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3 years ago

5 functions of the B-BBEE Commission

1 answer:

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B-BBEE Commission or the Broad-Based Black Economic Empowerment Act of 2003 where President Jacob Zuma appointed Advisory Council members. These members are responsible to make into action their functions over a period of 5 years. The functions are (1) Responsible leadership and direction of the implementation of plans, (2) advise government on black economic empowerment, (3) review on the improvement or progress towards black economic empowerment, (4) draft transformation charters, and (5) facilitate partnerships between the private sector and state organs.

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Given a normal market supply curve for mp3 players, if the nightly news reports that loud music increases hearing loss, then the

castortr0y [4]

What would likely happen after the news spread is that there will be a decrease in supply for mp3 players. It is because mp3 players are considered to be loud music for it is need to be plugged on the ears for better sound and hearing in listening to music. If it is claimed that it increases hearing loss, people will be alarmed and think that the mp3 players will contribute to this problem, giving the effect of other people not buying it, decreasing the supply.

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3 years ago

Star, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one th

Maksim231197 [3]

Answer:

a) $780

b) $865.5

c) 174.15 + 605.85 = $780

Explanation:

a) The first part of the question is to determine Ms. Brown's cash flow under Star Inc's current capital structure- Dividend payout rate of 100 percent

First we know that the Earnings Before Interest and Tax is $26,000

However, at this instance which is the current capital structure, there is no tax and no debt

hence Earnings Per share = $26,000 / 5000 shares = $5.2

So, Ms. Brown's cash flow = 150 shares x $5.2 = $780

b) Ms. Brown's cash flow under the proposed debt and equity structure. 150 shares kept

Step 1 - calculate the total capital = $86 x 5000 shares = $430,000

30% of this now (0.3 x 430,000) goes into debt = $129,000. This debt is also used to buy shares as follows

= $129,000/ $86 = 1,500 shares (bought with debt)

Step 2: The shares bought with equity now = 5,000- 1,500 =3,500 shares

Also, the debt has a rate of 4.5%, meaning the interest rate on the $129,000 borrowed = 0.045 x 129,000= $5,805

Step 3: Star Inc's net income = Earnings before interest and tax - interest - tax

= $26,000 - $5,805-0 = $20,195

The New earnings per share = $20,195 / the new number of equity shares

= $20, 195 / 3500 = 5.77

Ms. Brown's cash flow under the new structure = 150 shares x $5.77 = $865.5

c) Ms. Brown's cash flow if she recreates the original capital structure and unlevers her shares

The meaning of this is that Ms. Brown decides to sell 30% of her shares and then lends it at 4.5% just like the company did.

30 of 150 = 45 shares x $86 = $3,780

Interest to be made if she lends it at 4.5% = $3,780 x 0.045 = $174.15

Also, Since she only sold 45 shares, she is still entitled to dividend on the remaining (150-45) = 105 shares

Using the new Earnings Per share under the Levered business

Ms. Brown's dividend = $5.77 x 105 shares = $605.85

It means her entire cash flow will be

The interest received on the levered 30% + The dividend received on the remaining 70% equity

= $174.15 + $605.85

= $780 which is the same as the initial or the old structure in question A above.

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4 years ago

Kay & Maggie's, a beauty salon, is conducting a survey to find out how satisfied its customers are with the service provided

SashulF [63]

Answer:

It is both qualitative data and primary data.

Explanation:

Qualitative data is data that is not expressed in numerical values. Kay & Maggie are asking for opinons in the survey and interviews. These opinons are not numbers, they are words, language, therefore, they are qualitative.

It is primary data because Kay & Maggie are collecting the information directly from the desired source, the customers, instead of collecting the data from a third party.

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3 years ago

In doing a five-year analysis of future dividends, the Dawson Corporation is considering the following two plans. The values rep

Shalnov [3]

Answer:

For Plan A = 6.7

For Plan B = 7.8

Explanation:

Data Given:

First of all, we need to sort out the data because it is very necessary to solve for this question requirement.

Year 1

Plan A = 1.10 Plan B = 0.10

Year 2

Plan A = 1.10 Plan B = 1.20

Year 3

Plan A = 1.10 Plan B = 0.20

Year 4

Plan A = 1.70 Plan B = 4.50

Year 5

Plan A = 1.70 Plan B = 1.80

Total Number of Years = 5

Now, in order to calculate the total number of dividend per share over the 5 years time period. We need to sum the individual entries of Plans.

So,

For Plan A:

Total number of dividend per share = 1.10 + 1.10 + 1.10 + 1.70 + 1.70 = 6.7

Total number of dividend per share = 6.7

Similarly,

For Plan B:

Total number of dividend per share = 0.10 + 1.20 + 0.20 + 4.50 + 1.80 = 7.8

Total number of dividend per share = 7.8

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3 years ago

An entrepreneur needs to raise $20,000 for improvements to her factory. She plans to contribute 60 percent of this sum from her

Karolina [17]

Answer:

$8,000

Explanation:

The entrepreneur needs $20,000. She can raise 60% from savings. It means she needs to generate 40% from other sources.

40% of $20,000 is

=40/100 x $20,000

=0.4 x $20,000

=$8,000

8 0

3 years ago