Answer:
institutional
Explanation:
Institutional advertising refers to advertising that shows the benefits and ideals or an organization. It does not focus on any particular product or service, instead its main goal is to build a positive image of the organization within the community. Many times institutional advertising is done when the organization has suffered from a serious of events that have damaged its reputation and it needs to improve it.
Answer:
fall
rise
frictional
b. Improving a widely used job-search website so that it matches workers to job vacancies more effectively
Explanation:
A fall in the price of steel would reduce the profitability of producing steel for steel producing companies. Hence, the supply of steel would fall. as a result, less labour would be needed, so the demand for labour would fall.
A fall in the price of steel would reduce the cost of producing cars and thus increase the production of cars. as a result, more labour would be employed to make cars.
Frictional unemployment is when labour is unemployed between the time he leaves his current employment and time he finds another. by improving on the job search website, workers would be matched faster with available jobs, this frictional unemployment would decrease.
Answer:
$6.40
Explanation:
In this case, the predetermined overhead rate is calculated by dividing total manufacturing overhead expense by the total number of direct labor hours. The overhead expense is divided in two: fixed and variable. Predetermined variable overhead expense is $2.80 and predetermined fixed overhead expense = $36,000 / 10,000 direct labor hours = $3.60.
So the total predetermined overhead rate = $2.80 + $3.60 = $6.40
Answer and Explanation:
The preparation of the retained earnings statement is presented below:
Opening retained earning balance $721,100
Add: prior period adjustment $86,370
Add: net income $1,562,700
Less: dividend paid $79,000
Ending retained earnings $2,291,170
The above items would be added and deducted that increase and decrease the retained earnings balance
Answer:
$710.84 million
Explanation:
Net income = $35 million
Depreciation = $20 million
Capital expenditures = $7 million
Tax rate = 21%
D/E ratio = 0.4
Growth rate = 6%
Equity beta = 1.25
So, firm's asset beta = Equity beta/(1 + D/E*(1-T))
= 1.25/(1 + 0.4*(1-0.21))
= 0.94985
So, Free Cash Flow to the Firm= NI + Depreciation - Capital expenditures
= 35 + 20 - 7
= $48 million
Risk free rate Rf = 5%
Market risk premium = 7.5%
So, firm cost of capital using CAPM is Rf + Beta*(MRP)
Kc = 5 + 0.94985*7.5
Kc = 12.1239
So, Firms value using constant dividend growth model:
FV = FCF*(1+g)/(Kc-g)
FV = 48*1.06 / 0.121239-0.06
FV = 50.88 / 0.061239
FV = 830.8430901876255
FV = $830.84 million
Debt = $120 million
Market Value of equity = FV - Debt
Market Value of equity = $830.84 million - $120 million
Market Value of equity = $710.84 million
