Answer:
A. whistle-blowing.
Explanation:
Whistle-blowing occurs when an employee exposes information of wrong-doing, unethical practice, or illegal actions. The information released can either be to internal authorities or it can be released to external parties.
When an employee does not have confidence that appropriate action will be taken on the information provided, employees tend to go to external parties with the information.
This was the case with EAC above where the staff were going to the press. EAC now set up a whistle-blowing framework that increased employee confidence and reduced turn-over.
Answer: D. Global standardized strategy.
Explanation: Global standardized strategy is the ability of a firm to intentionally use one marketing strategy for it product in different countries. That is the marketing strategy used are the same everywhere its product is sold.
Lenovo uses global standardized strategy, marketing its product with the same strategy and price in the countries housing its production and the countries it distribute to.
Answer:
Debit to sales discounts for $100
Explanation:
Please see journal entry to record the sales below;
a. Dr accounts receivable $5,00
To sales revenue account $5,000
(Being merchandise that is sold on credit basis)
Suppose payment is made within 10 days, the journal entry will be;
Dr Cash account $4,900
Sales discount account $100
(5,000 × 2%)
To accounts receivable $5,000
(Being cash that is received)
Answer:
a. The cost of equity is 5.538%
b.The cost of equity is 13.475%
Explanation:
a.
The DDM approach has several models that are used to calculate the price of the share. As the dividend growth is constant forever, we use the constant growth model of DDM to estimate the required rate of return or cost of equity as other variables are known.
The formula for price using the constant growth model is:
P0 = D0 * (1+g)/ r - g
Plugging in the value,
78 = [0.4 * (1+0.05)] / (r - 0.05)
78 * (r - 0.05) = 0.42
78r - 3.9 = 0.42
78r = 3.9 + 0.42
r = 4.32 / 78
r = 0.05538 or 5.538%
b.
The SML approach uses the risk free rate and market risk premium along with stock's beta to calculate the cost of equity or required rate of return.
The cost of equity using SML is:
r = 0.061 + 1.25 * (0.12 - 0.061)
r = 0.13475 or 13.475%
Answer:
b. 11.87%
Explanation:
interest = $102,000*11%*8/12
= $7480
Effective interest rate = ($7480/($102000 - $7480))*12/8
= ($7480/94520)*12/8
= 11.87%