In it firt year, "Abol Buna Company" had the following experience
Sale = 25,000 unit Selling price = Birr 100
TVC = Birr 1,500,000 TFC = Birr 350,000
Required:
Develop revenue, cot and profit function for the company in term of quantity. Find the Breakeven point in term of quantity
Convert the cot equation in term of quantity into a cot equation in term of revenue
Find the Breakeven revenue
If profit had been Birr 500,000 what would have been the ale volume (revenue) and the quantity of ale. What would be the profit if ale were Birr 2,000,000?
Answers
To develop the revenue function, we can use the information provided about the sale and the selling price. The revenue can be calculated as the product of the sale and the selling price.
In this case, the revenue function would be:
Revenue = Sale * Selling Price
= 25,000 * 100 Birr/unit
= 2,500,000 Birr
To develop the cost function, we can use the information provided about the total variable cost (TVC) and the total fixed cost (TFC). The cost function would be:
Cost = TVC + TFC
= 1,500,000 Birr + 350,000 Birr
= 1,850,000 Birr
To find the profit, we can subtract the cost from the revenue. The profit function would be:
Profit = Revenue - Cost
= 2,500,000 Birr - 1,850,000 Birr
= 650,000 Birr
To find the breakeven point in terms of quantity, we need to find the point at which the cost and the revenue are equal. This can be done by setting the profit function equal to zero and solving for the quantity.
Profit = 0 = Revenue - Cost
= 2,500,000 Birr - 1,850,000 Birr
= 650,000 Birr
At this point, the cost and the revenue are equal, so the breakeven point in terms of quantity is 25,000 units.
To convert the cost equation in terms of quantity into a cost equation in terms of revenue, we can use the revenue function to express the quantity in terms of revenue. The cost function would then be:
Cost = TVC + TFC
= 1,500,000 Birr + 350,000 Birr
= 1,850,000 Birr
To find the breakeven revenue, we can set the profit function equal to zero and solve for the revenue.
Profit = 0 = Revenue - Cost
= Revenue - (TVC + TFC)
= Revenue - 1,850,000 Birr
At this point, the cost and the revenue are equal, so the breakeven revenue is 1,850,000 Birr.
If the profit had been 500,000 Birr, we can use the profit function to solve for the sale and the revenue.
Profit = 500,000 Birr = Revenue - Cost
= Revenue - (TVC + TFC)
= Revenue - 1,850,000 Birr
Solving for the revenue, we get:
Revenue = Profit + Cost
= 500,000 Birr + 1,850,000 Birr
= 2,350,000 Birr
Then, using the revenue function to solve for the sale, we get:
Revenue = Sale * Selling Price
= 2,350,000 Birr / 100 Birr/unit
= 23,500 units
If the revenue had been 2,000,000 Birr, we can use the revenue function to solve for the sale and then use the profit function to solve for the profit.
Sale = Revenue / Selling Price
= 2,000,000 Birr / 100 Birr/unit
= 20,000 units
Profit = Revenue - Cost
= 2,000,000 Birr - (TVC + TFC)
= 2,000,000 Birr - 1,850,000 Birr
= 150,000 Birr
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Related Questions
What is risk? Why must financial managers consider risk as well as return when they evaluate a decision alternative or action?
Describe the roles of, and the relationships among the major parties in a corporation: stockholders, board of directors, and managers. How are corporate owners rewarded for the risks they take?
Answers
Risk refers to the possibility of losing something of value. Financial managers must consider both risk and return when evaluating decision alternatives or actions because any decision taken in the business world involves a certain level of risk.
Financial managers have a responsibility to analyze risks involved in any business decision and make an informed decision to maximize return while minimizing risk. The major parties in a corporation are stockholders, board of directors, and managers. Stockholders own the corporation and elect the board of directors, who are responsible for overseeing the company's management.
The managers are responsible for day-to-day operations and implementing the board's policies. Corporate owners are rewarded for the risks they take through dividends, stock appreciation, and other financial incentives. In conclusion, risk is an essential factor that must be considered by financial managers to make informed decisions, and the major parties in a corporation play important roles in managing risks and rewarding corporate owners for taking risks.
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A targeted cover letter is written specifically for work within the industry you prefer.
