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2 years ago

Benefits of setting objectives for a company

Business

1 answer:

In-s [12.5K]2 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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MM Proposition I with corporate taxes states that:

OLEGan [10]

Answer:

d.) I and II

Explanation:

The first proposition can be regarded as proposition that gives a clam that capital structure of a company has no impact on the value. The value of a company is been known as present value of future cash flows when it's calculated, then it cannot be affected by capital structure. It should be noted that MM Proposition I with corporate taxes states that capital structure can affect firm value by an amount that is equal to the present value of the interest tax shield.

8 0

2 years ago

On January 1, 1997, an investment account is worth 100,000. On April 1, 1997, the value has increased to 103,000 and 8,000 is wi

loris [4]

Answer:

(B) 6.25%

Explanation:

January 1, 1997 = $100,000

April 1. 1997 = $103,000 - $8,000 = $95,000

January 1, 1999 = $103,992

annual interest rate for 1997 = i = (x - 100,000 + 8,000) / [100,000 - 8,000(1 - ³/₁₂) = (x - 100,000 + 8,000) / [100,000 - 8,000(1 - 0.25) = (x - 92,000) / 94,000

x = 92,000 + 94,000i

annual interest rate for 1998 = 1 + i = 103,992/x

x = 103,992/(1 + i)

0 = x(1 + i) - 103,992

now we replace x by 92,000 + 94,000i

0 = (92,000 + 94,000i)(1 + i) - 103,992

0 = (94,000 (1 + i) - 2,000)(1 + i) - 103,992

we now replace 1 + i by Y

0 = (94,000Y - 2,000)Y - 103,992

0 = 94,000Y² - 2,000Y - 103,992

using a calculator, Y = 6.25%

4 0

3 years ago

. Initially, the economy is in long-run equilibrium. The aggregate demand curve then shifts $50 billion to the left. The governm

Romashka [77]

Answer

the correct answer is

Reduce taxes by $5.56 billion dollars. Increase expenditures by $5.56 billion dollars.

good luck ❤

3 0

3 years ago

On January 1, 2021, Cori Ander Herbs granted restricted stock units (RSUs) representing 300,000 of its $1 par common shares to e

Anna [14]

Answer: $1,288,000

Explanation:

The amount should the company record as compensation expense for the year ended December 31, 2022 will be calculated thus

Number of RSUs = 300,000

Market price of shares = $14

Term of RSUs = 3 years

The compensation expense for year 1 which is 2021 will be:

= [(300,000 × $14) × 1 / 3] - $0

= $1,400,000

The compensation expense for year 2 which is 2022 will be:

= [(288,000 × $14) * 2 / 3] - $1,400,000

= $2,688,000 - $1,400,000

= $1,288,000

Therefore, the amount should the company record as compensation expense for the year ended December 31, 2022 will be $1,288,000

Note that the number of RSUs in 2022 was calculated as:

= 300,000 × (100% - 4%)

= 300,000 × 96%

= 288,000

8 0

3 years ago

Aloha Bags, Inc. produces student book bags that sell for $20 each. For the coming year, management expects fixed costs to be $2

netineya [11]

Solution :

a). At the break even units, the total contribution margin = fixed expenses

We know that : (Selling price - variable cost) x units sold = fixed expenses

i.e. (20-14)x = 225,000

6x = 225,000

x = 37,500

Therefore, the number of units sold, x = 37,500

So, the break even analysis = 37,500 x 20

= 750,000

b). $\text{Contribution margin ratio} = \frac{\text{(Sales - variable cost) }}{\text{sales}}$

$=\frac{20-14}{20}$

= 30%

The Breakeven sales = $\frac{\text{fixed cost}}{\text{Contribution margin ratio}}$

$=\frac{225,000}{30\%}$

= 750,000

c). $\text{Margin of Safety ratio } = \frac{\text{(Sales - Breakeven sales) }}{\text{sales}}$

$=\frac{1,2000,000-750,000}{1,200,000}$

= 37.5%

d). Units needed :

$(20-14)x - 225,000 = 150,000$

$6x - 225,000 = 150,000$

$6x = 375000$

$x=62,500$ units

Therefore, the sales required = 62,500 x 20

= 125,000

4 0

2 years ago