Answer:
equity theory
Explanation:
Based on the scenario being described within the question it can be said that the theory that best explains this behavior is known as equity theory. This theory refers to whether or not the distribution of certain benefits or resources is fair to all parties involved. Which in this case the benefit/resource in question is the employees salary, depending on the amount of work each has put in.
Answer:
$14.35
Explanation:
Firstly, we need to calculate enterprise value (EV) of this company, which is equal to present value of all free cashflows (CF):
- Terminal value of free cashflow at year 3 = Year 4 CF/(Cost of capital - Long-term growth) = [329 x (1 + 5.7%)^2 x (1 + 2.1%)]/(13.3% - 2.1%) = $3,350.84
- EV of the company = 329/(1 + 13.3%) + [329 x (1 + 5.7%)]/(1 + 13.3%)^2 + [329 x (1 + 5.7%)^2 + 3,350.84]/(1 + 13.3%)^3 = $3,117.91
Secondly, we calculate equity value as below:
EV = Equity value + Net debt = Equity value + (Debt - Cash), or:
3,117.91 = Equity value + (64 - 18), or Equity value = $3,071.91.
Finally, stock price of the company = Equity value/Number of shares = 3,071.91/214 = $14.35.
Solution :
Correcting the errors by reversing the incorrect entry and then preparing the correct entry :
<u>Sl. No. </u> <u>Description</u> <u> Debit</u> <u>Credit</u>
1. Cash $600
Equipment $600
Salary and wages $600
Cash $600
2. Service revenue $450
Cash $450
Cash $4500
Account receivable $4500
3. Accounts payable $250
Equipment $250
Equipment $520
Accounts payable $520
Total= $159,552
Giving the following information:
The company has budgeted to sell 15,600 Debs in February.
Sales commissions $ 0.96*15,600= 14,976
Shipping $ 1.46 *15,600= 22,776
Executive salaries $ 60,600
Depreciation on office equipment $ 20,600
Other $ 40,600
Total= $159,552
Answer:
B) reserves lost by any particular bank will be gained by some other bank.
Explanation:
Banks "create" money when they make loans or buy securities from private parties. This money creation is the result of the money multiplier = 1 / reserve ratio.
This money creation process is not affected by which specific bank may hold the deposits, since money withdrawn from a bank will end up in another bank. The money multiplier applies to the whole banking system, not just an individual bank or group of banks.
