Answer:
Option (C) is correct.
Explanation:
The required proceeds:
= Amount need to be finance ÷ (1 - 7%)
= $20 million ÷ (1 - 0.07)
= $215,05,376.34 (approx)
Hence, the number of shares needed to be issued:
= required proceeds ÷ Issue price per share
= $215,05,376.34 ÷ $50 per share
= 430,108 shares (approx)
Therefore, 430,108 shares they need to issue to cover the cost of the project plus all floatation costs.
Answer:
The portfolio standard deviation is 14.82%
Explanation:
The portfolio standard deviation would be calculated by finding out the variance of the portfolio and taking the square root of it.
Variance of the portfolio = [(1 - .50)
x 0.25] + [0.50 x 0.16] + [2 x (1 - 0.50) x 0.50 x 0.25 x 0.16 x 0]
= [0.25 x 0.0625] + [0.25 x 0.0256] + [0]
= 0.015625 + 0.0064
VarPort = 0.022025
Std DevPort = √0.022025
Std DevPort = 0.1482 = 14.82 percent
Answer:
Zigzag Manufacturing
The Effectiveness of Leslie Demorest's Budgeting Strategy
The strategy of adjusting the previous year's operating expenses with inflation is not an effective way of strategic budget planning. Leslie's budgeting strategy does not take advantage of forecasts of unexpectedly good performance and fails to provide any reaction that can occur when there are downturns in cash flow.
An effective budgeting strategy should provide the standard for the effective use of financial resources of Zigzag Manufacturing in its business operations. There are no clear goals to be achieved and an evaluation of how the goals will be achieved through the budget implementation.
Explanation:
An effective budget should be able to forecast and track revenues and expenses, which are received and incurred in pursuit of business goals and projections. An effective budget ensures that those who implement the projections contained in the budget remain motivated. The idea of adjusting previous expenses with inflation is not an effective budgeting strategy.
<h2>Every country operate in a different yet similar system of both political and social affairs.</h2>
Explanation:
Every country operate in a different yet similar system of both political and social affairs. In terms of political differences, some countries have parliamentary governments while some countries like the US have presidential governments.
Regardless of how each country operate politically, most of the operational system of these countries are embedded in democracy and the general welfare of its citizens. The differences occur because of these operational systems of each country. They could differ in policies, reforms or laws which are based on the interests of its people and the nation.
In economic terms, the differences occur when governments prioritize what economic policies or model they choose to implement. Economic systems of a country change according to the need of the times. For instance, China initially, after its independence, chose to remain a closed economy until it reformed its policies in 1978 to finally open up the country.
Legal systems of countries differ from one another as every country use a civil law system based on its cultural, social, political and historical circumstances. For instance, in US each state has the power to establish its own legal procedures while in some country, every state must follow a uniform civil code.
As we know the political economy refers to both the political and economic systems of a country, management practice of national differences is important to taken into account before securing economic relations with another country. Management practice of national differences helps in finding favorable economic and political systems around the world for a country to make both economic and political partnership with.
Answer:
$12,000
Explanation:
The main difference between cash basis accounting and accrual accounting is that accrual accounting recognizes revenue only after the earning process is completed. On the other hand, cash basis accounting recognizes revenue and expenses when the money is received or paid, regardless of when the service is provided. This is why the US GAAP doesn't allow cash basis accounting.
The IRS allows cash basis accounting for individuals and small businesses that only deal with cash payments, but they must meet certain criteria:
- partnerships or C corporations with less than $5 million in yearly revenue
- sole proprietorships and S corporations with less than $1 million in yearly revenues
- family owned farms
- you provide personal services and 95% of your revenue comes from it
- no publicly traded corporation is allowed
