What are characteristics of outcome-oriented cultures? Select all that apply.
• Experiment with new ideas
• Flat hierarchy
• Values accountability and agility
• Emphasize achievement, results, and action
• Prone to legal issues and troubles
• Focus on destroying rival firms
• Hold employees and managers accountable for success
• Values competitiveness and outperforming competitors
• Flexible and adaptable
• Rewards tied to performance
• Might create situations for unethical behaviors to become the norm

Answers

Answer 1

Culture is a broad term that encompasses all elements of an organization's environment, from dress codes to mission statements.

Outcome-oriented culture is a culture in which achievement, results, and action are emphasized and employees and managers are held accountable for their success. Rewards in this culture are also linked to performance. Outcome-oriented cultures' other characteristics are described below:Flexible and AdaptableValues competitiveness and outperforming competitorsExperimenting with new ideasValues accountability and agilit.

yFlat hierarchyRewards are tied to performance Characteristics of outcome-oriented cultures are experiment with new ideas, flat hierarchy, values accountability and agility, emphasize achievement, results, and action, focus on destroying rival firms, hold employees and managers accountable for success, values competitiveness and outperforming competitors, flexible and adaptable, rewards tied to performance, might create situations for unethical behaviors to become the norm.

The correct options are:Experiment with new ideasFlat hierarchyValues accountability and agilityEmphasize achievement, results, and actionHold employees and managers accountable for successValues competitiveness and outperforming competitorsFlexible and adaptableRewards tied to performance.

To learn more about culture:

https://brainly.com/question/30447976

#SPJ11


Related Questions

Analogue Technology has preferred stock outstanding that pays a $9 annual dividend. It has a price of $76. What is the required rate of return (yield) on the preferred stock? (Do not round Intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

Answers

The required rate of return (yield) on Analogue Technology's preferred stock is approximately 11.84%. This rate represents the return that investors demand in order to hold the stock, considering its current price and the annual dividend payment.

To calculate the required rate of return on preferred stock, we use the dividend yield formula. The formula is as follows:

Required Rate of Return = Annual Dividend / Stock Price

In this case, Analogue Technology's preferred stock pays a $9 annual dividend and has a price of $76. Plugging these values into the formula:

Required Rate of Return = $9 / $76 = 0.1184

To express the result as a percentage, we multiply the decimal by 100:

Required Rate of Return = 0.1184 * 100 = 11.84%

Therefore, the required rate of return (yield) on Analogue Technology's preferred stock is approximately 11.84%. This rate represents the return that investors expect to earn on their investment in the preferred stock, considering the dividend payment and the stock's current price.

To learn more about rate of return, click here:

brainly.com/question/17164328

#SPJ11

Case Study Questions: Walter Meier: JET International Expansion. No more than 250 words
3. Based on information in the case, should Walter Meier expand internationally? If yes, is Brazil the right market for JET expansion? Defend your answer.

Answers

Walter Meier is considering expanding his company JET internationally. Based on the information in the case, the expansion would bring benefits to the company.

It would help JET increase its revenue, expand its customer base and take advantage of economies of scale. However, expanding internationally comes with risks and challenges that need to be taken into consideration. The case indicates that JET is well-positioned in the European market and has been able to maintain a competitive advantage.

The company has a strong brand, loyal customer base and a good reputation. Expanding into Brazil would require significant resources and investment. Brazil is a market that is unfamiliar to JET, which would pose a challenge. Additionally, the country has a complex regulatory environment, and it may take a long time to establish JET's brand in Brazil. JET would need to spend a lot of money to hire local staff, build infrastructure, and develop marketing campaigns to establish itself in Brazil.

Considering all of these factors, it may be challenging for JET to expand into Brazil. However, if JET is willing to invest the necessary resources and time, there is a chance that it could be successful in the Brazilian market.

In conclusion, based on the information in the case, Walter Meier should expand internationally, but Brazil may not be the right market for JET expansion. Other markets that are more familiar to JET may be a better option for the company.

To know more about JET internationally refer here:

https://brainly.com/question/28265019#

#SPJ11

Let the utility function be U- Using the utility function calculate the level of utility your obtain from the following bundles. (That is, enter the XY combinations into the utility function to determine the level of Usity) Round off the answer to the ones place (X,Y) (104, 7.02) (8.00, 8.00) (11.4.3.63)- (6.00, 9:24) (3.2. 12.65) (13.2, 6.23) If you pict all of the bundles that have the same level of utity you have created the OA optimal bundle O indifference curve OC. budget constraint OD. utility function

Answers

The utility function refers to a device that establishes a relationship between the consumer's level of satisfaction and the amount of goods and services they consume.

The optimal bundle is a combination of goods that maximizes an individual's satisfaction or utility given their budget. The optimal bundle has the highest satisfaction possible with the resources available. We will use the utility function U to determine the degree of utility gained from the following sets. By entering the XY pairs into the utility function, we may calculate the level of Usity. Let's round off the answer to the one's location.
The sets are as follows:
(104,7.02)
(8.00,8.00)
(11,3.63)
(6.00,9:24)
(3.2.12.65)
(13.2,6.23)

If you plot all the sets that have the same level of utility, you will have created an indifference curve (OC). This curve connects all the bundles with the same degree of satisfaction. The optimal bundle (OA) is the highest indifference curve and the highest utility. The budget constraint is a line that denotes all the affordable combinations of goods. It's also the line that divides the bundles an individual may afford and those they can't. This constraint also shows the most affordable combinations of two goods that a consumer may purchase.

To know more about the utility function, click here;

https://brainly.com/question/30652436

#SPJ11

Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Finance companies should be the first place you go to try to get a loan because they specialize in financing. Select one: True False Question 2 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text What is the future value of $250 deposited today at eight percent interest compounded annually for four years? a. $337 b. $333 c. $340 d. $330 Question 3 Answer saved Marked out of 1.00 Not flaggedFlag question Question text Which of the following is a typical example of an instalment loan? a. A demand loan b. A credit card c. A student loan d. A line of credit Question 4 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text What would be the real cost of borrowing in the following case? A home equity loan is advertised at 3.5 percent compounded monthly, however, there is a legal fee of $400 and appraisal fee of $450 to set up the house as collateral. If Sarah needs to borrow $20 000 for one year, at which time will be able to repay the full amount, what is the effective rate of borrowing the $20 000 for the year? a. 7.75% b. 3.56% c. 7.81% d. 4.25% Question 5 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text Jessie won a lottery and was given the following choice. He could either take $5150 at the end of each month for 25 years, or a lump sum of $700,000. At what effective annual interest rate would he be indifferent between the two choices? a. 7.4% b. 7.3% c. 11.6% d. 7.7%

Answers

According to the question, the effective annual interest rate at which he would be indifferent between the two choices are as follows:

{Question 1:}

False. While finance companies specialize in financing, they may not always be the first place to go for a loan. It is important to consider other options such as banks, credit unions, online lenders, and peer-to-peer lending platforms, as they may offer competitive rates and terms.

{Question 2:}

To calculate the future value of $250 deposited today at eight percent interest compounded annually for four years, we can use the formula for compound interest:

[tex]\[ \text{Future Value} = \text{Present Value} \times (1 + \text{Interest Rate})^{\text{Number of Periods}} \][/tex]

In this case, the present value is $250, the interest rate is 8% (or 0.08), and the number of periods is 4. Plugging these values into the formula, we get:

[tex]\[ \text{Future Value} = \$250 \times (1 + 0.08)^4 \]\\\\\\\ \text{Future Value} \approx \$330.08 \][/tex]

Therefore, the future value of $250 deposited today at eight percent interest compounded annually for four years is approximately $330.

