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lakkis [162]
3 years ago
8

Required earnings are the:_______

Business
1 answer:
Umnica [9.8K]3 years ago
4 0

Explanation:

Required earnings are the minimum amount of earnings to meet the cost of equity capital requirements.

required earnings = book value of equity capital×required rate of return on common capital.(or common capital).

multiplying by market value is not correct to find out the required earnings.(option a is false ).

net income is calculated from required earnings, so there is no need to multiply net income or adjusted net income with required rate of return on common equity capital. Hence, b and c both are wrong.

Hence option d that is the book value of common equity capital at the beginning of the period multiplied by the required rate of return on common equity capital, is correct.

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Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one mor
joja [24]

Answer:

A.$12,000

B.$8000

C.MRPL/PL = 3

MRPK/PK =2

D) Since each of the above calculated ratios are more than one, therefore adding additional worker or tractor will increase the total revenue for each of the dollar spent.

Explanation:

(a) The Marginal Revenue Product of Labor (MRPL) can said to be the additional revenue generated when an additional worker is employed.

$66,000 - $54,000 = $12,000

Thus, MRPL is 12,000

b) Marginal revenue product of capital is

( 62000 - 54000)= $8000

c) MRPL/PL = 12000/ 4000= 3

MRPK/PK = 8000/4000=2

Therefore Since these two ratios are not equal it means the firm is not using the least cost combination of inputs.

d) Since each of the above calculated ratios are more than one, therefore adding additional worker or tractor will increase the total revenue for each of the dollar spent.

5 0
3 years ago
Customer management in international contracts includes all of the following except
GuDViN [60]

Answer: governmental organizational structure.

Explanation: When two parties with different nationality made a contract regarding taking care of the seller and customer relationship then such contract will be termed as international customer management contract.

Such contracts are usually written in formal manner and includes obligations to be performed and rights of both parties in case of any default. The government organizational culture affects it indirectly but is not a part of it.

Hence, from the above we can conclude that the correct option is c.

5 0
3 years ago
Use an online yellow pages directory to find a company in your area that has a website on which it has an annual report, includi
kiruha [24]

The direct method only takes the cash transactions into account and produces the cash flow from operations. The cash flow indirect method makes sure to automatically convert the net income in terms of cash flow.

A major advantage of the indirect method of cash flows is that the method provides a reconciliation between net income and cash flows. The indirect method also helps financial-statement users better understand different linkages among financial statements and is a simple way of preparing the statement of cash flows.

Which is better the direct or indirect method of cash flows statement?

Direct cash flow statement is broadly accurate as it does not rely on adjustments and hence it takes less to time prepare cash flows statements. The indirect cash flow method cannot be regarded as accurate as it accounts for adjustments and it generally requires more time in preparation.

How do you tell if a company uses direct or indirect method?

While both are ways of calculating your net cash flow from operating activities, the main distinction is the starting point and types of calculations each uses. The indirect method begins with your net income. Alternatively, the direct method begins with the cash amounts received and paid out by your business.

Learn more about cash flow statement:

brainly.com/question/24179665

#SPJ4

6 0
2 years ago
Which of the following is not a recommended guideline for designing and administering a compensation and reward system that will
nignag [31]

Answer: C. Maintain a 50-50 balance between monetary and non-monetary rewards and a 50-50 balance between positive and negative incentives.

Explanation:

Employees generally prefer to be paid for their hardwork and so would prefer that their rewards are more monetary in nature than not. As good as non-monetary rewards are, they should not be on equal footing with monetary rewards. If they are, it could demotivate employees who will feel they are not getting paid their fair share.

Negative incentives get the job done but more often than not fail to positively motivate employees in such a way that they will bring out their best efforts. Negative incentives are more like punishments or the threat of them and so if they are on equal footing with positive investments, organization members will not be as motivated.

4 0
3 years ago
Quality Bike Maps has produced four map designs for the local area. A limited amount of time (in minutes) is allocated to the pr
stich3 [128]

Answer:

since 1 <= allowable increase

optimal solution won't change

hence

1500 * 1 + 1000*1 + 1000*2 + 2833.33* 3

=  13000

Note: Complete question is added in the attachment

8 0
3 years ago
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