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3 years ago

The multiplier is greater than 1 because the change in autonomous expenditure leads to _______.

Business

1 answer:

tangare [24]3 years ago

3 0

Answer:

The correct answer is option B.

Explanation:

The multiplier shows the increase in total production due to change in expenditure.

The change in total expenditure is always greater than the change in expenditure.

This happens because a change in autonomous expenditure leads to grater change in the induced expenditure

Consequently, the value of multiplier is always greater than 1.

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Recall the components of internal control. identify the internal control weakness in this situation, and propose a way to corre

ale4655 [162]

Answer:

The internal control weakness includes:

1. The credit department receives incoming cash from the customers.

2. A credit department can pocket cash received from a customer and copies all remittance slips for the controller, then destroy the remittance slip.

3. The credit department can then write off customer's account as uncollectible, and the company will stop pursuing collection from the customers

Explanation:

To begin, it is important to understand the concept of Internal Control. Internal control can be generally understood as the procedures determined to ensure organization's objectives in efficiency and effectiveness, reliable financial reporting and compliance with existing organization's rules and regulations.

Hence, internal control is meant to strengthen the achievement of an organization's objectives. Thus, we have seen a number of weaknesses from the scenarios painted above. It must be stated that the weaknesses stem from the fact that the company receives incoming cash receipt from customers.

To avoid and prevent this, a company should have a cash go to a clocked box at the bank. With this, the weaknesses emanating from physical cash handling by the credit department will be eliminated.

Taking a critical look at the internal control procedures, it'll be observed that the policies adopted on cash receipt is one not generally in tune with best practices. Hence, to strengthen the control, a cash go to a clock box at the bank should be created to facilitate and encourage customers' deposits in the banks. Doing this will ensure the department rids of weaknesses emanating from this cash treatment, and point number 2 and 3 as stated above can be easily resolved.

6 0

3 years ago

Providing and seeking support from others during times of stress best illustrates

emmainna [20.7K]

Answer:

The tend and befriend response

Explanation:

The word "tend" refers to care and look after someone while "befriend" refers to becoming friends with someone.

The tend and befriend response refers to a form of behavior in response to a threat. When under immense stress, an individual adopts a fight or flight response which is getting extremely aggressive in order to fight the situation or flees i.e tries and runs away from the situation.

The tend and befriend response has been observed to be more prominent in case of females. So when subjected to immense stress, it was observed that females spent a lot more time "tending" to their off springs which appeared vulnerable to them, serving as a mode to reduce stress while at the same time, also forming friendly bonds to seek support from others.

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3 years ago

PE and Terminal Stock Price [LO2] In practice, a common way to value a share of stock when a company pays dividends is to value

solong [7]

Answer:

$150.15

$92.31

Explanation:

Target stock price in year 5 = Earnings per share in year 5 x benchmark PE ratio

Earnings per share in year 5 = dividends per share in year 5/ pay-out ratio

Dividend in year 1 = $1.15 x 1.20 = $1.38

Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66

Dividend in year 3 = $1.15 x 1.20^3 = $1.99

Dividend in year 4 = $1.15 x 1.20^4 = $2.38

Dividend in year 5 = $1.15 x 1.20^5 = $2.86

$2.86 / 0.4 = $7.15

$7.15 x 21 = $150.15

b. the stock price today can be found by finding the present value of the dividends

Present value can be found using a financial calculator

Earnings per share in year 5 = dividends per share in year 5/ pay-out ratio

Dividend in year 1 = $1.15 x 1.20 = $1.38

Dividend in year 2 = $ 1.15 x 1.20^2 = $1.66

Dividend in year 3 = $1.15 x 1.20^3 = $1.99

Dividend in year 4 = $1.15 x 1.20^4 = $2.38

Dividend in year 5 = $1.15 x 1.20^5 = $2.86

Stock price in year 5 = $150.15

i = 12%

Stock price (present value) = $92.31

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

6 0

3 years ago

The difference between the present value of future cash inflows and the present value of future cash outflows of an investment p

Katarina [22]

Answer:

The correct answer is "Net present value"

Explanation:

The Net present value (NPV) commonly is used in projects and investments to analyze the profitability and compare it with other projects or investments to decide which is better.

Net Present Value (NPV) = Cash flow / (1 + discount rate) ^ number of time periods.

4 0

3 years ago

The payroll department provides services for several plants in the city of yee haw junction. the payroll department's budget is

Oksi-84 [34.3K]

Answer:

The amount that the lighting plant be charged from the payroll department for its services is $25,000

Explanation:

Provided data from the question:

Payroll budget = $100,000

number of checks issued per week = 4000

number of employees = 1000

Since, the service department charge rate is calculated as the total service department expense divided by total service department usage, the amount that should be charged from the payroll department for its services;

= $100,000 ÷ 4,000

= $25 × 1,000

= $25,000.

6 0

3 years ago

The multiplier is greater than 1 because the change in autonomous expenditure leads to​ _______.

The multiplier is greater than 1 because the change in autonomous expenditure leads to _______.