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olga_2 [115]
3 years ago
8

Marshall owns and operates a construction firm. He uses inexpensive and low-grade building products and accepts inferior carpent

ry work from his subcontractors. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws. Has he fulfilled all of his ethical obligations?
a. No, because ethics is too hard to define.
b. Yes, because legal standards are stricter than ethical standards.
c. Yes, because ethical obligations require only legal behavior.
d. No, because legal compliance is regarded as the moral minimum.
Business
1 answer:
Kitty [74]3 years ago
3 0

Answer:

The correct option is (d)

Explanation:

Ethics is considered above law as law requires just compliance of laws, rules and regulations. Ethics on the other hand establishes a standard of moral conduct. Being mere legal does not mean that something is ethical. Ethical responsibilities are not codified as it is expected from businesses to follow the same.

Here, Marshall, though complied with legal frameworks, he failed to fulfill his ethical obligations by using low-grade products that could harm the general public in future.

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Monetarists believe that in the short run a change in the money supply can affect _______________________, while in the long run
gregori [183]
According to monetary policies, in the short run a change in money supply will affect interest rates: an increase in money supply can decrease interest rates and a decrease in money supply can increase interest rates. In the long run, a change in money supply is more concerned with the effect in price level of the economy.
7 0
3 years ago
Wayne, Inc., wishes to expand its facilities. The company currently has 5 million shares outstanding and no debt. The stock sell
kompoz [17]

Answer:

a-1. Calculate the new book value per share.

current book value = stocks outstanding x book value = 5,000,000 x $10 = $50,000,000

new book value = $50,000,000 + $50,000,000 = $100,000,000

new stocks issued = $50,000,000 / $40 = 1,250,000

total stocks outstanding = 5,000,000 + 1,250,000 = 6,250,000

new book value per stock = $100,000,000 / 6,250,000 = $16

a-2. Calculate the new EPS.

old EPS = $4,000,000 / 5,000,000 = $0.80 per stock

new EPS = $4,850,000 / 6,250,000 = $0.776 per stock

a-3. Calculate the new stock price.

price to earnings ratio = $40 / $0.80 = 50

new stock price:

50 = new stock price / $0.776

new stock price = 50 x $0.776 = $38.80

a-4. Calculate the new market-to-book ratio.

market to book ratio = market capitalization / book value = $242,500,000 / $100,000,000 = 2.425

b. What would the new net income for the company have to be for the stock price to remain unchanged?

0.8 = net income / 6,250,000

net income = 6,250,000 x 0.8 = $5,000,000

4 0
4 years ago
A stock has an annual dividend of $10.00 and it is expected not to grow. It is believed the stock will sell for $100 one year fr
Shkiper50 [21]

Answer: C

Explanation: The present value of a stock is the sum of all future cash flows discounted using a rate.

The future cash flows, in this case, is the proceeds from selling the stock ($100) and the dividend ($10).

We can calculate the current price of the stock using the formula:

($100 + $10) / (1 + 6%) = 103.77

8 0
2 years ago
On January 1, 2021, Blair Company sold $800,000 of 10% ten-year bonds. Interest is payable semiannually on June 30 and December
Anika [276]

Answer:

$42,480

Explanation:

Given that,

Value of bonds = $800,000

Interest rate = 10%

Selling price of bond (Book value) = $708,000

Priced to yield = 12%

The semi-annual yield is calculated as follows:

= 12% / 2 (because the interest is payable semiannually on June 30 and December 31)

= 6%

Therefore, the semi-annual bond interest expense:

= Selling price of bond × semi-annual yield

= $708,000 × 6%

= $42,480

Hence, the Blair should report bond interest expense for the six months ended June 30, 2021 in the amount of $42,480.

But the actual cash paid for the interest expense will be:

= (Value of bonds × Interest rate on bonds)

= [$800,000 × (10%/2)]

= $800,000 × 5%

= $40,000

So, the amortization for bond discount is the difference between actual cash paid and bond interest expense:

= $42,480 - $40,000

= $2,480

7 0
4 years ago
What is the term called that is intended to clear the cylinder valve of dust or dirt that might otherwise enter the regulator
Len [333]

The answer is: cracking

Cracking only allowed for cylinder that contain non-dangerous substance. Toxic gas for example, would not be allowed because even a single crack could make the gas to leak and harm everything near it. Annual maintenance is required to ensure that no malfunction exist in the object.

7 0
3 years ago
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