Answer:
d. diminishing marginal returns
Explanation:
The diminishing marginal returns refer to a reduction in the marginal output where the value of the single factor would be rises keeping all other production factors the same or constant
Since in the question it is mentioned that for each extra worker hired that contributes would be lesser than the earlier worker hired
So this represents the diminishing marginal returns
hence, the option d is correct
Assume you just deposited $1,000 into a bank account. The current real interest rate is 7.00% and inflation is expected to be 8.00% over the next year. What nominal interest rate would you require from the bank over the next year? How much money will you have at the end of one year? If you are saving to buy fancy bicycle that currently sells for $1,050, will you have enough money to buy it?
Answer:
a) The nominal interest rate that I would require from the bank over the next year is 15%.
b) At the end of one year, I will have $1,150.
c) If I am saving to buy a fancy bicycle that currently sells for $1,050, I will have enough money ($1,150) to buy it. It will be costing $1,134 ($1,050 * 1.08) with inflation rate of 8% in one year's time.
Explanation:
The nominal interest rate (15%) is higher than the real interest rate (7%) when inflation is positive because the real interest rate is adjusted for inflation (at 8%). The real interest rate is the rate without inflation while the nominal interest rate factors in the inflation rate.
Dividends are best defined as:
a. cash or stock payments to shareholders.
b. cash or stock payments to either bondholders or shareholders.
c. distributions of stock to current shareholders.
d. cash payments to shareholders.
e. cash payments to either bondholders or shareholders.
Answer: a. cash or stock payments to shareholders
Explanation:
A dividend is a cash or stick payment that is given to the shareholders of a company. This reward given to the shareholders can be in the form of cash or other form.
The dividend given to the shareholders is gotten out of the profit that the company makes.
Therefore, the correct option is A.
A company sells a plant asset which originally cost $354000 for $124000 on December 31, 2018. The Accumulated Depreciation account had a balance of $146000 after the current year's depreciation of $39000 had been recorded. The company should recognize a
Answer:
d. $45.000 loss on disposal.
Explanation:
a. $84000 gain on disposal. b. $84000 loss on disposal. c. $230000 loss on disposal. d. $45.000 loss on disposal.
Book Value on the Date of sale = Cost - Accumulated Depreication -Current year Depreciation
Book Value on the Date of sale = $354,000 - $146,000 - $39,000
Book Value on the Date of sale = $169,000
Gain (Loss) on disposal of the Asset= Selling Price - Book Value
Gain (Loss) on disposal of the Asset = $124,000 - $169,000
Loss on disposal of the Asset = $45,000
Dawson Electronic Services had revenues of $106,000 and expenses of $63,000 for the year. Its assets at the beginning of the year were $413,000. At the end of the year assets were worth $463,000. Calculate its return on assets.
Answer:Return On Assets=9.8%
Explanation:
Return On Assets =Net income/Average total assets
But
Net income=Revenues-Expenses
=$106,000 - $63,000
= $43,000
And Average total assets is given as (Beginning assets +Ending assets)/2
= ($413,000+$463000)/2=$876,000 /2
=$438,000
Therefore Return On Assets =Net income/Average total assets
= $43,000 / $438,000
=0.098 x 100
=9.8%
Project L costs $70,000, its expected cash inflows are $16,000 per year for 8 years, and its WACC is 13%. What is the project's discounted payback?
Answer:
6.89 years
Explanation:
The discounted payback period can be calculated by using the following table
Year Cash flows PV(13%) Cumulative Cash flows
0 (70000) (70000) (70000)
1 16000 14159.29 (55840.71)
2 16000 12530.35 (43310.36)
3 16000 11088.80 (32221.56)
4 16000 9813.10 (22408.46)
5 16000 8684.16 (13724.30)
6 16000 7685.10 (6039.20)
7 16000 6800.97 761.77
8 16000 6018.56 6780.33
Discounted Payback = 6 years + 6039/ 6801
Discounted Payback = 6.89 years
Which of the following assumptions would cause the constant growth stock valuation model to be invalid? The growth rate is zero. The growth rate is negative. The required rate of return is greater than the growth rate. The required rate of return is more than 50%. None of the above assumptions would invalidate the model. -Select-
Answer:
e. None of the above assumptions would invalidate the model
Explanation:
Incomplete question "The constant growth model is given below: P0 = [D0(1 + g)]/[(rs - g)]"
According to dividend discount model,
P0 = D1/(R-G)
D1 - Dividend at t =1
R - Required rate
G - Growth rate
This would be invalid if R < G. In other words, Dividend growth model will be invalid in only one situation, that is, when growth rate is more than require return. In this situation growth model cannot be used.
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances:
I need help with the analysis part. Thank you!
