(Dividend policies) Final earnings estimates for Chilean Health Spa & Fitness Center have been prepared for the CFO of the company and are shown in the following table: BE. The firm has 7,700,000 shares of common stock outstanding.
As assistant to the CFO, you are asked to determine the yearly dividend per share to be paid depending on the following possible policies
a.A stable dollar dividend targeted at 50 percent of earnings over a 5-year period.
b.A small, regular dividend of $0.70 per share plus a year-end extra when the profits in any year exceed $21,000,000.

Answers

Answer 1

The yearly dividend per share to be paid would depend on the policy that the company decides to implement - either $0.97 per share for policy (a) or $1.09 per share for policy (b).

For policy (a), to determine the yearly dividend per share to be paid, we need to calculate the average earnings over the 5-year period and take 50% of it as the targeted dividend per share. Let's assume the average earnings over the 5-year period is $15,000,000. Then, the targeted dividend per share would be:

Dividend per share = 50% x Average earnings / Number of shares Dividend per share = (0.5 * $15,000,000) / 7,700,000 Dividend per share = $0.97

For policy (b), we need to determine the year-end extra dividend when the profits in any year exceed $21,000,000. Let's assume that the profits for the current year are $24,000,000. Then, the year-end extra dividend per share would be:

Year-end extra dividend per share = (Profit - Threshold) / Number of shares Year-end extra dividend per share = ($24,000,000 - $21,000,000) / 7,700,000 Year-end extra dividend per share = $0.39

The regular dividend per share is given as $0.70. Therefore, the total dividend per share for policy (b) would be:

Total dividend per share = Regular dividend per share + Year-end extra dividend per share Total dividend per share = $0.70 + $0.39 Total dividend per share = $1.09

So, the yearly dividend per share to be paid would depend on the policy that the company decides to implement - either $0.97 per share for policy (a) or $1.09 per share for policy (b).

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Related Questions

peter started his business because he wanted to work for himself. received help from a venture capitalist. received help from an angel investor. had skill in creating a detailed business plan.

Answers

Peter started his business for a variety of reasons. One of the main reasons was that he wanted to work for himself and have more control over his own work and career.

Additionally, Peter received help from a venture capitalist, who provided funding and resources for his business. He also received help from an angel investor, who provided additional financial support and guidance. Lastly, Peter had a skill in creating a detailed business plan, which helped him to successfully launch his business and attract investors.

Overall, Peter's success in starting his business was due to a combination of his own motivation and skills, as well as the support and resources provided by venture capitalists and angel investors. By leveraging these factors, Peter was able to successfully launch his business and achieve his goal of working for himself.

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up to now your success has been based on selling high-quality fast food at an affordable price that others can't match. your business is pursuing which competitive strategy?

Answers

The business in question is pursuing a cost leadership strategy as it is selling high-quality fast food at an affordable price that others cannot match. A cost leadership strategy is a business approach in which a business provides products or services at a lower cost than its competitors.

This approach necessitates reducing costs while maintaining a reasonable level of quality in order to keep prices low and attract price-sensitive customers. The following are the characteristics of a cost leadership strategy:

Making products or services less expensive than those of rivals by lowering costs in some way (e.g. reducing costs of raw materials or using less costly methods of production).Offering products or services that are of similar quality to those of rivals, or cutting back on non-essential features.Providing goods or services at a lower price than competitors.Focusing on producing a large number of products or services.Using automation to lower costs and increase efficiency.Hiring and developing a low-cost labor force.

Examples of firms that use cost leadership strategies are Walmart, Southwest Airlines, and McDonald’s. They achieve cost leadership through a range of approaches such as using low-cost raw materials, providing standardized products, and economies of scale.

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what is the effect of foreign students attending college in the united states on the u.s. balance of payments? foreign students attending u.s. universities

Answers

According to the U.S. Department of Commerce, foreign students made $45 billion in economic contributions to the United States in 2018.

Why do universities require students from abroad?

The diversity of experience is one of them, and geographic diversity is another. They wish to hire overseas students for both of these main causes. Students with a variety of backgrounds can bring new ideas to the classroom and actively participate in group discussions.

What advantages do foreign students provide to the American economy?

The continued growth in international students coming to the U.S. for higher education had a significant positive economic impact on the United States. According to the U.S. Department of Commerce, foreign students made $45 billion in economic contributions to the United States in 2018.

