Answer:
Employment Testing:
is legal, but is a very poor predictor of worker performance.
Explanation:
Employment testing is legal. However, it should be professionally developed and administered according to the employer's intended purpose. That purpose must be to enable the employer hire employees that fit the profile of the organization. It is also used to predict a new employee's job performance and retainability. But, it has been discovered that employment testing does not accurately predict the worker's future performance.
Do some research on mergers and acquisitions. What were the five largest mergers– acquisitions last year? Make a list of the partners in each. What reasons were given for the merger–acquisition? Do you think these mergers–acquisitions made strategic sense? Explain.
Answer:
Mergers and Acquisitions in 2019:
1. The five largest mergers-acquisitions in 2019:
Acquirer and Partner
a. BB&T and SunTrust
b. Schwab and TD Ameritrade
c. Raythem and UTC
d. Newmont and Goldcorp
e. Salesforce and Tableau Software
2. Reasons for the M&A:
a. BB&T and SunTrust - to cut cost
b. Schwab and TD Ameritrade - to save money
c. Raythem and UTC - to become largest defence company
d. Newmont and Goldcorp - to acquire competitive advantage
e. Salesforce and Tableau Software - to boost revenue
3. Some of the M&A transactions do not make any strategic sense. For example, now that Raythem and UTC combined want to form the largest defense company, do they add much to their stockholders returns? Some others acquired to cut cost will experience the huge costs of acquisition, which are, most times, too large to be written off in a single year.
Explanation:
Major financial transactions done at the corporate level for the purpose of consolidating the assets of two or more companies, growing market share, and eliminating competition are called Mergers and Acquisitions (M&A). Consolidation of companies may be achieved through mergers, acquisitions, assets purchase, management acquisitions, etc.
After year 3, free cash flows are expected to grow at a constant 5% a year indefinitely. The discount rate is 10%. The firm has debt of $50 million, cash of $20 million and has 10,000,000 shares outstanding. What is the price of the stock
Answer:
The price of the stock = $26.69
Explanation:
Missing question at inception is as follows "A firm expects the following free cash flows: Year 1: $10 million, Year 2: $12 million, Year 3: $15 million"
Year Cash-flows"million D. rate at 10% Discounted cash flows
1 10 0.9091 9.0910
2 12 0.8264 9.9168
3 15 0.7513 11.2695
4 315 0. 7513 236.6595
Total $266.9368
The price of the stock = Total Present value of cash flows / Number of Shares outstanding
The price of the stock = $266,936,800 / 10,000,000 shares
The price of the stock = $26.69368
The price of the stock = $26.69
Thus, the price of the stock is $26.69 per share
Note:
Present value of future cash flows at year 3 = 15*(1.05/10%-5%) = 15*(1.05/5%) = 15 * 21 = $315 million
Discount rate for each year = 1/(1+r)^1 = 1/(1+0.10)^1 = 1/1.10 = 0.90909
Derek has the opportunity to buy a money machine today. The money machine will pay Derek $13,751.00 exactly 12.00 years from today. Assuming that Derek believes the appropriate discount rate is 4.00%, how much is he willing to pay for this money machine?
Answer:
$8,588.83
Explanation:
To determine the amount that Derek would pay for the money machine, we are to calculate the present value of the lump sum to be received in 12 years.
Present value is the sum of discounted cash flows.
Present value can be calculated using a financial calculator
Cash flow each year from year 1 to 11 = 0
Cash flow in year 12 = $13,751.00
I = 4%
Present value = $8,588.83
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Addison Corporation is considering the purchase of equipment that would increase sales revenues by $250,000 per year and cash operating expenses by $100,000 per year. The equipment would cost $400,000 and have a 5-year life with no salvage value. The simple rate of return on the investment is closest to ________.
Answer:
17.5%
Explanation:
Calculation for The simple rate of return on the investment
First step is to calculate the Depreciation
Depreciation =$400,000/5 years
Depreciation = $ 80,000
Second step is to calculate the annual incremental net operating income
Sales Revenue $250,000
Less Cash Operating Expenses ($100,000)
Less Depreciation ($80,000)
Annual incremental net operating income $70,000
($250,000-$100,000-$80,000)
Last step is to calculate the simple rate of return on the investment using this formula
Simple rate of return=Annual incremental net operating income/Initial investment
Let plug in the formula
Simple rate of return=$70,000/$400,000
Simple rate of return=0.175*100
Simple rate of return=17.5%
The simple rate of return on the investment is closest to 17.5%
Question 27 (2 points)
Which of the following is not one of the four factors of production?