True or False?
Answers
Answer
False is the answer hope this helps
Answer:
true
Explanation:
european union subsidizes its farmers. how do these subsidies make it difficult for farmers in developing economies to compete in the world farm market?
Answers
European union subsidizes its farmers. By encouraging export dumping and overproduction subsidies make it difficult for farmers in developing economies to compete in the world farm market.
The required details about subsidies are mentioned in the paragraph below.
European Union agricultural subsidies are destroying livelihoods in growing countries. By encouraging over-manufacturing and export dumping, those subsidies are using down international expenses of key commodities, which include sugar, dairy, and cereals. Subsidies inspire non-public corporations to adopt monetary sports and enterprise ventures that the authorities sees as withinside the public's high-quality interest. Government spending on subsidies influences each quarter of the worldwide economy. Subsidies are furnished through each federal or country wide governments and nearby governments. cash given through a central authority or an agency to lessen the price of manufacturing food, a product, etc. and to assist to maintain expenses low: authorities/public/kingdom subsidies.
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On January 1, Garcia Supply leased a truck for a four-year period, at which time possession of the truck will revert back to the lessor. Annual lease payments are $10,000 due on December 31 of each year, calculated by the lessor using a 5% discount rate. Negotiations led to Garcia guaranteeing a $36,000 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $35,000. What is the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
Answers
Answer:
Following are the response to the given choice.
Explanation:
A residual value guaranteed 36000
Less: Residual value expected 35000
Difference 1000
5%, 5 periods PV Factor 0.7835
PV of the amount added $784
Added Amount = $784
Perez Corporation seils products for $28 each that nave variable costs of $13 per unit. Perez's annual foced cost is $358.500
Reamired
Userte oetounir con nouson motoin soprosch to deterne the break even point
Answers
To determine the break-even point for Perez Corporation, we can use the formula:
Break-even point = Fixed costs / (Price per unit - Variable costs per unit)
Plugging in the numbers given, we get:
Break-even point = $358,500 / ($28 - $13) = 25,571.43 units
Therefore, Perez Corporation needs to sell 25,571.43 units to break even.
______ Is a market in which a large number of suppliers compete with each other to satisfy the needs and wants of a large numbers of consumers at a competitive price.???
Answers
Answer : Monopolistic competition
Answer:
Monopolistic Competition
Explanation:
In a monopolistic competitive market, there are large numbers of sellers who do not sell identical products instead they sell differential products. They compete with each other at a competitive price. The products could be differentiated in many ways including quality, style, location and even brand name. Since they compete at a competitive price, if there is a substantial rise in the price of any of the products, the buyers could quickly shift from one product to another. The most crucial factor behind product differentiation is because of geographical factors. Under a monopolistic competitive market, the sellers do not have any influence over customer loyalty and limited control over the price.
operating systems would be application software used in logistics and manufacturing operations treu or false
Answers
The statement is False. Operating systems would be application software used in logistics and manufacturing operations.
Production operations are the shape and machine that produces a product that may be bought by a consumer. The procedure consists of assessing what clients want, obtaining materials, and manufacturing a product. It also involves the steps to supply merchandise and maintain stock.
Manufacturing is defined as the creation of new products, both from raw materials and additives. Examples of manufacturing encompass automotive businesses, bakeries, shoemakers, and tailors, as they all create merchandise, as opposed to presenting offerings. production operations management calls for unique departments to paint together to produce exceptional merchandise. This facilitates improving enterprise productivity and meeting the expectations of your clients. make certain that you employ modern technology to assist your agency to achieve its set desires and goals.
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What are some of the tests that need to be conducted before putting up a business?
Answers
Explanation:
The product life cycle can be a tool used by companies to adapt their strategies from the stage of product development to its decline in the market and thus increase the chances of being well positioned and competitive in the market.
In the initial phase of development, this is where the project and ideas are aligned and research is carried out on business feasibility, planning, dissemination, potential audience, budget, etc.
In Figure 4.8, how has demand for baseball cards
changed at each of these prices: $20, $30, and $40?
Answers
As per the law of demand in economics, as price of the commodity increases the quantity demanded decreases and vice versa.
