Answer: $300,000
Explanation:
Total expected costs = cost incurred to date + estimated cost to complete
= 1,200,000 + 3,600,000
= 4,800,000
= 0.25
= 25%
Profit = contract revenue - Total expected costs
= $6,000,000 - 4,800,000
= $1,200,000
Cumulative gross profit = Profit × Percentage of completion
= $1,200,000 × 0.25
= $300,000
Therefore, Red Builders should have recognized profit at the end of year 1 in the amount of $300,000.
Answer:
$40 million
Explanation:
The computation of stock price is shown below:-
For computing the stock price first we need to compute the firm value which is below:-
Firm value = Free cash flow-1 ÷ (Weighted average cost of capital - Growth rate)
= $70.0 million ÷ (10% - 5%)
= $70.0 million ÷ 5%
= $1,400 million
Stock price = (Firm value - Debt) ÷ Number of shares
= ($1,400 million - $200 million) ÷ 30 million
= $1,200 million ÷ 30 million
= $40 million
Answer:
B. Fewer workers will be needed.
Explanation:
Elastic demand refers to a flexible demand. It is a demand that can increases or decreases due to several factors. If demand is not elastic, it implies it is constant. An increase or decrease in output or price will not affect the quantity demanded.
An increase in productivity means an increase in output per worker. It is the increase in the number of units produced, per hour, per worker. An increase in productivity results in more output in a given period than previously.
If the demand is constant and there is an increase in productivity, only a few workers will be required. The output from the few workers will be high to meet the constant demand.
Answer:
A good use of free cash flow is to Invest in nonoperating assets
Explanation:
Free cash flow (FCF) is a measure of how much cash a business generates after accounting for capital expenditures such as buildings or equipment. This cash can be used for expansion, dividends, reducing debt, or other purposes.
If the underlying objective is to maximize shareholder wealth by increasing the firm’s value. Any use of FCF that negatively affects the firm’s value is not considered a good use of the FCF.
A good use of FCF would be to invest in nonoperating assets such as marketable securities, investments in other companies, etc.)
For techniques that you can practice to become an efficient listener or listening with all ears paying attention giving feedback and observing your anatomy is of listening.
