The Pet Company has recently discovered a type of rock which, when crushed, is extremely absorbent. It is expected that the firm will experience (beginning now) an unusually high growth rate (20%) during the period (3 years) when it has exclusive rights to the property where this rock can be found. However, beginning with the fourth year the firm's competition will have access to the material, and from that time on the firm will assume a normal growth rate of 8% annually. During the rapid growth period, the firm's dividend payout ratio will be relatively low (20%), to conserve funds for reinvestment. However, the decrease in growth will be accompanied by an increase in dividend payout to 50%. Last year's earnings were $2.00 per share (E0) and the firm's cost of equity is 10%. What should be the current price of the common stock?

Answers

Answer 1

Answer:

$70.26

Explanation:

Dividend payout ratio = Dividend per share / Earning per share

r = cost of equity = 10%, or 0.10

Discounting factor = 1 /(1 + r)^n

n = year

a. For during the rapid growth period

Dividend payout ratio = 20%, or 0.20

Growth rate = 20%, or 0.20

Earnings per share in year 1 =  Last year's earnings per share * (1 + Growth rate) = $2 * (1 + 0.20) = $2.40 per share

Dividend per share in year 1 = Dividend payout ratio * Earning per share in year 1 = 0.20 * $2.40 = $0.48 per share

PV of year 1 dividend per share = $0.48 * (1/1.10^1) = $0.436363636363636

Earnings per share in year 2 =  Earnings per share in year 1 * (1 + Growth rate) = $2.40 * (1 + 0.20) = $2.88 per share

Dividend per share in year 2 = Dividend payout ratio * Earning per share in year 2 = 0.20 * $2.88 = $0.5760 per share

PV of year 2 dividend per share = $0.5760 * (1/1.10^2) = $ 0.47603305785124

Earnings per share in year 3 =  Earnings per share in year 2 * (1 + Growth rate) = $2.88 * (1 + 0.20) = $3.4560 per share

Dividend per share in year 3 = Dividend payout ratio * Earning per share in year 3 = 0.20 * $3.4560 = $0.6912 per share

PV of year 3 dividend per share = $0.6912 * (1/1.10^3) = $0.51930879038317

b. For during the slow growth period

Dividend payout ratio = 50%, or 0.50

Growth rate = 8%, or 0.08

Earnings per share in year 4 =  Earnings per share in year 3 * (1 + Growth rate during slow growth) = $3.4560 * (1 + 0.08) = $3.73248

Dividend per share in year 4 = Dividend payout ratio * Earning per share in year 4 = 0.50 * $3.73248 = $1.86624 per share

Dividend per share in year 5 = Dividend per share in year 4 * (1 + Growth rate during slow growth) = $1.86624 * (1 + 0.08) = $2.0155392

Stock price in year 4 = Dividend per share in year 5 / (r - Growth rate during slow growth) = $2.0155392 / (0.10 - 0.08) = $100.77696

PV of stock price in year 4 = $100.77696 * (1/1.10^4) = 68.8320196707875

c. Calculation of the current price of the common stock

Current price of the common stock = PV of year 1 dividend per share + PV of year 2 dividend per share + PV of year 3 dividend per share + PV of stock price in year 4 = $0.436363636363636 + $0.47603305785124 + $0.51930879038317 + $68.8320196707875 = $70.26

Therefore, the current price of the common stock is $70.26.


Related Questions

Leo is a recruitment executive for a large company. He has identified new labor resource requirements in both the marketing and production departments. What should be his first step in recruiting candidates for the positions?
A.
conduct background checks of candidates
B.
make job offers
C.
arrange interviews
D.
conduct reference checks
E.
place job ads on job sites

Answers

Answer:

E. place job ads on job sites

Explanation:

The first step for Leo is to place the Job advertisement on the various job sites.  Advertising is making the public aware of the vacancy. The purpose of going public is to attract as many qualified candidates as possible. Having a large pool of candidates increases the possibility of getting the right person for the job.

On march 1 mike joined christmas Club His bank automatically deduct a $210 from his cheaser account of the end of each month, and deposit it into his christmas Club account is when will earn 0.0525 animit interst The account comes to term on December 1. Total interest earned in account

Answers

Mike will have a total of $2100 in his Christmas Club as his bank deduct $210 a month from March till December. Hence he may get $110.25 in interest if the interest rate is 5.25% on December 1.

Describe the Christmas Club.

An account specifically intended for holiday spending is a Christmas club account. It typically only lasts for a year or less. A savings account of this type, often known as a Christmas club or holiday club account, is one in which regular deposits are made by customers all year long. In order to pay for holiday shopping and other expenses, such as travel, the accrued savings are then withdrawn just before the holiday season.