What is economics?Economics is a social science that aims to understand and describe how wealth is produced, distributed, and consumed. In the 19th century, economists wrote about economic policy but were infrequently consulted by lawmakers before choices were made.
Nowadays, it is rare to find a government, an international organization, or a sizable commercial bank without a staff of economists. The Wealth of Nations is primarily a work about economic progress and the laws that can either help or hurt it, as the title suggests.
The book provides a practical refutation of the mercantilists' protectionist ideologies as well as an argument in favor of free trade. Instead, they were the pastime of gentlemen of leisure and the profession of a select few academics.
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2. A business installs a free chilled water drinking machine
for staff. This is an example of: (1)
A
B
С
D
a non-financial method of motivation
a promotional method
an improvement to customer service
organic growth
Answers
Given the 2020 recession, what should be the goal of monetary policy? Should the Fed enact expansionary or contractionary policy? In other words, should the Fed increase the money supply/credit supply or decrease the money/credit supply. Explain what they might do to achieve their goal.
Answers
Answer:
Expansionary monetary policies
Explanation:
A recession is characterized by reduced economic activities, a high unemployment rate, and low business incomes. The economy experiences a reduced demand for products and services, leading to low production and a slow economic growth rate.
In a recession like in 2020, the Fed should employ measures that will stimulate economic growth. The appropriate measures are the expansionary monetary policies. These policies seek to increase liquidity in the market, thereby increasing the aggregate demand. Expansionary monetary policies increase the money supply in the economy; they include a reduction in the reserve requirement, reduction in the discount rate, and open market purchases.
Economic growth has improved the lives of many around the world,
but often with the result of resource depleting and environmental
degradation. true or false
Answers
True. Economic growth has indeed improved the lives of many people around the world, leading to increased standards of living, poverty reduction, and technological advancements.
However, it has also resulted in resource depletion and environmental degradation. The pursuit of economic growth often leads to increased consumption of natural resources, pollution, deforestation, habitat destruction , and climate change, which can have negative impacts on ecosystems and human well-being in the long run. Balancing economic growth with sustainable practices and environmental conservation is a crucial challenge for societies worldwide.
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disadvantages of creative thinking in a workplace
Answers
Answer:
This article will dive into what creative thinking is, types of creative thinking, and the benefits of thinking creatively in the workplace. As it happens, it is not the experience of failure that holds you back. There are six major obstacles to creative thinking that could be preventing you from learning how to improve your problem solving skills for business success. Creative thinking and creative thinkers are needed in those situations because it pushes out of that linear way of thinking. To think creatively, set aside any assumptions or biases you may have, and look at things in a completely new way. You don't have to be an artist for your work to have an artistic element. In homeostasis, there seems to be an irresistible unconscious pressure that brings you back to doing what you have always done. This requires the ability to examine things carefully to know what they mean. Thinking The following transcript is based on material in Skills for Success: The Personal Development Handbook, by Stella Cottrell. asked Feb 22, 2018 in Grade 12 by Admin Master (890k points) grade-12; ... discuss the disadvantages of creative thinking. Advantages Of Creative Thinking. Being rational means that we continually use our minds to explain the world to ourselves, so we can understand it better and feel more secure. Here are some of the types of creative thinking you might see in the workplace.
Which tool of monetary policy allows the Federal Reserve to increase the
money supply?
A. Increasing the discount rate on short-term loans
B. Selling treasury securities on the open market
C. Reducing the reserve requirement on banks
D. Raising interest on reserves paid to banks
Answers
Answer:
C. Reducing the reserve requirement on banks
Explanation:
The Federal Reserve( Fed) expects commercial banks to maintain a percentage of customer deposits in their custody. The amount that the banks keep is known as reserves. The Fed sets the percentage of deposits to be held as reserves. The Fed may adjust this percentage in line with its monetary objectives.
By reducing the reserve requirements percentage, commercial banks remain with a bigger portion of deposits that they lend out. It means banks will issues out more loans to customers. An increase in lending adds more money to the economy. Reducing the reserve requirement increases the money supply in the country.
What types of planning can be done to improve a nation’s economy?
A nation can undergo ____ planning or ___ planning in order to improve its economy.
