Answer: C. Top level managers may pursue their own interests over that of the company.
Explanation:
The scenario given in the question explains that top level managers may pursue their own interests over that of the company.
In the case of sole proprietorship or partnership business, the revenue generated by the firm or the profit made belongs to the owners. In the case of of a Corporation, this isn't the case as the revenue should be used for Shareholders benefits. Sometimes, there may be a conflict of interest which may then bring about a situation whereby the top level managers pursue their own interests over that of the company.
Hence, the correct option is C.
United States based firms are moving manufacturing jobs overseas simply because they can get away with paying workers in foreign countries WAY less than in America. They also do not need to follow the strict labor laws and provide benefits to outsourced employees.
Answer: 10.46
Explanation:
To answer this we can use the Constant Growth Model of Stock Valuation. The formula is,
P = D1/(r-g)
Where,
P is the current price,
D1 is the next dividend
g is the expected growth rate in the dividend,
and r is the required rate of return for the company.
Seeing as we have everything else and it is the required return that we seek, let us make 'r' the subject of the formula.
P = D1/(r-g)
P(r-g) = D1
r-g = D1/P
r = D1/P +g
So,
r = 2.95/ 49.50 + 0.045
= 0.10459595959
= 10.46%
the required return is 10.46%
Answer: Design a career path
Explanation:
The action that can be taken to implement the decision is having a career path.
A career path simply refers to the path taken by employees in an organization. This is essential as it'll make the worker have a smooth transition while performing their roles.
Answer:
Journals :
Land $350,000 (debit)
Building $100,000 (debit)
Mortgage Payable $450,000 (credit)
Explanation:
The Land and Building is Initially measured at cost of acquisition not the fair market value. The cost of Acquisition in this case is the Present Value of the Mortgage Payable used to obtain the Property.
Step 1
Use the Time Value of Money Techniques to find the Present Value of the Mortgage.
Calculation of Present Value of the Mortgage
N = 20 × 12 = 240
P/YR = 12
PMT = - $3,488.85
I = 7 %
FV = $ 0
PV = ?
Using a Financial Calculator to Input the Values as above, the Present Value of the Mortgage will be $450,000.
Step 2
When Recording, apportion the Land and Building costs using their fair market value.
Land $350,000 (debit)
Building $100,000 (debit)
Mortgage Payable $450,000 (credit)