Regular direct transfers from your paycheck may be permitted by the account in Christmas club, and those funds would be preserved and transferred to them in time for the holiday buying season. Based on the balance in the account, the yearly percentage yield will fluctuate between 0.05% and 5.00%.

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The complete question is:

On March 1 Mike joined Christmas Club His bank automatically deduct a $210 from his Chaser account of the end of each month, and deposit it into his Christmas Club account. What will he earn at 5.25% APR simple interest for the year, as the account comes to term on December 1.


The competitive threat that outsiders will enter a market is weaker when

Answers

The competitive threat that outsiders will enter a market is weaker when the incumbents enjoy substantial cost advantages.

The competitive threat that outsiders will enter a market refers to the possibility that new firms will enter a market to compete against existing firms. It is the degree of competition in a market that is determined by the ability of other companies to enter the same market and offer similar goods or services at a lower cost.

There are certain factors that determine the competitive threat of outsiders, these are:Ease of Entry: When the cost of entering a market is low, the threat of new entrants is high and vice versa.Brand loyalty: In markets where consumers are more loyal to the existing brands, the competitive threat of new entrants is weaker.

Patents: In markets where incumbents hold many patents, the competitive threat of new entrants is weaker.Cost advantage: The competitive threat of outsiders is weaker when incumbents enjoy substantial cost advantages.Cost advantage is the answer to your question.

The competitive threat that outsiders will enter a market is weaker when incumbents enjoy substantial cost advantages.

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calculate the amount of budgeted selling and administrative expenses for february. xing, inc. has prepared the operating budget for the first quarter of the yeqra. The company forecast sales of 40000 in january, 50000 in february, and 60000 in march. variable and fixed expenses are as follows

Answers

The amount Xing, Inc. budgeted for selling and administrative expenses for February is C. $35,700.

What are the selling and administrative expenses?

The selling and administrative expenses include all the variable and fixed costs incurred for the following:

SalariesRentDepreciationPower costMiscellaneous expenses.

To determine the total selling and administrative expenses, we first determine the total fixed costs per month and the variable costs.

The variable costs are a function of the budgeted sales for each month since a percentage of the sales have been identified as variable costs for power costs and miscellaneous expenses.

                                January    February    March

Budgeted sales      $40,000   $50,000  $60,000

Variable costs:

Power cost              $12,000    $15,000   $18,000

Miscellaneous            2,000        2,500      3,000

Total variable cost $14,000     $17,500   $21,000

     

Total fixed expenses  per month = $18,200

Selling and administrative expenses for February = $35,700 ($17,500 + $18,200).

Thus, for February, Xing forecast to spend C. $35,700 on sales and administration, which may be more or less than the actual expenses for the month.

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Question Completion:

Variable and fixed expenses are as follows:

Variable Expenses: Power cost (30% of sales)

Miscellaneous expenses: (5% of sales)

Fixed Expenses:

Salaries expense: $10,000 per month

Rent expense: $5,000 per month

Depreciation expense: $1,400 per month

Power cost/fixed portion: $800 per month

Miscellaneous expenses/fixed portion: $1,000 per month

Using the information above, calculate the amount of selling and administrative expenses for the month of February.

A. $32,200

B. $32,200

C. $35,700

D. $14,000

What is generally TRUE about deductibles in insurance policies?
A.
With a $500 deductible, the insurer pays the first $500 of any claim.

B.
Deductibles apply for every quarter of the year (every three months.)

C.
Policies with higher deductibles have extremely high premiums.

D.
Policies with lower deductibles have higher premiums.

Answers

Answer:

Answer is C.

Explanation:

I took the test already.

The Statement which is Tue about deductibles in insurance policies is Policies with lower deductibles have higher premiums. Thus the correct answer is D.

What is Insurance?

Insurance is referred as a kind of assurance or protection against the risk that can occur in future events by paying some amount to take the policy to safeguard from any kind of damages.

Insurance helps to recover the occurred loss caused to policyholders by compensating them with the amount as per the policy on which they paid premiums.

The amount of the money you should expect to be paid toward an individual policy is referred to as deductibles. It helps the money of both the insurance company as well as lower the premium amount.

According to the policy of Deductibles in insurance policy, the higher premium has lower deductibles whereas lower premiums have higher deductibles.

Therefore, option D is appropriate.

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A fast-food restaurant buys hamburger buns from a national bakery supplier. The daily usage of buns at the restaurant is normally distributed with an average of 160 and standard deviation of 10. It takes 4 days for the supplier to deliver. The purchasing agent at the restaurant has established a 99.7% service level.
a) The Safety Stock and Reorder Point for the restaurant (in whole numbers). A fast-food restaurant buys hamburger buns from a local bakery. To estimate its costs, the restaurant assumes now those buns are used at the constant rate of 100 per day and are purchased at $0.025 per bun. It costs $1 for each order placed and the annual inventory holding cost per unit is 25% of the unit purchase cost.
b) How much should be ordered each time to minimize the restaurant’s total annual costs?c) And what is the length of order cycles (i.e. time between orders) in days? Assume the restaurant operates 360 days per year.

