Answer:
The answer is the internal rate of return on this investment is 10%.
Explanation:
The internal rate of return is the discount rate bringing the present value of the perpetual stream of cash inflows equal to its initial investment which is $210.
We apply the formula for calculating the present value of growing perpetuity to find out the internal rate of return, which is denoted as X in the below equation:
10.5/ ( X - 5%) = 210 <=> X - 5% = 10.5 / 210 = 5% <=> X = 5% + 5% = 10%.
So, the internal rate of return on this investment is 10%.
Answer:
Increased turnover
Explanation:
Turnover is simply any permanent movement or departure of employees beyond organizational boundaries that has being set.
Types of Turnover includes;
1. Functional vs Dysfunctional
2. Voluntary vs Involuntary
3.Controllable vs Uncontrollable
An Increases in turnover will cause;
1.The retention costs fall (individuals are leaving so costs of retaining them fall)
2. The Turnover costs increase as more people are leaving.
Answer:
$200,000
Explanation:
Hawk Corporation purchased 10,000 shares at $50 per share of Diamond Corporation. The share were sold in 2019 at price of $70 per share to Diamond Corporation by Hawks Corporation. The net gain per share was $20 ($70 - $50)
The total gain from this investment : $20 per share * 10,000 shares
= $200,000 gain to Hawk Corporation from investment in Diamond Corporation.
Answer:
a. $60000
Explanation:
The forecasted sales of the firm = $250000
Breakeven sales of the firm = $190000
We have to find the margin of safety by using the above given information. Therefore, it can be determined by subtracting the breakeven sales from sales.
The margin of safety = sales – breakeven sales
The margin of safety = 250000 – 190000
The margin of safety = $60000
Thus, option A is correct.