Answer:
Line organization model
Explanation:
Based on the information provided within the question it seems that Party Pros Inc. is using a Line organization model. This is an organizational structure in which power flows from the top to the bottom, meaning that the person at the top is the owner and the individuals in each level of the hierarchy answer to those in the upper levels, all of which are trying to accomplish the same organizational goals. Such as is being described in this situation.
Answer:
c. Reject the project because the NPV is negative $120,921
Explanation:
As we know that the depreciation is a non-cash expense so here we need to add the depreciation expense again
Now the cash inflow would be $100,000 each year i.e. for 5 years
And, the initial investment is $500,000
Now we have to use the formula of NPV in an excel by using the NPV function
=NPV(rate,Year1 to Year5 cashflows)-Year0 cashflow
=NPV(10%,Year1 to Year5 cashflows)-500000
=-120,921
So as we can see that the npv comes in negative so the project should be rejected
Therefore the correct option is c.
Answer:
a. Dividend growth rate = 9%
b. $40
c. If Price is reduced then Earning per share will also decrease.
Explanation:
a. The computation of Growth rate is shown below:-
Share price = Expected dividend ÷ (Cost of equity - Dividend growth rate)
$80 = $4 ÷ (0.14 - Dividend growth rate)
11.20 - 80 × Dividend growth rate = 4
Dividend growth rate = 9%
b-1 The computation of Price is shown below:-
= Expected dividend ÷ (Cost of equity - Revised downward percentage)
= 4 ÷ (0.14 - 0.04)
= 4 ÷ 0.10
= $40
b-2 If Price is reduced then Earning per share will also decrease.
Answer:
$190,000
Explanation:
Given that,
Total assets for Arrington Inc. = $1,000,000
Common Stock = $470,000
Retained earnings = $340,000
Total Liabilities = Total Assets - Common Stock - Retained earnings
= $1,000,000 - $470,000 - $340,000
= $190,000
Therefore, Arrington's total liabilities in 2016 is $190,000.
Answer: Option B
Explanation:
A. Explicit cost are the cost paid to others in return of their service. Hence Option A is incorrect.
B. Revenue is the total amount of earnings a company have before deducting for expenses. Hence Option B is correct.
C. Accounting profit means (Revenue - explicit cost) . Hence Option C is incorrect.
D. Economic profit means (Revenue - explicit cost - implicit cost) . Hence Option D is incorrect.