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siniylev [52]
3 years ago
11

What is a company's unique responsibility to its stockholders?

Business
1 answer:
Lesechka [4]3 years ago
3 0
<span>Stockholders role for companies is to invest money in them in the purpose of helping them to grow and prosper. In return, the company's role is to give back the money stockholders gave in the first place, plus interests. So, the company's responsibility for its stockholders is to make sure they will continue to grow and make enough profits to give them back the money they invested, with benefits.</span>
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Calculate the degree of operating leverage for the company below:Expected Quantity 50,000Total costs300,000Variable costs215,000
Alecsey [184]

Answer:

Degree of Operating Leverage = 1.34

The Operating cash flow increases by 12%

The new operating cash flow is $290200

Explanation:

% change in Operating Cash Flow = Degree of Operating Leverage  * % change in sales

There is need to calculate Degree of operating leverage first. Degree of operating leverage = Contribution / EBIT

Where Contribution = OCF + Fixed costs / OCF

Fixed costs= Total costs - variable costs = 300000 - 215000

Fixed Cost= 85000

 

Degree of operating leverage = (250000 + 85000) / 250000

DOL= 1.34

% change in OCF = DOL * % change in sales

% change in sales = (56000 - 50000) / 50000 = 12%

% change in OCF = 1.34 * 12% = 16.08%

New OCF = 250000 * (1+16.08%)

=$250000 * (1 + 0.1608)

=$250000(1.1608)

= $290200

5 0
3 years ago
What is the most important duty of a firm's financial officer? to ensure that the firm has enough cash on hand to meet its commi
4vir4ik [10]
<span>What is the most important duty of a firm's financial officer? to ensure that the firm has enough cash on hand to meet its commitments at any given time to decide how to pay for investments to manage working capital to make investment decisions?</span>
8 0
3 years ago
From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have
Vilka [71]

Answer:

a) Marginal cost of waiting is greater than the marginal benefit of being served

Explanation:

For an economic perspective, customer leave a fast food restaurant as they find the marginal cost of waiting is higher than the cost of marginal benefit of being served at restaurant.

Marginal cost: In economics, it is a cost that is incurred for an additional unit of benefit received out of certain action or activity.

Marginal benefit: It is a benefit received for an additional unit of cost incurred during the activity taken place.

Therefore, customer have done analysis on the benefit of waiting in a queue for getting served at restaurant, which he found that marginal cost is greater than the marginal benefit of being served.

4 0
3 years ago
Sarah is a 50 percent partner in the SF Partnership and has an outside basis of $56,000 at the end of the year prior to any dist
Vikentia [17]

Answer:

A. $0 gain, $36,000 basis

Explanation:

In the distribution, from the information given, Sarah does not recognize any gain or loss.

However, given that

She had $56000 basis at end of year prior to distribution.

Then receives $20000 from distribution after reallocating her basis in SF to cash in amount equal to distribution

Therefore,

Her basis left = 56000 - 20000

= $36000

3 0
3 years ago
Read 2 more answers
Joel and Liza are having a disagreement over one of their stock investments, which just lost 15 percent in a short period of tim
anastassius [24]
B.

It says Liza is risk tolerant, therefore it would make sense that she would hold on to these stocks as risk tolerant people often hold onto stocks in the long term.
8 0
3 years ago
Read 2 more answers
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