Entrepreneurship
Human resources
Production resources
Natural resources
Answer:
Entrepreneurship
Explanation:
Under what conditions do you think the U.S. dollar might weaken against other major currencies (i.n. the euro, yen and yuan)
Answer:
In simple words, Currency depreciation relates to the decrease in the worth of the dollar compared to some other economy in the sense regarding U.S. dollar. The weakening of the US dollar will lead to a number of economic variables. They include fiscal system, increasing rates or rising prices, currency request, economic development, and rates for exports.
A consumer purchases new windows for his/her home to replace the original windows put in when they house was built, this could be an example of what type of benefit?
A. Resource benefit
B. The actual window
C. Product
D. Sensory benefit
Answer:
D. Sensory benefit
Explanation:
Sensory benefit is the method that is used by marketers to promote their products in such a way that they appeal to the emotions of buyers.
When a consumer buys this way it is more of an emotional response than a need born of necessity.
In the given instance the consumer purchases new windows for his/her home to replace the original windows put in when they house was built.
It does not mean the old windows are not functioning well, but due to personal preference the consumer decides to replace the windows
The objective of imposing a higher pollution tax is to ensure firms have pollution charge credits for all reduced emissions. provide incentive for firms to maintain regulation emission levels. provide adequate incentive for firms to reduce their emissions by more. ensure firms must pay the pollution charge for all reduced emissions.
Answer:
provide adequate incentive for firms to reduce their emissions by more.
Explanation:
Pollution charge can be regarded as a tax imposed on firms based on the quantity of pollution emmitted to atmosphere by the firm. With imposition of pollution tax, profit-maximizing firm would have the incentive to look out for ways to reduce the firm's emissions provided the marginal cost required to reduce the emissions is not equal or more than the tax. It should be noted that the objective of imposing a higher pollution tax is to ensure firms have pollution charge credits for all reduced emissions provide adequate incentive for firms to reduce their emissions by more.
The objective of imposing a higher pollution tax is to ensure firms provide adequate incentives for firms to reduce their emissions by more.
A levy called a pollution tax is imposed on people who pollute or harm the environment. This tax's primary goal is to lessen harm to the environment. A component of the economic system intended to lessen pollution and its damaging effects on the environment is the pollution tax. Polluters are taxed for the harm their actions do to the environment and other people.
Pollution taxes include the carbon tax. Based on the amount of carbon that is released during combustion, it imposes a tax on the production, distribution, or use of fossil fuels.
Learn more about the Pollution Taxes here:
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Dennisport Corporation has an acid-test ratio of 1.7. It has current liabilities of $56,000 and noncurrent assets of $87,000. The corporation's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory. Of Dennis Port current ratio is 2.3, its inventory and prepaid expenses must be:
Answer: $33600
Explanation:
Current liabilities = $56,000
Noncurrent assets = $87,000
First and foremost, we should note that:
Acid-test ratio = Current Assets / Current liabilities
Therefore,
1.7 = Current Assets / $56,000
Current assets = $56000 × 1.7
= $95,200
Also,
Current ratio = Current Assets / Current liabilities
Therefore,
2.3 = Current Assets / $56,000
Current assets = $56,000 × 2.3
= $128,800
Then, the inventory and prepaid expenses will be:
= $128,800 - $95,200
= $33,600
Identify and explain the components of management compensation and the tradeoffs that compensation designers make.
Incorrect/Incomplete question: Complete question read;
Which of the following statements correctly describes management compensation options?
A) Managers do not receive fixed salaries; instead their compensation is based on bonuses and incentives.
B) Perks (perquisites) were eliminated as part of the Sarbanes-Oxley Act.
C) Bonuses are typically awarded for meeting or achieving specific goals.
D) Stock options and awards are part of fixed salary compensation.
Answer:
C) Bonuses are typically awarded for meeting or achieving specific goals.
