Answer:
Mauricio invested $30,000 in Pizza Aroma in exchange for its stock. Pizza Aroma now has <u>$30,000 IN COMMON STOCK</u> under shareholders' equity.
Explanation:
Mauricio invested a certain amount of money in exchange for common stock of a small corporation, Pizza Aroma. Corporations are legal entities that operate separately from its owners or stockholders.
Usually a small business like Pizza Aroma would be a sole proprietorship or a partnership, at least at the beginning when it just started to operate. But the main advantage of a corporation is that it limits owners liability to the amount invested in stocks, therefore if the business fails, the most Mauricio can lose is $30,000. While sole proprietors and partners have unlimited liability, which means that they are legal liable for all the debts and obligations of the business. The main disadvantage of corporations is that they are double taxed, that means that the corporation pays corporate taxes and the owners pay income taxes also.
Answer:
portfolio's standard deviation = 6.18%
Explanation:
we must first determine the expected returns for each stock:
stock A = (0.15 x 31%) + (0.6 x 16%) + (0.2 x -3%) + (0.05 x -11%) = 13.1%
stock B = (0.15 x 41%) + (0.6 x 12%) + (0.2 x -6%) + (0.05 x -16%) = 11.35%
stock C = (0.15 x 21%) + (0.6 x 10%) + (0.2 x -4%) + (0.05 x -8%) = 7.95%
then we must determine the variance of each stock's return:
stock A = {[0.15 x (31 - 13.1)²] + [0.6 x (16 - 13.1)²] + [0.2 x (-3- 13.1)²] + [0.05 x (-11 - 13.1)²]} / 4 = (48.0615 + 5.046 + 51.842 + 29.0405) / 4 = 33.4975
stock B = {[0.15 x (41 - 11.35)²] + [0.6 x (12 - 11.35)²] + [0.2 x (-6- 11.35)²] + [0.05 x (-16 - 11.35)²]} / 4 = (131.868375 + 0.2535 + 60.2045 + 37.401125) / 4 = 57.4219
stock C = {[0.15 x (21 - 7.95)²] + [0.6 x (10 - 7.95)²] + [0.2 x (-4- 7.95)²] + [0.05 x (-8 - 7.95)²]} / 4 = (25.545375 + 2.5215 + 28.5605 + 12.720125) / 4 = 17.3369
portfolio's variance = (0.3 x 33.4975) + (0.4 x 57.4219) + (0.3 x 17.3369) = 38.21908
portfolio's standard deviation = √38.21908 = 6.18%
According to equity theory, employees tend to experience anger or frustration when they perceive being<u> </u><u>under-rewarded</u>.
Fairness theory is an idea of motivation that suggests that employee motivation at paintings is driven in large part by their feel of equity. Employees create an intellectual ledger of the inputs and consequences of their activity after which use this ledger to evaluate the ratio of their inputs and outputs to others.
The equity idea focuses on figuring out whether or not the distribution of sources is honest to each relational companion. equity is measured by way of evaluating the ratio of contributions and benefits for everybody.
The fairness principle is in play when people say such things as: “Andy earns more than I do, but doesn't do almost as a lot of work!” “I am getting paid a lot much less than Andy, but this region would disintegrate without me!”
Learn more about equity theory here brainly.com/question/14639287
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<u>Answer:</u>Option C
<u>Explanation:</u>
Dividend means the portion of profit which the company plans to distribute it to the shareholders of the company. When there is a dividend increase it signals that the company will have future positive results. The dividend increase is a forecast of the company's future profitability.
The shareholders will also know that company will have positive performance in the future. The information is useful for the investors as this also indicate a positive cash flow in the company's financial statements.
