Which of the following is a potential consequence if a business has more clients than it can handle?

If you were to deposit $1,000 into an account that paid 10 percent

Verizon [17]

B is your answer :) please mark me brainliest

5 0

4 years ago

The risk-free rate of return is 8%, the expected rate of return on the market portfolio is 15%, and the stock of Xyrong Corporat

koban [17]

Answer:

Risk-free rate (Rf) = 8%

Return on market portfolio (Rm) = 15%

Beta (β) = 1.2

Ke = Rf + β(Rm - Rf)

Ke = 8 + 1.2(15 - 8)

Ke = 8 + 1.2(7)

Ke = 8 + 8.4

Ke = 16.40%

Earnings per share (EPS) = $10

Current dividend paid (Do) = 40% x $10 = $4

Retention rate (b) = &6/$10 x 100 = 60% = 0.6

ROE (r) = 20% = 0.2

Growth rate (g) = b x r

= 0.6 x 0.2

= 0.12 = 12%

Current market price (Po)

= Do(1 + g)

Ke - g

= $4(1 + 0.12)

0.1640 - 0.12

= $4(1.12)

0.044

= $101.82

Explanation:

First and foremost, we need to calculate the cost of equity based on capital asset pricing model. Then, we will determine the growth rate, which is a function of retention rate (b) and return on equity(r).

Finally, we will calculate the current market price, which is dividend paid, subject to growth, divided by the excess of cost of equity over growth rate.

7 0

4 years ago

CircuitTown commenced a gift card program in January 2021 and sold $10,000 of gift cards in January, $15,000 in February, and $1

kondaur [170]

Answer and Explanation:

a. The computation of revenue is shown below:-

Revenue = Gift card redemption + Gift card breakage

= $6,000 + $4,000

= $10,000

b. The Journal entry is shown below:-

Cash Dr, $10,000

To Unearned Gift Card Revenue $10,000

(Being sale of the gift card is recorded)

2 Unearned Gift Card revenue Dr, $6,000

To Revenue - Gift Cards $6,000

(Being gift card redemption is recorded)

3. Unearned Gift Card revenue Dr, $4,000

To Revenue - Gift Cards $4,000

(Being gift card breakage is recorded)

c. The revenue is shown below:-

Only $4,000 will be recognized as revenue as it is the gift card redemption.

d. The computation of liability for deferred revenue is shown below:-

Liability for deferred revenue = $16,000 - $4,000

= $12,000

4 0

4 years ago

When an organization is using a turnaround strategy, its human resource managers need to be involved in?

Masteriza [31]

Decreasing the size of the organizations workforce is the turnaround strategy used by an organization human resource managers

Explanation: What is turnaround strategy ?

A turnaround plan involves restructuring or turning the company's current strategy on its head. Companies typically use this tactic when a unit or department is losing money or has been doing poorly for a while.

Underperformance may have a variety of causes. It's possible that the management isn't doing its job properly. Or perhaps a recessionary period is what the economy is going through. It's possible that consumer preferences and tastes have altered. Or a natural disaster might have struck the nation. Similar to this, the company can be dealing with a significant increase in input costs or the entry of new competitors. A financial or liquidity problem could also be present.

To know more about turnaround strategy, check the link below:

brainly.com/question/28502670

#SPJ4

6 0

1 year ago

Keynesian economics argues for the use of _____ policy to stabilize the economy.

slavikrds [6]

Answer:

Keynesian economics argues for the use of active government policy to stabilize the economy.

Explanation:

In order to alleviate or avert economic recessions, Keynesian economics places a strong emphasis on the employment of proactive government policy to control aggregate demand. Keynes contended that lengthy periods of high unemployment might result from a lack of general demand. Consumption, investment, government purchases, and net exports are the aggregate of four factors that determine an economy's amount of goods and services.

8 0

2 years ago