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Derive the income elasticity of demand for individuals with;a) Cobb-Douglas,b) Perfect substitutes,c) Perfect complements utility functions

Answers

The income elasticity of demand for individuals with a Cobb-Douglas utility function is equal to 1, with a perfect substitutes utility function is equal to 0, with a perfect complements utility function is also equal to 0.

The income elasticity of demand is a measure of how the quantity demanded of a particular good or service changes in response to changes in income. It is calculated as the percentage change in quantity demanded divided by the percentage change in income.

a) Cobb-Douglas: The income elasticity of demand for individuals with a Cobb-Douglas utility function is equal to 1. This is because the Cobb-Douglas utility function assumes that individuals spend a constant proportion of their income on each good or service, so the quantity demanded of each good or service will change in proportion to changes in income.

b) Perfect substitutes: The income elasticity of demand for individuals with a perfect substitutes utility function is equal to 0. This is because the utility function assumes that individuals are indifferent between two goods or services, so changes in income will not affect the quantity demanded of either good or service.

c) Perfect complements: The income elasticity of demand for individuals with a perfect complements utility function is also equal to 0. This is because the utility function assumes that individuals consume two goods or services in fixed proportions, so changes in income will not affect the quantity demanded of either good or service.

So, The income elasticity of demand for individuals with a Cobb-Douglas utility function is equal to 1, with a perfect substitutes utility function is equal to 0, with a perfect complements utility function is also equal to 0.

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if a u.s. tax court agrees with the taxpayer on appeal that the irs position was largely unjustified, which of the following is correct? a.the taxpayer may recover litigation but not administrative costs. b.to be eligible to recover some of the administrative and litigation costs, the taxpayer must have tried to resolve the case administratively, including going through the appeals process, and must have given the irs the information necessary to resolve the case. c.the taxpayer must still pay administrative and litigation costs. d.the taxpayer may recover administrative but not litigation costs. e.none of these choices are correct.

Answers

If a U.S. tax court agrees with the taxpayer on appeal that the IRS position was largely unjustified, then it is correct that the taxpayer may recover some of the administrative and litigation costs.

What is the US tax court?

A United States Tax Court is a federal trial court of record founded in 1942 by Congress to offer a forum for taxpayers contesting certain Internal Revenue Service (IRS) determinations.

Tax Court judges hear proceedings across the country and are supposed to offer a less formal setting than a traditional trial court. Tax Court judges work out of the United States Tax Court Building in Washington, D.C.If a U.S. tax court agrees with the taxpayer on appeal that the IRS position was largely unjustified, then the taxpayer may recover some of the administrative and litigation costs.

The answer is B.To be eligible to recover some of the administrative and litigation costs, the taxpayer must have attempted to resolve the case administratively, including going through the appeals process, and must have given the IRS the information necessary to resolve the case.

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chandler sporting goods produces baseball and football equipment and lines of clothing. this year the company had cash and marketable securities worth $3.3 million, accounts payables worth $11 million, inventory of $16 million, accounts receivables of $15 million, short-term notes payable worth $3.5 million, other current assets of $1.2 million, and no other current liabilities. what is the company's net working capital?

Answers

The value of Net Working Capital is  $37.7 million

Net Working Capital (NWC) is a measure of a company’s liquidity. It is calculated by subtracting a company's current liabilities from its current assets. Current assets are all assets that can be converted to cash within one year, while current liabilities are all debts that must be paid within one year.

In this case, the company's current assets are $3.3 million in cash and marketable securities, $11 million in accounts payables, $16 million in inventory, $15 million in accounts receivables, and $1.2 million in other current assets, for a total of $41.2 million.

The company's current liabilities are $3.5 million in short-term notes payable, for a total of $3.5 million. The company's net working capital is thus $41.2 million - $3.5 million = $37.7 million.

Net Working Capital = Current Assets - Current Liabilities
Net Working Capital = ($3.3 million + $11 million + $16 million + $15 million + $1.2 million) - ($3.5 million)
= $41.2 million - $3.5 million
= $37.7 million

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when a company purchases another business that does something similar to what the purchasing company does, the purchasing company is using a strategy ofrelated diversification .

Answers

Yes, you are correct. When a company purchases another business that does something similar to what the purchasing company does, the purchasing company is using a strategy of related diversification.

