Answer:
Herbert Simon:
B) believed that firms always maximize profits even if they have less than perfect information.
Explanation:
Herbert Simon was born in 1916 and died in 2001. He was a renowned economists and political scientists having received numerous awards and Prizes for his contribution in economics, particularly business economics and administrative research. Some of the awards and prizes he received due to his input in economics are; Nobel Memorial Prize in Economics, U.S. National Medal of Science, and the A.M. Turing Award for his contribution in the field of Artificial Intelligence.
Simon also authored numerous books during his time including; "Administrative Behavior", "The Sciences of the Artificial", and "Models of Bounded Rationality". He is mostly known for his theory about bounded rationality. Simon challenged conventional economic thinking based on the ideas of rational thinking and economic man. Previously, economists believed that people made economic decisions based on careful analysis of all available information to arrive at rational conclusions. Simon contradicted this idea by stating that people could not possibly have access to all information and they were somehow limited in coming up with rational outcomes. He argued that since it was impossible to obtain and process all information, most people would utilize the available information to come out with a result that is satisfactory or one that is simply good enough.
In conclusion he outlined that firms always utilize the information available to them to maximize profits even if the information is less than perfect.
Answer:
$1,852,617.25
Explanation:
Whe need to know the annuity per year to generate a future value of 25,000,000 after 10 years at the given rate of 6.5%
FV 25,000,000.00
time 10
rate 0.065
C $ 1,852,617.251
If Joe has good morals he would stop and help the women. He could have the money taken out of his pay check to possible keep his job but if he does not stop and help the women he will have live with his decision for the rest of his life, the guilt would eat him alive. He can always get another job but we only have one life to live and if he could help save someone else, he should do that.
Answer:
5.14%
Explanation:
Determining the pretax cost of debt is the first to do prior to ascertaining after tax cost of debt.
Pretax cost of debt can be computed using the rate formula in excel.
=rate(nper,pmt,-pv,fv)
nper is the number of times the bond would coupon interest,hence paying coupon every six months for 20 years means 40 coupon payments
pmt is the semiannual coupon bondholders would received from the bond i.e $1000*7.25%*6/12=$36.25
pv is the current market price at $875
fv is the face value of $1000
=rate(40,36.25,-875,1000)=4.28% semiannually
=4.28%
*2=8.56% annually
after tax cost of debt=8.56%*(1-t),where t is the tax rate of 40% or 0.40
after tax cost of debt=8.56%*(1-0.4)=5.14%
Answer: Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
Explanation: Managerial accounting is the type of accounting under which the managers use the accounting estimates and make several assumptions to make decisions that can affect future results of business operations.
Under financial accounting recording, summarizing and presentation of data in a financial statement is done. It is used to keep track of the past transactions hence no assumptions are needed to make for important aspects.