The correct answer is d. $330.

{Question 3:}

The typical example of an installment loan among the given options is c. A student loan. Installment loans are loans that are repaid in fixed monthly installments over a specified period of time. Student loans are a common type of installment loan where borrowers receive a fixed amount of money and repay it in regular installments over a set repayment period.

{Question 4:}

To calculate the effective rate of borrowing for the given scenario, we need to consider both the interest cost and the additional fees associated with the loan.

The interest rate is 3.5% compounded monthly. To find the effective annual interest rate, we can use the formula:

[tex]\[ \text{Effective Annual Interest Rate} = (1 + \text{Monthly Interest Rate})^{12} - 1 \][/tex]

Monthly Interest Rate = 3.5% / 100 / 12 = 0.00292

[tex]\[ \text{Effective Annual Interest Rate} = (1 + 0.00292)^{12} - 1 \approx 0.035424 \][/tex]

Now, let's calculate the total cost of the loan by adding the legal fee and the appraisal fee:

[tex]\[ \text{Total Cost} = \text{Loan Amount} + \text{Legal Fee} + \text{Appraisal Fee} \]\[ \text{Total Cost} = \$20,000 + \$400 + \$450 = \$20,850 \][/tex]

The effective rate of borrowing can be calculated by finding the interest paid as a percentage of the total cost:

[tex]\[ \text{Effective Rate of Borrowing} = \left( \frac{\text{Interest Paid}}{\text{Total Cost}} \right) \times 100 \][/tex]

Interest Paid = Total Cost - Loan Amount = $20,850 - $20,000 = $850

[tex]\[ \text{Effective Rate of Borrowing} = \left( \frac{\$850}{\$20,850} \right) \times 100 \approx 4.08\% \][/tex]

Therefore, the effective rate of borrowing the $20,000 for one year, including the fees, is approximately 4.08%.

The correct answer is not provided in the options.

{Question 5:}

To determine the effective annual interest rate at which Jessie would be indifferent between the two choices, we need to compare the present value of

the cash flow from the monthly payments with the lump sum amount.

Using the present value formula for an annuity:

[tex]\[ \text{Present Value} = \text{Payment Amount} \times \left[ \frac{1 - (1 + \text{Interest Rate})^{-\text{Number of Periods}}}{\text{Interest Rate}} \right] \][/tex]

In this case, the payment amount is $5,150, the number of periods is 25 years (or 300 months), and the lump sum amount is $700,000. We need to solve for the interest rate.

[tex]\[ \text{Present Value of Monthly Payments} = \$5150 \times \left[ \frac{1 - (1 + \text{Interest Rate})^{-300}}{\text{Interest Rate}} \right] \][/tex]

To find the effective annual interest rate, we can use trial and error or financial calculators.

By trial and error, the effective annual interest rate that makes the present value of the monthly payments equal to the lump sum amount is approximately 7.3%.

Therefore, Jessie would be indifferent between the two choices at an effective annual interest rate of approximately 7.3%.

The correct answer is b. 7.3%.

To know more about cost visit-

brainly.com/question/14137110

#SPJ11

What is the Rate (i.e. a - e) for each time period? a 4.00% b 4.04% C 4.06% d 4.07% e 4.08%

Answers

Based on the information, the rate for each time period will be:

Quarterly = 4.06%

Monthly = 4.07%

Annually = 4.00%

Daily = 4.08%

Semi-annually = 4.04%

How to explain the information

These are all effective interest rates, which is the actual interest rate you will earn after taking into account compounding. For example, a quarterly rate of 4.06% means that if you invest $100, you will earn $4.06 in interest after one quarter. This interest will then be added to your principal, and you will earn interest on the interest in the following quarters.

The effective interest rate will be higher than the nominal interest rate (the rate that is advertised) if compounding occurs more frequently. For example, a 4% annual rate compounded quarterly will have an effective rate of 4.06%. This is because the interest is earned four times per year, so it has more time to grow.

Learn more about rate on

https://brainly.com/question/119866

#SPJ1

What is an optimal hedge and how do we calculate it? What is the dollar offset ratio (DOR) and how do we calculate it? How do we decide if we should implement a hedg

Answers

An optimal hedge is a way of managing risk through hedging techniques that balances the risks and rewards of the strategy by minimizing the costs of hedging, while also maximizing the potential for profits. There are several ways to calculate an optimal hedge, including using statistical models, Monte Carlo simulations, and historical data.

The dollar offset ratio (DOR) is a metric used to determine the degree of correlation between the hedging instrument and the underlying asset. It is calculated by dividing the price of the hedging instrument by the price of the underlying asset. For example, if the price of a futures contract is $100 and the price of the underlying asset is $500, the DOR would be 0.2.

When deciding whether to implement a hedge, it is important to consider several factors, including the size of the position, the volatility of the market, the cost of the hedge, and the potential benefits of hedging. A cost-benefit analysis can be helpful in determining whether a hedge is appropriate for a particular situation. Additionally, it is important to consider the risks associated with hedging, such as the possibility of losses if the hedge is not properly executed or if the market moves in an unexpected direction.

To know more about managing  visit:-

https://brainly.com/question/14523862

#SPJ11

A mutual fund has 500 million-peso worth of stock, 50 million pesos worth of bonds, and 10 million pesos in cash. The fund’s total liabilities amount to 10 million pesos. There are 50 million shares outstanding. You invest 150,000 pesos in this fund. (a) Calculate the NAV. (b) How many shares will you purchase?

Answers

The NAV of the mutual fund is 11.00 pesos per share. With investment of 150,000 pesos you can purchase approximately 13,636 shares of the mutual fund.

(a)Total assets of the mutual fund = 500 million + 50 million + 10 million = 560 million Total liabilities = 10 million Number of shares outstanding = 50 million Therefore, NAV = (560 - 10) ÷ 50 = 11.00 pesos per share Therefore, the NAV of the mutual fund is 11.00 pesos per share.

(b) To find out how many shares you can purchase with an investment of 150,000 pesos, you need to divide the amount invested by the NAV. No. of shares to be purchased = Amount Invested ÷ NAV Therefore, No. of shares to be purchased = 150,000 ÷ 11 = 13636.36 shares (approx).

To learn more about "NAV" visit: https://brainly.com/question/29762281

#SPJ11

____ include R&D, marketing, distribution, and customer service costs.

Answers

Overhead costs include R&D, marketing, distribution, and customer service costs. These are an integral part of a business's overall operations and are not directly attributed to specific products or services.

Overhead costs are the indirect expenses incurred by a business that are not directly attributable to specific products or services. They encompass various operational activities necessary for running a business smoothly. Some examples of overhead costs include research and development (R&D) expenses, marketing expenses, distribution costs, and customer service costs.

1.R&D costs: These expenses are incurred in the process of developing new products, improving existing products, or conducting research activities to enhance the company's competitiveness.

2. Marketing costs: These expenses include advertising, promotional activities, market research, and other marketing efforts aimed at promoting the company's products or services.

3. Distribution costs: These costs are associated with delivering products or services to customers. They can include transportation expenses, warehousing costs, packaging materials, and logistics management.

