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3 years ago

Benefits of setting objectives for a company

Business

1 answer:

In-s [12.5K]3 years ago

8 0

Answer:

Help them evaluate the business' growth

Explanation:

When they set objectives, they can look at it later on and check if they had reached their goal. So they can see how far they've reached as a business.

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Delta Construction Corporation, a general contractor, hires Eagle Electrical Company, a subcontractor, to wire a new office buil

nignag [31]

Answer: excused by Delta's failure to pay.

Explanation:

Delta Construction Corporation hires Eagle Electrical Company, as a subcontractor, to wire its new office building. After the completion of the work, Eagles is owed more than $50000.

Eagle's suspension of work is most likely due to the excuse by Delta's failure to pay. Delta has a right to pay up the money owed to Eagle. Lack of payment can lead to court cases.

3 0

3 years ago

What would be the consequences if managers of a firm evaluated a project based on its actual dollar cash flows, but used a real

matrenka [14]

Answer:

Real rate of returns are lower than nominal rates of return, therefore, using a real discount rate would overestimate a project's net present value. This could result in unprofitable projects being accepted because the NPV was erroneously calculated. If you want to use a real discount rate, you must first convert cash flows to real dollars.

For example, nominal discount rate is 10%, inflation rate is 5%, real discount rate is 5%.

Initial outlay $100

NCF year 1 = $40

NCF year 2 = $40

NCF year 3 = $40

Using the real discount rate, the NPV = $8.93

Using the nominal discount rate, the NPV = -$0.53

6 0

3 years ago

Beball camp example covered in the class, let's assume the segment size is 9000, price per participant is $90, frequency is 1, v

stealth61 [152]

Answer:

The correct answer is D. About 1.37%

Explanation:

1. Let's review the information given to us to answer the question correctly:

Segment size = 9,000

Number of participants in the camp = x

Total Fixed Cost (TFC) = $ 9,000

Variable Cost per Person = $ 5

Price per Person = $ 90

Profit = $ 1,500

2. Based on the assumption provided above, what percentage of the segment should participate if the program wants to make $1500 profit?

We can calculate the variable cost, this way:

Total Variable Cost = Variable cost per person * Number of participants

Total Variable Cost = $ 5 * x

Total Variable Cost = $ 5x

We can calculate the total cost of the program, this way:

Total Cost of the program = Total Variable cost + Total Fixed Cost

Total Cost of the program = $ 5x+ $ 9,000

Total cost of the program = $ 9,000 + 5x

We can calculate the revenue of the program, this way:

Total revenue of the program = Price per person * Number of participants + Profit

Total revenue of the program = $ 90 * x + $ 1,500

Total revenue of the program = $ 90x + $ 1,500

For Break-even:

Total Variable cost + Total Fixed Cost = Price per person * Number of participants

Replacing with the values we know and solving for x:

9,000 + 5x = 90x

5x - 90x = - 9,000 (Like terms)

-85x = -9,000

x = -9,000/-85

x = 106 (rounding to the next whole)

For $ 1,500 of profits:

Number of participants at break-even + Profits/Price per participant

106 + 1,500/90 = 106 + 16.7 = 123

123/1,500 = 0.0137 = 1.37% (Rounding to two decimal places)

The correct answer is D. About 1.37%

5 0

3 years ago

Suppose Stark Ltd. just issued a dividend of $2.57 per share on its common stock. The company paid dividends of $2.20, $2.31, $2

crimeas [40]

Answer:

Growth rate (g) = n-1√(Latest dividend) - 1

Current dividend

= 4-1√($2.49/2.20) -1

= 3√(1.1318) -1

= 1.04 - 1

= 0.04 = 4%

Ke = Do(1 + g) + g

Ke = $2.57(1 + 0.04) + 0.04

Ke = 0.04 + 0.04

Ke = 0.08 = 8%

Explanation:

In this case, we need to calculate the growth rate using the above formula. Then, the cost of equity will be calculated. Cost of equity is a function of current dividend paid subject to growth rate divided by current market price.

Explanation:

5 0

4 years ago

A client has a massage and asks the company bookkeeper to mail her the bill. the bookkeeper should make which entry to record th

Alexxx [7]

When a client has a massage and then asks the company to mail the bill to him/her, the bookkeeper of the company will decide what entry to make. The bookkeeper is the person who is in charge of all the accounts and makes sure the accounts are up to date and each client pays their bills. In this case, the bookkeeper will enter on the invoice; accounts receivable, debit; fees earned, credit. Then the bookkeeper will send the invoice to the client at the end of the business month to be paid.

7 0

3 years ago