Answer:
first part
Return on equity = net income / equity =
net income = total revenue - expenses = $66,500 - $42,700 (salaries) - $6,900 (utilities) - $8,000 (supplies) - $1,675 (depreciation) - $2,700 (taxes) = $4,525
equity = $153,200 (Dec. 31 balance) + $42,000 (new stocks issued) - $20,000 (treasury stocks) - $3,620 (dividends) + 17,600 (treasury stocks sold) + $4,525 (net income) = $193,705
ROE = $4,525 / $193,705 = 2.34%
The company is less profitable than other companies in the same industry.
second part
total stocks outstanding = 18,100
third part
EPS for January = $4,525 / 18,100 = $0.25
EPS for January is higher than last year's average
This afternoon, Northern Railways paid an annual dividend of $2.44 per share. The company has been increasing the dividends by 15 percent each year. How much are you willing to pay to purchase stock in this company if your required rate of return is 16 percent?
a. $7.87
b. $207.40
c. $36.60
d. $6.69
e. $280.60
Answer:
P0 = $280.60
Option e is the correct answer.
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 is the dividend today or paid recentlyD0 * (1+g) is dividend expected for the next period /year g is the growth rate r is the required rate of returnP0 = 2.44 * (1+0.15) / (0.16 - 0.15)
P0 = $280.60
Sheila and her team were able to successfully implement an IS in a hospitality organization. Match the success factors to their meanings.
increased visibility
increased efficiency
better quality
reduced cycle time
reduced process time in different areas
real-time status or availability of any process or product
faster execution of each process
high quality standards of products and processes
Answer:
Increased visibility- real-time status or availability of any process or product
increased efficiency - reduced process time in different areas
better quality- high-quality standards of products and processes
reduced cycle time-faster execution of each process
did get it right?
The results of unethical behavior in a business can be catastrophic, both financially and in reputation. Clearwater Electronics currently has a solid reputation as an ethical organization and wants to maintain that reputation. Top management has tasked the HR department to reinforce ethical behavior consistently throughout the company. Given that responsibility, why is it especially important for the HR professionals themselves to behave ethically?
Answer:
Throughout the description segment below the overview according to the particular instance is defined.
Explanation:
Even though HR professionals become capable just of establishing as well as maintaining a healthy work atmosphere throughout positions of responsibility, it's indeed crucial that they somehow behave responsibly. This same HR department must therefore implement professional HR activities ensuring that they're being a model citizen again for the majority including its corporation's representatives.A__________is a customer benefit package (CBP) feature that departs from the standard CBP and is normally location specific or firm specific.
a. bottleneck
b. peripheral product
c. core product
d. variant
Answer:
d. variant
Explanation:
A variant signifies a set of attributes that is specific to the firm or location in which the firm operates.
For example, a restaurant chain operating for years that decide to entertain its guest with a live band in its new has just added a new variant to its customer benefit package.
Prices for airline tickets change on average about once per month. This would suggest that airline ticket prices are
Answer:
relatively flexible
Explanation:
Flexible pricing is when there is room for negotiation of prices of a product between the buyers and sellers.
So the price is prone to change in short amount of time.
Sticky price on the other hand tends to be non negotiable and the does not change over time.in the given scenario prices for airline tickets change on average about once per month.
So there is constant change of the price every month. Meaning the buyer can convince the seller to change his offering price.
The price is relatively flexible
A friend asks to borrow $635.52 today and promises to repay you $1,000 with interest compounded annually at 12%. How many years (compounding periods) will pass before you receive the payment
Answer:
4 years
Explanation:
We can calculate the years (compounding periods that) will pass before you receive the payment by calculating the PV factor at 12% as follows.
DATA
Amount borrowed = $635.52
future amount = $1,000
Interest rate = 12%
Time period (n) = ?
Solution
Amount borrowed = future amount x Present value factor (12%, n)
$635.52 = $1,000 x PV factor(12%, n)
0.63552 = PV factor(12%, n)
If you see in a discount table yu wi see 0.63552 in the fourth row of 12% rate that means it will take 4 years to receive the payment.
A part of a business's message that distinguishes it from all its competitors
is referred to as what?
A. Cultural sensitivity
B. Unique selling proposition
C. Superiority clause
D. Isolation technique
Answer:
Unique selling proposition.
Answer:b
Explanation:
Karl purchased a second, larger home in which to live. He has
decided to rent his first home out for $1,500 a month. His
mortgage on the first home is $1,250. Is this an example of
passive income?
A) No B) Yes
Answer:
yes
Explanation:
Passive income is any earning that does not require a person to get involved too much. It is income that requires little effort to earn and maintain. Examples of passive income include shareholder's dividends and rental income. Passive income contrasts with active income, where one participates, is fully engaged, or works for many hours.
Karl receives $1500 as rent and pays $1250 as a mortgage. He earns $250 without using too much effort.