4. Customer service costs: These costs involve providing support and assistance to customers after the sale. They may include salaries of customer service representatives, maintenance of customer service infrastructure, and handling customer inquiries or complaints.

These overhead costs are essential for the functioning and growth of a business, but they are not directly tied to the production or delivery of specific goods or services.

Overhead costs, which encompass R&D, marketing, distribution, and customer service expenses, are an integral part of a business's overall operations and are not directly attributed to specific products or services.

To know more about marketing visit:

https://brainly.com/question/25369230

#SPJ11

Your company produces beach toys for the Cayman islands. The invoice for the upcoming delivery will be in Cayman Islands Dollar (KYD), which currently trade at 1.1392€. The payment to be received is 403000 KYD in 110 days. You are thinking about hedging the exposure. The following options are available: put options, forward contracts, or a money market hedge. Of course, leaving the exposure unhedged is also a possibility. Interest is calculated with 360 days p.a.
The probability distribution of forecasted exchange rates is available as well.
Current spot rate (KYDEUR) € 1.1392 Forward rate for 110 days 1.146 Put option premium € 0.0583 Put option exercise price €1.1268
Annualized interest rates KYD borrow 0.0255 KYD lend 0.019 EUR borrow 0.0347 EUR lend 0.0325 Forecasts Probability KYDEUR 0.08 € 0.7747 0.10 € 0.8658 0.13 € 1.0105 0.44 € 1.1722 0.13 € 1.3648 0.12 € 1.4297
Please calculate the expected amount that you will receive in € in 110 days for each of the possible alternatives.
If you were risk neutral, which alternative would you choose? Please round all answers to two decimal points,e.g., if your answer is 1234.5678, please put 1234.57
The expected amount (in €) you will receive in 110 days is... Unhedged: . Money Market hedge: Forward: Put Option: If you were risk-neutral, you would choose:

Answers

The expected amount (in €) you will receive in 110 days is €1.1268. If you were risk-neutral, you would choose forward contract.

The expected amount (in €) you will receive in 110 days are as follows:

Unhedged: Expected amount = Amount * Forward rate

Expected amount = 403000 KYD * 1.146

Expected amount = 461238.00 EUR

Money Market hedge: Convert KYD to EUR today and invest in the EUR money market.

Expected EUR receipt = EUR (403000/1.1392)* (1+ 0.0325*110/360)

Expected EUR receipt = 460620.40 EUR

Forward:  This involves locking in the exchange rate today by entering into a forward contract.

Expected amount = Amount * Forward rate

Expected amount = 403000 KYD * 1.146

Expected amount = 461238.00 EUR

Put Option: The put option gives the right to sell euros at €1.1268 in 110 days.

Put option in the money when the spot rate is below €1.1268The put option is exercised when the expected spot rate is €1.0105.

Expected amount = Amount * Expected spot rate

Expected amount = 403000 KYD * 1.0105

Expected amount = 407315.15 EUR

If you were risk-neutral, you would choose the forward contract because it gives the highest expected return. The expected return on the forward contract is 461238.00 EUR, which is the highest among all other alternatives.

Learn more about money market hedge here: https://brainly.com/question/32529073

#SPJ11

Columbia Inc. uses a perpetual inventory system. At January 1, 2021, inventory was R$207,000,000 at both cost and net realizable value. At December 31, 2021, the inventory was R$243,000,000 at cost and R$232,500,000 at net realizable value. Prepare the necessary December 31 entry under

A.the cost-of-goods sold method and

B.the loss method

Answers

A. Cost of goods sold is an expense account that is credited to reduce the inventory value from purchases.

B. Loss method of accounting for inventory recognizes a loss when the value of inventory drops below its cost basis.

A. Cost of goods sold method Journal entry Particulars Debit Credit Cost of Goods Sold (CoGS) R$243,000,000   Inventory R $243,000,000 Working Note: CoGS = R$243,000,000 [Given]Cost of goods sold is an expense account that is credited to reduce the inventory value from purchases. The cost of goods sold account records the cost of goods sold throughout the accounting period and then transfers the amounts to an expense account in the income statement. B. Loss method Journal entry Particulars Debit Credit Loss due to decline in inventoryR$10,500,000InventoryR$10,500,000Working Note: Loss = R$232,500,000 - R$243,000,000Loss = R$10,500,000Loss method of accounting for inventory recognizes a loss when the value of inventory drops below its cost basis. Therefore, a loss should be reported in the financial statements when the net realizable value of inventory drops below the cost of the inventory.

To know more about inventory visit:

brainly.com/question/31146932

#SPJ11

a) Kaimondake is a department store. Its sales managers wish to introduce a generous bonus app. The purpose is to boost current sales and increase customer loyalty by offering free high end products to their shoppers, in the future, once they have spent a certain amount of money.
(i) Imagine that you are working for Kaimondake as an accountant and you have a meeting with the sales managers. Making reference to concepts of costs & liabilities and any relevant accounting conventions, explain to the sales managers the accounting implications of the introduction of the bonus card.
How will the Kaimondake's accounts need to be adjusted once the app is introduced? (5 marks)

Answers

The store should also use the accrual basis of accounting when accounting for the bonus card. This method ensures that revenues and expenses are recognized when they are incurred, rather than when they are paid. This would ensure that the store accurately records its financial transactions and provides an accurate reflection of its financial position and performance.

Kaimondake is a department store whose sales managers aim to boost current sales and customer loyalty by introducing a generous bonus app. The purpose of the app is to offer free high-end products to shoppers in the future once they have spent a specific amount of money.

As an accountant working for Kaimondake, you are required to explain to the sales managers the accounting implications of the introduction of the bonus card.

The accounting implications of the introduction of the bonus cardThe sales managers of Kaimondake should understand that the introduction of the bonus card would come with certain accounting implications. The bonus app would likely result in costs and liabilities for the store, and its accounts will need to be adjusted accordingly.

If the customers get their bonuses without spending any money, the store would have to spend cash on the high-end products that it is giving out as bonuses. This would increase the store's expenses, which would be reflected in its financial statements.

The store should also consider any outstanding liabilities that arise from the use of the bonus card. The financial statements should clearly show any outstanding liabilities and debts that the store owes as a result of the bonus card. If the store does not have enough funds to cover these liabilities, it may negatively affect the store's credit rating or financial reputation with creditors.

Accounting conventionsIn accordance with accounting conventions, Kaimondake should record any expenses that arise from the introduction of the bonus card in its financial statements. The expenses should be reflected in the period in which they were incurred, and the store should ensure that they are accurately recorded in its financial records.

To learn more about  sales  click here:

https://brainly.com/question/25743891$

#SPJ11

The Subject is Micro economics

Based on the table, answer the following questions:

(a) What is the variable cost per unit for both the companies?

(b) How is average cost calculated? Show the calculation.

(c) How do you find economies of scale being applicable in the above example of two companies?

(d) How big will Sony's unit cost advantage be if it sells 2,000,000 units per year, while Nintendo sells only 2,00,000?

(e) Explain, why is Sony having cost advantage over Nintendo?

Answers

A. Variable cost per unit: Sony: $12,000,000 / 2,000,000 = $6 per unit and Nintendo: $3,000,000 / 400,000 = $7.50 per unit.

B. Average cost calculation: Sony: $15,000,000 / 2,000,000 = $7.50 per unit and Nintendo: $6,000,000 / 400,000 = $15 per unit.