Explanation:
All the options above with the exception of option C rightly describes management compensation plans. Remember, the term compensation includes both cash and non-cash payments an employee may receive for performing their duties well.
Hence, managers may award certain bonuses (eg 5% salary bonuses, etc) to their employees for working diligently to meet specific goals (like meeting a sales target, new customer acquisition targets, etc).
What are some of your strengths areas? Think about the top 2/3 skills you would advertise about yourself, consider what others come to you for advice about.
Answer:
Some of my strength areas are trustworthiness, creativity and solving problems, leadership and organization, analytical skills, determination, and empathy.
Explanation:
Every person's core strengths or skills should fall into these three main areas: personal, play, and work. Personal skills deal with the fundamental skills that give the background to every activity that a person undertakes. Play skills define the human interaction and relationship with others. Work skills specify one's attitude to work and how a person achieves her goals in the work environment.
Comparing perfect first degree price discrimination to perfect competition one can conclude that: (i) Total social surplus is the same in either case (ii) Consumer surplus is higher under perfect
A. Only (1) is true
B. Only (ii) is true
C. Both (i) and (ii) are true
D. Neither (i) nor (i) is true
Answer:
C. Both (i) and (ii) are true
Explanation:
Under perfect price discrimination, consumer surplus doesn't exist since the supplier is selling the good or service at the maximum price that each consumer is willing to pay. This situation maximizes supplier surplus.
Under perfect competition, both supplier and consumer surplus exist.
Since total social surplus = supplier surplus + consumer surplus, total surplus should be the same in both situations.
Do you think we should have to pay more or less taxes?
Who pays more taxes, the wealthy, middle-class, or those in poverty? Do they pay different types of taxes, or more taxes than others?
What are “Tax Loopholes” & who tends to benefit from them?
Paying tax is a relative thing .If government is utlizing the collected tax in proper ways and investing it in development arena,its good to pay the taxes because it ultimately will benifit us but paying more tax for government with weak development strategies and slow implementation that too with corruption its worthless of paying tax. 2. Middle class pays the hightest tax but the wealthy one pays low taxes because they wonderfully uses the tax loopholes inorder to pay less tax..Acutally paying less tax makes wealthy more wealthier but middle class who pay more tax cannot jump from middle class to high class because most of their income is deducted through tax
What strategy should be applied when other strategies are ineffective and the company needs to change quickly
Answer:
Plan Carefully. ...
Be as Transparent as Possible. ...
Tell the Truth. ...
Communicate. ...
Create a Roadmap. ...
Provide Training. ...
Invite Participation. ...
Don't Expect to Implement Change Overnight.
Explanation:
England can produce either 12 bushels of corn or 34 bushels of wheat. What is England's opportunity cost of producing 1 bushel of corn (in terms of bushels of wheat)
Answer: 2.83 bushels of wheat
Explanation:
If England is not producing 12 bushels of corn, they would be able to produce 34 bushels of wheat.
This means that England's opportunity cost for corn is;
= 34/12
= 2.83 bushels of wheat
For every bushel of corn produced, England could have produced 2.83 bushels of wheat.
Expert power Group of answer choices is derived from organizationally conferred decision-making authority. arises from manager access, control, and distribution of information that is not freely available to everyone in an organization. is derived from referent power. is derived from leader capability and knowledge in a particular field.
Answer:
is derived from leader capability and knowledge in a particular field
Explanation:
The expert power is thinking with respect to a specific person that contains the knowledge level or the specific level but the other person dont have
Also the person have the expertise in a specific field due to which the people around feel that the person powerful and give more values to his opinion
Therefore as per the given option, the last option is correct
Additional information:During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
Note: The full question is attached as picture below
Statement of cash flow - Pharaoh Company
Cash Flows From Operating Activities
Net Income $780
Adjustment
Depreciation Expenses $130
Gain On Sale Of Investment -$70
Increase In Receivable -$470
Decrease In Inventories $240
Increase In Accounts Payable $280
Decrease In Accrued Liabilities -$70
$40
Net Cash From Operating Activities $820
Cash Flows From Investing Activities
Sale Of Long Term Investment $190
(1400-1280)+70
Purchase Of Plant Assets -$190 $0
Net Cash Used Investing Activities $0
Cash Flows From Financing Activities
Repayment Of Bonds Payable -$140
Issue Of Common Stock $210
Payment Of Dividends -$260
Net Cash From Financing Activities -$190
Net Increase In Cash And Cash Equivalents $630
Beginning Cash Balance $1,130
Ending Balance $1,760
What are the legal steps to take when trying to start a business
There are 3 major forms of business ownership
Sole Proprietorship
Partnership
Private Limited Liability Company
If you are to start a business, which of these form of business would you pick and what are your reasons
Answer:
partnership
Explanation:
because I don't know what I will do if i don't have a partner and you two would brainstorm so you can do it well and right
McDonald's Corp has a preferred stock paying a dividend of $19 and has a market price of $178. Calculate the cost of capital for the preferred stock.
