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3 years ago

The most common approach for making individual analysis is to:_______.

Business

1 answer:

Gemiola [76]3 years ago

8 0

Answer:

C) Use Performance Appraisal Data.

Explanation:

The most common approach for making individual analysis is to use performance appraisal data. Performance appraisal is a periodic review where job performance of a worker is analysed, reviewed, evaluated and documented. Its main aim is to review an employee's growth, skills and achievements. It is one of very important part of an employee's career development. The main objective of performance appraisal is to view the job and work productivity of an employee. Many other elements are considered in performance appraisal as well which are employee's citizenship behavior, improvements, strengths and accomplishments.

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Carson’s Ribs, Inc. has hired you to calculate its WACC. • Debt: It currently issues 10-year bonds with an annual coupon of 5.5%

hoa [83]

Answer:

WACC =9.902%

Explanation:

Lets first understand what WACC is. WACC or weighted average cost of capital represents the total cost of financing. Now there are two main sources of long-term finance available to an entity, DEBT and EQUITY. Each source of finance has a different cost which highly depends upon the RISK PROFILE and RISK APPETITE of an entity. Some entities prefer debt financing over equity while some consider equity as more reliable source of finance.

When an entity takes finance from each source, it finds itself with a pool of funds which are then allocated based on priorities. WACC is the cost of the 'POOL OF FUNDS' (i.e an average cost of both debt and equity).

The formula of WACC is as follows:

WACC= ke×(E/V) + kd×(d/V)

ke= cost of equity

E= market value of equity

V= combined value of debt and equity

kd= cost of debt

So in order to find WACC we need to first calculate Ke and Kd.

Cost of equity can be calculated using the formula mentioned below.

ke= {d(1+g) ÷ p×(1-0.05)} + g

ke= cost of equity

d= dividend per share

g= growth rate

p= market price per share

ke= {$1(1.1) ÷ $45×( 1-0.05)} + 0.1

ke= 12.5%

Cost of Debt can be calculated using the formula below.

kd= i×(1-t)÷p

i= interest (5.5%×%1000=$55)

t= tax

p= market value of debt

kd= $55×(1-0.25)÷1075

kd= 3.84%

NOTE: (SINCE WE DON'T HAVE ENOUGH INFORMATION IN ORDER TO CALCULATE TOTAL MARKET VALUES OF DEBT AND EQUITY, WE CAN USE THE TARGET CAPITAL STRUCTURE TO COMPUTE WACC)

WACC = (12.5%×70÷100) + (3.84%×30÷100)

WACC= 8.75%+ 1.152%

WACC =9.902%

5 0

4 years ago

Q8. Smith Auto Dealership had beginning net fixed assets of $216,525 and ending

AveGali [126]

Answer:

The net cash flow is $7,844 from the sale of the assets.

Explanation:

<em>Step 1: Determine the average fixed assets</em>

The average net fixed assets can be determined using the expression;

Av=(Fb+Fe)/2

where;

Av=average net fixed assets

Fb=net fixed assets at the beginning of the year

Fe=net fixed assets at the end of the year

In our case;

Av=unknown

Fb=$216,525

Fe=$208,650

replacing;

Av=(216,525+208,650)/2=$212,587.50

The average net fixed assets=$212,587.50

<em>Step 2: Determine the net fixed assets after accounting for depreciation</em>

This can be expressed as;

Net fixed assets=average net fixed assets-depreciation

where;

average net fixed assets=$212,587.50

depreciation=$41,320

replacing;

Net fixed assets=(212,587.50-41,320)=$171,267.50

Step 3: Debit the fixed asset account and credit the cash account

Account Debit Credit

Fixed assets 7,844 163,423.50

Cash flow 163,423.50 7,844

The net cash flow is $7,844 from the sale of the assets.

5 0

4 years ago

Tobin starts a catering company of his own and earns a substantial profit in the first year itself. His total earnings are more

Nastasia [14]

Answer:

The correct answer is: greater financial success.

Explanation:

Entrepreneurship brings many advantages to individuals who decide to go on with their ventures. Personal freedom, working at your own schedule, being your own boss, total control over decisions, and greater income are some of them. The disadvantage relies on the fact that all the responsibility relies on one person and working hours are likely to increase.

5 0

4 years ago

Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands). 2022 2021 Cash $13

Fiesta28 [93]

Answer:

Current ratio for 2022: 0.311

Current ratio for 2021: 0.231

Explanation:

The current ratio is a liquidity ratio that indicates a company's ability to pay its current liabilities when they come due. The current ratio is calculated by the following formula:

Current Ratio = Total Current Assets/Total Current Liabilities

In Bob Evans Farms:

Current ratio for 2022 = $80,200/$257,500 = 0.311

Current ratio for 2021 = $71,809/$311,100 = 0.231

4 0

3 years ago

AE Corp. completed the following transactions during Year 1: Issued 3,000 shares of $10 par common stock for $25 per share. Repu

AleksandrR [38]

Answer:

4,700 shares

Explanation:

The computation of the number of shares of common stock outstanding at the end of the period is shown below

= Beginning shares + issued shares - repurchase shares + reissue shares

= 2,000 shares + 3,000 shares - 500 shares + 200 shares

= 4,700 shares

We applied the above equation to find out the number of shares outstanding at the end of the year

6 0

4 years ago