Answers
Answer:
A nation can undergo long-term planning or constructive planning in order to improve its economy. Long-term planning involves setting goals and implementing policies that will have an impact over a period of several years. This type of planning may involve investments in education, infrastructure, and research and development, among other areas. Constructive planning involves implementing policies that encourage economic growth and development, such as reducing barriers to trade, promoting entrepreneurship and innovation, and investing in key industries. These types of planning can help a nation to create jobs, increase productivity, and improve living standards for its citizens. THANK YOUYour manager wants to add more client pcs to an office, but there are not enough ports available. what device should be added to resolve the issue?
Answers
When the manager wants to add more client pcs to an office, but there are not enough ports available, a powerline adapter should be added to resolve the issue.
Using the electrical cabling, a powerline adaptor connects your computer to the internet. A powerline adaptor allows you to genuinely benefit from both worlds. Because a powerline adaptor still uses an Ethernet cable, albeit to a lesser extent, it is sometimes referred to as a powerline-Ethernet adaptor. Powerline adapters will function to connect your gaming computer or console to high-speed Internet, but they are not the greatest choice. It is advantageous that powerline adapters have lower latency than Wi-Fi. In contrast to their alternatives, they don't have the same level of dependability or quickness.
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Explain how a consumer’s place of residence has an especially large impact on their purchase of sports and entertainment commodities.
please and thank you :)
Answers
Answer:
Concept: Business digression
Lets assume you live in Los Angeles CALA houses the Lakers, dodgers, and so many more big brand teams.A consumer which is defined as any person in a free and open market to openly trade their wealth and income in return for an item or service.Residence defined as the area that surrounded the immediate perimeter of the said consumer.Hence, by the principle of socialization people are more inclined to buy sports gear to represent their teams and inclined to participate in consumer purchases based on their peers.It becomes the "lifestyle" and "ideal" personalities in a place such as LA and this inherently drives up sales of sports and entertainment commodities.The location, or residence directly exposes the consumer to the products in a market where it "hot" and in style/demand.Rate brainlist & give positive feedback.According to research, what kind of job interview is most successful at predicting a candidate’s later successful job performance?.
Answers
According to research, "behavior description questionnaires" are the best type of interview questions for predicting future job performance.
Define the term job performance?The interview is perhaps the most common method of collecting data needed to make employment decisions.
The majority of managers would never consider hiring someone without conducting an interview.It is crucial to choose the ideal candidate for the job, someone who is highly driven and has the abilities necessary to produce high-caliber performance.The following steps are highly advised to improve job selection by:
Ensure job-relatedness by doing an extensive job analysis.Show how the selection criteria were applied, how they relate to the position, and how 1 candidate possesses the criteria more so than another.Choose and prepare interviewers with care.Keep asking the same question to all applicants in a job-related manner.To know more about the job interview, here
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Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the specific eight-digit Codification citation (XXX-XX-XX-X) for each of the following:
Required:
The calculation of the weighted average number of shares for basic earnings per share purposes.
The alternative formats permissible for reporting comprehensive income.
The classifications of cash flows required in the statement of cash flows.
Answers
To access the FASB Accounting Standards Codification at the FASB website (www.fasb.org), you will need to create a free account and log in. Once you have done so, you can search for the specific citations for the following:
1. The calculation of the weighted average number of shares for basic earnings per share purposes can be found under ASC 260-10-45-5.
2. The alternative formats permissible for reporting comprehensive income can be found under ASC 220-10-45-5.
3. The classifications of cash flows required in the statement of cash flows can be found under ASC 230-10-45-9.
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producer surplus for an individual firm is calculated by the minimum price at which a producer is willing to sell from the market price. true or false
Answers
True. Producer surplus for an individual firm is calculated by subtracting the minimum price at which a producer is willing to sell from the market price. In other words, it is the difference between the actual price received by the producer and the lowest price they would have been willing to accept for their goods or services.
Producer surplus is an important concept in economics, as it helps to measure the overall efficiency of a market.
When there is a surplus, it indicates that producers are able to sell their goods or services at a higher price than they would have been willing to accept, which can lead to greater profits for the producer.
