Answer:
True
Explanation:
Lean systems have one focus, to maximize customer value. It is an approach in business where lean methods or principles are applied to plan, measure work done, manage and prioritize.
In a lean system, it is important to identify excess inventory or capacity, because it hides problem of wasted resources.
Answer:
Paul Hyatt is fully liable for all business debts
Explanation:
Unlimited liability in this scenario, means that Paul Hyatt is fully liable for all business debts. That is because unlimited liability is defined as the full legal responsibility that business owners and partners assume for all business debts, and since Paul Hyatt is a sole proprietor which means that he both owns and runs DeepCleans and there is no legal distinction between him and the business entity, then he is fully liable for debts and profits of DeepClean.
Answer:
The correct answer is 23.33 and 11.67.
Explanation:
According to the scenario, the given data are as follows:
ROE = 20%
Plowback ratio = 0.30
Earning per share = $2
Rate of return = 12%
So, we can calculate the price and P/E ratio by using following formula:
First we calculate the growth rate of the company.
So, Growth rate (g) = Plowback ratio × ROE
By putting the value we get,
Growth rate = 0.30 × 0.20 = 6%
Now we calculate the price,
So, Price = Earning × ( 1 - Plowback ratio) ÷ ( Return rate - Growth rate)
= $2 × ( 1 - 0.30) ÷ ( 0.12 - 0.06)
= 1.4 ÷ 0.06
= 23.33
And P/E ratio = Price ÷ earning per share
= 23.33 ÷ 2
= 11.67
Answer:
a) the required rate of return for all of a firm's capital investment projects.
Explanation:
The weighted average cost of capital refers to the blended cost of capital of a firm from all its sources. It is the proportionate representation of a firm's cost of capital from its various sources. A firm's sources of capital include bonds, common stock, preferred stocks, and other long term sources of are factored in WACC.
In calculating the WACC, each source of capital is proportionately weighted according to its percentage contribution to capital. The WACC is applied in capital budgeting as a firm preferred discount rate when calculating the net present value.
Answer:
$0
Explanation:
During the past two years, through extensive advertising and improved customer relations, Orange Corporation estimated that it had developed customer goodwill worth $500,000. For the current year, determine the amount of goodwill Orange may amortize.
Self created goodwill is not a 197 intangible and thus cannot be amortized.
Intangible property are property acquired for use in a trade or business or for the production of income be amortized over fifteen years from the date of acquisition regardless of the assets useful life, good will is an example of intangible property.However,self created goodwill cannot be amortize for example customer list that you developed over the years for your own business can not be amortize.