Answers

Answer:

Thus, from the calculations below;

The safety stock = 55

The reorder point = 695

quantity required to be ordered in order to reduce and minimize total annual cost for the restaurant = 3394 buns

The order cycles length = 34 days

Explanation:

From the given information:

The average demand (d) = 160

The standard deviatiion \(\sigma_d\) = 10

Lead time = 4 days

Service level = 99.7% = 0.997

From the Standard Normal Curve; the z value at 99.7% = 2.75

The annual demand (D) = 36000

Ordering cost = $1

Unit purchased Cost = $0.025

The holding cost for the annual inventory = 25% of 0.025 = 0.00625

The reorder point can be determined by using the formula:

\(= \bar d \times Lead \ time +z\times \sigma_d \times \sqrt{LT}\)

\(\mathbf{ = 160\ \times4+2.75 \times10 \times\sqrt{4}}\)

= 695

The safety stock SS = \(z \times \sigma_d \times \sqrt{LT}\)

\(= 2.75 \times 10 \times \sqrt{4}\)

= 55

The economic order quality = \(\sqrt{2 \times D \times \dfrac{ordering \ cost }{annua l\ holding \ cost}}\)

\(= \sqrt{2 \times 36000 \times \dfrac{1 }{0.00625}}\)

=3394.11

The order cycle length = \(\dfrac{EOQ}{D}\times 360\)

\(= \dfrac{3394.11}{36000}\times 360\)

= 33.94

≅ 34 days

Return on Invested Capital (ROIC) is a profitability ratio that measures how effective the firm is at generating a return for investors who have provided capital (bondholders and stockholders). The ROIC calculation answers three questions: How tax efficient is the firm? How effective are the firm’s operations? How intensively does the firm use capital? Comparing the answers to these questions between firms can help you understand why one firm is more profitable than another and where that profitability is coming from.
In the following, Apple’s ROIC is compared to Blackberry’s. The income statement and balance sheet are provided for both firms. While the ROIC calculation for Blackberry is completed below, you have to complete the calculation for Apple by supplying the correct income statement and balance sheet information. As you fill in this information, the components of Apple’s ROIC will be
calculated along with some supporting ratios. Use these subcomponents and supporting ratios to compare Apple and Blacberry’s performance. Where does Apple’s advantage come from?
This activity demonstrates the calculation of ROIC and the comparison of firm performance, supporting Learning Objective 5-1 and 5-2.
Instructions
Use the income statement and balance sheet information for Apple to fill in the missing items in the calculation of Apple’s ROIC and supporting ratios. Once filled in correctly, compare Apple’s performance to that of Blackberry. Where does Apple have an advantage? Where does Blackberry have an advantage?
Apple, Inc. Blackberry
Income Statement YE Sept 2012 YE Mar 2012
Net sales 156,508
Cost of sales 87,846
Gross margin
Research & development expense 3,381
Selling, general & admin expense 10,040
other operating 0
Total operating expenses
Operating margin
Interest & dividend income 0
Interest expense 0
Other Income / Expense 522
Total Other income
Earnings before taxes
Provision for taxes 14,030
Net income (loss)
Short-term marketable securities
Components 0 Inventories 791 Total current assets
Long-term marketable securities
Other assets
18,423
11,848
1,559
2,600
930
0
0
21
354
Balance sheet YE Sept 2014 YE Mar 30 2012
Cash & cash equivalents 10,746 247
Accounts receivable 10,930 0
Finished goods 0 1,027
68,662
13,421
55,241
522
55,763
41,733
6,575
5,089
1,486
21
1,507
1,153
1,527 3,062 0 1,208
2,733
0 2,645
0
Apple Inc Microsoft Corporation
18,383
Other Current Assets 16,803
Fixed Assets: PP&E (net) 15,452 3,927
0 102,959
57,653
176,064
38,542
19,312
7,071
13,731
3,389
0
Long term assets 6,660
Total assets
Accounts payable Deferred revenue
Total current liabilities Long-term debt
Deferred tax liabilities Other long-term liabilities Long-term liabilities
21,175 0
0 0
Accrued expenses 11,414 0
744
other 5,953
Deferred revenue - non-current 0 0
0
Other non-current liabilities 19,312 242
Total long-term liabilities 242

Return on Invested Capital (ROIC) is a profitability ratio that measures how effective the firm is at

Answers

Here is the ROIC calculation for Apple, Inc.:

The ROIC calculation

Net income (loss) $14,030

Interest expense $0

Taxes $14,030

Net operating profit after taxes $28,060

Average invested capital $176,064

Return on invested capital (ROIC) 15.9%

The following table compares Apple's ROIC to that of BlackBerry:

Company | ROIC

------- | --------

Apple | 15.9%

BlackBerry | 4.9%

As you can see, Apple's ROIC is significantly higher than BlackBerry's. This is due to a number of factors, including Apple's higher gross margin, operating margin, and net income.

