Answer: Present value of the cash flows of the company is $1,158,824.
Explanation: Philips industries have the cash flow for $197,000. The industry needs to find the present value of the cash flow and the cash flows growth is decreasing every year by 6%.
The present value of the cash flows for perpetuity with decreasing growth rate is:
where, Cash flow for the year 1 (C1) = $197,000
Discount rate (r) = 11%
Growth rate (g) = -6%
Present value of the cash flows (PV) = $1,158,824
Therefore the present value of the cash flows of the company is $1,158,824.
Answer:
Equity Capital or equity funding refers to the money raised by corporations through stock markets
Explanation:
Answer:
Option E. Control Activities
Explanation:
Control activities is a part of Control environment and in the given scenario, the company has a system of policies and procedures implemented to ensure whether the approved activities are carried out or not. This includes the segregation of duties, as the Compensation Committee is assigned the task to reviewing whether the payments that were made to the senior executives, both cash and equity based payments, are consistent with their contracts or not. Furthermore if it is not complied by the contract then relevant actions are carried out. So these are best represented by control activities.
Answer:
d
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
The supply of labour usually exceeds the demand for labour. So, the supply of labour is less elastic. as a result workers bear the burden of tax