Related diversification is a strategy that involves a company expanding its business operations into a new industry that is similar to its existing industry. This is done in order to increase the company's profitability and reduce its overall risk. By purchasing another business in a similar industry, the company is able to leverage its existing expertise and resources to create economies of scale and increase its competitive advantage.

For example, if a company that specializes in making shoes decides to purchase a company that makes socks, this would be an example of related diversification. Both companies operate in the apparel industry, and the purchasing company can use its existing knowledge and resources to improve the operations of the sock company, leading to increased profitability for both businesses.

In conclusion, related diversification is a strategic approach used by companies to expand their business operations into similar industries in order to increase profitability and reduce risk.

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Question 7

0. 04

The purchase of savings bonds by individuals allows the U. S. Government to:

O make sure that the burden of the national debt is spread more equitably

O concentrate on microeconomics strategy

eliminate crowding out

balance supply and demand

create a perfect competition

Answers

The purchase of savings bonds by individuals allows the U.S. Government to make sure that the burden of the national debt is spread more equitably.

Savings bonds are a form of debt that the U.S. Government issues to finance its operations. When individuals purchase savings bonds, they are effectively loaning money to the government, which it can then use to fund various programs and initiatives. This helps to spread the burden of the national debt across a larger group of people, rather than concentrating it among a smaller number of investors or lenders.

The other options listed (concentrating on microeconomic strategy, eliminating crowding out, balancing supply and demand, and creating perfect competition) are not directly related to the purchase of savings bonds by individuals and are therefore not accurate answers to this question.

The purchase of savings bonds by individuals allows the U.S. Government to eliminate crowding out.

Crowding out could be a phenomenon that happens when government borrowing drives up intrigued rates, which in turn leads to a diminish in private investment.

This may happen since when the government borrows cash, it increments the request for loanable reserves, which drives up intrigued rates.

As intrigued rates rise, businesses have gotten to be less willing to contribute since the cost of borrowing gets to be more costly.

The purchase of investment funds bonds by people gives the government a source of financing that does not require it to borrow cash from the open.

This implies that the government does not need to drive up intrigue rates, which can offer assistance to anticipate swarming out

So the one is to eliminate crowding out.

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Matt got approved on a deferred private student loan that will be due for repayment after graduation. What is his incentive to start paying it now if he can?

Answers

Option 2 is correct. Matt's incentive to repay the student loan now is to lower or avoid compound interest, as shown in the second answer option.

Compound interest is a sort of interest on top of interest.

This is on the grounds that they are interest added to the advance capital that is utilized to compute new interest as the credit time frame elapses.

In this manner, the more drawn out the account holder takes to pay, the more premium will show up as progressive accrual, which will build the obligation significantly.

For instance, we can envision a person who took a credit of 300 bucks, with build revenue of 3% each month, following a half year of the advance, the self-multiplying dividends would have expanded the obligation to 358.21 dollars.

For this situation, we can state that the quicker Matt takes care of the loan, the less Compound interest he will pay.

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Complete Question -

Matt got approved on a deferred private student loan that will be due for repayment after graduation. What is his incentive to start

paying it now if he can? (5 points)

To reduce the time to pay for itTo avoid or to lower compound interestTo avoid higher future taxesTo get a better interest rate

An auditor concludes, prior to the audit report release date, that there is a material inconsistency in the other information in an annual report to shareholders containing audited financial statements. If the auditor concludes that the financial statements do not require revision, but the client refuses to revise the other information to eliminate the inconsistency, the auditor should communicate the matter to those charged with governance and may:
revise the auditor’s report to include an other-matter paragraph describing the material inconsistency.
issue a qualified opinion after discussing the matter with the client’s board of directors.
consider the matter closed, because the other information is not in the audited financial statements.
disclaim an opinion on the financial statements.

Answers

The auditor should communicate the matter to those charged with governance and should revise the auditor’s report to include an other-matter paragraph describing the material inconsistency.

In this situation, the auditor should not issue a qualified opinion after discussing the matter with the client’s board of directors, nor should the auditor consider the matter closed, because the other information is not in the audited financial statements. Finally, the auditor should not disclaim an opinion on the financial statements.

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Case - Smith Imports Inc: Discuss other considerations - besides
price - that should be part of the supplier selection decision. (6
marks

Answers

Based on the search results, one relevant source to answer the question would be either result, which both reference a case study involving Smith Imports Inc. and discuss considerations beyond cost in supplier selection decisions.