Apple also has a lower tax rate than BlackBerry, which helps to boost its ROIC.

Here are some of the reasons why Apple has an advantage over BlackBerry:

Apple has a stronger brand and a more loyal customer base.Apple's products are more innovative and user-friendly than BlackBerry's products.Apple has a more efficient supply chain and a more effective marketing strategy.

Blackberry does have some advantages over Apple, such as its strong security features and its experience in the enterprise market. However, these advantages are not enough to offset Apple's overall advantages.

Overall, Apple is a more profitable company than BlackBerry. This is due to a number of factors, including Apple's strong brand, innovative products, efficient supply chain, and effective marketing strategy.


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The political candidates keep talking to the citizens about the possibility of a recession what would most likely happen if a country experience a recession

Answers

The thing that would MOST likely happen in this case if a country experiences a recession is D.Businesses will suffer from decreased sales and profits, eventually leading to closure

What is recession ?

Recession, in economics,  can be described as the downward trend in the business cycle.

Itshouldbe nopted that this can be seen as the decline in production and employment,  whereby the incomes and spending of households to decline and as a result of thisthere would be hunger sa well as hardship in the country for this cause.

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missig part

What would MOST likely happen if a country experiences a recession?

A.

Feeling confident in the economy, people will begin to spend money more freely.

B.

Jobs will be more plentiful, and companies will be doing a lot of hiring.

C.

Families will start to purchase larger and more expensive homes.

D.

Businesses will suffer from decreased sales and profits, eventually leading to

Which of the following pairs of variables is most likely to be inversely related?
A. sales of toothpaste and sales of running shoes
B. the price of ice cream and the price of airline tickets
C. the number of children in a family and the number of toys the family owns
D. sales of tortilla chips and sales of salsa

Answers

Pairs of the number of children in a family and the number of toys the family owns are most likely to be inversely related variables. So, the correct answer is Option C.

•Two variables are inversely connected if the rise of one causes the decline of the other. For example, if a good's price increases, there are fewer of them available.

•A well-known example is the correlation between interest rates and consumer spending. Customers are less likely to make purchases when interest rates rise, so they are more prepared than they would be to save. Consumer spending decreases as unemployment increases because people have less money to spend.

• On the other hand, two variables in the data set make reference to one another, thus one is high while the other is low. Even though there is a strong negative correlation between two variables, neither variable's action can be said to have a measurable effect on the other. The relationship between two variables may evolve over time and occasionally exhibit an optimistic relationship.

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Question 7 of 10
Business health insurance plans are
A. required
B. varied
C. non-existent
D. uniform
so

Answers

Business health insurance plans are varied.

SunRay Foundation, a corporation owned and managed by volunteers, supplies medicines and vaccines to impoverished people in Asia and Africa. Its focus is not on earning a surplus but on serving the community. SunRay Foundation is an example of

Answers

Answer:

" Nonprofit corporation" is the right solution.

Explanation:

A non-profit corporation would be an organization constructed again for benefit of the community better, for compassionate or some other kind of government service primary motivations, instead of just merely to generate a financial gain on its own, as when the customer requested to be doing. The strongest reason for utilizing the whole degree of formal entity is that everything is responsible for claim federal and state taxes on just about any earnings the corporate entity receives, with exception of for corporate entities.

On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.Instructions1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.2. Journalize the entries to record the following:a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar.b. The interest payment on June 30, Year 2, and the amortization of the bond discount,using the straight-line method. Round to the nearest dollar.3. Determine the total interest expense for Year 1.4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?5. (Appendix 1) Compute the price of $37,282,062 received for the bonds by using the present value tables in Appendix A at the end of the text. Round to the nearest dollar.

Answers

Answer:

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

Dr Cash 37,282,062

Dr Discount on bonds payable 2,717,938

    Cr Bonds payable 40,000,000

2. Journalize the entries to record the following:

a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar.

discount on bonds payable = 2,717,938 / 20 coupons = $135,896.90

December 31, Year 1, first coupon payment

Dr Interest expense 1,535,896.90

    Cr Cash 1,400,000

    Cr Discount on bonds payable 135,896.90

b. The interest payment on June 30, Year 2, and the amortization of the bond discount,using the straight-line method. Round to the nearest dollar.

