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GrogVix [38]
3 years ago
10

The "decision model that computes the difference between the present value of the investment's net cash inflows, using a desired

rate of return, and the cost of the initial investment" is best described by which of the following terms?
A) Accounting rate of return
B) Discount rate
C) Net present value
D) Internal rate of return
Business
1 answer:
DIA [1.3K]3 years ago
7 0

Answer:

C) Net present value

Explanation:

In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.

And, the internal rate of return is that return in which the Net present value come zero.

The average rate of return shows a ratio between the average net profit and the average investment.

In mathematically,

Net present value = Present value of all yearly cash inflows after applying discount factor - initial investment

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Kong Inc. reported net income of $298,000 during 2018 and paid dividends of $26,000 on common stock. It also has 10,000 shares o
julsineya [31]

Answer:

17%

Explanation:

The actual return which stockholder receives on the average common equity is return on common stockholder's equity.

Return on Common Stockholder Equity = (Net Income - Preferred dividend) / Average common stockholders equity

Return on Common Stockholder Equity = ($298,000 - (10,000 x $100 x 6%) / ( ( $1,200,000 + $1,600,000 ) / 2 )

Return on Common Stockholder Equity = ($298,000 - $60,000) / $1,400,000

Return on Common Stockholder Equity = 0.17 = 17%

3 0
3 years ago
One employee is in charge of the following activities at a refreshment stand: Activity Activity Time per Customer Greet customer
REY [17]

Answer:

A. Flow rate = 20 customers per hour

B. Utilization =0.83

C. Cycle time= 3 minutes per customer

Explanation:

A. Calculation for the flow rate

First step is to calculate the Processing time

Processing time = 5 + 25 + (1.5 ×60) + 30

Processing time=30+90+30

Processing time= 150 seconds

Second step is to calculate the Process capacity

Process capacity = 1/150 ×60 per seconds/minute ×60 per minutes/hour

Process capacity= 24 customers per hour

Now let calculate the Flow rate

Using this formula

Flow rate= Min(Demand, Process capacity)

Let plug in the formula

Flow rate= Min(20, 24)

Flow rate = 20 customers per hour

Therefore the flow rate will be 20 customers per hour

B. Calculation for the utilization

Using this formula

Utilization = Flow rate/Process capacity

Let plug in the formula

Utilization = 20/24

Utilization =0.83

Therefore Utilization will be 0.83

C. Calculation for the Cycle time

Using this formula

Cycle time = 1/Flow rate ×60 per minutes/hour

Let plug in the formula

Cycle time= 1/20 ×60 per minutes/hour

Cycle time= 3 minutes per customer

Therefore the Cycle time will be 3 minutes per customer

3 0
3 years ago
The declaration and issuance of a stock dividend larger than 25% of the shares previously outstanding
lord [1]

Answer:

b. decreases retained earnings but does not change total stockholders' equity.

Explanation:

<u>a. </u>increases common stock outstanding and increases total stockholders' equity.

<u>FALSE: </u>The Equity does not change as the Retained Earnings are used to issue the Shares, so no change in the total Stockholders Equity

<u>d. </u>increases retained earnings and increase total stockholders' equity.

<u>FALSE: </u>The retained earnings are debited thus, decrease when declaring dividends

<u>c.</u> may increase or decrease paid-in capital above par but do not change total

stockholders' equity.

<u>FALSE: </u>paid in will increase or not be used, as the shares will have a minimum value for the company of his face value.

<u>b. TRUE</u> RE decrease as from there comes to the funds. The total SE does not change it change his composition.

4 0
3 years ago
Henry and claudia can claim alyssa for which tax benefits
34kurt
Considering that Alyssa is their young daughter, United States has an  astounding number of tax credits and deductions that are geared towards taxpayers with children, they could claim: Credits, Deductions, exemption, Education Benefits, Education Deductions, and Education Credits, among others.
6 0
3 years ago
Ben recently lost his job at a major U.S. auto plant in one of the rust belt states. After looking unsuccessfully for work in a
Alexandra [31]

Answer: <em>Option (d) is the correct answer.</em>

Ben view the investment by government as a way to jump start a weak economy, i.e. investment by government will allow industries to hire new employees or workforce in order to meet production demand. Thereby increasing government spending through investing in construction of road and bridge, Ben assumes that the state will intervene in market to help revive a weak economy.

8 0
3 years ago
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