Answer: B. Equity theory
Explanation:
Equity Theory is based on the idea that individuals are motivated by fairness. In simple terms, equity theory states that if an individual identifies an inequity between themselves and a peer, they will adjust the work they do to make the situation fair in their eyes.
Equity Theory calls for a fair balance to be struck between an employee's inputs (hard work, skill level, acceptance, enthusiasm, and so on) and an employee's outputs (salary, benefits, intangibles such as recognition, and so on).
The theory is built-on the belief that employees become de-motivated, both in relation to their job and their employer, if they feel as though their inputs are greater than the outputs and if they are not treated fairly compared to their peers.
Answer:
a) WACC = 12.20%
Explanation:
Weighted average cost of capital is computed by allocating weights to different capitals.
Cost of bonds = Cost of debt = 5%
Cost of preferred stock = 9%
Cost of equity = 16%
As it is new issued and not from retained earnings.
With weights cost will be as follows
Bonds = 5% X $5/$20 = 1.25%
Preference share = 9% X $3/$20 = 1.35%
Equity = 16% X $12/$20 = 9.6%
WACC = 1.25 + 1.35 + 9.6 = 12.20%
Answer:
40%
Explanation:
Calculation to determine what percentage is assigned to Cost of Goods Sold
Using this formula
Cost of Goods Sold percentage=
Cost of Goods Sold /Net Sales
Let plug in the formula
Cost of Goods Sold percentage=$120/$300*100
Cost of Goods Sold percentage=0.40*100
Cost of Goods Sold percentage=40%
Therefore the percentage assigned to Cost of Goods Sold is 40%
<u>Explanation:</u>
Target market should have appropriate age, gender, lifestyle, likes, preferences, income level, education level, maturity level, marital status, occupation and ethnicity. It can also be shortly termed as appropriate demographics.
Target market is the audience to whom the product is to be sold. In order to pitch the right product to right customer target market has to be identified. Customer profiling is necessary to identify the customers interested in the products or services marketed by an organisation.
Customer base gives the details of what is needed by the customers. Organisation is benefited by only concentrating on the customers who are interested in their products or service.
Answer:
The fixed asset turnover ratio is closest to 3.62.
Explanation:
The fixed asset turnover ratio can be calculated using the following formula:
Fixed asset turnover ratio = Net sales revenue / Average fixed assets …….. (1)
Where:
Net sales revenue = $1,420,000
Average fixed assets = (Beginning balance of fixed assets + Ending balance of fixed assets) / 2 = ($378,000 + $406,000) / 2 = $392,000
Substituting the values into equation (1), we have:
Fixed asset turnover ratio = $1,420,000 / $392,000 = 3.62
Therefore, the fixed asset turnover ratio is closest to 3.62.
