Option E is correct.
<u>Explanation:</u>
Case strategy focuses on to produce only such amount of goods that is ordered by the customers. In the chase strategy of aggregate planning, demand and capacity are matched for every period, one by one. In the given problem, since the firm is using the chase strategy, it would first match demand and capacity for the next period.
Since the demand for the next period is 1100 units, and the firm produced 1000 units in the last period, it would require more workers to cater to the additional requirement of 100 units.
By hiring workers, the firm would be able to match the demand and supply for the next period.
Answer:
a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.
b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.
d. The formula to calculate present value of expected free cash flows is:
PVn=CFn(1+in)n
The formula for the present value of expected free cash flows when discounted at WACC is:
PV=∑Nn=0CFn(1+in)n
Explanation:
a. Debt holders have first claim on corporate value. The Preferred stockholders then have next claim and remaining is left for common stockholders.
b. The value of a financial asset is equal to present value of future cash flows which is provided by the asset. When investor buys a share of stock, (s)he typically expects to receive cash in the form of dividends and to sell the stock to receive cash from sale. However, the price any investor receives is highly dependent upon the dividends which the next investor expects to receive, and so on. Thus, the stock's value depends on cash dividends that the company is expected to provide and the discount rate used to find the present value of those dividends.
d. The formula to calculate present value of expected free cash flows is:
PVn=CFn(1+in)n
The formula for the present value of expected free cash flows when discounted at WACC is:
PV=∑Nn=0CFn(1+in)n
Answer:
$29,500
Explanation:
The calculation of annual financial advantage (disadvantage) is shown below:-
If continues
Loss = Contribution - fixed cost
= $27,000 - $73,000
= $46,000 loss
If Eliminates,
Savings = Loss - Fixed cost
= $46,000 - $16,500
= $29,500
Therefore for computing the annual financial advantage (disadvantage) we simply deduct fixed cost from loss.
The realization that a consumer is necessary and must play a part in order to produce value is the major premise underlying the concept of (A) value co-creation.
<h3>
What is value co-creation?</h3>
- Simply said, value creation is the process of converting resources (whether physical such as materials, or non-physical such as time) into something of perceived value.
- Car manufacturers creating vehicles, farmers planting and harvesting crops, and banks providing mortgage loans are all examples of value production.
<h3>What is value internalization?</h3>
- Internalization is a term used in sociology and other social sciences to describe an individual's acceptance of a system of standards and values through socialization.
<h3>What is value integration?</h3>
- Through synergistic innovation across the nexus economy, integrated value is the simultaneous construction of several 'non-financial' capitals (particularly infrastructural, technological, social, ecological, and human capital).
<h3>Solution -</h3>
As the definition of value co-creation states that value creation is the process of converting resources into something of perceived value.
Therefore, the realization that a consumer is necessary and must play a part in order to produce value is the major premise underlying the concept of (A) value co-creation.
Know more about value internalization here:
brainly.com/question/26330420
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Answer:
b. 7.28%
Explanation:
This question is asking for the yield to maturity(YTM) of the bond. You can solve this using a financial calculator with the inputs below. Additionally, adjust the coupon payment(PMT) and time to maturity(N) to semiannual basis.
Time to maturity; N = 5*2 = 10
Face value; FV = 1000
Price of bond; PV = -1071
Semiannual coupon payment; PMT = (9%/2) *1000 = 45
then compute semiannual interest rate; CPT I/Y = 3.64%
Next, convert the semiannual rate to annual rate(YTM) = 3.64% *2
YTM = 7.28%
