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3 years ago

Question 9 of 25 : What does unity of command mean?

1 answer:

7 0

Unity of command is a principle wherein no subordinate in an organization reports to more than one boss.

Each department in a company has only one boss. Every boss of the department reports to one higher authority, and so on.

This is to avoid confusion among subordinates and to ensure that the authority of the boss is not diminish by the authority of another boss.

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The economy is in short-run equilibrium when __________. a. aggregate demand intersects short-run aggregate supply. b. short-run

s2008m [1.1K]

Answer:

A. aggregate demand intersects short-run aggregate supply

Explanation:

Short run occurs when the amount a firm wishes to supply is equal to the amount demanded from the consumers. It is the area on the graph where the aggregate demand curve intersect with the short run supply curve.

Or, simply put, when the aggregate output supplied is equal to the aggregate output demanded. The equilibrium is made up of equilibrium prices and quantity.

5 0

3 years ago

Suppose your company needs $13 million to build a new assembly line. Your target debt-equity ratio is .55. The flotation cost fo

natulia [17]

Answer:True cost = $\frac{cost of assembly}{1-weighted flotation cost }$

= $\frac{13,000,000}{1- 0.049}$

= $ 13,669,821.2

Explanation:

Given :

Debt-Equity ratio = 0.55

Flotation cost for new equity = 6%

Flotation cost for debt = 3 %

∴ To compute the weighted flotation cost , we'll use the following formula:

Weighted Flotation cost = $\left [ \frac{1}{1+Debt-Equity ratio}\times Flotation cost of equity \right ] + \left [ \frac{Debt-Equity ratio}{1+Debt-Equity ratio}\times Flotation cost of debt \right ]$

= $\left [ \frac{1}{1+0.55}\times 0.06 \right ] + \left [ \frac{0.55}{1+0.55}\times 0.03 \right ]$

= 0.0387 + 0.0106

= 0.04934 or 4.93%

The true cost of building the new assembly line after taking flotation costs into account is evaluated using the following formula :

True cost = $\frac{cost of assembly}{1-weighted flotation cost }$

= $\frac{13,000,000}{1- 0.049}$

= $ 13,669,821.2

3 0

3 years ago

A put option on a stock with a current price of $47 has an exercise price of $49. The price of the corresponding call option is

Sedbober [7]

Answer:

The answer is 5.559539 or 5.56.

Explanation:

From the given question let us recall the following statements

The current price of A put option on a stock = $47

With an exercise price of $49

Annual risk-free rate of annual interest is = 5%

The corresponding price call option is = $4.3

The next step is to find the put value

Now,

The Call price + Strike/(1+risk free interest) The Time to maturity =

Spot + Put price

Thus

The,Put price = Call price - Spot + Strike/(1+risk free interest)Time to maturity

When we Substitute the values, we get,

Put price = (4.35 - 47) + 49/1.05 4/12

Therefore, The Put Price = 5.559539 or 5.56

4 0

3 years ago

Read 2 more answers

Which of the following statements regarding quality-control inspections is true? a.Inspection requires product tear down. b.Insp

Nimfa-mama [501]

Answer: The answer is C. Inspection requires both product tear down and product reassembly.

Explanation: The aim of quality-control inspections is to ascertain whether a product has been made according to specifications, and whether there are any defects in the products.

Therefore quality-control inspections will involve product tear down, in order to check the component parts of a product for quality assurance, and product reassembly is carried out after the product tear down to reassemble the products if it is discovered that it meets quality standard.

4 0

3 years ago

Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended

m_a_m_a [10]

Answer:

Net Cash flow from Operating Activities (Direct Method) = $343

Net Cash flow from Operating Activities (Indirect Method) = $343

Explanation:

Cash Flow Statement - Operating Activities (Direct Method)

Amount in $

Cash receipts from Customer (219+770-321) 668

Less: Cash paid to suppliers (120+285-207-98) -100

Cash paid Employees (96+117-108) -105

Cash Paid to Insurance (69+37-85) -21

Cash Generated from operation 442

Less: Interest paid (47-19) -28

Income tax paid (55+82-66) -71

Net Cash flow from Operating Activities 343

Cash Flow Statement - Operating Activities (Indirect Method)

Amount in $

Net Income 82

Add: Depreciation Expenses 120

Loss on sale of Machinery 12

Decrease in Inventory (422-324) 98

Increase in Account payable (207-120) 87

Increase in salaries payable (108-96) 12

Decrease in prepaid Insurance (69-85) 16

Decrease in Bond Discount (184-203) 19

Increase in Deferred Tax Liabilities (66-55) 11

Less: Gain on sale of Building -12

Increase Accounts receivable (321-219) -102

Net Cash flow from Operating Activities 343

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3 years ago