All categories

3 years ago

Management at Work

Business

1 answer:

Elan Coil [88]3 years ago

7 0

Answer:

A: inputs

B: inequitable

C: outcomes

Explanation:

This passage relates to equity theory, which is a way of thinking about the distribution of resources in just ways. In this theory, inputs are defined as the contributions that each participant makes, which entitle him to rewards or costs.

On the other hand, outcomes are defined as the positive and negative consequences that the individual perceives as a consequence of his relationship to others. This theory states that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it.

You might be interested in

The capital allocation line can be described as the:.

juin [17]

Answer:

What Is the Capital Allocation Line (CAL)? The capital allocation line (CAL), also known as the capital market link (CML), is a line created on a graph of all possible combinations of risk-free and risky assets. The graph displays the return investors might possibly earn by assuming a certain level of risk with their investment.

Explanation:

3 0

3 years ago

uppose the annual demand function for the Honda Accord is Qd = 430 – 10 PA + 10 PC – 10 PGwhere PA and PC are the prices of the

emmainna [20.7K]

Answer:

Qd = 400 units

elasticity of demand of the Accord with respect to the price of Camry = 0.5

elasticity with respect to the price of gasoline = -0.075

Explanation:

Solution:

The annual demand function for the Honda Accord is:

Qd = 430 – 10 PA + 10 PC – 10 PG

Where,

PA = Price of Honda Accord

PC = Price of Honda Camry

PG = Price of Gasoline per gallon.

Selling Price of both cars = $20,000

Fuel Cost = $3 per gallon.

a) Elasticity of Demand of the Accord with respect to the price of Camry.

First, we need to calculate the number of units demanded.

Qd = 430 – 10 PA + 10 PC – 10 PG

Qd = 430 – 10 (20) + 10 (20) – 10 (3.00)

Qd = 430 - 200 + 200 - 30

Qd = 430 - 30

Qd = 400 units

Cross-price elasticity of the Accord with respect to the price of the Camry will be:

Cross Price = (dQd/dPC) x (PC)/(Qd)

dQd/dPC = 10

PC = 20

Qd = 400

So,

Cross Price = 10* 20/400

Cross Price = 0.5

b) Elasticity with respect to the price of gasoline?

Elasticity = (dQd/dPG)*(PG/Qd)

dQd/dPG = -10

PG = 20

Qd = 400

Elasticity = (-10)*(3/400)

Elasticity = -0.075

5 0

3 years ago

Epley Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4

rusak2 [61]

Answer:

The cost of equity using the DCF method: 4.39%.

The cost of equity using the SML method: 15.01%.

Explanation:

a. The cost of equity using the DCF method:

We have: Current stock price = Next year dividend payment / ( Cost of equity - Growth rate) <=> Cost of equity = Next year dividend payment/Current stock price + Growth rate = 0.3 x 1.04/80 + 4% = 4.39%.

b. The cost of equity using the SML method:

Cost of equity = Risk free rate + beta x ( Market return - risk free rate); in which Risk free rate is rate on T-bill.

=> Cost of equity = 6.3% + 1.3 x ( 13% -6.3%) = 15.01%.

6 0

3 years ago

eBook Problem Walk-Through Byron Books Inc. recently reported $12 million of net income. Its EBIT was $28.6 million, and its tax

snow_lady [41]

Answer:

Earnings Before Tax (EBT) = $16,000,000

Interest expense = $12,600,000

Explanation:

Earnings Before Tax (EBT) = Net Income / (1 - Tax Rate)

Earnings Before Tax (EBT) = $12,000,000 / ( 1 - 0.25)

Earnings Before Tax (EBT) = $12,000,000 / 0.75

Earnings Before Tax (EBT) = $16,000,000

Interest expense = Earnings Before Interest and taxes (EBIT) - Earnings Before taxes (EBT)

Interest expense = $28,600,000 - $16,000,000

Interest expense = $12,600,000

Income Statement

Details Amount

EBIT $28,600,000

Less: Interest expenses $12,600,000

EBT $16,000,000

Tax at 25% $4,000,000

Net Income $12,000,000

4 0

3 years ago

John Wiggins is considering the purchase of a small restaurant. The purchase price listed by the seller is $890,000. John has us

Phantasy [73]

Answer:

$763,057

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 1-6 = $89,000

Cash flow in year 7 = 79,000

Cash flow in year 8 = 69,000

Cash flow in year 9= 59,000

Cash flow in year 10 = 49,000 + $790,000 = 839,000

I = 11%

Present value = $763,057

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

8 0

3 years ago