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4 years ago

Sally Toone wants to start a new business, and hopes to attract several hundred investors

Business

1 answer:

Tanzania [10]4 years ago

7 0

Answer:

limited liability company.

Explanation:

A limited liability company features mostly in private company's. It is a business ownership structure formed by at least one person with no maximum. This structure combines elements of a partnership and a corporation. It adopts a corporation's limited liability feature while passing through its taxation to its members, just like in a partnership.

Sally can satisfy both her objectives by setting up a limited liability company LLC. An LLC does not have an upper limit on membership, while its taxation is a single layer.

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Many managers describe performance appraisal as the responsibility that they like least. Why is this so? What could be done to i

Dennis_Churaev [7]

Answer:

Many managers describe performance appraisal as the responsibility that they like least. Why is this so?

it might be so because managers may feel that performance appraisal is not as productive as other activities, or because they lack the personal skills, or the motivation, to engage in that activity.

What could be done to improve the situation?

Managers should be taught that performance appraisal can be a very effective and productive method for the firm. When workers are praised for their work (when they deserve it), they are likely to be happier in the workplace, and it has been shown by countless studies that happier workers are also more productive.

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4 years ago

Under the georgia safety responsibility law, if you cannot satisfy a claim filed against you for damages resulting from a motor

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<span>Under Georgia Code, Title 40-9-1, a person who has an unsatisfied judgment against them will have their driver's license suspended indefinitely unless the financial obligations are paid and the judgment is satisfied by the court.</span>

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3 years ago

Read 2 more answers

Can you think of an industry (or product) with near infinite elasticity of supply in the short term? That is, what is an industr

trapecia [35]

Supply price elasticity measures sellers' sensitivity to changes in price. When price changes have a large impact on supply, we say that supply is price elastic, with small price increases supply will increase considerably. We say that an offer is perfectly elastic when from a certain price level, suppliers have bid as much as possible. In the short term, however, firms bump into structural factors to deliberately increase their supply. For example, a factory has a short-run maximum production limitation. In the short term, the factory may grow its plant and buy more machines, but in the short term from one point the supply is more rigid.

There are, however, some exceptions. In the case of natural monopolies, such as water supply, the increase in price may increase supply indefinitely. This is a case where, in the short run, price elastic supply can be infinitely elastic. Thus, rising prices can increase the amount of water supplied as much as demanded by consumers. This is because the marginal cost of supplying more water is low for the firm.

Note: marginal cost is the cost of manufacturing one more unit of the product supplied. In the case of water, the marginal cost of providing 1 unit of water measurement is very low.

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3 years ago

The following information pertains to Tara Co.'s accounts receivable on December 31, Year 4 Days outstanding Amount Estimated %

Nimfa-mama [501]

Answer:

Explanation:

1% of 120,000

2% of 90,000

6% of 100,000

Total 9,000

The aging method stimated the allowance for uncollectible accounts

so their result should be the ammount reported for December 31th Year 4

6 0

4 years ago

The stock of Nogro Corporation is currently selling for $10 per share. Earnings per share in the coming year are expected to be

Lera25 [3.4K]

Answer:

Check below for the solution.

Explanation:

A) Earning Per Share, EPS = $2

Dividend Pay out ratio = 50%

Required rate of return = (Expected Dividend next year / Current selling price) + Growth Rate

Expected Dividend per share next year = EPS x Dividends pay-out ratio

Expected Dividend per share next year = $2 x 50% = $2 * 0.5

Expected Dividend per share next year = $1

Return on Equity, ROE = EPS / Current selling price

ROE = $2 / $10 = 0.20 = 20%

Growth Rate = ROE x (1-Dividend pay-out ratio)

Growth Rate = 0.20 x (1-0.50) = 0.10 = 10%

Required Rate of Return = (Expected Dividend next year / Current selling price) + Growth Rate

Required Rate of Return = ($1 / $10) + 0.10 = 0.20 = 20%

B) If all the earnings are paid as dividends, there won’t be any amount left to invest for growth and hence there won’t be any growth in the company. Also, since the required Rate of Return is equal to its ROE, there won’t be any changes.

C) Present Value of Growth Opportunity (PVGO) = 0

This is because with all earnings paid out as dividends, there won’t be any growth and the required rate of return will be equal to the ROE.

D) Since the ROE is equal to required rate of return, there won’t be any impact of cutting down the dividends pay-out. The residual income with lesser pay-out ratio will be invested by the company in available projects that is expected to earn 20% and ROE is also same. Since, there is no changes in the earnings figures, the stock price would remain $10.

E) There is no relationship between Nogro’s dividend payout policy and its price as no impact is experienced in its share prices due to change in its dividend policy.

F) This is because the ROE and the required rate of return are equal.

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4 years ago