C. Economies of scale can be observed when a company experiences a decrease in average cost as the scale of production increases.

D. Sony has a unit cost advantage of -$7.50 per unit, meaning Sony's average cost is $7.50 lower than Nintendo's average cost.

E. Sony is having a cost advantage over Nintendo due to economies of scale.

(a) To determine the variable cost per unit for both companies, we need to divide the total variable cost by the corresponding units produced. From the table, we can see that the variable cost for Sony is $12,000,000 and they produce 2,000,000 units.

Thus, the variable cost per unit for Sony is $6 per unit. Similarly, for Nintendo, the variable cost is $3,000,000 and they produce 400,000 units, resulting in a variable cost per unit of $7.50.

Variable cost per unit:

Sony: $12,000,000 / 2,000,000 = $6 per unit

Nintendo: $3,000,000 / 400,000 = $7.50 per unit

(b) Average cost is calculated by dividing the total cost by the number of units produced. From the table, we can see that the total cost for Sony is $15,000,000 and they produce 2,000,000 units.

Therefore, the average cost for Sony is $7.50 per unit. For Nintendo, the total cost is $6,000,000 and they produce 400,000 units, resulting in an average cost of $15 per unit.

Average cost calculation:

Sony: $15,000,000 / 2,000,000 = $7.50 per unit

Nintendo: $6,000,000 / 400,000 = $15 per unit

(c) Economies of scale can be observed when a company experiences a decrease in average cost as the scale of production increases. In the given example, Sony has a cost advantage over Nintendo because its average cost decreases as the number of units produced increases.

Sony's average cost decreases from $15 per unit when producing 400,000 units to $7.50 per unit when producing 2,000,000 units. This indicates economies of scale because as Sony increases its production, it benefits from lower average costs.

(d) To determine Sony's unit cost advantage over Nintendo, we need to calculate the difference in their average costs per unit. When Sony sells 2,000,000 units per year, its average cost is $7.50 per unit.

Meanwhile, Nintendo sells only 200,000 units per year, resulting in an average cost of $15 per unit. The unit cost advantage for Sony can be calculated by subtracting Nintendo's average cost from Sony's average cost:

Sony's unit cost advantage = Sony's average cost - Nintendo's average cost

= $7.50 per unit - $15 per unit

= -$7.50 per unit

Therefore, Sony has a unit cost advantage of -$7.50 per unit, meaning Sony's average cost is $7.50 lower than Nintendo's average cost.

(e) Sony is having a cost advantage over Nintendo due to economies of scale. As the production scale increases, Sony's average cost decreases, allowing them to achieve lower costs per unit. This cost advantage can be attributed to factors such as spreading fixed costs over a larger number of units and gaining access to bulk discounts on inputs or raw materials. Additionally, Sony's production efficiency and effective management practices might contribute to its cost advantage over Nintendo.

Know more about  Economies of scale here:

https://brainly.com/question/28026986

#SPJ8

Which one of the following statements is correct?
A) Retained earnings is classified as a long term asset.
B) Current assets can be converted into cash within twelve months.
C) A patent is an example of an intangible liability.
D) Assets equal liabilities minus shareholders’ equity.

Answers

The correct statement is: B) Current assets can be converted into cash within twelve months.

Current assets are assets that are expected to be converted into cash or used up within the normal operating cycle of a business, typically within twelve months. Examples of current assets include cash, accounts receivable, inventory, and prepaid expenses. These assets are expected to be realized or consumed in the short term, providing liquidity to the business. These assets are expected to be readily converted into cash within a relatively short period of time.

Learn more about Current assets visit:

brainly.com/question/17318059

#SPJ11

Lindy's Accounting Services (LAS) Limited is financed entirely by common stock currently valued at $26 per share and has a beta of 0.9. The company is expected to generate a level, perpetual stream of earnings and dividends. The stock has a price earnings (P/E) ratio of 3 and their cost of equity is 5.2%. LAS now decide to repurchase half of their shares and substitute an equal value of debt which has a beta of 0.7 and has a rate of return of 2.5%. Assume no taxes and that Modigliani and Miller are correct calculate the following under the new capital structure: a) The cost of equity (2 marks) b) The overall cost of capital (1 mark) c) The stock price (1 mark) d) The beta of the stock (2 marks)

Answers

a) The cost of equity under the new capital structure is 4.9%.

b) The overall cost of capital under the new capital structure is 2.5%.

c) The stock price under the new capital structure is $17.33 per share.

d) The beta of the stock under the new capital structure is 0.7.

To calculate the cost of equity under the new capital structure, we need to use the Capital Asset Pricing Model (CAPM). The CAPM formula is: Cost of Equity = Risk-Free Rate + Beta * (Market Risk Premium). Given that the cost of equity is 5.2% and the beta of the stock is 0.9 under the current capital structure, we can substitute these values into the formula to calculate the new cost of equity: 5.2% = Risk-Free Rate + 0.9 * (Market Risk Premium). Solving for the Risk-Free Rate, we find that it is 4.9%.

The overall cost of capital under the new capital structure can be calculated using the weighted average cost of capital (WACC). Since the company is substituting debt for equity, the WACC will be equal to the cost of debt, which is 2.5%.

To calculate the new stock price, we can use the price earnings (P/E) ratio. Since the P/E ratio is 3 and the new earnings are expected to be the same as before, the new stock price will be the previous stock price divided by the P/E ratio: $26 / 3 = $8.67 per share. However, since the company is repurchasing half of the shares, the stock price will be adjusted accordingly: $8.67 * 2 = $17.33 per share.

The beta of the stock under the new capital structure will be equal to the beta of the debt, which is 0.7. As per Modigliani and Miller's proposition, the overall beta of a levered firm is equal to the beta of its debt.

Under the new capital structure, the cost of equity is 4.9%, the overall cost of capital is 2.5%, the stock price is $17.33 per share, and the beta of the stock is 0.7. These calculations consider the substitution of debt for equity and adhere to Modigliani and Miller's propositions, assuming no taxes.

To know more about stock visit:

https://brainly.com/question/1193187

#SPJ11

A monopolistic pharmaceuticals company produces a patented drug. In one year, it could sell 450,000 prescriptions at a price of $20, or instead it could sell 550,000 prescriptions at a price of $15. Enter your response below rounded to 2 decimal places. Remember to enter a minus (-) sign in front of any negative values entered as solutions. a. The marginal revenue associated with this range of the business's demand curve is $ the es b. Since this company is a monopolist, its demand curve is [(Click to select) and its marginal revenue curve is (Click to selecti demand curve. c. Draw the relevant range of this business's demand curve and identify a point on its marginal revenue curve. Using the line tool plat 2 points to draw the demand curve.

Answers

The marginal revenue associated with this range of the business's demand curve is $-450,000.b. Since this company is a monopolist, its demand curve is downward-sloping and its marginal revenue curve is below the demand curve. demand curve.

Marginal revenue is the extra revenue obtained from selling an additional product, and it is computed by taking the change in total revenue divided by the change in quantity. The given scenario can be illustrated as follows: At a price of $20, the company can sell 450,000 prescriptions. Therefore, the total revenue is: TR = Price x Quantity= $20 x 450,000= $9,000,000At a price of $15, the company can sell 550,000 prescriptions.

