Answer:
d. The potential exists for agency conflicts between stockholders and managers.
Explanation:
In a company the shareholders are the owners of the company who own shares and have stake in the company. They employ managers to take care of the daily running of the company.
There is the potential of conflict between the shareholders and the management of the company because shareholders just want to make short term profit, whole the management of the company may want to take initiatives that will lead to future gains.
Management will need to communicate effectively reason for temporary slump in profits, and emphasise future gains the company stands to get.
Answer:
Dividend paid = $0.64 x 158,000 = $101,120. The dividend paid reduces retained earnings by $101,120.
The correct answer is C
Explanation:
Dividend is paid out of profit after tax. This reduces the retained earnings of the company since dividend involves outflow of cash.
Answer:
Workplace discrimination prevents the firm from using the full potential of those employees that are being discriminated against.
Explanation:
For example, if the firm discriminates against a specific group of people when hiring (for example, it can discriminate against older people), the firm could lose valuable potential employees that could have provided great skill and experience for the firm.
If the firm practices discrimination against employees, the operation in the company will not be as streamlined as it could be against discrimination because those who are being treated poorly will be less motivated and have lesser output.
Answer:
Total overhead= $39,900
Explanation:
Giving the following information:
Variable manufacturing overhead $1.90
<u>First, we need to calculate the total fixed overhead:</u>
Total fixed overhead= 7,800*3.8
Total fixed overhead= $29,640
<u>Now, the total overhead for 5,400 units:</u>
Total variable overhead= 1.9*5,400= 10,260
Total fixed overhead= 29,640
Total overhead= $39,900
Answer:
"$8,175.72" is the right solution.
Explanation:
The given values are:
Periodic payments,
C = $500
Interest rate,
r = 8%
i.e.,
= 
= 
%
Number of periods,
n = 5 years,
i.e.,
= 
= 
As we know,
The present value of annuities 5 years ago will be:
⇒ ![Present \ Value =C\times \frac{[1-(1+r)^{-n}]}{5}](https://tex.z-dn.net/?f=Present%20%5C%20Value%20%3DC%5Ctimes%20%5Cfrac%7B%5B1-%281%2Br%29%5E%7B-n%7D%5D%7D%7B5%7D)
On substituting the given values, we get
⇒ ![=500\times \frac{[1-(1+0.02)^{-20}]}{0.02}](https://tex.z-dn.net/?f=%3D500%5Ctimes%20%5Cfrac%7B%5B1-%281%2B0.02%29%5E%7B-20%7D%5D%7D%7B0.02%7D)
⇒ 
⇒ 
⇒ 
($)