Answer:
McDonald's Corp
The cost of capital for the preferred stock is:
10.67%
Explanation:
a) Data and Calculations:
Market price of preferred stock = $178
Preferred stock dividend = $19
Cost of capital = Preferred stock dividend/Market price of preferred stock * 100
= $19/$178 * 100
= 10.67%
b) The cost of capital for McDonald's preferred stock is the finance cost or interest cost that it must incur for financing its projects using preferred stock. This represents the 10% of the preferred stock value that is paid out to preferred stockholders.
Presented below is information available for Crane Company.
Current Assets
Cash $ 3500
Short-term investments 50000
Accounts receivable 56000
Inventory 80000
Prepaid expenses 25000
Total current assets $ 214500
Total current liabilities are $73000.
The acid-test ratio for Crane is:__________
Answer:
the acid-test ratio is 1.5 times
Explanation:
The computation of the acid-test ratio is as follows:
Acid test Ratio = Quick assets ÷ current liabilities
where,
Quick Assets is
= Cash + short tern investments + Account receivable
= $3,500 + $50,000 + $56,000
= $109,500
And, the current liabilities is $73,000
So, the acid-test ratio is
= $109,500 ÷ $73,000
= 1.5 times
Hence, the acid-test ratio is 1.5 times
Kahn Inc. has a target capital structure of 60% common equity and 40% debt to fund its $10 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 13%, a before-tax cost of debt of 10%, and a tax rate of 40%. The company’s retained earnings are adequate to provide the common equity portion of its capital budget. Its expected dividend next year D1 is $3, and the current stock price is $35.
a. What is the company’s expected growth rate?
b. If the firm’s net income is expected to be $1.6 billion, what portion of its net income is the firm expected to pay out as dividends?
Answer and Explanation:
The computation is shown below
a. Given that
WACC = 13%
Before-tax cost of debt = 10%
As we know that
WACC = After tax Cost of debt × Weight of debt + Cost of equity × weight of equity
13% = 10% × (1 - 0.40) × 0.40 + X × 0.60
13% = 6% × 0.40 + X × 0.60
13% = 2.4% + X × 0.60
10.6% = X × 0.60
X = 17.67%
Now
Cost of equity = D1 ÷ Price + g
0.1767 = $3 ÷ 35 + g
g = 9.10%
Now
B) Growth rate = (1 - payout ratio) × ROE
.0910 = ( 1 - X) × 0.2667
Payout ratio = 65.88
As we know that
ROE = net income ÷ shareholders equity
= $1.6 billion ÷ $6 billion
= 26.67%
Now the portion of the net income for the dividend would be
= 65.88 × $1.6 billion
= 1.054 billion
Randolph Corporation sells a single product at a price of $275 per unit. Variable cost per unit is $135 and fixed costs total $356,860. If sales are expected to be $825,000, what is the company's margin of safety
Answer:
Margin of Safety = $124,038
Explanation:
Given:
Total Sale = $825,000
Sales price = $275 per unit
Variable cost per unit = $135
Fixed costs total = $356,860
Find:
Margin of Safety
Computation:
BEP Sale = FC / [(Sales per unit - VC) / Sales per unit]
BEP Sale = $700,962
Margin of Safety = Total Sale - BEP Sale
Margin of Safety = $825,000 - $700,962
Margin of Safety = $124,038
review financial website or publications and three examples of a bond. for each bond gather the following information and complete the table coupon rate selling price maturity date
Answer:
Company Coupon Rate Selling Price Maturity Date
Bombardier Inc. 7.5% $96.40 3/15/2025
NGL Energy Partners LP 6.875% $97.50 10/15/2021
Disney 2.150% $101.45 9/17/2020
Explanation:
from the Plato
The Coupon Rate, Selling Price and Maturity Date are important terms in a bond contract.
