Answer:
A) a liability.
Explanation:
Probably, the strong culture held by the Young Woman's Club of Williams (YWCW) will be perceived to have a very low tolerance for diversity by the newcomers. It will also prevent the organization from growing in number. That doesn't mean that it will lose affiliates, but the total number of affiliates will not grow according to the growth in Williams's total population.
Since its strong culture will prevent the YWCW from growing and adapting to community changes, it should be considered a liability.
Answer: Management
Explanation:
Management ensures that organizational goals are met. The management plans, leads, control and organizes in order to ensure goals are achieved.
The function of accounting is to give financial information whihc are required by the business and its stakeholders.
The function of marketing is to ensure that products reach the consumers. It ensures delivery of products.
The human resource develops the workers. They train, revruit, discuss wages and salaries etc.
Based on the above, the answer is management.
Answer:
C) The invisible hand
Explanation:
Daniel here seeking to produce and increase his welfare is "led by an invisible hand" to negotiate with his suppliers and to sell goods to his neighbors in a way that everybody is better off as a result from these transactions.
This is also a clear example to what Adam Smith was referring to the invisible hand:
"in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for the society that it was not part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. " Adam Smith, The Wealth of Nations, Book 4, Chapter 2
Cost of equity capital is closest to: 16 percent
Solution:
WACC is covered on page 120 Corporate Finance, under Capital Structure.
Using the standard equation for WACC = %wt Equity x cost of equity (re) + %wt Debt x cost of debt (rd).
Since there is a 20% tax rate for the firm, the cost of borrowing is reduced by that amount. So the cost of debt is 4%, not 5%.
Plug the formula: 10% = 50% x re + 50% x 4%
The formula ( i.e. 0.1+(0.1-0.05)(1)(1-0.2)) in CFAI reading is questionable.
The calculation is 0.1+(0.1-0.05*(1-0.2))*(1)=16%
Answer:
decrease total assets and stockholders' equity
Explanation:
At the time of declaration a liability increases, against dividend expense.
At the time of payment that liability is settled by paying in cash.
Thus net effect of both transactions is decrease in cash and increase in expenses.
If we carefully analyse the options, then
we get that there is decrease in assets in the form of cash and decrease in equity as expenses decrease retained earnings which are owner's equity.
Therefore, correct option is
decrease total assets and stockholders' equity.
