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3 years ago

Which of the following would occur if a firm chose not to hold inventory for a given product?

Business

1 answer:

GrogVix [38]3 years ago

8 0

Answer:

C. Order placement costs would increase

Explanation:

Order placement costs are those incurred when ordering a product: for example, the wages of the employees who place the orders, the shipping costs, the cost of tariffs and duties in case the products are imported from abroad, and any other specific costs associated with the process of getting the product from the source to the firm.

If a company chooses not to hold inventory, order placement costs will increase in the moment that they get an order for the good which is not in stock, simply because the good will have to be ordered.

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Which incentives do interest groups engage in to overcome the free rider problem?

slava [35]

Answer:

The correct answer is letter "D": All of these are correct.

Explanation:

The Free Rider Problem refers to someone being able to gap for less or even for free what others pay more for. The problem arises when individuals are unwilling to pay their fair share for something that most others pay for. The problem is more often while talking about public goods. To avoid this issue, some sort of special must be given to consumers such as discounts, promotions for subscriptions or special information online.

6 0

2 years ago

Gabriele Enterprises has bonds on the market making annual payments, with eight years to maturity, a par value of $1,000, and se

iVinArrow [24]

Answer:

Coupon rate = 5.8%

Explanation:

The price of a bond is the present value (PV) of the future cash flows discounted at its yield.

So we will need to work back to ascertain the coupon rate

Step 1

Calculate the PV of redemption value and PV of interest payments

PV of Redemption

= 1.067^(-5) × 1000

=723.06

PV of the annual interest rate

= price of the bond - PV of redemption

= $964- 723.06

= 240.934

Step 2

Calculate the interest payment

Interest payment = PV of redemption value / annuity factor

Annuity factor =( 1 -(1+r)^(-n) )/r

Annuity factor at 6.7% for 5 years

Factor =( 1-1.067^(-5) )/0.067

= 4.1333

Interest payment = PV of the annual interest rate / Annuity factor

Interest payment=

=240.93/4.1333

=58.290

Step 3

Calculate the coupon rate

Coupon rate = interest payment/ par value

Coupon rate = (58.290/1000) × 100

= 5.8%

Coupon rate = 5.8%

4 0

3 years ago

Preparing the statement of cash flows Polk Street Homes had the following cash transactions for the month ended July 31, 2018.Ca

MrRissso [65]

Answer:

Explanation:

The preparation of the Cash Flows from three Activities - Direct Method is shown below:

Cash flow from Operating activities

Cash receipts:

Collections from customers $25,000

Less: Cash payments:

Rent -$500

Utilities -$2,000

Salaries -$1,500

Net Cash flow from Operating activities $21,000

Cash flow from Investing activities

Purchase of equipment -$25,000

Net Cash flow from Investing activities -$25,000

Cash flow from Financing activities

Issued common stock $13,000

Less: Payment of cash dividends -$4,000

Net Cash flow from Financing activities $9,000

Net Cash flow from Operating activities $21,000

Net Cash flow from Investing activities -$25,000

Net Cash flow from Financing activities $9,000

Net increase (decrease) in cash for the year is $5,000

Add: Cash balance, July 1, 2018 $14,000

Cash balance, July 31, 2018 $19,000

6 0

3 years ago

In ______ feedback, the receiver provides nonevaluative information to the communicator.

umka21 [38]

In informational feedback, the receiver provides non-valuative information to the communicator.

Feedback in the context of communication refers to a reaction from the recipient that informs the communicator of the message's effectiveness and whether it needs to be amended.

Alternatively said, feedback is the message's reception by the recipient

Corrective feedback is when the receiver challenges the initial communication in response to informational feedback, which is when the receiver provides non-evaluative information to the communicator.

Reinforcing feedback occurs when the recipient expresses explicitly that she has understood the message and its goals.

Hence, in informational feedback, the receiver provides non-valuative information to the communicator.

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8 0

1 year ago

Your company expects profits to be close to $4,000,000. The board has instructed you to increase retained earnings by approximat

artcher [175]

The amount of dividends and dividend price per share comes out to be $2,000,000 and $20 when the number of shares is assumed to be 100,000.

<h3>What are dividends?</h3>

Dividends are the amounts allocated to share investors by the company up to their shareholdings. It is the amount that is first provided to preferred stock investors.

Given values:

Expected profits: $4,00,000

Increase in Retained earnings: $2,000,000

The number of shares is assumed to be 100,000.

Computation of dividend per share;

$\rm\ Dividend \rm\ per \rm\ share=\frac{\rm\ Expected Profits-\rm\ Increase \rm\ in \rm\ Retained \rm\ Earnings}{Number of shares} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$4,00,000-\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\frac{\$2,000,000}{100,000} \\\rm\ Dividend \rm\ per \rm\ share=\$20$

Therefore, the amount of the dividend is $2,000,000 at a share price of $20 to be paid this year.

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6 0

2 years ago