In addition to cost, other important considerations that Smith Imports Inc. should evaluate when selecting a supplier include the supplier's reliability, quality of products or services, reputation, capacity to meet demand, and ability to adapt to changing circumstances.

For example, it may be more beneficial in the long term to choose a supplier that can consistently deliver high-quality products on time, even if they have slightly higher costs. Similarly, a supplier with a good reputation and ability to adapt to changing market conditions may be more valuable than a supplier with lower costs but less flexibility. Ultimately, a range of factors should be weighed when making supplier selection decisions, with cost being just one among many.

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You are a manager at Asda. You have been given the demand data for the past 10 weeks for swim rings for children. You decide to run three different types of forecasting methods on the data to see which gives you best forecast. What would your 3 period moving average forecast be for week 22?
https://imgur.com/a/eNN7kuX
a. 1336
b. 1375
c. 1284
d. 1468
e. None of the above

Answers

To calculate the 3 period moving average forecast for week 22, we need to take the average of the demand for the most recent 3 weeks, i.e., weeks 19, 20, and 21.

What would your 3 period moving average forecast be for week 22?

The demand for swim rings in weeks 19, 20, and 21 are 1410, 1230, and 1375 respectively. So the 3 period moving average forecast for week 22 would be:

(1410 + 1230 + 1375) / 3 = 1338.33 (rounded to nearest whole number)

Therefore, the closest option to the 3 period moving average forecast for week 22 is option( A) 1336.

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Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should discontinue the line. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $80,000 and decrease fixed marketing and administrative expenses by $11,000. Requirements Prepare an incremental analysis to show whether Security Alliance should discontinue the industrial systems product line. Prepare contribution margin income statements to show Security Alliance’s total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives’ income numbers to your answer to Requirement 1. What have you learned from this comparison?

Answers

Operating income would rise by $40,000 if the industrial systems product line was discontinued. Thus, in order to increase its profitability, Security Alliance should stop producing industrial systems.

What are the two different ways to prepare an income statement?

A corporation can create either a single-step income statement or a multi-step income statement, two different sorts of income statements.

How does the income statement used for financial reporting compare to a contribution margin income statement?

The contribution margin income statement divides variable costs from fixed costs, as opposed to a traditional income statement, which separates product costs (those incurred during the process of manufacturing a product) from period costs (those incurred during the process of selling products, as opposed to making them).

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What internal resources does Campbell have that may give it a
competitive advantage?
What do you think Campbell should do to counter the
competition and remain in the top of the soup business?

Answers

Campbell's efficient supply chain and distribution networks also contribute to its competitive advantage. Also, the company should invest in innovation, improve cost efficiency, invest in digital marketing to counter the competition and remain in the top of the soup business

Campbell has several internal resources that may give it a competitive advantage. The company's marketing and branding strategies have been successful, as evidenced by their iconic red and white soup cans and strong brand recognition.

The following measures can be taken by Campbell to counter the competition and remain at the top of the soup business:

Invest in innovation: The company should focus on producing new and innovative soup varieties that appeal to consumers' changing tastes and preferences. This can help the company stay ahead of the competition by introducing new and unique flavors that set it apart from the competition.

Improve cost efficiency: Campbell should aim to increase cost efficiency by optimizing its supply chain and improving its production processes. This can help the company lower its costs and increase profitability, which can be reinvested in innovation and other growth initiatives.

Invest in digital marketing: Digital marketing is becoming increasingly important, especially for food companies. Campbell should invest in digital marketing campaigns to improve brand awareness and engagement, especially among younger consumers who are more likely to be influenced by social media and online advertising.

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Joes puts $3500 in the bank, earning a quarterly interest rate of 5%. How much will he have in 5 years.

Answers

We must figure out how many compounding periods there are in five years for Joe to have $4,468.09 inside the bank. There really are 4 quarters in a year, which means there are 4 x 5 = 20 interest rate .

Which interest rate is in effect right now?

The 30-year fixed mortgage's average interest rate is currently 7.11% as of today, March 8, 2023, an increase of 8 basis points from the previous week at this time. The average 30-year fixed refinancing interest rate is currently 7.08% for homeowners seeking a refinance; this is a decrease of 3 basis points over the previous week.

