The method for improving strategic decision making involves having a separate team or individual carefully analyze and critique the underlying assumptions and potential downsides of a proposed course of action is called as Devils Advocacy.
<h3>What is Devils Advocacy?</h3>
Devils Advocacy refers to the method in which the person provokes the other person to have arguments and debate with the other. It is done to test the other person strength to make the strong arguments.
It can be done for the right decision when to correct the thinking of the other person also to have the racial approach to the situation.
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Answer:
b. go down.
Explanation:
The Formula for Required rate of return Ke = Dividend (D1) / Price. So, increase in price which is denominator will leads to decrease in the required rate of return. Hence, In computing the cost of common equity, if the dividend (D1) goes downward and market price (P0) goes up, required rate of return (Ke) will <u>Go down</u>
Answer:
Option (A) is correct.
Explanation:
Luxury goods refers to the goods which are having positive income elasticity of demand. Positive income elasticity of demand is defined as the direct relationship between the demand of the goods and the income of the consumers.
If there is an increase in the income level of consumers then as a result there is an increase in the demand for luxury goods by a greater proportion. That's why the income elasticity of demand is relatively larger.
Answer:
0.087 = 8.7%
Explanation:
Present value of perpetuity given that payment is done at the end of N-year
= present value * ( 1 + i )^n-1
= 169 * ( 1 + i )^n-1 = 100 / i
∴ ( 1 + i )^n-1 = 100 / 169i ------- ( 1 )
Given that first payment at the end of N years = 2112.50 hence the present value of 2112.50
= 2112.50( 1 + i )^n-1 = 100 / i + 100/ i^2 --- ( 2 )
(given that the increment is with a difference of 100 ) and N-1 = number of years
next step : Input equation 1 into equation 2
2112.50 i^2 = 169i [ 100i + 100 ]
19350 i^2 = 16900i
∴ i = 16900 / 19350 = 0.086956 ≈ 0.087
The amount of the journal entry are as follows:-
Cash $15000
Accumulated Depreciation $10000
Equipment cost $35000
Loss on sale $10000
<h3>What is Depreciation?</h3>
An asset loses value over time as a result of use, damage, or obsolescence. Depreciation is the measurement for this decline.
The complete solution is attached below.
Depreciation, or a decline in asset value, can be brought on by a variety of other variables, such as bad market conditions, etc.
Thus the journal entry credit amount is Equipment cost $35000 and Debit amount of the journal entry are Cash $15000 Accumulated Depreciation $10000 and Loss on sale $10000.
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