you (the person hiring) to distinguish between lazy and productive workers?
This type of equilibrium required in order for you (the person hiring) to distinguish between lazy and productive workers is Nash Equilibrium.
It is a state of balance where each person in the situation has chosen their most beneficial option given the choices of the others. In the context of hiring, it is necessary to have an equilibrium where the person hiring is able to distinguish between a lazy and productive worker.
To do this, the employer must carefully evaluate each candidate's qualifications, skills, and experience. It is also important to take into consideration the candidate's attitude, commitment, and goals.
All of these factors should be compared against the job requirements in order to make an informed decision about who will best fulfill the job's requirements.
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tyler towel company estimates its overhead to be $350,000. it expects to have 100,000 direct labor hours costing $1,500,000 in labor and utilizing 9,500 machine hours. calculate the predetermined overhead rates using
The predetermined overhead rate for direct labor hours is $3.50 per direct labor hour, and for machine hours, it is $36.84 per machine hour.
To calculate the predetermined overhead rate, we need to divide the estimated overhead cost by the estimated base. In this case, we have two bases - direct labor hours and machine hours.
Predetermined Overhead Rate based on Direct Labor Hours = Estimated Overhead / Estimated Direct Labor Hours
= $350,000 / 100,000 hours
= $3.50 per direct labor hour
Predetermined Overhead Rate based on Machine Hours = Estimated Overhead / Estimated Machine Hours
= $350,000 / 9,500 machine hours
= $36.84 per machine hour
Therefore, Tyler Towel Company's predetermined overhead rates are $3.50 per direct labor hour and $36.84 per machine hour.
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walmart corp. has the right to manufacture and market a product, redesign its stores, and acquire other businesses because it operates in a:
Walmart Corp. has the right to manufacture and market a product, redesign its stores, and acquire other businesses because it operates in a free-market economy. A free-market economy is one that is based on supply and demand, with minimal government interference or regulation.
In this type of economy, companies are free to set prices, compete for customers, and produce whatever goods or services they wish.
Companies like Walmart have the freedom to decide what products to make and market, what changes to make to their stores, and whether to purchase other businesses.
This freedom and competition promotes economic growth and gives companies the incentive to innovate and succeed.
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accounting for bad debts using the allowance method requires which 2 steps? multiple choice question.
The two steps required to account for bad debts using the allowance method are:
1. Estimation of the allowance for doubtful accounts
2. Recording the bad debt expense
The allowance method is a technique for estimating and reporting uncollectible accounts receivable in financial statements. It's an attempt to show how much of the outstanding receivables are unlikely to be collected due to the possibility of a customer defaulting.
The two steps required to account for bad debts using the allowance method are as follows:
Estimation of the allowance for doubtful accounts: The first step in the allowance method is to estimate the amount of bad debts that may arise in the future. It is accomplished by calculating a percentage of the accounts receivable balance or an amount based on the historical experience of the firm.
Recording the bad debt expense: The second stage involves recording the bad debt expense, which is an estimate of the value of accounts receivable that are likely to be uncollectible. This expense reduces the company's revenue and net income while increasing the allowance for doubtful accounts.
Therefore, the two steps required to account for bad debts using the allowance method are estimating the allowance for doubtful accounts and recording the bad debt expense.
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people often make decisions on the basis of mental accounting. one facet of this accounting is making a decision based on the way a problem was posed. this is called question 59 options: loss aversion positioning the sum-cost fallacy framing
Loss aversion is a type of mental accounting where people are more likely to choose an option if it is framed as a loss rather than a gain. For example, if the problem was posed as, “Would you prefer to gain $100 or lose $100?” people are more likely to choose the latter.
Positioning is another facet of mental accounting where people are more likely to choose an option if it is framed as the primary option. Sum-cost fallacy is another facet of mental accounting where people perceive the addition of a small sum to a larger sum to be worth more than the individual sums, or the smaller sum. For example, if asked, “Would you prefer to gain $200 or gain $100 and lose $100?” people are more likely to choose the former. Framing is the last facet of mental accounting where people are more likely to choose an option depending on the context in which it is presented.
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the government safety net creates problem because risk-loving entrepreneurs might find banking an attractive industry. a. an adverse selection b. a revenue c. a moral hazard d. a lemons
The government safety net creates an optio A. adverse selection problem because risk-loving entrepreneurs might find banking an attractive industry.
What is adverse selection?Adverse selection is a phenomenon that occurs when one party has more information than the other party in a transaction, and this information asymmetry leads to an unfavorable outcome for the party with less information.
When vendors and/or purchasers have different knowledge about a certain component of a product's quality, this is referred to as adverse selection. So, those who work in hazardous environments or lead high-risk lives are more likely to buy life or disability insurance, knowing that they will likely be able to use it.
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complete question;
The government safety net creates ________ problem because risk-loving entrepreneurs might find banking an attractive industry.