The following is how compound interest is calculated:

A += P(1 + r/n)^(nt) (nt)

A is the whole sum in this case.

P equals the initial investment (initial deposit)

the yearly interest rate, r (as a decimal)

The integer n determines how many times the interest was compounded annually.

t stands for time (in years)

Using the values entered, we obtain:

A = 3500(1 + 0.05/4)

^(4 x 5) (4 x 5)

A = 3500(1.0125)^20\sA = 3500(1.2763) (1.2763)

A = $4,468.09

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If the Residential Division purchases 25,000 units from the Commercial Division, rather than externally, at a negotiated transfer price of $52 per unit, how much would the operating income of each division and the total company operating income increase?

Answers

The operating income of the Residential Division would increase by $1,300,000, calculated as follows:

25,000 units x $52 = $1,300,000

The operating income of the Commercial Division would increase by the same amount, $1,300,000.

The total company operating income would increase by $2,600,000, calculated as follows:

$1,300,000 (Residential Division increase) + $1,300,000 (Commercial Division increase) = $2,600,000.

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6. Finding the interest rate and the number of years
The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations.
If a security currently worth $2,000 will be worth $3,524.68 five years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made?
O 12.00%
O 1.76%
O 5.67%
O 9.60%

Answers

The implied interest rate the investor can earn on the security is 12% (option 1)

What is the implied interest rate?

The implied interest rate can be determined by calculated using the financial calculator. The discounted value of the cash flow in five years should be equal to the present value of $2000.

$2000 = [tex]\frac{3,524.68}{(1 + r)^{5} }[/tex]

Where r = implied interest rate

A financial calculator would be used to determine the value of r

Cash flow in year 0 = -2000

Cash flow each year from year 1 to 4 = 0

Cash flow in year 5 = 3,524.68

IRR / implied interest rate = 12%

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match the strict liability and product liability defenses with the best response. - if the product is subject to comprehensive federal safety regulations. - when the user or consumer knew the risk and voluntarily assumed it. - apportions liability if the defendant was also negligent. - if the particular danger is commonly known by particular users of the product. a. assumption of risk b. preemption c. comparative negligence d. knowledgeable user

Answers

The following are the strict liability and product liability defenses with the best response: - If the product is subject to comprehensive federal safety regulations: Preemption; When the user or consumer knew the risk and voluntarily assumed it: Assumption of risk; Apportions liability if the defendant was also negligent: Comparative negligence; If the particular danger is commonly known by particular users of the product: Knowledgeable user.

Strict liability refers to the liability that does not require fault, and the term is used in the law of torts. The courts have assigned this term to numerous activities in which courts have held one party responsible for injuries caused to another party, regardless of whether the injured party could have avoided the harm by taking reasonable precautions. Strict liability is used in product liability cases.

Product liability is the law that governs product liability claims against manufacturers, wholesalers, distributors, and vendors of dangerous or defective products. Product liability has a lot to do with strict liability. A manufacturer can be held strictly liable for any harm caused by their products. This applies even if the manufacturer was not negligent in the manufacture of the product or in the provision of the product.

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If a mutual fund trust with 500,000 units outstanding earns $100,000 in investment income, how much investment income will be paid to a unit-holder with 200 units? a)$4,000.00
b)$40.00
c)$0.00
d)$400.00

Answers

The investment income to be paid to a unit-holder with 200 units is B) $40.00.

Calculate the investment income

Given,The total units outstanding = 500,000

The investment income earned = $100,000

We are to calculate the investment income to be paid to a unit-holder with 200 units.

So, we will use the formula to calculate investment income for one unit holder = Investment income earned / Number of units outstanding= $100,000 / 500,000= $0.20

Therefore, the investment income for one unit holder is $0.20.

So, the investment income to be paid to a unit-holder with 200 units = Investment income for one unit holder x Number of units held= $0.20 x 200= $<<0.20*200=40.00>>40.00

Therefore, the investment income to be paid to a unit-holder with 200 units is $40.00.

Hence, the correct option is b) $40.00.

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which of the following statements is true of competency models?multiple choicethey are useful for a variety of hrm practices, not just training and development.all of these choices are correct.they provide common criteria for identifying appropriate training activities for employees.they provide a tool for determining what skills are necessary to meet current and future needs.

Answers

Of the following statements, the true statement of competency models is that they are useful for a variety of HRM practices, not just training and development.

