Answer:
A) Debit Accounts Receivable, $225; credit Fees Earned, $225
Explanation:
Willis owes Jefferson $225 (= 15 hours x $15 per hour).
The accounts receivable is debited because it represents money owed to Jefferson. Since it is an asset account and it increases, it should be debited.
Fees earned is a revenue account and since it increases, it should be credited.
Answer:
(a) $34.61; 11.54
(b) $32.81; 10.94
Explanation:
(a) Stock Price = D ÷ (Ke – G)
Where,
D is dividend next year,
Ke is required rate of return on equity
G is growth rate
Growth rate = ROE × plow-back ratio
= 0.12 × 0.40
= 0.048 or 4.8%
Dividend = Current EPS × (1 - plow back ratio)
= $3 × 0.6
= $1.8
Stock Price:
= $1.8 ÷ (0.10 - 0.048)
= $34.61
P/E Ratio = Stock Price ÷ EPS
= $34.61 ÷ $3
= 11.54
(b) New growth rate = 0.12 × 0.30
= 0.036 or 3.6%
Dividend = Current EPS × (1 - plow back ratio)
= $3 × 0.7
= $2.1
Stock Price = $2.1 ÷ (0.10 - 0.036)
= $32.81
P/E Ratio = Stock Price ÷ EPS
= $32.81 ÷ $3
= 10.94
Answer:
D. The ability of the firm to change its plant size.
Explanation:
The long run in economics is a period of time in which all inputs in the production process can be varied. It allows firms to have the ability to change its plant size that would be more or less fixed in the short run. The factors of production used in the long run are variable inputs. Variable inputs are inputs that can be change or altered in a production system. The firm in the long run has the abilities to respond to changes in the market and demand and can build bigger factory or larger plants.
Answer: The type of organizational structure that this most closely resembles is the<em><u> Matrix</u></em> structure.
Explanation:
When a group of people in business are put into formal groups based on their diverse occupational specialties it is a <u><em>matrix structure</em></u>. The groups that are put together based on similar service, products, clients, customers, and the regions that they are from.
The relationships that each person has are usually set up on a reporting grid. They use the grid which is different than a traditional reporting hierarchy. Each manager has a dual reporting relationship with each other. They can work as a regular functional manager and also a product manager.
Answer:
the finances necessary for firms to produce their products
Explanation:
It is main place