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Lelechka [254]
3 years ago
8

BK Books is an online book retailer that also has 10,000 "bricks and mortar" outlets worldwide. You are a risk-neutral manager w

ithin the CorporateFinance Division and are in dire need of a new financial analyst. You onlyinterview students from the top MBAprograms in your area. Thanks to yourscreening mechanisms and contacts, the students you interview ultimately dif-fer only with respect to the wage that they are willing to accept. About 5 per-cent of acceptable candidates are willing to accept a salary of $60,000, while95 percent demand a salary of $110,000. There are two phases to the inter-view process that every interviewee must go through. Phase 1 is the initialone-hour on-campus interview. All candidates interviewed in Phase 1 are alsoinvited to Phase 2 of the interview, which consists of a five-hour office visit.In all, you spend six hours interviewing each candidate and value this time at$750. In addition, it costs a total of $4,250 in travel expenses to interview each candidate. you are very impressed with the first interviewee completing both phases of bk books’s interviewing process, and she has indicated that her reservation salary is $110,000. should you make her an offer at that salary or continue the interviewing process? explain.
Business
1 answer:
krek1111 [17]3 years ago
7 0

Answer: Therefore, we should make her an offer at that salary

Explanation:

Based on the information given in the question,

Lowest salary = $60,000

Highest salary = $110,000

Expected Benefit = 5% × ($110,000 - $60,000) = 5% × $50,000 = $2500

The cost of conducting another interview will be:

= cost of time + cost of travel

= $750 + $4250

= $5000

Since the cost of conducting the additional interview is more than the expected benefit, therefore the interviewee should be hired rather than continuing the interviewing process.

Therefore, we should make her an offer at that salary.

You might be interested in
When a firm does not have the resource required for pursuing a growth strategy, and if the resource in question is not easily tr
pychu [463]

Answer:

B. Consider an outright acquisition.

3 0
3 years ago
Jensen Co. expects to pay €50,000 in one month for its imports from France. It also expects to receive €200,000 for its exports
Julli [10]

Answer:

-$5,873

Explanation:

For computation of maximum one month loss in dollars first we need to find out the net exposure and maximum one month loss in percentage which is shown below:-

Net exposure = Received amount - Paid amount

= €200,000 - €50,000

= €150,000

Maximum one - month loss in Percentage = Next month percentage - (Alpha × Euro percentage)

= 2% - (1.96 × 2.5%)

= -2.9%

Maximum one - month loss in Dollars = Net exposure × Current spot rate of the euro × Maximum one - month loss in Percentage

= €150,000 × $1.35 × (-0.029)

= -$5,873

5 0
3 years ago
Earl and Mary form Crow Corporation. Earl transfers property, basis of $200,000 and value of $1,600,000, for 50 shares in Crow C
barxatty [35]

Answer: The correct answer is "c.Crow will have a business deduction of $120,000 for the value of the services Mary will render.".

Explanation: With respect to the transfers: Crow will have a business deduction of $120,000 for the value of the services Mary will render.

This is calculated by the difference between the value of the property contributed by Earl $1 600 000 and the value of the property contributed by Mary $1 480 000.

1 600 000 - 1 480 000 = $ 120 000.

4 0
4 years ago
Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of
Pepsi [2]
Mike brought 100 shares costing $53 each.
Total costs of shares= 100*53
=$5300

He got dividends of $1.45 per share. A dividend is money that is earnt back from a share.
Total dividend amount = 1.45*100
=$145

I'm assuming that Mike sold his shares at the end of the year. He sells for $60 each.
Total sales amount=60*100
=$6000

The rate of return in this instance can be defined as the amount of money made back from a share.

Rate of return= total earnings/ costs

Total costs= $5300
Total earnings=$6145

6145/5300=1.1594
=15.9%

Hope this helps! :)
4 0
3 years ago
What impact can good accountability mechanisms have on the admissibility of evidence in court cases? enables encryption of the e
ludmilkaskok [199]

Answer:

Option A, ENABLES ENCRYPTION OF THE EVIDENCE.

Explanation:

Admissible evidence, in a court of law, is any testimonial, documentary, or tangible evidence that is introduced to a judge or jury to prove a point (put forth by a party to the proceeding) or element in a case.

However, before an evidence can be used in a case, it must be considered admissible. And for an evidence to be admissible, it must be relevant and not excluded by rules of evidence (generally means it must not be prejudicial and must be reliable).

The government can be viewed as mechanism of accountability, particularly from a provider to a purchaser. Thus, a task for regulation is to set norms which would help make that accountability process fair and effective, this is referred to as the mechanism.

A good accountability mechanism is beneficial in the following ways:

* It has impact on admissibility of evidence in court cases.

* it allows nonrepudiation (it means sufficient evidence exists such that a user can not defend an action).

* It enables encryption of the evidence. Encryption means is the process of encoding a message or information in such a way that only authorized parties can access it and unauthorized parties cannot.

Therefore, option A best suits the question, the impact that a good accountability mechanism has on on the admissibility of evidence in court cases is that it ENABLES THE ENCRYPTION OF THE EVIDENCE.

7 0
3 years ago
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