June 30, Year 2, second coupon payment

Dr Interest expense 1,535,896.90

    Cr Cash 1,400,000

    Cr Discount on bonds payable 135,896.90

3. Determine the total interest expense for Year 1.

$1,535,896.90

4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?

yes, if the market rate is higher than the coupon rate, the bonds will sell at a discount.

5. (Appendix 1) Compute the price of $37,282,062 received for the bonds by using the present value tables in Appendix A at the end of the text. Round to the nearest dollar.

bond price = PV of face value + PV of coupon payments

PV of face value = $40,000,000 x 0.4564 (PV factor, 4%, 20 periods) = $18,256,000PV of coupon payments = $1,400,000 x 13.590 (PV annuity factor, 4%, 20 periods) = $19,026,000

bond's market price = $18,256,000 + $19,026,000 = $37,282,000

1. July 1, Year 1:

Debit Cash $37,282,062

Debit Bonds Discounts $2,717,938

Credit Bonds Payable $40,000,000

To record the bonds issuance at discounts.

2. a. December 31, Year 1:

Debit Interest Expense $1,535,897

Credit Discount Amortization $135,897

Credit Cash $1,400,000

To record the first semi-annual interest payment and discount amortization.

b. June 30, Year 2:

Debit Interest Expense $1,535,897

Credit Discount Amortization $135,897

Credit Cash $1,400,000

To record the second semi-annual interest payment and discount amortization.

3. The total interest expense for Year 1 is $1,535,897.

4. The bond proceeds will always be less than the face amount of the bonds when the contract or coupon interest rate is less than the market (effective) interest rate because the bonds are issued at a discount.

5. The present value price of the $37,282,062 received is computed as follows:

PV factor of 4% for 20 years = 0.4564

PV of face value =  $18,256,000 ($40,000,000 x 0.4564)

PV annuity factor of 4% for 20 years = 13.59

PV of coupon interest payments = $19,026,000 ($1,400,000 x 13.59)

The bond's market price = $37,282,000 ($18,256,000 + $19,026,000)

Data and Calculations:

Face value of bonds = $40,000,000

Proceeds from bonds = $37,282,062

Discounts from bonds =  $2,717,938 ($40,000,000 - $37,282,062)

Maturity period = 10 years (20 payments)

Coupon interest rate = 7%

Effective interest rate = 8%

Interest payment = semiannually

Interest payment date = December 31 and June 30

Straight-line amortization of discounts = $135,896.90 ($2,717,938/20)

December 31, Year 1:

Cash payment = $1,400,000 ($40,000,000 x 7% x 1/2)

Amortization of discount = $135,896.90

Interest Expense = $1,535,896.90

Carrying value of bond = $37,417,958.90 ($37,282,062 + $135,896.90)

June 30, Year 2:

Cash payment = $1,400,000 ($40,000,000 x 7% x 1/2)

Amortization of discount = $135,896.90

Interest Expense = $1,535,896.90

Carrying value of bond = $37,553,855.80 ($37,417,958.90 + $135,896.90)

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A new firm, POINT BLANK, Co expects to generate Sales of $131,300. POINT BLANK has variable costs of $79,900, and fixed costs of $20,400. The per-year depreciation is $4,700 and the tax rate is 34 percent. Given this info: What is the annual operating cash flow?

Answers

Answer:

Variable costs are 55% of sales, depreciation on the equipment to produce the new board will be $2,150,000 per year, and fixed costs are $3,200,000 per year.

Explanation:

Variable costs are 55% of sales, depreciation on the equipment to produce the new board will be $2,150,000 per year, and fixed costs are $3,200,000 per year.

On February 28, Katherine wrote a check number 1021 to Hoopers Market for $189.43. Her beginning balance was $584.77. Calculate the new balance.

Answers

Answer:

Her new balance is $395.34

Explanation:

You take the starting balance of $584.77 and subtract it by the amount spent which was $189.43. Which gives you $395.34

What products do you think will increase in demand because of the 2020 election?

Answers

Answer:

you know the basics. masks, gloves, hand sanitizer, stuff like that

Explanation:

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:

1. What is the materials quantity variance for March?

2. If Preble had purchased 171,000 pounds of materials at $7.20 per pound and used 155,000 pounds in production, what would be the materials quantity variance for March?

3. What is the labor rate variance for March?

4. What is the labor efficiency variance for March?

5. What is the labor spending variance for March?

Preble Company manufactures one product. Its variable manufacturing overhead is applied to production

Answers

Labor efficiency variance = (Actual hour * Standard rate) - (Standard hour * Standard rate).

Labor efficiency variance = $404,600 F

What is Labor efficiency variance?