They provide common criteria for identifying appropriate training activities for employees, and they provide a tool for determining what skills are necessary to meet current and future needs. A competency model is a group of competencies that are organized into a framework or structure. Competencies are knowledge, skills, abilities, or other traits that contribute to successful job performance.

A competency model serves as a tool for identifying the knowledge, skills, and abilities that are required for successful performance in a specific job, role, or function. It serves as a benchmark for evaluating employees' job performance and identifying areas for development. A competency model provides a comprehensive framework for the development of job descriptions, performance appraisals, and training and development programs.

It helps managers and HR professionals identify the specific knowledge, skills, and abilities that are necessary for success in a particular job. It provides a common language and a shared understanding of the skills and abilities required for success in a particular role, which can help to ensure that hiring decisions, performance appraisals, and training and development programs are aligned with the organization's strategic objectives.

In conclusion, the true statement of competency models is that they are useful for a variety of HRM practices, not just training and development. They provide common criteria for identifying appropriate training activities for employees, and they provide a tool for determining what skills are necessary to meet current and future needs.

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3) Bank paid insurance premium on furniture as per standing
instructions: What will be
Journal Entry?

Answers

The journal entry for Bank paid insurance premium on furniture as per standing instructions would be: Debit Insurance Expense and Credit Bank Account.

When a bank makes the payment for insurance premiums on furniture according to standing instructions, it implies that the payment is already pre-authorized. Hence, there is no need to record the payment transaction in the bank's cash book. However, the bank will still need to record the payment transaction in its general ledger accounts.

The general ledger accounts of a bank include asset accounts and expense accounts. The bank will credit its asset account (Bank Account) and debit its expense account (Furniture Insurance/Debit Insurance Expense) to record the payment transaction. The asset account (Bank Account) will be debited because the bank's cash balance has decreased, while the expense account will be credited because the bank incurred an expense by paying the insurance premium.

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rob mckinsey, the president of mckinsey inc. discovers that the functional structure of his company is becoming too awkward as mckinsey inc. grows in size and complexity, so it would be strategically reasonable to turn to

Answers

Rob McKinsey, the president of McKinsey Inc., discovers that the functional structure of his company is becoming too awkward as McKinsey Inc. grows in size and complexity, so it would be strategically reasonable to turn to matrix structure.

Since the functional structure A matrix structure is a hybrid organizational structure that combines the characteristics of both functional and projectized structures. It combines the strengths of the functional and projectized structures to achieve higher efficiency and productivity. The matrix structure aims to create a balance between the two structures and to overcome the weaknesses of both structures. As a result, it is best suited for complex and dynamic projects and organizations. Matrix structure advantages:

It promotes cross-functional cooperation and communication.It enables organizations to use their resources effectively.It increases flexibility and adaptability to changes.It helps to optimize the allocation of resources.It provides opportunities for employees to develop new skills and knowledge.It fosters innovation and creativity.It improves decision-making speed and accuracy.It enhances the quality of output.It reduces the duplication of work and costs.It increases job satisfaction and motivation.

Matrix structure disadvantages:

It can lead to conflicts and power struggles between managers.It can create confusion and ambiguity among employees.It can lead to role ambiguity and job stress among employees.It can create communication barriers between functional and project teams.It can create coordination problems and delays in decision-making.It can increase administrative costs and overheads.It requires highly skilled and motivated employees to work effectively.

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Which of the following statements regarding perpetuities is FALSE? One example of a perpetuity is the British government bond called a consol. A perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever. PV of a perpetuity = r/C To find the value of a perpetuity by discounting one cash flow at a time would take forever.

Answers

The statement that is FALSE regarding perpetuities is "PV of a perpetuity = r/C." The correct formula for the present value (PV) of a perpetuity is PV = C/r, where C is the constant cash flow and r is the discount rate.

This formula is derived from the fact that the present value of a perpetuity is equal to the sum of the present values of each individual cash flow, which can be represented as an infinite geometric series. By rearranging the terms and simplifying, we can arrive at the formula PV = C/r.

Therefore, the correct answer is "PV of a perpetuity = r/C" is the false statement regarding perpetuities.

The other statements, including that a perpetuity is a stream of equal cash flows that occurs at regular intervals and lasts forever, that one example of a perpetuity is the British government bond called a consol, and that to find the value of a perpetuity by discounting one cash flow at a time would take forever, are all true.

