Net income dropped from $63,125 to $38,197.50 which cuts losses by $24,927.50. Losses were cut by 61%. 2. A firm needs $100 to start and has the following expectations: Sales $200 Expenses $185 Tax rate 33% of earnings o What are earnings if the owners invest the $100? $10.05 o If the firm borrows $40 of the $100 at an interest rate of 10%, what are the firm's net earnings?
At this bid price, the buyer will be able to net to a positive cumulative cash flow of $413 by the fourth year (Table 1.1). Since Longform Printing is a more conservative firm and factors a 10 year time horizon for purchasing decisions, a bid price of $14,000 still enables the buyer to earn total buyer cash flows of $33,333 and buyer discounted cash flows of $10,734 by the end of 10 years (Table 1.1). The buyer is also projected to make positive flows as long as the price per plate remains below $3.50, and based on the projections in Table 1.1, it appears that the plate price will remain under $3.50 for another ten years (Figure 1.1). This will be a good selling pitch to entice the buyer to this bid price. As the seller, at a bid price of $14,000, the initial cash inflow of $11,406 is surpasses the cost of the equipment of $3,980 (Table 1.1).
After the transaction this shareholder no longer has a controlling interest. Given these facts, to induce the shareholder to sell the block of stock Target Inc. was forced to pay an amount in excess of the current market price of the stock. Target Inc. paid the shareholder $40 per share when the market price was $30 per share. Question How should Target Inc. account for the purchase of this treasury stock? Required 1.Provide a brief written description of the proper accounting treatment, including how the extra $10 paid per share is recorded.
However, if the demand is inelastic (not likely to be true), then Apple should preserve its profit margins. Answer 2: P= 4,500-.15Q Total Revenue = PxQ = 4,500Q - 0.15Q^2 Marginal Revenue = 4,500 - 0.30Q For Profit Maximization MC = MR Thus 1500 = 4,500 - 0.30Q => Q = (4,500 - 1,500)/0.30 => Q = 3,000/0.30 => Q = 10,000 Put Q = 10,000 in the demand function to ge the price: P = 4,500 - 0.15x10,000 = 3,000 Thus Apple should price its product at 3,000 and sell 10,000 units. Answer 3: Power Mac's user value had fallen by 600. This means that the demand curve has further shifted to the left by $600. Thus the new demand curve will be P = 4500 - 600 - 0.15Q => P = 3900 - 0.15Q If Apples stays at the $3000 price mark then quantity will be: 3,000 = 3,900 - 0.15Q => 900 = 0.15 Q => Q = 6000 Thus sales will fall from 10,000 units to 6,000 units if Apple held its price of $3000 P= 3,900-.15Q Total Revenue = PxQ = 3,900Q - 0.15Q^2 Marginal Revenue = 3,900 - 0.30Q For Profit Maximization MC = MR Thus 1350 = 3,900 - 0.30Q => Q = (3,900 - 1,350)/0.30 => Q = 2,550/0.30 => Q = 8,500 Putting Q = 8,500 in the price function we get P = 3,900 - 0.15x8500 => P = 2,625 Thus according to the new policy Apple should see 8,500 units at $2,625 per
This implies that we can be 95% confident that the average (mean) sales per week exceeds 41.5 per salesperson since 41.654 > 41.5 and therefore our confidence interval does not include 41.5. If samples of size 100 are to be taken from the population of 1000 salespeople of the company again and again, the average (mean) sales per week will exceed 41.5 per salesperson, 95% of the times. b) The true population proportion of salespeople that received online training is less than 55%. Regarding this claim, the statistical evidence in not sufficient to conclusively say that the true population proportion of salespeople that received online training is less than 55%. The p-value associated with it is .157 or approximately 16% this is higher than the acceptable 5% level.
for example - if you pick 50 apples per hour you will receive your pay, if not you will no longer have employment within our company. Transactional leadership denotes that employees work better when the chain of command is distinct and the employees are monitored carefully to ensure that all objectives are met. The members of staff are not encouraged to think outside the box, they are to follow the rules and procedures installed by the manager. This form of leadership maybe deemed to be an inadequate form of leadership however if the outcome needed to be achieved is clear and simply using this style could attain the best results. I will be comparing the aforementioned leadership style with James McGregor Burns (1978) transformational leadership, he suggests leaders that possess the skills that can inspire positive changes in their team through their strength of their vision and personality, they are able to change the ways the team thinks to enable them all to work towards their goal.
NIKE Inc.: Cost of Capital Understanding the case Kimi Ford of NorthPoint Group has to take the decision whether to invest in Nike, Inc. shares. She forecasted a discount rate of 12% and developed her own discounted-cash-flow forecast. According to her calculations, Nike was overvalued at its current share price of $42.09. By doing a sensitivity analysis, she found that Nike was undervalued at discount rates below 11.3%. Her assistant Cohen did her own analysis and calculated WACC to be 8.4%.
The owner of a lemon is willing to sell for $1,000; the owner of a plum for $2,000. Buyers have a WTP of $2,400 for plums and $1,200 for lemons. If quality is easy to verify (lemons have lots of rust; plums still have good-looking paint jobs), then this market works smoothly. Lemons sell for a price between $1,000 and $1,200 while plums sell for a price between $2,000 and $2,400. But what happens if potential buyers cannot observe quality?
What makes people happy is an incentive; people only act when they receive benefits. Optimal decision is made at margin: when producing one more additional unit of goods economists use the word marginal. Economists mean that the optimal decision is to continue any activity to where the margin benefit equals the marginal cost. Provide an example of a decision in which you compared the marginal benefits and the marginal costs associated with that decision. For example, in examining the marginal cost of producing one bushel of apples.