Answer:
a.To implement the corporate valuation model, we discount projected free cash flows at the weighted average cost of capital.
Explanation:
Common sense requires that like should be compared like, the free cash flows are meant for all providers of finance, debt, and equity stockholders alike, hence, in discounting the free cash flows to firm, the discount rate is the one that captures the overall cost of finance to the firm which is the weighted average cost of capital, hence, option "a" is correct.
Net income and NOPAT cannot be discounted since they are not cash flows
In the same vein,the free cash flows which are meant for debtholders and stockholders cannot be discounted at the cost of equity which is only an equity required rate of return
Answer:
$52,000
Explanation:
Net income under variable costing considers only variable cost, while net income under absorption costing considers both variable and fixed cost. Therefore, we have:
Total beginning fixed overhead = 400 × $10 = $4,000
Total ending fixed overhead = 500 × $12 =$6,000
Fixed overhead for the period = $6,000 - $4,000 = $2,000
Net income under absorption costing = $50,000 + $2,000 = $52,000
Answer:
is the set of processes used to get members of an organization to work together.
Explanation:
Management can be defined as a strategic process which typically involves analyzing, planning supervising, organizing, controlling and coordination of employees and business activities in order to successfully achieve organizational goals and objectives.
Generally, there are four (4) main components associated with the management of business activities and employees, these includes planning, organizing, leading and controlling.
The managerial function of leading is the set of processes used to get members of an organization to work together. Thus, leading a team of workers working in an organization simply involves communication, motivation, inspiration, direction, guidance and support of these employees in order to enhance their level of output or production at all times.
Answer:
A. The grocery department of a Walmart Supercenter or Target Superstore
Explanation:
- A profit center is a type of business where the business is expected to make into valuable contributions, a profit center can be treated as a separate business of the company.
- The profits and losses for that center are calculated separately. Examples of profit centers include the store, sales organization, or consulting organization.
Answer:
To minimize cost, the pipe should follow a rectangular path.
Explanation:
Let us denote the square bottom of the dug pit as
P = S²
and its cost will be P = 2S² = 4S to dig
Let us denote the height of the pit as H,
Therefore, Total area of the pit will be:
4SH
and its cost is 2SH
The volume of the pit is
v= S²H = 4² × 2 = 128
Total cost therefore is =
C = 2S² + 2SH
This therefore translates to
128 = s²h
Making H the subject of the formula,
we have, h = 128 / S²
Cs therefore = 2S² +2S . 128 / S²
Cs = 2S² + 256 / S
Cs = 4S - 256 / S²
Cs = 4S³ - 256 / S
4S³ - 256 / S = 0
4S³ - 256 - 0 = S
Solving further, S = 4
Where,
H = 128/64
= 2
Therefor, S = 4 and H= 2
So our pipe will follow a rectangular path to properly minimize cost.