By "efficiency of labor," we mean a worker's ability to produce more or better work, or both, over the course of a given amount of time.

1) Labor efficiency variance = (68,000 * $17) - ((30,600 * 3) * $17)

Labor efficiency variance = $1,156,000 - (91,800 * $17)

Labor efficiency variance = $404,600 F

2) Variance in direct labor worked divided by variance in labor efficiency

Variance in labor costs is $404,600 - $68,000.

Variance in labor costs = $336,600 F

3) Planned unit sold minus variable overhead equals variable manufacturing overhead cost.

Manufacturing variable overhead cost = 24,000 * $21

$504,000 is the variable manufacturing overhead cost.

4) Planned unit sold minus variable overhead equals variable manufacturing overhead cost.

Cost of variable overhead in production = 30,600 * $21

$642,600 is the variable manufacturing overhead cost.

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In most restaurants, waiters receive a large portion of their compensation through tips from customers. Generally, the size of the tip is decided by the customers. However, many restaurants receive a 15% tip for parties of eight or more. Using the concept from this chapter, discuss (a) why the practice of tipping has emerged as a major method of compensating the wait staff, (b) why the customer typically decide on the amount of the tip, and (c) why restaurants require tips from large parties

Answers

Answer:

a) tipping is seen as a reward for a good service provided. It is also a way of passing labor costs directly to the customer, which increases the restaurants' profits.

b) generally, most restaurant charge a fixed fee for tips. Maybe in the past customers could decide the tip, but that is not true now for most places. Although, customers are better judges of the service that they receive. By the way, the 15% is the minimum tip, customers can choose to increase that amount.

c) if the restaurants did not require tips, their labor costs would increase significantly.

Explanation:

Which 2 statements about non verbal communication are true?

Answers

what are the options?

Answer:

The 2 statements that are true about nonverbal communication are:

A) Nonverbal communication is not culture-bound and does not

reflect the values and norms of a culture.

B) Nonverbal messages communicate much about relationships.

What is Communication?

This refers to the means by which a message is transmitted from one person to another.

Hence, we can see that based on the given question, it can be noted that nonverbal communication does not need words and as such, it is not culture-bound and does not reflect the values and norms of a culture.

Explanation:

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A successful data-driven market segmentation program depends on each of the following except:

a.
the rejection of tradiitional marketing research techniques

b.
the use of transactional and event data

c.
a common definition of market segments across all areas of the business

d.
developing a centralized and accessible CRM (Customer Relationship Management) database

Answers

A successful data-driven market segmentation program depends on the "use of transactional and event data", "a common definition of market segments", "and the development of a centralized CRM database" but it does not depend on "the rejection of tradiitional marketing research techniques".

The correct option to the given question is option a.

Traditional marketing research techniques, such as surveys, focus groups, and interviews, have long been used to gather insights about consumer behavior and preferences. While these techniques may have limitations, they still play a valuable role in understanding customer motivations and attitudes. Data-driven market segmentation programs can benefit from a combination of both traditional and data-driven research approaches. The use of transactional and event data is crucial for a data-driven market segmentation program. This type of data provides valuable information about customer behaviors, purchase patterns, and interactions with the business.

Having a common definition of market segments across all areas of the business ensures consistency and alignment in marketing efforts. This allows for targeted and personalized messaging that resonates with each segment. It also facilitates coordination between different departments, such as marketing, sales, and customer service, leading to a more cohesive and effective customer experience.

Finally, developing a centralized and accessible CRM database is essential for managing and analyzing customer data. It enables the integration of data from various sources, such as transactions, interactions, and demographic information, into a single platform. This centralized database provides a comprehensive view of customers, enabling more accurate segmentation and personalized marketing initiatives.

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When GaGa began adding novelty bars in new flavors, what was the effect on the width and depth of its product mix?

Answers

Answer:

It increased the depth of their product mix.

The depth of the product mix is basically how many different types of variations of the same product are offered, e.g. Coke, Diet Coke, Coke Zero, etc. Increasing product depth involves new flavors, different package sizes or other specific characteristics regarding the product.

Product width refers to the different types of products offered by the company, e.g. Toyota offers sedans, trucks, SUVs, minivans. In this case, product width is not affected.

What requires frequent safety and health inspections

Answers

Answer:

OSHA

Explanation:

use figure: budget lines for tangerines and watermelons. for some time, albert has had $5 per month to spend on tangerines and watermelons. the price of a tangerine is $0.50, and the price of a watermelon is $0.25. which chart shows what will happen to his budget line if his income increases to $6?

Answers

The price of an apple is $0.25 will happen to his budget line if his income decreases to $2.50.

