All categories

3 years ago

18th-century economist adam smith illustrated improvements in efficiency in manufacturing units through the application of:

1 answer:

8 0

What Adam Smith illustrated in improvement of efficiency in manufacturing units is through the application of specialization. Specialization is a way of providing better service and means of focusing production in a greater degree that could be of benefit for both consumers and producers.

You might be interested in

Megatrends stock will generate earnings of $2 per share this year. The discount rate for the stock is 10%, and the rate of retur

lawyer [7]

Answer:

a. Find both the growth rate of dividends and the price of the stock if the company reinvests the following fraction of its earnings in the firm:

(i) 0% ⇒ g = 0, P₀ = $2/10% = $20

(ii) 20% ⇒ g = 0.2 x 10% = 2%, P₀ = $1.632/8% = $20.40

(iii) 40% ⇒ g = 0.4 x 10% = 4%, P₀ = $1.248/6% = $20.80

b. Redo part (a) now assuming that the rate of return on reinvested earnings is 15%.

(i) 0% ⇒ g = 0, P₀ = $2/10% = $20

(ii) 20% ⇒ g = 0.2 x 15% = 3%, P₀ = $1.648/7% = $23.54

(iii) 40% ⇒ g = 0.4 x 15% = 6%, P₀ = $1.272/4% = $31.80

What is the present value of growth opportunities (PVGO) for each reinvestment rate

ROE = 10%, reinvestment rates:

(i) 0%: PVGO = $20 - $2/10% = $0

(ii) 20%: PVGO = $20.40 - $2/10% = $0.40

(iii) 40%: PVGO = $20.80 - $2/10% = $0.80

ROE = 15%, reinvestment rates:

(i) 0%: PVGO = $20 - $2/10% = $0

(ii) 20%: PVGO = $23.54 - $2/10% = $3.54

(iii) 40%: PVGO = $31.80 - $2/10% = $11.80

Explanation:

sustainable growth rate = g = retention rate x ROE

PVGO = stock price - earnings/Re

5 0

3 years ago

During the current year, Orr Company incurred the following costs: Research and development services performed by Key Corp. for

LuckyWell [14K]

Answer:

$525,000

Explanation:

The amount to be recognized as research and development expense for the year includes the cost of research and development services performed by Key Corp. for Orr, the cost incurred on testing of pre-production prototypes and models as well as the cost of testing in search for new products or process alternatives,

In other words, all costs incurred would be expensed since no of them met the capitalization criteria as per generally acceptable accounting principles

4 0

3 years ago

Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million. The investment will result

Tems11 [23]

Answer:

The payback period for this project is 2.43 years.

Explanation:

Elmer Sporting Goods is getting ready to produce a new line of golf clubs by investing $1.85 million.

The investment will result in additional cash flows of $525,000, $812,500, and 1,200,000 over the next three years.

The payback period is the time it takes to cover the investment to be covered by returns.

The investment cost remaining in the first year

= $1,850,000 - $525,000

= $1,325,000

The investment cost remaining in the second year

= $1,325,000 - $812,500

= $512,500

The third year payback

= $\frac{\$ 512,500}{\$ 1,200,000}$

= 0.427

The total payback period

= 2.43 years

6 0

3 years ago

Griffin goat far inc has sales of 666000, depreciation expense of 72000, interest expense of 46000, nad a tax rate of 24 percent

Helen [10]

In a condition where Griffin Goat Far Inc., has sales of 666000, depreciation expense of 72000, interest expense of 46000, and a tax rate of 24 percent, the net income of this firm will be $416,480.

<h3>What is the significance of net income?</h3>

The net income can be referred to or considered as the surplus difference between the gross income and the expenses plus taxes of an organization for a given period.

Using the given information, it can be interpreted that,

Net Income = 666,000 – (72,000 + 46,000) – 24%

Net Income = 666,000 – 118,000 – 24%

Net Income = 548,000 – 24%

Net Income = $416,480

Therefore, the significance regarding the net income has been aforementioned.

Learn more about net income here:

brainly.com/question/15570931

#SPJ1

6 0

1 year ago

Qriosity inc. comes out with a new antivirus program and prices it at half price to attract buyers. the company is using _______

Talja [164]

<span>The company is using market-penetration pricing.</span>

6 0

4 years ago