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maria [59]
3 years ago
12

Leo Consulting enters into a contract with Highgate University to restructure Highgate’s processes for purchasing goods from sup

pliers. The contract states that Leo will earn a fixed fee of $25,000 and earn an additional $10,000 if Highgate achieves $100,000 of cost savings. Leo estimates a 50% chance that Highgate will achieve $100,000 of cost savings. Assuming that Leo determines the transaction price as the expected value of expected consideration, what transaction price will Leo estimate for this contract?
Business
1 answer:
fomenos3 years ago
6 0

Answer:

The transaction price would Leo estimated for this contract is $30,000

Explanation:

The computation of the transaction price is shown below:

= (Fixed fee + additional amount) × chance + fixed fee × chance

= $35,000 × 50% + $25,000 × 50%

= $17,500 + $12,500

= $30,000

hence, the transaction price would Leo estimated for this contract is $30,000

We simply applied the above formula so that the correct answer could come

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For each of the annual inflation rates given in the following table, first determine the new price of a movie ticket, assuming i
Mazyrski [523]

Answer:

  see below

Explanation:

The balance in Lucia's account is 1.05 times the original deposit, reflecting addition of 5% interest for the year.

The ticket price is the original price multiplied by (1 + inflation rate). The number of tickets that Lucia can purchase is the account balance divided by the ticket price. The quotient is rounded down to the nearest integer.

The "real interest rate" is the percentage change from the original number of tickets that could be purchased.

6 0
3 years ago
Sandhill Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $132,500 Allowance
goldfiish [28.3K]

Answer:

S/n  Accounts title                                        Debit      Credit

a.      Bad Debt expenses                          $2,655

                Allowance for Doubtful debts                    $2,655

                ((132,500*5%)-3,970)

        (Being bad debt expense recorded)  

b.       Bad Debt expenses                           $8,255

                  Allowance for Doubtful debts                   $8,255

                   {(132,500*5%)+1,630]

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5 0
3 years ago
Assume a firm has a beta of 1.2. All else held constant, the cost of equity for this firm will increase if the: beta decreases.
eduard

Answer:

Risk-free rate decreases

Explanation:

The CAPM formula for calculating cost of equity requires one to know the value of 3 pieces of information only:

1. the market rate of return,

2. the beta value

3. the risk-free rate.

Ra = Rrf + [Ba∗(Rm−Rrf)]

where:

Ra=Cost of Equity

Rrf = Risk-Free Rate

Ba = Beta

Rm=Market Rate of Return

​From the formula

Ra = Rrf + [1.2∗(Rm−Rrf)]

Ra = Rrf + 1.2Rm - 1.2Rrf

From Ra = 1.2Rm -0.2Rrf

From the expression above, it can be seen that the lower the value of Rrf (Risk-Free rate), the higher the value of Ra.

4 0
3 years ago
the hr plan for computer services international identifies that some positions will be hard to fill because they require skills
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Answer:

budget enough money for attractive pay levels.

Explanation:

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3 years ago
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Answer:

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Explanation:

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they think ad. with emotional reaction is viewed  more likely to be shared  

so here the correct answer is Sadvertising

5 0
3 years ago
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