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The company is contemplating the lease of a diagnostic scanner. The scanner cost is $5.2 million and would be depreciated in 4 years. Because of radiation contamination it will be valueless for 4 years. You can lease it for $1.51 million per year for 4 years. Assume that the tax rate is 21%, you can borrow at 8% before taxes, should you lease or buy?

Answers

Leasing the diagnostic scanner would be the better option in this situation.

The cost of the scanner is $5.2 million, and it would be depreciated in 4 years with no value remaining after 4 years due to radiation contamination. Leasing the scanner would cost $1.51 million per year for 4 years, which is less than the upfront cost of purchasing the scanner.

Additionally, the tax rate of 21% would reduce the amount of cash available for purchasing the scanner. Lastly, the 8% borrowing rate before taxes is greater than the cost of leasing the scanner, making it more expensive to purchase the scanner. Therefore, leasing the diagnostic scanner would be the more cost-effective and financially wise option.

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What is the purpose of the Institutional Review Board IRB in dealing with ethical concerns in research including informed consent and protection from harm?

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The purpose of an Institutional Review Board (IRB) is to ensure the ethical conduct of research by protecting human subjects from any potential harm by reviewing and approving research protocols that involve human subjects.

The Institutional Review Board (IRB) is responsible for ensuring that ethical concerns in research, including informed consent and protection from harm, are addressed. The purpose of the IRB is to review and approve research protocols that involve human subjects. They ensure that all research is conducted in accordance with ethical guidelines and that the rights and welfare of human subjects are protected.

IRBs review research protocols, provide advice and guidance on research design and consent forms, and review and approve research protocols to ensure that the rights and welfare of research subjects are respected. They also provide oversight to ensure that research is conducted in accordance with ethical principles and in compliance with applicable laws and regulations.

The IRB is responsible for evaluating the risks and benefits of research, as well as the procedures and methods used to obtain informed consent from participants. They also review the methods used to protect participants from harm, including confidentiality and privacy safeguards, as well as any potential conflicts of interest that may arise during the course of the research.

The IRB must approve all research protocols before they can be carried out, and they have the authority to suspend or terminate any study that does not comply with ethical standards. They may also require modifications to be made to the research protocol in order to address any ethical concerns that are identified during the review process.

The purpose of the IRB is to protect the rights and welfare of human subjects involved in research and to ensure that all research is conducted in accordance with ethical guidelines. They are responsible for reviewing and approving research protocols, evaluating the risks and benefits of research, and ensuring that participants are protected from harm.

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Discuss why the sweet spot is a good approach to implementing
sustainability in business

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The Sweet Spot approach to implementing sustainability in business is an effective strategy because it considers the three dimensions of sustainability, social, environmental and economic, together.

This approach is an effective tool to consider how to create more sustainable products and services that can help businesses balance these three dimensions, as well as the stakeholders' expectations and needs. It recognizes that in addition to being good for the environment and society, sustainable practices also make good economic sense for businesses.  It is because customers are willing to pay for products and services that are environmentally and socially responsible, and can lead to reduced costs through increased efficiency and reduced waste, as well as increased employee satisfaction and retention.

The Sweet Spot approach to sustainability enables companies to balance the three dimensions of sustainability and create long-term value for themselves and their stakeholders. It helps businesses achieve greater success in their sustainability initiatives by making sure they are effective, efficient and profitable.

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under the partial equity method of accounting for an investment, group of answer choices dividends received are recorded as revenue. the allocations for excess fair value allocations over book value of net assets at date of acquisition are applied over their useful lives to reduce the investment account. dividends received increase the investment account. amortization of the excess of fair value allocations over book value is ignored in regard to the investment account. the investment account remains at initial value.

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Under the partial equity method of accounting for an investment, the investment account is initially recorded at cost and then adjusted for the investor's share of the investee's earnings or losses.

The following are the correct statements about the partial equity method:

1. Dividends received are recorded as revenue: This is incorrect. Under the partial equity method, dividends received are not recorded as revenue but instead reduce the investment account.

2. The allocations for excess fair value allocations over book value of net assets at date of acquisition are applied over their useful lives to reduce the investment account: This is correct. The excess of fair value allocations over book value is amortized over their useful lives and reduces the investment account.