A budget is a set of computations for a given period of time, typically a year or a month, though not always in the financial world. A budget may include anticipated sales and revenue levels as well as resource quantities such as time, costs, and expenses. It may also include other impacts such as greenhouse gas emissions as well as assets, liabilities, and cash flows. Businesses, governments, families, and other entities use budgets to quantify their strategic plans of action. An articulated budget offers suggestions for allocating funds to cover projected costs. back for future use, or a deficit, which happens when expenditures exceed revenues or other funds available.

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(Figure: Budget Lines for Oranges and Apples) Look at the figure Budget Lines for Oranges and Apples. For some time, Antonio has had $5 per month to spend on oranges and apples. The price of an orange is $0.50 and the price of an apple is $0.25. Which of the charts shows what will happen to his budget line if his income decreases to $2.50?

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Which of the following accurately describes a scen ario in which location and proximity to attractions might affect room rates?


A beach-front hotel in Virg inia charges triple the price for its rooms in June in comp arison to January.


A hotel allows travelers concerned about personal con tact to access rooms with an a pp instead of a key.


A hotel is very close to the main highway and is also walking distance from a met ro station.


Hotels glob ally dropped their prices and offered free cancellations during the CO VID-19 cris is.

Answers

A hotel allows travelers concerned about personal con tact to access rooms with an a pp instead of a key.

A scenario where the hotel's location and proximity to attractions might affect room rates is when a hotel is very close to the main highway and is also within walking distance from a metro station. Thus, Option (C) is correct.

Being close to the main highway makes the hotel easily accessible to travelers, while being within walking distance from a metro station provides convenience for guests using public transportation. Such advantageous locations can attract more guests, leading to higher demand for the hotel's rooms.

As a result, the hotel may charge higher room rates to capitalize on its strategic positioning. Additionally, the added convenience and time-saving benefits of staying near major transportation hubs and attractions justify the potential price adjustments.

Thus, Option (C) accurately, exemplifies how a hotel's location can play a crucial role in determining its room rates based on demand and value-added amenities.

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Which of the following accurately describes a scenario in which location and proximity to attractions might affect room rates?

A)A beachfront hotel in Virginia charges triple the price for its rooms in June in comparison to January.

B)A hotel allows travelers concerned about personal contact to access rooms with an app instead of a key.

C)A hotel is very close to the main highway and is also within walking distance from a metro station.

D)Hotels globally dropped their prices and offered free cancellations during the COVID-19 crisis.

Discuss the effect of diversification in the portfolio to the risk return of the investment.

Answers

Diversification reduces the risk of an investment portfolio by spreading investments across different assets and can stabilize returns, leading to a more balanced risk-return profile.

Diversification is an investment strategy aimed at reducing risk by spreading investments across different assets. The theory behind diversification is that by investing in a range of assets, the investor can reduce the risk associated with any single asset.

Diversification can help to mitigate risk and stabilize returns by reducing the impact of market volatility on the portfolio. By investing in assets that are not highly correlated, the portfolio is less likely to be affected by sharp declines in any one asset class. This helps to reduce the risk of the portfolio and create a more stable investment return over the long term.

However, diversification is not a guarantee against loss, and some investments may still suffer losses. It is important to balance the level of diversification in the portfolio with the investment objectives, risk tolerance, and other factors.

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Problem 8, MacroSoft Inc. has capitalized $600,000 of software costs. Sales from this product were $360,000 in the first year. MacroSoft estimates additional revenues of $840,000 over the product’s economic life of 5 years.
Instructions
Prepare the journal entry to record software cost amortization for the first year. Show all computations.

Answers

Journal Entry:

Date: [First year-end date]

The amortization expense for the first year is $120,000.

Debit: Amortization Expense - Software Cost - Year 1 ($600,000 / 5 years) = $120,000Credit: Accumulated Amortization - Software Cost - Year 1 ($600,000 / 5 years) = $120,000Explanation:To record the software cost amortization for the first year, we need to allocate a portion of the capitalized software costs as an expense. Since the software has an estimated economic life of 5 years, we divide the total software cost ($600,000) by 5 to determine the annual amortization expense. In this case, the amortization expense for the first year is $120,000. We debit the Amortization Expense - Software Cost account to recognize the expense and credit the Accumulated Amortization - Software Cost account to accumulate the amortization over time.

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Why does the market portfolio include all risky assets?

