Direct financing involves the financial market and indirect financing involves intermediaries. In the financial market, companies put their shares for sale and investors buy them. This is a direct financing mechanism for companies, which raise funds by sharing their own capital in traded shares.
On the contrary, if a company seeks bank financing, there will necessarily be intermediation by third parties, such as banks. In the middle market, economic agents deposit their money with the bank, and the bank uses it to lend to companies. This is intermediating a financing. Both types of financing are widely used, all will depend on the structure and purpose of each company in the search for financing.
Answer:
No, Loni should not take the loan and build the app.
Explanation:
If she borrows $87,000 to build the app, at the end of the year she will have to pay $87,000 x (1+0.15) = 100,050 in principal and interest to the bank.
After selling the app she will get 99,000 - 100,050 = $1,050.
In other words, she will be making a loss.
Answer:
(b) $ 43,750 increase
Explanation:
The computation of the effect on operating income is shown below:
= Contribution margin per unit × special order
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $7.50 - $5.75
= $1.75
And, the special order is of 25,000 pairs
Now put these values to the above formula
So, the value would equal to
= $1.75 × 25,000 pairs
= $43,750
The fixed cost would remain unchanged.
Answer:
d) $4.00.
Explanation:
Net Income = $34,000
Common shares outstanding = 8,500 shares
Earning Per share = Net Income for the period / Common shares outstanding
Earning Per share = $34,000 / 8,500 shares
Earning Per share = $4 per share
The company's earnings per share is $4.
Divided declared has nothing to do in the calculation of Earning per share because we just measure the earning against each share which involves net income and number of outstanding shares only.
Answer: The second stage is the "Storming Stage"
Explanation:
Bruce Tuckman's five-stage model of group and team development, propounded in 1965, consists of the forming, storming, norming, performing and adjourning stages.
The second stage, storming, is the most difficult and crucial stage in team development process, especially for a team that has never been together. At this stage, there's usually conflict of interests and members of the team may form "cliques" based on common grounds of agreement.
Performance of the team may decrease because members could begin to disagree on team goals and individual personalities emerge.
A solution would be for the team members to accept one another's individuality and focus on the task at hand.