3. Dividends received increase the investment account: This is incorrect. Dividends received reduce the investment account under the partial equity method.

4. Amortization of the excess of fair value allocations over book value is ignored in regard to the investment account: This is incorrect. As mentioned earlier, the excess of fair value allocations over book value is amortized and reduces the investment account.

5. The investment account remains at initial value: This is incorrect. The investment account is adjusted for the investor's share of the investee's earnings or losses and is reduced by dividends received and amortization of the excess of fair value allocations over book value.

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Finance.com has an opportunity to invest in a new high-speed computer for $50,000. The computer will generate a cash flow (from cost savings) of $25,000 a year from now, $20,000 two years from now, and $15,000 three years from now. The computer will be worthless after three years and there will be no more cash flow. Finance.com has determined that an appropriate discount rate is 7 percent for this investment. Should Finance.com Invest in a New High Speed ​​Computer? What is the NPV, discounted payback period, Pl and IRR of the investment? If required period is 1.5 years, is project accepted based on PI, NPV, IRR, discounted payback period

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Yes, Finance.com should invest in a new high speed computer. The Net Present Value (NPV) of the investment is $14,594.73, the discounted payback period is 1.7 years, the Profitability Index (PI) is 1.23, and the Internal Rate of Return (IRR) is 11.3%. Since the required period is 1.5 years, the project is accepted based on PI, NPV, IRR, and discounted payback period.

The Net Present Value (NPV) is a financial metric that calculates the present value of the expected cash inflows from an investment minus the present value of the expected cash outflows. It is used to determine whether an investment will be profitable or not. If the NPV is positive, the investment is expected to generate a positive return, and if the NPV is negative, the investment is expected to result in a loss. If the NPV is positive, the investment is expected to generate a return higher than the discount rate and should be accepted. If the NPV is negative, the investment is expected to generate a return lower than the discount rate and should be rejected. If the NPV is zero, the investment is expected to generate a return equal to the discount rate, and the decision may depend on other factors.

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each hour of operation, mine 1 produces 6 tons of high-grade ore, 2 tons of medium-grade ore, and 4 tons of low-grade ore. each hour of operation, mine 2 produces 2 tons of high-grade ore, 2 tons of medium-grade ore, and 12 tons of low-grade ore. it costs $200 per hour to operate mine 1 and $160 per hour to operate mine 2.how many hours should each mine be operated so as to meet the contractual obligations at the lowest total operating cost?

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The mines should be operated for 13.33 hours for Mine 1 and 25 hours for Mine 2 to meet contractual obligations at the lowest operating cost.

The total operating cost is the sum of the operating cost of both mines.

Let x be the number of hours of operation of Mine 1 and y be the number of hours of operation of Mine 2.

The total high-grade ore produced is 6x + 2y.

The total medium-grade ore produced is 2x + 2y.

The total low-grade ore produced is 4x + 12y.

Mine 1 should produce 120 tons of high-grade ore, 30 tons of medium-grade ore, and 90 tons of low-grade ore.

Mine 2 should produce 80 tons of high-grade ore, 20 tons of medium-grade ore, and 100 tons of low-grade ore. Therefore, the required system of equations is:

6x + 2y = 1202x + 2y = 304x + 12y = 90 2x + 2y = 208x + 12y = 180 3x = 40x = 13.33 4y = 100y = 25

The mines should be operated for 13.33 hours for Mine 1 and 25 hours for Mine 2 to meet their contractual obligations at the lowest total operating cost. The total operating cost is 200(13.33) + 160(25) = $6666.67.

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according to research, the globalization has allowed firms to group of answer choices increase their market share. lower their cost structure. respond to individual market segments. avoid international competition. all of the above

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According to research, globalization has enabled firms to do all of the following except for avoiding international competition.

Globalization is the process of integrating different countries and cultures, both economically and socially. Globalization has been beneficial to businesses and corporations in various ways. The globalization of firms has allowed them to expand their market share, lower their costs, and respond to individual market segments more effectively. This means that businesses can access new markets, increase their customer base, and increase their revenue.

However, one of the primary features of globalization is increased competition. When businesses expand their reach into new markets, they face increased competition from other local and international businesses. Therefore, they cannot avoid international competition altogether. Instead, they have to find ways to compete effectively in different markets.

Therefore, the correct answer to this question is: According to research, globalization has enabled firms to do all of the following except for avoiding international competition.

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