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crimeas [40]
3 years ago
9

"In employees decide how motivated they are by evaluating the likelihood that their effort will produce a certain level of perfo

rmance and that a certain level of performance will lead to a reward, as well as how much they value the reward being offered."
Business
1 answer:
kobusy [5.1K]3 years ago
4 0

Answer:

Vroom's expectancy theory

Explanation:

Vroom's Expectancy theory states that three factors determine how motivated people will be. They are; expectancy, valence and instrumentality.

Expectancy is how employees expect they will perform or the effort they will have to put in to produce a certain level of performance.

Instrumentality relates to the belief that performance will achieve the required results and yield certain rewards.

Valence refers to how much employees value the rewards they receive.

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The common stock of Buildwell Conservation & Construction Inc. (BCCI) has a beta of .9. The Treasury bill rate is 4%, and th
UkoKoshka [18]

Answer:

Cost of equity is 11.2%

WACC is 8.74%

Explanation:

The formula for cost of equity is given below:

Cost of equity=risk free rate+(Beta *risk premium)

risk free rate is the treasury bill rate of 4%

Beta is 0.9

market risk premium is 8%

cost of equity=4%+(0.9*8%)=11.2%

WACC=Ke*E/V+Kd*D/V*(1-t)

Ke is the cost of equity of 11.2%

Kd is the cost of debt of 5%

t is the tax rate of 40% or 0.4

E is the equity weighting of 70% or 0.7

D is the debt weighting of 30% or 0.3

V is the E+D=0.7+0.3=1

WACC=11.20% *0.7/1+(5%*0.3/1*(1-0.4)

WACC=7.84% +0.90% =8.74%

       

4 0
3 years ago
Which of the following is true? AChecks and Debit Cards both withdraw money directly from a bank account. BDebit Cards often hav
Tems11 [23]
A.<span>Checks and Debit Cards both withdraw money directly from a bank account. </span>
3 0
3 years ago
Firestone Tires recently paid an annual dividend of $2.00 on its common stock. This dividend increases at an average rate of 3.8
Darina [25.2K]

Answer:

Market rate of return = 12.45%

Explanation:

Below is the calculation of market rate of return.

D = Just pad dividend x (1 + growth rate)

D = 2 x (1 + 0.038)

D = 2.076

Now use the below formula to find the market rate of return.

Market rate of return = (D/current selling price) + Growth rate

Market rate of return = (2.076 / 24) + 0.038

Market rate of return = 12.45%

4 0
3 years ago
The tax laws allow taxpayers to use which of the following methods for accounting for research and experimentation costs paid or
Anettt [7]

Answer:

b

Explanation:

Another definition:

It is the purchase price of an asset + the costs of operating the asset

4 0
3 years ago
Division ABC has $750,000 invested in assets and earned $200,000 in income. Division XYZ has $800,000 invested in assets and ear
Rus_ich [418]

Answer:

Division XYZ has the highest residual income

Explanation:

Residual income is the excess of the controllable profit over the opportunity cost of capital invested.

It is used to appraise and evaluate the performance of separate divisions of the same company where different managers are responsible for each

It is computed as follows:

Residual income = Controllable profit - (cost of capital× operating assets)

<em>Division ABC</em>

Residual income = 200,000 - (10%×750,000) = $125,000

Residual income= $125,000

<em />

<em>Division XYZ</em>

Residual income = 210,000 - (10% ×800,000) = $130 ,000

Residual income= $130,000

Division XYZ has a higher residual income of $130,000 compared to the $125,000 of division ABC. A difference of $5,000 higher.

4 0
3 years ago
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