Answer:
The correct answer is: it reinforces a top-down decision-making process.
Explanation:
A salary structure of this type prevails issues of complexity, specialization and importance of a given job. From this point on, a series of technical criteria are established based on the relevance of the contracted personnel, where the hierarchical structure shows the level of importance according to whether it is a managerial or trusted position within the management of the organization. The positions with the highest salary are usually those located in the upper part of the hierarchical structure, and it decreases as other positions are filled until it reaches those who support the pyramid.
Question Completion:
On December 31, 2014, Renda's common stock sold for $35 per share. At that price, how much did investors say $1 of the company's net income was worth? Earnings per share = $1.50
Answer:
Renda Company
The value of $1 of the company's net income by investors was:
$23.33
Explanation:
a) Data and Calculations:
Market price of Renda's common stock = $35 per share
Earnings per share = $1.50
This means that investors' value on $1 = $35/$1.50 = $23.33
b) Investors in Renda's common stock place a value of $23.33 for each $1 of the company's net income. This is why they can afford to pay $35 per share in order to benefit from $1 of the company's earnings. This calculation is based on the price-earnings ratio, which relates the company's share price to the earnings per share.
The correct answer for the question that is being presented above is this one: "TRUE." Although stocks can generate greater revenue, they are also more risky than many forms of investment. Dividends are not guaranteed; each company's board of directors has to vote to issue dividends, and they may not always do so.
Generally, it is important to be upfront, express regret that the company can't meet the deadline, and tell the customer how the problem will be fixed.