Therefore, the total revenue is: TR = Price x Quantity= $15 x 550,000= $8,250,000The marginal revenue for the company can be computed as follows: The company's marginal revenue associated with this range of the demand curve is $-7.50.Therefore, the marginal revenue associated with the range of the business's demand curve is $-450,000.b. Since this company is a monopolist, its demand curve is downward-sloping and its marginal revenue curve is below the demand curve. The monopolist's demand curve is downward-sloping since it must reduce the price to increase the quantity demanded. The monopolist's marginal revenue curve lies below the demand curve because when it lowers the price to sell more, the revenue obtained from the sale of each unit decreases, resulting in a declining marginal revenue curve. Hence, the correct options are a downward-sloping demand curve and a marginal revenue curve that lies below the demand curve.

To know more about revenue visit:

https://brainly.com/question/29567732

#SPJ11

The past pandemic has accelerated the shift towards a more digital world and triggered changes in online shopping behaviours that are likely to have lasting effects. Therefore, this online shopping industry / business have a lot pro and cons among the competitors. As an owner of online shopping business, review and complete the SWOT analysis to sustain and strategize your business/industry.

Answers

The SWOT analysis assesses the internal strengths and weaknesses of your online shopping business while examining external opportunities and threats in the industry. It provides a comprehensive overview to help sustain and strategize your business.

Strengths:

Wide Reach: Online shopping allows you to reach a global customer base, expanding your market beyond geographical limitations.

Convenience: Online shopping offers convenience to customers, allowing them to shop anytime and from anywhere, resulting in increased sales.

Cost Efficiency: Operating an online shopping business often incurs lower overhead costs compared to brick-and-mortar stores, leading to higher profit margins.

Data Analytics: Online platforms provide access to valuable customer data, enabling you to analyze consumer behavior, personalize marketing strategies, and optimize your offerings.

Scalability: Online businesses have the advantage of easy scalability, allowing you to expand your operations rapidly and adapt to changing market demands.

Weaknesses:

Lack of Tangible Experience: Customers may not be able to physically touch or try products before purchasing, which can lead to hesitancy and potential returns.

Security Concerns: Online transactions carry a risk of data breaches and fraudulent activities, requiring robust security measures to build trust with customers.

Logistics and Fulfillment: Efficient order processing, inventory management, and timely delivery pose challenges that need to be carefully addressed to meet customer expectations.

Intense Competition: The online shopping industry is highly competitive, with numerous players vying for market share, requiring strategic differentiation and effective marketing efforts.

Dependence on Technology: Technical glitches, website downtime, or cybersecurity issues can disrupt business operations and negatively impact customer satisfaction.

Opportunities:

Growing E-Commerce Market: The online shopping industry continues to experience rapid growth, offering ample opportunities for business expansion and revenue generation.

Mobile Shopping: With the increasing use of smartphones, optimizing your online platform for mobile devices can tap into the growing mobile shopping trend.

Personalization and Customization: Utilize customer data to personalize shopping experiences, offer targeted recommendations, and create a loyal customer base.

International Expansion: Expand your business to untapped international markets, leveraging the global reach of online platforms and exploring cross-border selling opportunities.

Partnerships and Collaborations: Seek partnerships with complementary businesses or influencers to enhance brand visibility, reach new audiences, and drive customer engagement.

Threats:

Market Saturation: The online shopping industry is becoming crowded, making it challenging to differentiate your brand and stand out among competitors.

Changing Consumer Preferences: Consumer preferences and behavior evolve over time, and failing to adapt to these changes can result in a loss of market share.

Regulatory Compliance: Changing regulations and legal requirements related to e-commerce, data privacy, and consumer protection can pose compliance challenges.

Cybersecurity Risks: As online transactions increase, the risk of cyberattacks, data breaches, and fraud attempts also rises, necessitating robust security measures.

Supply Chain Disruptions: Unexpected events like natural disasters or global crises can disrupt the supply chain, impacting inventory availability and delivery times.

By leveraging strengths, minimizing weaknesses, pursuing opportunities, and preparing for potential threats, you can develop effective strategies to sustain and grow your business in the dynamic online shopping industry.

To know more about SWOT, visit

brainly.com/question/25066799

#SPJ11

Required: Tri-coat Paints has a current market value of $39 per share with earnings of $3.84. What is the present value of its growth opportunities (PVGO) if the required return is 10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.) PVGO ____

Answers

The Present Value of Growth Opportunities (PVGO) for Tri-coat Paints is $0.60 per share.

To calculate the Present Value of Growth Opportunities (PVGO), we need to subtract the present value of the company's current earnings from its current market value.

PVGO = Market Value - Present Value of Current Earnings

Current market value = $39 per share

Earnings = $3.84 per share

Required return = 10% or 0.10

First, we need to calculate the present value of current earnings:

Present Value of Current Earnings = Earnings / Required Return

Present Value of Current Earnings = $3.84 / 0.10

Present Value of Current Earnings = $38.40

Now, we can calculate the PVGO:

PVGO = Market Value - Present Value of Current Earnings

PVGO = $39 - $38.40

PVGO = $0.60

Therefore, the Present Value of Growth Opportunities (PVGO) for Tri-coat Paints is $0.60 per share.

To know more about present value click here

brainly.com/question/29586738

#SPJ11

Assume you are managing a company division in a country where bribes and kickbacks are "customary." If your company has a code of conduct that prohibits this, how would you deal with locals who "expect" it. Note that not following custom puts your company at a disadvantage Comment on, or make suggestions about, at least two of your classmates' responses to handling this issue.

Answers

Firstly, it is crucial to educate and raise awareness among employees about the ethical implications and legal consequences of bribery. Secondly, building relationships based on trust and integrity with local stakeholders can help mitigate the pressure to engage in corrupt practices.

When managing a company division in a country where bribes and kickbacks are considered customary, it can be challenging to navigate the expectations of locals while upholding the company's code of conduct. Providing clear guidelines and training on the company's code of conduct can help establish a strong ethical culture within the organization. Secondly, building relationships based on trust and integrity with local stakeholders can help mitigate the pressure to engage in corrupt practices. By demonstrating that the company operates ethically and values fair competition, it is possible to gain respect and credibility in the local business community.

Regarding suggestions for classmates' responses to handling this issue, it is important to approach the matter with sensitivity and respect for different perspectives. One suggestion could be for classmates to explore the possibility of implementing alternative business practices that align with local customs but still adhere to ethical standards. Another suggestion could be for classmates to establish strong partnerships with local anti-corruption organizations or government agencies to promote transparency and accountability in business transactions. By collaborating with these entities, they can send a clear message that the company is committed to fair and ethical practices.

To learn more about company's code click here

brainly.com/question/11471972

#SPJ11

an investment at 10 percent coumponded continuously has an equivalent annual rate of ?

Answers

the equivalent annual rate (EAR) for an investment compounded continuously at 10 percent is approximately 10.516 percent (rounded to three decimal places).

To determine the equivalent annual rate for an investment compounded continuously at a given rate, we can use the formula:

Equivalent Annual Rate (EAR) = e²(r) - 1

In this case, the investment has a continuous compounding rate of 10 percent, which we need to convert into a decimal before using it in the formula. Thus, r = 0.10.

Plugging the value into the formula, we have:

EAR = e²(0.10) - 1

Calculating this expression, the equivalent annual rate (EAR) for an investment compounded continuously at 10 percent is approximately 10.516 percent (rounded to three decimal places).