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Uing mathematical notation imilar to that ued for Nowlin Platic, give a mathematical model for calculating profit. (Write your anwer in term of the following variable q = Production Volume (quantity produced), R = Revenue Per Unit, FC = the Fixed Cot of Production, MC = Material Cot per Unit, LC = Labor Cot per Unit, and P(q) = Total Profit for producing (and elling) q unit. )
Answers
P(q) ≈ Total Profit for creating (and selling) q units, while R has been the revenue per unit, according to the computation above.
What is profit and example?The personal profit a business has when revenue exceeds costs and expenses is frequently referred to as profit. One glass for lemon, for instance, costs young child at a raspberry syrup stand one quarter. She then charges $2 for the beverage. Her earnings from the glass of lemonade is around $1.75.
Briefing:The mathematical formula used to calculate profit is:
VC=LC+MC
TC(q)=FC+(VC*q)
TR(q)=R*q
P=TR(q)-TC(q)
Here, quality is q, overall cost of manufacturing is TC, fixed expenses is FC, expenditure is VC, labor cost is LC, cost of production is MC, per unit cost is MC, total revenue is TR, and revenue per unit is R.
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1. Describe what is meant by wealth?
2. What is wealth and how do you think it relates to budgeting?
3. Identify a wealthy person; a.what makes this person wealthy?
b.How did they earn their wealth?
Answers
Answer:
All the answers of the asked question are discussed below in detailed explanation.
Explanation:
Wealth includes the evaluation of all the items of merit occupied by an Individual, society, corporation, or nation. ... Fundamentally, wealth is the collection of limited resources. Particular people, corporations, and countries are assumed to be wealthy when they are able to acquire many necessary resources or goods.
Specific factors of a venture being offered for sale that should be examined include a. the industry growth rate. b. strength of competitive forces. c. weaknesses, opportunities, and threats. d. all of the above.
Answers
Specific factors of a venture being offered for sale that should be examined include d. all of the above.
What is venture ?venture can be regarded as a business enterprise which involves making a risk as as to the make profit.
Therefore, when making a venture , weaknesses, opportunities, and threats should be take into consideration.
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What are the goals of government regulation?
low unemployment, price stability,
economic growth
O high unemployment, price instability,
economic growth
low unemployment, price stability,
economic steadiness
O high unemployment, price instability,
economic steadiness
Answers
Answer: A) low unemployment, price stability, economic growth
Explanation: Government regulation attempts to promote growth, full employment, and price stability for the well-being of the citizens
The goals of an ideal government while making regulations shall include the following purposes,
low unemployment, price stability,economic growth.Therefore, the option A holds true.
What is the significance of government goals?The goals of a government can be referred to or considered as the qualitative and quantitative targets set by the government in order to foresee better conditions in the future. These are backed by economic plans and regulations.
For a developing or a developed government, the goals must be economically based while being regulated. These goals must include reduced poverty and unemployment in order to achieve a healthy economic growth.
Therefore, the option A holds true and states regarding the significance of the goals of a government.
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Who is known to gravitate towards products that will make others think the adopter is fashionable and cutting-edge?.
Answers
Early adopters are known to gravitate towards products that will make others think the adopter is fashionable and cutting-edge.
The early adopters or lighthouse customers are the early customers of a product or technology. They are individuals or businesses who are the first to use a new product, innovation, or technology before the majority of members of the market. They are usually risk-takers and trendsetters and have a considerable influence on the new product’s success or failure. They are likely to pay a higher price for the product than later adopters as view this as elevating their social status. Early adopters thus gravitate towards the new products thinking it will make them look fashionable and cutting-edge. The term has its origin in Everett M. Rogers' Diffusion of Innovations.
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6.
with a traditional bank, who is bearing the risk of the borrower defaulting?
Answers
With a traditional bank, the lender is bearing the risk of the borrower defaulting.
What is traditional bank financing?Regular banks and lenders offer finance for businesses through traditional business loans. The most prevalent kind of debt financing utilized by small and midsize businesses is this sort of financing. Of all business loan choices, traditional finance often has the lowest rates and most favorable conditions.
In reality, since we refer to the interest rates provided by conventional banks as "bank rates," traditional financing serves as the standard against which to assess all other lending possibilities. A typical term loan is funding offered by a bank that is repaid in instalments over a certain duration. A bank loan typically has a period of between one and twenty-five years (depending on use), with monthly payments.