What are the bonds terms?The coupon rate is the yield that determines the amount that an investor is expected to receive, the selling price is the present value of the cash amounts that will received by the bond owner and the maturity date is the date at which the bond will mature for full repayment.
The gathered information from the financial website includes:
Company Coupon Rate Selling Price Maturity Date
Bombardier Inc. 7.5% $96.40 3/15/2025
NGL Energy Partners LP 6.875% $97.50 10/15/2021
Disney 2.150% $101.45 9/17/2020
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a single person making $240 weekly and claiming 1 allowance would have $13 withheld for income taxes.A married person making $240 weekly and claiming 1 allowance would have $3 withheld for income taxes.Do you think this is fair?Why or Why not?
How much was the gross profit margin percentage for Coca-Cola Company for the quarter ending Sep, 2020?
Less than 20%
Between 20% and 30%
Between 30% and 40%
More than 40%
Answer: More than 40%
Explanation:
Coca-cola Gross profit for the quarter ending Sep, 2020 is $5,181 million. Coca-cola's revenues for the same period are $8,652 million.
The Gross profit margin is therefore;
= Gross Profit / Revenue
= 5,181/8,652
= 59.9%
When creditors, managers, and investors look at expenses as a percentage of revenue, they are __________.
Answer:
Doing a financial statement analysis.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Financial statement analysis can be defined as the process of analyzing, estimating and reviewing the financial statements of a business firm or organization in order to make better economic decisions and profits in the future.
Hence, when creditors, managers, and investors look at expenses as a percentage of revenue, they are doing a financial statement analysis.
Identify which of the following is a drawback for charisma-based authority:__________a) Charismatic leaders often focus too much on efficiency in governingb) Charisma cannot be passed on from one leader to the next
c) A charisma-based leadership style tends to be inflexibled) People tend to react negatively to charismatic leaders
Answer:
B) Charisma cannot be passed on from one leader to the next
Explanation:
The Charismatic authority ican be regarded as leadership style whereby
authority is exercise as a result of
special personal qualities put up by individual so that he/she can be attractive enough to bring influence on large number of people. It should be noted that some of drawback of this leadership style is that Charisma cannot be passed on from one leader to the next
County Medical Center received unrestricted contributions of $22,000. The hospital used the contributions to support general services. These contributions would be reported on the statement of cash flows as
Answer:
County Medical Center
These unrestricted contributions of $22,000 used to support general services would be reported on the statement of cash flows as:
cash from operating activities.
Explanation:
Unrestricted contributions received by the County Medical Center are funds or other assets given to the Center with no restriction on their use. Unrestricted contributions are usually directed at the funding of operational expenses, as the County Medical Center demonstrated. Therefore, they are listed under operating activities in the Statement of Cash Flows.
Denise has $13,424 in a savings account with the District 113 Teacher's Credit Union. While economic conditions have caused the credit union to struggle financially, Denise need not worry because her deposits are insured by the:
Answer:
Explanation:
$120= the amount to pay for the shoe
$20 paid for the month
Balance to pay = $100
Then 3% interest rate on credit card = 3% of $100=$3
Therefore amount to pay = $3+$100=$103
Data from Fontecchio Corporation's most recent balance sheet appear below:
Cash $ 37,000
Marketable securities $ 39,000
Accounts receivable $ 97,600
Inventory $ 77,000
Prepaid expenses $ 32,000
Current liabilities $ 248,000
The corporation's acid-test ratio is closest to:_______
a. 0.56
b. 0.37
c. 0.19
d. 0.35
Answer:
the acid test ratio is 0.7 times
Explanation:
The computation of the acid test ratio is shown below;
Acid test ratio is
= Quick assets ÷ current liabilities
= (Cash + marketable securities + account receivable) ÷ current liabilities
= ($37,000 + $39,000 + $97,600) ÷ ($248,000)
= 0.7
Hence, the acid test ratio is 0.7 times
This is the answer but the same is not provided in the given options