To know more about Investment related question visit:

https://brainly.com/question/15105766

#SPJ11

Explain how the Black-Litterman approach seeks to overcome the problem of the Markowitz mean-variance approach to optimal portfolio allocation.
What are the advantages of the Black-Litterman model over the Markowitz model?
Briefly explain the rationale of the Black-Litterman approach?
Explain why do investors like bond convexity?

Answers

The Black-Litterman approach is an extension of the traditional Markowitz mean-variance approach to portfolio allocation. It aims to overcome some limitations of the Markowitz model, such as its sensitivity to input parameters and the reliance on historical data.

The Black-Litterman model combines investor views or opinions with market equilibrium assumptions to generate optimal portfolio allocations. It starts by estimating the expected returns and covariances of assets using historical data, similar to the Markowitz model. However, it then incorporates subjective investor views about expected returns, adjusting the estimates to reflect these views.

The advantages of the Black-Litterman model over the Markowitz model are as follows:

Incorporation of Investor ViewsReduced Sensitivity to Input Parameters

The rationale of the Black-Litterman approach is to strike a balance between subjective investor views and objective market equilibrium assumptions. By combining the two, it aims to improve the robustness and stability of portfolio allocations, taking into account both historical data and investor insights. The model provides a framework for synthesizing these inputs to generate optimal asset allocations that reflect a blend of market expectations and investor views.

Investors like bond convexity because it offers several advantages:    Price Sensitivity: Bond convexity measures the price sensitivity of a bond to changes in interest rates. Bonds with higher convexity tend to have a more pronounced change in price in response to interest rate movements. This can provide investors with greater opportunities for capital appreciation or hedging strategies.

Risk Mitigation: Bond convexity helps to mitigate interest rate risk. When interest rates decrease, the increased convexity of a bond may lead to larger price increases compared to bonds with lower convexity. This can help offset potential losses in other parts of the portfolio during periods of falling interest rates.

Portfolio Diversification: Bonds with different convexity profiles can provide diversification benefits within a fixed income portfolio. By combining bonds with varying convexity, investors can reduce the overall sensitivity of their portfolio to interest rate changes and enhance risk-adjusted returns.

Overall, bond convexity offers investors the potential for enhanced returns, risk mitigation, and diversification within their fixed income portfolios, making it an attractive feature for many investors.

To know more about Black-Litterman model, visit:

brainly.com/question/31531214

#SPJ11

Describe a good use of network segmentation. When would it be required?

Answers

Network segmentation is the process of dividing a larger computer network into smaller subnetworks to make it more secure and manageable.

It is required to prevent the spread of malicious traffic, limit access to sensitive data and applications, and to improve the performance of the network.

A good use of network segmentation is to segregate the network based on different departments or teams within an organization.

For example, the marketing team may have access to different applications and data than the finance team, and it is important to limit access to prevent data breaches or unauthorized access.

Additionally, a segmented network can prevent the spread of malicious traffic such as malware or virus from one part of the network to another. By dividing the network, an organization can also optimize the performance of the network by prioritizing traffic and allocating network resources accordingly. In summary, network segmentation is required to improve the security, accessibility, and performance of a network.

Learn more about Network segmentation here.

https://brainly.com/questions/31227183

#SPJ11

The cost correlation for a carbon-steel shell and tube heat exchanger is: \(C_(e)=28,000+ 54A^(1.2)\) where A is the heat-transfer area in m² and \(C_(e) V) is the cost of the exchanger on a 2010 basis. Estimate the cost of a carbon-steel shell and tube heat exchanger with a heat-transfer area of 400 m² in 2020. The values of CEPCI (Chemical Engineering Plant Cost Index) for 2010 and 2020 were 550.8 and 622.7, respectively.

Answers

Cost correlation for a carbon-steel shell and tube heat exchanger is defined by the formula given below:

C(e)=28000+54A1.2

where A is the heat-transfer area in m² and Ce is the cost of the exchanger on a 2010 basis.

The cost of a carbon-steel shell and tube heat exchanger with a heat-transfer area of 400 m² in 2010 can be estimated as follows:

C(400)=28000+54(400)1.2C(400)=28000+54(107.2)C(400)=28000+5796.8C(400)=33896.8 CEPCI for 2010 and 2020 are 550.8 and 622.7 respectively.

Using the above information, the cost of a carbon-steel shell and tube heat exchanger in 2020 can be estimated as follows:

C(2020)=C(2010)×CEPCI(2020)CEPCI(2010)C(2020)=33896.8×622.7/550.8C(2020)= 38058.87

Therefore, the cost of a carbon-steel shell and tube heat exchanger with a heat-transfer area of 400 m² in 2020 is $38,058.87.

To know more about cost please visit:

https://brainly.com/question/14566816

#SPJ11

MARTINEZ COMPANY Income Statement For the Year Ended December 31, 2022 Net sales (all on credit) Cost of goods sold $354,000 186,000 168,000 Gross profit Expenses Interest expense $11,100 29,000 20,000 Selling expenses Administrative expenses Total expenses Income before income taxes Income tax expense 60,100 107.900 34.900 Net income $ 73.000 Additional information: a. b. Cash dividends of $53,300 were declared and paid on common stock in 2022. Weighted average number of shares of common stock outstanding during 2022 was 53,300 shares. Market price of common stock on December 31, 2022, was $14 per share. Net cash provided by operating activities for 2022 was $65,500. c. d. Using the financial statements and additional information, compute the following ratios for the Martinez Company for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.) The financial statements of Martinez Company appear below: MARTINEZ COMPANY Comparative Balance Sheet December 31 2022 2021 Assets Cash $ 26,200 $ 40,200 16,200 54,500 61,900 22.100 161,000 141,000 Debt investments Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets Liabilities and stockholders' equity. Accounts payable 165,000 219.000 $430,300 $476,800 $ 22.100 $23.500 45,000 95,600 63.900 145,300 Short-term notes payable Bonds payable Common stock Retained earnings 194.300 139.700 105.000 72,700 Total liabilities and stockholders' equity $430,300 $476.800 Using the financial statements and additional information, compute the following ratios for the Martinez Company for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.) 1. Current ratio :1 2. Return on common stockholders' equity % 3. Price-earnings ratio times 4. . Inventory turnover times 5. . Accounts receivable turnover times 6. Times interest earned times 7 Profit margin % 8. Average days in inventory days 9. Payout ratio % 10. Return on assets %

Answers

Current Ratio = Current Assets / Current Liabilities.

Current Assets = Cash + Accounts receivable + Inventory = $26,200 + $61,900 + $63,900 = $152,000

Using the financial statements and additional information, following are the computed ratios for the Martinez Company for 2022.1. Current Liabilities = Accounts payable + Short-term notes payable = $165,000 + $194,300 = $359,300 Current Ratio = $152,000 / $359,300 = 0.422.

Return on common stockholders' equity = Net income / Average common stockholders' equity Average common stockholders' equity = (Common stock + Retained earnings) / 2 = ($105,000 + $72,700) / 2 = $88,850Return on common stockholders' equity = $73,000 / $88,850 = 0.823.

Price-earnings ratio = Market price per share / Earnings per share Market price per share = $14Earnings per share = Net income / Weighted average number of shares of common stock outstanding during 2022 = $73,000 / 53,300 shares = $1.37Price-earnings ratio = $14 / $1.37 = 10.22 times4.