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What are some factors that would influence supply? Explain
Answers
Answer:
6 Factors Affecting the Supply of a Commodity (Individual Supply) |
Price of the given Commodity: ADVERTISEMENTS: ...
Prices of Other Goods: ...
Prices of Factors of Production (inputs): ...
State of Technology: ...
Government Policy (Taxation Policy): ...
Goals / Objectives of the firm:
Explanation:
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When given an Income Statement, Balance Sheet, and Cash Flow Statement, how would you calculate the following in excel:
DuPont Analysis. Break down your company’s Return on Equity, ROE, into the 3-part DuPont Equation for each year. Comment on what factors caused changes in your company’s ROE over the time period.
Answers
To calculate the DuPont Analysis and break down a company's Return on Equity (ROE) into the three-part DuPont Equation in Excel, you need to analyze the company's Income Statement, Balance Sheet, and Cash Flow Statement. The three components of the DuPont Equation are Profit Margin, Asset Turnover, and Equity Multiplier. Analyzing changes in each component over time can help identify factors influencing the company's ROE.
To perform DuPont Analysis in Excel, follow these steps:
Retrieve the necessary financial statements, including the Income Statement, Balance Sheet, and Cash Flow Statement, for each year of analysis. Calculate the Profit Margin by dividing Net Income by Total Revenue. This ratio measures how efficiently the company generates profits from its sales.
Calculate the Asset Turnover by dividing Total Revenue by Average Total Assets. This ratio indicates how effectively the company utilizes its assets to generate sales. Calculate the Equity Multiplier by dividing Average Total Assets by Average Shareholders' Equity. This ratio shows the leverage or financial structure of the company.
Calculate the ROE by multiplying the Profit Margin, Asset Turnover, and Equity Multiplier. The formula for ROE is: ROE = Profit Margin x Asset Turnover x Equity Multiplier.
By analyzing changes in each component of the DuPont Equation over time, you can identify factors influencing the company's ROE. For example, an increase in Profit Margin may indicate improved cost management or pricing strategies. An increase in Asset Turnover may suggest increased efficiency in utilizing assets. Changes in the Equity Multiplier can be influenced by factors such as debt financing or stock buybacks.
In conclusion, DuPont Analysis allows for a comprehensive breakdown of a company's ROE by analyzing the Profit Margin, Asset Turnover, and Equity Multiplier. Examining changes in these components over time can provide insights into the factors impacting the company's ROE, including profitability, asset utilization, and financial leverage.
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A manager views their employees as unmotivated unless a reward is given. what theory aligns with this manager's view
Answers
The theory that aligns with this manager's view that their employees as unmotivated, unless a reward is given, is the Expectancy Theory of Motivation.
According to the Expectancy Theory of Motivation, an individual's motivation to engage in a certain behavior is based on their expectation that the behavior will lead to a desired outcome, and the value they place on that outcome.
In the case of the manager who views their employees as unmotivated unless a reward is given, the manager is assuming that the employees do not see a clear connection between their behavior and the desired outcome and that they do not place a high value on the outcome itself. In other words, the manager believes that the employees lack motivation because they do not believe that their effort will result in the desired reward, and they do not value the reward enough to put in the effort without the promise of a reward.
According to the Expectancy Theory of Motivation, the manager could increase employee motivation by making the connection between effort and reward more clear and by ensuring that the rewards offered are ones that employees value. The theory suggests that if employees believe that their efforts will lead to a desired outcome that they value, they will be more motivated to engage in the behavior that leads to that outcome.
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A 3. 75 percent coupon bond is currently quoted at 88. 3 and has a face value of $1,000. What is the amount of each semi-annual coupon payment if you own four of these bonds
Answers
Each semiannual coupon payment on a 3.75 percent coupon bond with a face value of $1,000 is $37.50. If you own four bonds, then the total semiannual coupon payments would be $150.
This means that you would receive a total of $150 every six months that coupon payments are due. Coupon payments are based on a face value of $1,000; so even though the bonds are trading at a discount (88.3 in this case) you still receive a coupon payment of $37.50 per bond semi-annually. Coupon payments are fixed and are not affected by the market price of the bonds.
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