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muminat
3 years ago
13

Garavelli Industries granted restricted stock units (RSUs) representing 60 million of its $1 par common shares to executives, su

bject to forfeiture if employment is terminated within three years. After the recipients of the RSUs satisfy the vesting requirement, the company will distribute the shares. The common shares had a market price of $8 per share on the grant date. Ignoring taxes, what is the effect on earnings in the year after the shares are granted to executives?
$ 0
$ 60 million
$160 million
$480 million
Business
1 answer:
DedPeter [7]3 years ago
4 0
$480 would be your answer because the fair value per share $8 x 60 mil = $480 the $480 mil total compensation is expensed equally over the three-year vesting period reducing earnings by $160 million each year :D
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The adjusted trial balance of Concord Company shows the following data pertaining to sales at the end of its fiscal year, Octobe
Sonbull [250]

Answer:

Sales revenue    728,400

Sales R&A            (25,320)

Delivery Expense (12,780) * considered freight-out

sales discount   <u>   (12,380)    </u>

net sales:              677,920‬

sales revenue   728,400 debit

      income summary             728,400 credit

--to close revenues accounts--

income summary      50,480

  Delivery Expense                          12,780

   Sales Returns and Allowances  25,320

   Sales Discounts                           12,380.

--to close the contra account to sales---

Income summary  677,920

        Retained Earnings       677,920

Explanation:

4 0
3 years ago
The following is the post-closing trial balance for the Whitlow Manufacturing Corporation as of December 31, 2015.
pishuonlain [190]

Answer:

See explanation section

Explanation:

See the images to get the answer

4 0
3 years ago
Consider the market for oil. Suppose for simplicity that there are only two oil producing countrieslong dashSaudi Arabia and Kuw
Tom [10]

Answer:

Nash Equilibrium : Each player at best strategy action, given other player strategy action.

Nash Equilibrium for Saudi Arabia, Kuwait : {High Output, High Output}

Explanation:

Considering the pay off matrix for Kuwait & Saudi Arabia, for making low or high output , to be : [First payoff Saudi, Second Payoff Kuwait]

                                                        Kuwait

                                            Low Output   High Output

Saudi Arabia    Low Output  (120,10)            (80,20)

                       High Output    (105,8)             (90,15)

Nash Equilibrium is a game theory concept, determined at the -  best strategy action for each player, given other player's strategy action.

In this case :

  • If Saudi Arabia plans <u>low</u> output, its better for Kuwait to produce <u>high</u> output, [(20 > 10) in first row - saudi's low output]
  • If Saudi Arabia plans <u>high</u> output, its better for Kuwait to produce <u>high </u>output [ (15 > 8) in second row - saudi's high output]
  • Saudi is better to chose <u>low</u> output, if Kuwait plans for <u>low</u> output [(120 > 105) in in first column - Kuwait's low output]
  • Saudi is better to chose <u>high</u> output, if Kuwait plans for <u>high </u>output [(90 > 80) in second column - Kuwait's low output]

So, its best for Saudi Arabia to produce high output if Kuwait produces high output. Its also best for Kuwait to produce high output if Saudi Arabia produces high output.  

Hence {High Output, High Output} is the Nash Equilibrium.

5 0
3 years ago
Answer the questions below. Write a short response to each question, and include references and in-text citations for any source
Masja [62]

Answer:

The short responses to the questions include references and in-text citations for the sources backing up the points.

Explanation:

1. What is the critical issue(s) confronting WCC North America?

In accordance with the text: "Supply Chain Logistics Management,an  in-depth study on firm’s supply chain strategy and operations of logistics, written by Donald J. Bowersox, 2013, among others, the critical issue confronting WCC North America deals with its lack of integration within its departments that is leading with customers´ "extreme dissatisfaction" when determining their orders status.

2. What changes, if any, should be initiated to address the critical issue(s)?

The text mentions a critical issue to be addressed which is the need to target customers´ satisfaction through an information system that identifies the company´s customers´ orders status, as "high-volume, key accounts" (Bowersox, 2013), to give customers a more efficient responsive.

3. Identify the risks and benefits of your proposed changes from the perspective of

(a) WCC North America corporate management, and (b) WCC North America line distribution management, that is their leaders in general, are facing the huge pressure of becoming globalized and competing with a low-cost producer, dealing with the fact that (c) WCC North America customers might have the availability of cutting edge chemical technology-efficient-customer-service-low-cost company to choose from.

4. What would be the impact on WCC North America operations if the proposed changes were successfully implemented?

The impact of proposed changes which include: good raw materials supply without the heavy investment required in a completely vertically integrated structure, and a lean efficient organization structure, on WCC North America operations, is that although each division of WCC is beginning to operate in a more integrated manner, the firm uses public facilities, and a common contracted carriage and railroad tranportation: "Logistics at WCC North America's Chemicals and Performance Products Division is a competitive tool," says Logistics Manager Michael Davidson. "I make sure that we always have more than enough carriers on our inbound and outbound traffic lanes to keep product moving throughout our system", so each division will no longer be able to design, plan, and execute its manufacturing, warehousing, picking, and loading activities nor to keep independent responsibility for customer orders and information status.

5. What changes, if any, would you recommend in WCC North America's information processing arrangements?

The overall recommendation to WCC North America´s to implement an integrated logistics system to coordinate planning, purchasing, manufacturing, marketing, and distribution functions must increase attention on providing with the necessary information and improved communication among them to better forecasts of IT customer demand.

6. Is Melinda Sanders in a position to properly understand WCC North America's problems? Why or why not?

It might be possible to think she is not because she is only 29 working for a company that was founded in 1899, but besides graduating from a top university in the western United States with an MBA in marketing, she has climbed different positions in marketing, sales, and distribution operations, until her current position as lead distribution planner in the Chemicals and Performance Products Division, which credits her opinion that the more WCC sales and distribution systems were expanded, the more management and communication bottlenecks seemed to be created, thus this issue, which she was aware of, in regards the customers´ orders information status problems throughout all of WCC's North American operations. This is an evidence that she properly understands the firm´s issues as she strongly believes that any investment in information systems should directly support a specific business strategy.

7. Do you think WCC North America's current situation is applicable across its global operations? How, if at all, does it change the nature of the problem?

Yes,  WCC North America's current situation is applicable across its global operations especially due to the global weak economic conditions and the complexity of resolving high-volume, key accounts customer service, which gets complicated because of the number of customers each division serves to meet their differentiated and demanding requirements, and the need to consolidate such focused differentiated services, as a competitive strength at WCC where traditional business strategies are no longer useful, and a WCC's cost-efficient and effective investments strategies should be made on an efficient resource and organization structure to track and share business information to balance the cyclical nature of their earnings on a contemporary competitive global but focused market.

4 0
3 years ago
Jiminy’s Cricket Farm issued a bond with 25 years to maturity and a semiannual coupon rate of 4 percent 3 years ago. The bond cu
jeyben [28]

Answer:

Explanation:

a.What is the pre-tax cost of debt?This question is basically asking for the bond’s current yield to maturity, which is the pre-tax cost of long term debt in the capital markets for this company today.Price = 1.08 * 1000 = 1080+/- PV23 * 2 = 46 N.10 * 1000 = 100 / 2 = 50 PMT1000 FVSolve for i/y = 4.5801 is the semi-annual yield to maturity * 2 = 9.1601% annual YTM

b.What is the after-tax cost of debt?9.1601 * (1 - .35) = 5.9541 after tax cost of debt.This is the true cost of debt to the company because the company gets a tax deduction (a tax shield!) for paying interest on its debt.

8 0
4 years ago
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