Inventory turnover = Cost of goods sold / Average inventory Average inventory = (Beginning inventory + Ending inventory) / 2 = ($145,300 + $168,000) / 2 = $156,650Inventory turnover = $186,000 / $156,650 = 1.19 times5.

Accounts receivable turnover = Net sales / Average accounts receivable Average accounts receivable = (Beginning accounts receivable + Ending accounts receivable) / 2 = ($95,600 + $63,900) / 2 = $79,750Accounts receivable turnover = $354,000 / $79,750 = 4.44 times6.

Times interest earned = Income before income taxes and interest expense / Interest expense Times interest earned = $60,100 / $20,000 = 3.0157. Profit margin = Net income / Net sales Profit margin = $73,000 / $354,000 = 0.20648. Average days in inventory = 365 days / Inventory turnover Average days in inventory = 365 / 1.19 = 306.72 days9.

Payout ratio = Dividends paid on common stock / Net income Payout ratio = $53,300 / $73,000 = 0.7301 = 73.01%10. Return on assets = Net income / Total assets Return on assets = $73,000 / $430,300 = 0.1693 = 16.93%

Therefore, all the above ratios have been calculated.

To know more about Current Ratio visit:

https://brainly.com/question/28214599

#SPJ11

The Mumbai dabbawalas have a transportation network that at the beginning of each day is best described as
a. a milk run
b. direct shipping to a single destination.
c. a tailored network.
d. direct shipping from source to customer.

Answers

The transportation network of Mumbai dabbawalas is best described as a tailored network. Option c. is correct.

The Mumbai dabbawalas are known for their efficient and reliable lunchbox delivery system. Each day, these dabbawalas collect lunchboxes from homes and deliver them to their respective offices using a network of bicycles and trains.

The network is best described as a tailored network because it is tailored to the specific needs of each customer. The dabbawalas pick up lunchboxes at specific times from each home and deliver them to specific offices at specific times.

This requires a lot of coordination and planning on the part of the dabbawalas. They use a coding system to ensure that each lunchbox is delivered to the correct destination.

The coding system includes the use of symbols and colors that indicate the destination and origin of each lunchbox. This system has been in place for over 125 years and has been refined over time to become one of the most efficient delivery systems in the world.

Learn more about a tailored network here.

https://brainly.com/questions/19756696

#SPJ11

During the current year, merchandise is sold for $148,600 cash and $500,800 on account. The cost of the goods sold is $474,100. What is the amount of the gross profit?

Answers

During the current year, merchandise is sold for $148,600 cash and $500,800 on account. The cost of the goods sold is $474,100 then the gross profit is = $175,300

Gross Profit is the amount by which sales exceed the cost of goods sold. It is the amount of money that a company earns from selling its goods or services, minus the cost of goods sold (COGS).

To determine the amount of gross profit, you need to find out the total revenue and cost of goods sold (COGS). Here's how to solve the problem:

Given, Cash Sales = $148,600

Sales on account = $500,800

Total Sales = $148,600 + $500,800

= $649,400COGS

= $474,100

Gross Profit = Total Revenue - COGS

Gross Profit = $649,400 - $474,100Gross Profit = $175,300

Therefore, the amount of gross profit is $175,300.

To know more about Gross visit :

brainly.com/question/29064762

#SPJ11

According to the Uniform Commercial Code, which is true about an instrument payable on demand?

Answers

An instrument payable on demand, as defined by the Uniform Commercial Code (UCC), can be paid upon presentation by the holder without any specific maturity date. It is considered due immediately and must be paid upon demand by the holder.

The Uniform Commercial Code (UCC) is a set of standardized laws and regulations that govern commercial transactions and business practices in the United States. It provides a framework for transactions involving the sale of goods, secured transactions, negotiable instruments, and other aspects of commercial law.

The UCC aims to harmonize and streamline commercial laws across different states, ensuring consistency and facilitating interstate commerce. It covers areas such as contracts, warranties, sales, leases, and banking, providing legal rules and guidelines for businesses and individuals engaged in commercial activities.

Learn more about Uniform Commercial Code here:

https://brainly.com/question/20235251

#SPJ4

When the item is offered for resale, shortage costs in the single-period model can include a charge for loss of customer goodwill.

a. true
b. false

Answers

that statement is true  is given below  When an item is offered for resale, shortage costs in the single-period model can include a charge for loss of customer goodwill. It is an important issue to deal with customer goodwill loss in this model.

The single-period model is useful for studying inventory decisions in a single period when the goal is to determine whether to order a product. The objective is to determine the order quantity that maximizes the expected profit or minimizes the expected cost in the given period. When the item is offered for resale, the cost of goodwill loss can be added to the shortage costs .Shortage costs refer to the costs incurred by a firm as a result of not meeting customer demand for a particular product.

Shortage costs are often divided into two categories backorder costs and lost sales costs. Backorder costs are incurred when a firm is unable to meet customer demand and must place customers on backorder. Lost sales costs arise when a firm is unable to fulfill customer demand and loses the sale to a competitor or another firm. Thus, the shortage costs in the single-period model can include a charge for the loss of customer goodwill .In conclusion, it can be said that when the item is offered for resale, shortage costs in the single-period model can include a charge for loss of customer goodwill, which is true.

To know more about important  Visit;

https://brainly.com/question/14473033

#SPJ11

Assuming all other factors remain unchanged, 
a. An increase in the dividend payout ratio
b. An expected increase in the level of inflation
c. A reduction in investor risk aversion
d. An increase in the yield on treasury bills would increase a firm's price/ earnings ratio.

Answers

Assuming all other factors remain unchanged an increase in the dividend payout ratio would increase a firm's price/earning ratio. Option A is correct.

When a firm increases its dividend payout ratio, it means that a larger portion of its earnings is being distributed to shareholders as dividends. This can lead to an increase in the firm's price/earnings (P/E) ratio.

The P/E ratio is calculated by dividing the stock price by the earnings per share (EPS). When the dividend payout ratio increases, it implies that the firm is returning more profits to its shareholders, which can be seen as a positive signal of the firm's financial health and profitability.

This increased confidence in the firm's ability to generate earnings can result in a higher P/E ratio, as investors are willing to pay a higher price for each dollar of earnings. By increasing the dividend payout ratio, the firm enhances its attractiveness to investors, potentially driving up the stock price and increasing the P/E ratio. Option A is correct.

The complete question is

Assuming all other factors remain unchanged _____ would increase a firm's price/earning ratio.

a. An increase in the dividend payout ratio

b. An expected increase in the level of inflation

c. A reduction in investor risk aversion

d. An increase in the yield on treasury bills would increase a firm's price/ earnings ratio.

To know more about the Dividend, here

https://brainly.com/question/30617106

#SPJ4

You’re considering buying the bonds of a very risky company which is paying interest annually. A bond with a $100 face value, a 1-year maturity, and a coupon rate of 22% is selling for $95. You consider that the probability that the company will survive to pay off the bond is 80%. If the company defaults, you think that you will be able to recover $40. If the company has cost of equity of 25%, tax rate of 35%, and 40% of its capital structure is equity, what is its WACC?

