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Romashka-Z-Leto [24]
3 years ago
13

Cooper Grant is the president of Acme Brush of Brazil, the wholly owned Brazilian subsidiary of U.S.-based Acme Brush Inc. Coope

r Grant’s compensation package consists of a combination of salary and bonus. His annual bonus is calculated as a predetermined percentage of the pretax annual income earned by Acme Brush of Brazil. A condensed income statement for Acme Brush of Brazil for the most recent year is as follows (amounts in thousands of Brazilian reals [BRL]):
Sales BRL 10,000
Expenses 9,500
Pretax income 500

After translateing the Brazilian real income statement into US dollars, the condensed income statement for Acme Brush of Brazil appeas as follows: (amounts in thousands of US dollars)

Sales $3,000
Expenses 3,300
Pretax income (loss) (300)

1. Explain how Acme Brush of Brazil's pretx income (in BRL) became a US dollar pretax loss.
2. Discuss whether Cooper Grant should be paid a bonus or not.
Business
1 answer:
Lady_Fox [76]3 years ago
5 0

Answer:

1) The pretax income of Acme Brush became a US dollar pretax loss because of spot rates and or the exchange rates meaning sales were made when the exchange rate was Less than the exchange rate when the expenses were paid. But the main difference between the two currencies is exchange rates.

2) Cooper Grant should be paid the annual bonus as it is payable to him because Acme Brush of Brazil made a profit and his Bonus is a predetermined percentage of the pretax income.

Explanation:

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Orwell building supplies' last dividend was $1.75. Its dividend growth rate is expected to be constant at 13.00% for 2 years, af
vitfil [10]

Answer:

b. $35.02

Explanation:

The first dividends will be calculate by multiplying by the grow rate and bring them to present value:

first year:

D0 x (1+g)

1.75 x 1.13 = 1.977500

Then we calcualte the present value:

\frac{Principal}{(1 + rate)^{time} } = PV

1.9775/1.12 = 1.7656

second year:

D1 x (1+g)

1.9775 x (1.13) = 1.7656

\frac{1.7656}{(1 + 0.12)^{2} } = PV

PV: 1.7814

Finally,, we calcualte the present value of the next dividends using the dividend grow model

\frac{divends}{return-growth} = Intrinsic \: Value

We calcualte next year dividneds:

D2 x (1+g) = D3

1.9775 x 1.06 = 2.368650

g = 6%

and return 12%

\frac{2.36865}{0.12-0.06} = Intrinsic \: Value

39.47749167

then, we calcualte the present vale:

\frac39.47749167}{(1 + 0.12)^{2} } = PV

PV = 31.4712

Finally, we add all these values

1.7656 + 1.7814 + 31.4712 = 35,0182 = 35.02

This will be the estimate current stock price.

5 0
3 years ago
Which of the following is incorrect?
Vlad1618 [11]

Answer:

d. A loan received will reduce capital

Explanation:

Capital is the collection of financial assets required to start and maintain a business. Capital is the money required to begin the operations of a business.  The money is used to purchase assets and materials used in the production of goods or services. Capital is either borrowed( debt ) or from the owner's savings ( equity).

A loan is cash borrowed to boost the financial strength of an individual or a business. Should a business opt for a loan, it means it will have more cash to finance its operations. Its ability to produce goods and services is increased. Therefore,  a loan is an addition to capital.

4 0
4 years ago
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NNADVOKAT [17]

Answer:

High Morale.

Explanation:

Morale is internal feeling and it is inspired by the environment. It depends upon the relations between expectations and reality.

A motivated person tends to experience high morale A person in High morale group need not be Motivated.

Make sure that employees are interested in and appreciated for their work. High morale yields higher productivity in an organization Employees’ spirits can easily fall if their day-to-day responsibilities are monotonous or if they don’t feel valued by their supervisors. Over time, this can translate into an unmotivated and unproductive staff.

Employees evaluate their treatment relative to the treatment of others, they need to fell contributions to their jobs. What employees receive in return is the perceived ratio of contribution to return determines, and equity.

How to Boost Morale?

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5 0
4 years ago
Capabilities are defined as a company's Group of answer choices skills at coordinating resources and putting them to productive
just olya [345]

Capabilities are defined as a company's Skills as coordinating its resources and putting them to productive use.

A person or thing has the ability to perform something, according to the definition of a capability. This is an instance of when someone has the capacity to cook when they are able to cook. The ability of a computer to open a file is demonstrated, for instance, when the computer can do so.

The volume and quality of labor that a person is capable of performing determines their capacity.... a job that was beyond the scope of one man.... the director's expectations of the actor's capacity.

Learn more about capability here brainly.com/question/25645043

#SPJ4

7 0
2 years ago
Follow me for more points!!​
Hatshy [7]
Okayyy thank you so much
4 0
3 years ago
Read 2 more answers
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