Answers

Under the CAPM, all investors hold the market portfolio because it is the optimal risky portfolio. Because it produces the highest attainable return for any given risk level, all rational investors will seek to be on the straight line tangent to the efficient set at the steepest point, which is the market portfolio. Branliest would be nice (:

what the management approval of sanlam​

Answers

Answer:

JSE-listed Sanlam has been given permission to buy a majority stake in Catalyst Fund Managers, a Cape Town-based company that manages listed property investments for institutional and retail clients. Sanlam said in September the deal would help its investments unit to diversify and strengthen its asset management capabilities. It did not disclose the value of the acquisition. “It provides Sanlam Investments with the opportunity to partner with a credible and well-respected business which has a compelling product offering,” Sanlam said at the time. The Competition Commission said on Tuesday it had approved the deal without conditions, meaning that Sanlam Investment Holdings can go ahead with its acquisition of a 69% stake in Catalyst. The commission said the deal was unlikely to reduce competition or the number of jobs in the industry. Founded in 2001, Catalyst originally focused on managing SA-listed property portfolios. In 2007, it started managing global portfolios. “Catalyst Fund...

Patrick and Mary wanted to become homeowners back in 2008 and applied for a loan from a mortgage lender. Patrick and Mary's combined income was $50,000 a year and their credit history was poor. They were approved for a mortgage loan but couldn't make the payments. This is an example of a result of _______.

Answers

The information given in the question is an example of purchasing power.

Purchasing power simply refers to goods and services that a person can be able to buy with a given amount of money that the person has.

In this case, they have a combined income of $50,000 but this wasn't enough to purchase the house. This shows that they had a lower purchasing power.

Assuming the house was sold for a lesser amount than $50,000, then it'll be affordable for them.

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Executive compensation packages often tie performance to bonus and incentive awards, supplemental retirement packages, perquisites, and severance pay, in order to encourage the management team to align their performance with organizational goals. Executives are often compensated above and beyond their salary and benefits.
1. Which of the following perquisites would not encourage managers to maximize long-run shareholder wealth?
A. A percentage of the company's profits
B. Stock options
C. The use of a private jet
2. Vision Tech is a software company based out of San Francisco. Its stockholders are mostly institutional investors and there is relatively little individual ownership. If these institutions dilute them positions and sell off their stake in vision Tech's stock to several individual investors, would direct shareholder intervention be more or less likely to motivate the firm's management?
A. More likely
B. Less likely
3. Vision Tech's stock price is currently trading at $37 per share. The consensus among analysts is that the intrinsic Tech's value of vision Tech's stock is $30 per share. Is vision Tech more or less likely to receive a hostile takeover bid?
A. More likely
B. Less likely

Answers

Answer:

1. Options B and C on the surface seem attractive. A critical look shows that they are not.

Employee Stock Options (ESOs) are equity compensation which gives the employee the right (but not an obligation) to purchase the company's stock at a given price within a given time frame.

The employee can hold on to the stock options until some future date and then make a tidy profit.

The problem however is, it is doubtful that any employee or group of employees can directly affect the value of the company's stock. Stock values are dependent on a host of many other factors.

Hence, this option will be attractive to managers but does not necessarily motivate them to maximize shareholder

Use of a Private Jet: This does not motivate any employee in the long-run any more than using the company's highly advanced computer as a work tool will motivate an employee.

Percentage of the company's profit: This option, unlike the others, has a direct link between the employees' productivity, his take home, and the company's performance/profit is the best way to stimulate employees towards maximizing shareholder wealth in the long-run.

An employee will be motivated to perform more, take more ownership and accept a greater degree of accountability if he or she knows that the result of their actions will be beneficial not just to the company but to them as well.

2. It is less likely that Individual shareholders/investors will motivate the firm's management. This is based on the premise that Institutional Investors (which are simply companies investing in other companies on behalf of clients or members) are more likely to bring to the table much more resources, ideas, relationships that help protect and enhance their interest in companies where they have interests than individual investors.

In other words, the chances that a company with institutional investors will perform better is higher than the company with individual investors. This thinking is why it is less likely that divestment to individual investors by institutional investors will motivate the firm's management.

3.  It is less likely that a company that is outperforming its intrinsic value in the market will become subject to a hostile take over.

Why? Hostile takeovers are usually motivated by the desire to take over a weak or failing company. In this regard, a weak company is one that is significantly undervalued. Other reasons why a company may be taken over in a hostile fashion include:

desire to leverage a company's brand, technology, operation, etcunhappy investors who want to see a change in the performance of the company so that their interests are protected and enhanced. Such activist investors usually look to shake up the company's operations accordingly.

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with an example, explain why a substantive disagreement may never be resolved

Answers

A substantive disagreement can never be resolved because of the differing opinions of the people involved.

What is a substantive disagreement?It is a disagreement between two or more people.It is a disagreement between people with different opinions and points of view on the same subject.

If the people involved in the substantive disagreement are quite sure that their views are correct, that substantive disagreement can never be resolved, because none of the people involved will surrender to their opponents' point of view.

An example of this is two people arguing over whether the best pet is a cat or a dog, and each person wants to defend one of those animals.

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