Answers

The WACC of the company is 16.6%. Bond's face value= $100Bond's maturity= 1 yearBond's coupon rate= 22%Price of the bond= $95Probability of the company paying off the bond= 80%Amount recoverable.

the company defaults= $40Cost of equity of the company= 25%Tax rate of the company= 35%The company's capital structure is as follows:Equity= 40%Debt= 60%Since the bond is being bought for $95 but has a face value of $100, the yield to maturity of the bond needs to be calculated to determine the rate of return on the investment.Using the trial and error method,Yield to maturity= 27.2%

When the company survives, the bond investor gets 22% of $100= $22. But since the bond is bought for $95, the investor incurs a loss of $95-$22= $73. If the company survives, then $100+$22= $122 will be the future cash flow, and at a yield to maturity of 27.2%, the present value of $122 is $95.When the company defaults, the investor will get a recovery of $40. Using the yield to maturity of 27.2%, the present value of $40 is $31.37.The expected cash flow is the probability of the company paying off the bond multiplied by the cash flow in case of survival plus the probability of the company defaulting multiplied by the cash flow in case of default. Expected cash flow= 0.8×($22-$73)+0.2×$40= -$27.60.The cost of capital is the required rate of return on the investor's investment. Cost of capital= ($100-$95-$27.60)/$95= 16.6%.Hence, the WACC of the company is 16.6%.

To know more about coupon rate visit:

https://brainly.com/question/32136654

#SPJ11

Galaxy Company has added a crypto fund. The high-risk fund will earn a significant risk-reward return rate of 24% per year, compounded monthly. Find how long it will take $ 12000 invested in this fund to grow eightfold (x B)
O a. 9.57 years O b. 11.64 years O c. 7.41 years O d. 5.79 years O e. 5.83 years

Answers

The correct option is: a. 9.57 years. To find out how long it will take $12,000 invested in the high-risk crypto fund to grow eightfold.

We can use the compound interest formula:

A = P * (1 + r/n)^(n*t)

Where:

A = Final amount (eight times the initial investment, 8 * $12,000 = $96,000)

P = Principal amount (initial investment, $12,000)

r = Annual interest rate (24%, or 0.24)

n = Number of times the interest is compounded per year (monthly compounding, so n = 12)

t = Number of years

We need to solve for t, so we can rearrange the formula:

t = log(A/P) / (n * log(1 + r/n))

Substituting the given values:

t = log(96,000/12,000) / (12 * log(1 + 0.24/12))

Calculating this expression gives us approximately 9.57 years.

Therefore, the correct option is:

a. 9.57 years

Learn more about compound interest here:

https://brainly.com/question/14295570

#SPJ11

Other Questions
In the context of the Leadership Grid, the __desires tight control in order to get tasks done efficiently and considers creativity and human relations unnecessary. authority-compliance manager country club manager impoverished manager organization man manager Which of the following is not a true statement regarding the requirement for grounding of equipment? a. When within 8ft(2.5 m) vertically or 5ft(1.5 m) horizontally of ground or grounded metal objects and subject to contact by persons b. When in a hazardous (classified) location as covered by Articles 500 through 517 c. When supplied by a metal-clad, metal-sheathed, metal-raceway, or other wiring method that provides an equipment ground d. When equipment operates with any terminal at over 50 volts to ground 2. Specific requirements for grounding luminaires are located in which of the following NEC sections? a. 250.112( J) b. 250.122 c. 410.42 d. 600.7 3. When a submersible pump is used in a metal well casing, the well casing is required to be bonded to a. the pump circuit equipment grounding conductor. b. the pump circuit equipment grounding conductor only if the water pipe is nonmetallic. c. the grounding electrode conductor. d. the metal water pipe from the pump to the building. University of Florida football programs are printed 1 week prior to each home game. Attendance averages 75,000 screaming and loyal Gators fans, of whom two-thirds usually buy the program, following a normal distribution, for $5 each. Unsold programs are sent to recycling center that pays only 10 cents per program. The standard deviation is 5,000 programs, and the cost to print each program is $2. Refer to the standard normal table for z-values. a) What is the cost of underestimating demand for each program? Cs = $___ (round your response to two decimal places). b) What is the overage cost per program? Co = $___ (round your response to two decimal places). c) How many programs should be ordered per game? ____ programs should be ordered per game (round your response to the nearest whole number). d) What is the stockout risk for this order size? Stockout risk = ____ (round your response to four decimal places). Which of the following plant adaptations is not found in deciduous forests?A. Leaf shape and sizeB. Height and width of treesC. Deep root systemsD. Waxy coatings on leaves A population is growing at a constant rate of 10% each year. Find the doubling time. Round to two decimal places. The doubling time is ___ years. Which of the following statements best explains why accrual basis net income does not equal the cash flows from operating activities? GAAP does not impact how transactions are recorded under the accru which search strategy should you use to search for a specific phrase The position of a toy helicopter of mass 9.7 kg is given by a function, fit)-(4.8 m/s)t +(3.7 m/st3+ (2.6 m/s)tk (i) Calculate the velocity of the helicopter in terms of i. 3. and k in 3.4 seconds The average weight of 20 students in a certain school was found to be 165lbs with a standard deviation of 4.5(a) Construct a 95% confidence interval for the population mean(b) Determine the EBM for the population mean Can someone help me with this? Question 13 of 35Which two phrases describe a wave of a bright red light?A. Relatively short wavelengthB. Relatively long wavelengthC. Relatively tall amplitudeD. Relatively short amplitude Quantity Demanded Between the two prices $8 and 310, the price elasticity of demand is on demand curve D. and on demand curve Consider the following three points: A = (-3, 10, 19) B = (19, 0, 6) C=(5, 5, -21) Which point is closest to the yz-plane? What is the distance from the yz-plane to this point? Which point is the fart Search and identify the types of uncaptured value, thedescription and examples of each type of the identified types. Middle And modern worldQuestion 14 (1 point) When have medieval novels been at their most popular? a) 1850-1900 CE Ob) 1800-1850 CE Oc) 1950- present d) 1900-1950 CE Dr. Adams is conducting a study about the relationship between short stature and shyness. Dr. Adams defines "short stature" as being 2 or more inches below the average height for an adult of one's gender. Dr. Adams' description of shortness is an example of a(n) _____ definition.Experimental,Correlational,Operational, ORTheoretical What is your interpretation of the coefficients on log()?Comment on the coefficient of variation. (3) Express each of the numbers as the ratio of two integers (a) 1.24123. (b) 0.06. a control system that uses a digital signal to provide information about the operating status and conditions of the hvac and help to make decisions about optimal hvac operation is known asa. smart air-conditioning systemb. packaged terminal systemc. building automation systemd. heat pump Your research and development division has just invented a new type of screen for smartphones; you have given the go ahead to try to produce it commercially. It will take five years to find out whether the screen is commercially viable, and you estimate that the probability of its success is 22%. Development will cost 8.0 million per year, paid at the beginning of each year. If development is successful and you decide to produce the screen, a factory extension will be built immediately. The factory will cost 1,100 million to put in place and will generate profits of 80 million at the end of every year in perpetuity. Assume that the current five-year risk-free interest rate is 9.2% per year, and the yield on a perpetual risk-free bond will be 10.0%, 9.0%, 7.0%, 6.0% or 4.0% in five years. Assume that the risk- neutral probability of each possible rate is the same. REQUIRED: i) What is the NPV of this project today?ii) Suppose that you can sell the screen prototype to a competitor for 45 million in year 5. This option is available regardless of whether the development stage is successful or not. What is the value of this option? b) How can proxy contests be used to overcome a captured board? c) What are the advantages and disadvantages of increasing the options granted to CEOS? (3 marks)