Answer:
a. The division’s basic earning power ratio is above the average of other firms in its industry.
Explanation:
All the rest of the option in the question results in less efficiency of the company's division. In order to achieve a better grade Option A is the only choice.
Answer:
If the new reforms bring increase confidence of the investors then the company will have to incur lower borrowing costs as the investor will be available and vice versa.
Explanation:
Suppose that previously our company's credit rating was overrated. Due to recent regulatory reforms, my company achieved a lower credit rating and hence the investor confidence in our company dropped significantly. Now the investor is not interested to invest in my company and to urge them to invest in the company, they will be offered higher interest. If the reforms are going to impact our credit rating adversely then the borrowing cost will increase and vice versa.
Furthermore, Core Principle 3 says that the decsion making of the investor is based on the information that is readily available to him. This means if the reforms increase the access of the borrower through improved credit rating then it will be favourable for the company in terms of lower borrowing costs. If the reforms decrease the access of the borrower through depreciating credit rating then it will adversely affect the company in terms of lower borrowing costs and lower investment access.
Answer:
Personal performance objective
Explanation:
Management by objectives (MBO) is a strategic management model that is targeted at increasing the efficiency of an organization by clearly stating the objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action to be carried out encourages participation and devotion among employees.
Answer and Explanation:
The rule of 72 refers the time period in which your investment which you invest should be doubled
So based on the rule of 72, the computation is shown below:
1. doubling time for France per capita real GDP is
= Rule of 72 ÷ rate
= 72 ÷ 1.9
= 37.89 years
2. Doubling time for Korea per capita real GDP is
= Rule of 72 ÷ rate
= 72 ÷ 4.2
= 17.14 years
3. France per capita real GDP in year 2045 is
= Per capita read GDP × (1 + growth rate)^time period
= $28,900 × 1.019^42
= $63,710.88
4. Korea per capita real GDP in year 2045 is
= Per capita read GDP × (1 + growth rate)^time period
= $12,700 × 1.042^42
= $71,490.43
The time period 42 comes from
= 2045 - 2003
= 42 years
Answer:
Cash flows from Financing Activities $4,000
Explanation:
Computation of cash flows from financing activities
Additional short-term borrowings $20,000
Less Cash dividend paid ($16,000)
Cash flows from Financing Activities $4,000
Therefore the Cash flows from Financing Activities will be $4,000.
