Answer:
Floating cost adjustment is 3.25%
Explanation:
Flotation-adjusted cost of equity = (Expected dividend at the end of Year 1 / Net proceeds per share) + Growth rate.
Expected dividend at the end of Year 1 (D1) = $ 2.30 (given in question)
Net proceeds per share = (21.30 - 4 % of 21.30) = $ 20.448
Flotation-adjusted cost of equity = (2.30 / 20.448) + 0.04
= 0.1125 + 0.04
= 0.1525 i.e., 15.25 %.
Flotation cost adjustment = Flotation-adjusted cost of equity - Cost of equity without flotation adjustment.
= 15.25 % - 12 % (given in question)
= 3.25 %.
Conclusion:- Flotation cost adjustment = 3.25 %
Answer:
Taylorism
Explanation:
Taylorism, often referred to as Scientific Management, was the first theory of management to focus specifically on analyzing and optimizing workflows. These theories of process optimization helped drive the Fordist shift to mass production which occurred in the early part of the 20th Century. Taylorism can be boiled down to 4 principal points: The method of doing a task should be informed by a scientific investigation of the task , employees should be selected and carefully trained for tasks ,tasks should have detailed instructions and should be subject to supervision and management should evaluate tasks and formulate optimized approaches for the workers to follow .
Some forms of analysis might be done by timing how long it takes a worker to do a task, others by weighing raw materials. Process analysis, for Taylor, had to look at both the minutiae of the process composition and the detail of the physical acts required to complete the process. The elements of process improvement Taylor advocated for were successful in regards to processing materials; changing the way steel was cut and patenting that process. Yet, during his life, Taylor struggled to achieve quite the same success improving the efficiency of workers. Taylorism was first scientifically understanding how the production process worked and then supporting the managers of a workplace to intimately train workers to work at maximum efficiency. This way, the means towards higher returns is paved with a well-managed, harmonious relationship between managers and workers. In theory, this would have been a much more sustainable model for an organization. But despite that promise, people, although genetically similar, are intrinsically unique and complex. Aligning different minds and ushering people to a new way of working (from individual craft, to standardized production), sometimes require more time and effort than bringing in a new piece of technology.
Answer:
Unitary Contribution margin= $0.6
Explanation:
Giving the following information:
LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. Assuming the production and sales of 750,000 units.
Variable cost= 600,000/2= $300,000
Unitary variable cost= 300,000/750,000= $0.4
Unitary Contribution margin= 1 - 0.4= $0.6
Total contribution margin= $450,000
Answer:
D. Holding cost per unit per year is dependent on the selling price per unit.
Explanation:
The formulas are shown below:
Economic order quantity:
= 
The number of orders would be equal to
= Annual demand ÷ economic order quantity
The average inventory would equal to
= Economic order quantity ÷ 2
The total cost of ordering cost and carrying cost equals to
Ordering cost = Number of orders × ordering cost per order
Carrying cost = average inventory × carrying cost per unit
If in the question, the carrying cost is given in the percentage than the per unit cost is come after multiplying it with the selling price per unit
When goods are produced at the lowest possible cost an economy is said to have achieved?
Answer: production efficiency
