alexander's athletic apparel has 1,100 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2023. all remaining shares are common stock. the company was not able to pay dividends in 2023, but plans to pay dividends of $13,000 in 2024. required: 1. & 2. how much of the $13,000 dividend will be paid to preferred stockholders and how much will be paid to common stockholders in 2024, assuming the preferred stock is cumulative? what if the preferred stock were noncumulative?
Answers
a) If the preferred stock is cumulative, the dividends for 2024 paid to preferred and common stockholders are:
Preferred - $11,000Common - $2,000.b) If the preferred stock is noncumulative, the dividends for 2024 paid to preferred and common stockholders are:
Preferred - $5,500Common - $7,500.What are cumulative and noncumulative preferred dividends?Cumulative preferred stock attracts cumulative dividends. Any year when dividends are not declared, the dividends payable account records a liability that must be paid in any year when sufficient dividends are declared.
For noncumulative preferred stock, dividends are not accumulated or paid to preferred stockholders when dividends are not declared.
1,100 shares of 5% Preferred stock at $100 par value = $110,000 (1,100 x $100)
Dividends declared in 2024 = $13,000
Annual Preferred stock dividends = $5,500 ($110,000 x 5%)
Dividends for preferred stockholders in 2024 if preferred stock is cumulative = $11,000 ($5,500 x 2)
Common stock dividends = $2,000 ($13,000 - $11,000)
Dividends for preferred stockholders in 2024 if preferred stock is noncumulative = $5,500
Common stock dividends = $7,500 ($13,000 - $5,500)
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Related Questions
. In 2000, KFC® and A&W® restaurants successfully merged because each had a strong
signature product: KFC’s fried chicken and A&W’s root beer floats.
Branding strategy used:
Answers
Explanation:
Co-branding is a form of branding that connects companies together. Essentially, co-branding is a marketing partnership between two or more businesses.
which of the following is something a smart pick list does not help pickers do?
a. physically lift heavy items
b. pick materials based on order of delivery
c. pick materials using a pre-programmed efficient route
d. pick materials based on due date
Answers
Calculate real growth per capita in the following countries:
Instructions: Round your answers to 1 decimal place. If you are entering a negative number be sure to include a negative sign (-) in front of the number.
a. Democratic Republic of Congo: population growth = 2.7 percent; real output growth = - 1.5 percent.
%.
b. Estonia: population growth = - 0.5 percent; real output growth = 4.4 percent.
%.
c. India: population growth = 2.2 percent; real output growth = 6.3 percent.
%.
d. United States: population growth = 0.6 percent; real output growth = 2.7 percent.
%.
Answers
a. Democratic Republic of Congo: real growth per capita = -4.2%
b. Estonia: real growth per capita = 4.9%
c. India: real growth per capita = 4.1%
d. United States: real growth per capita = 2.1%
Real growth per capita is calculated by subtracting the population growth rate from the real output growth rate. It represents the percentage change in output per person. In the Democratic Republic of Congo, the negative real output growth rate of -1.5% exceeds the population growth rate of 2.7%, resulting in a negative real growth per capita of -4.2%. In Estonia, the positive real output growth rate of 4.4% surpasses the population decline rate of -0.5%, leading to a positive real growth per capita of 4.9%. Similar calculations are performed for India and the United States.
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If the United States transfers tasks and jobs to other countries where labor and supplies are less expensive, it is called outsourcing. When foreign companies transfer tasks and jobs to companies in the United States, it is a practice called
Answers
Reason: Although outsourcing has become politically contentious in recent years amid concerns about jobs being taken by foreign workers, foreign companies transfer tasks and jobs to American companies (a practice known as insourcing) far more frequently than American companies outsource tasks and jobs to foreign countries (a practice known as outsourcing).
sex on the beach ingredients 1 1/3 oz orange juice
Answers
The classic cocktail "Sex on the Beach" typically consists of the following ingredients:
1 1/3 oz Vodka
1 1/3 oz Peach Schnapps
1 1/3 oz Cranberry Juice
1 1/3 oz Orange Juice
These measurements are approximate and can be adjusted according to personal taste preferences. The cocktail is typically served over ice in a highball glass and garnished with a slice of orange or a cherry. It is known for its fruity and refreshing taste. Please note that alcoholic beverages should be consumed responsibly and in accordance with legal drinking age regulations in your location.
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An investment in a machine costs $815,000 and net cash inflows of $X are expected for the next 7 years. The applicable discount rate is 8%. If the project is accepted, what is the minimum that X can be?
A) $141,822
B) $133,190
C) $144,524
D) $130,465
E) $156,539
Answers
The present value of an annuity of X that is minimum can be $133,190. The correct option is B).
To find the minimum value of X, we need to use the net present value (NPV) formula and set it equal to the cost of the investment, which is $815,000.
The formula for NPV is:
NPV = ∑(net cash inflow / (1 + discount rate)^t) - initial investment
Where: ∑ = sum over all the years (from year 1 to year 7), t = the year (1 for the first year, 2 for the second year, and so on)
We know that the initial investment is $815,000 and the discount rate is 8%. So, the NPV formula becomes:
$815,000 = ∑(X / (1 + 0.08)^t) - $815,000
Simplifying the formula, we get:
$1,630,000 = ∑(X / 1.08^t)
Now, we need to solve for X by finding the value that satisfies the equation. We can do this by using a financial calculator or a spreadsheet program like Excel.
Using Excel, we can use the following formula to calculate the sum of the present values of the cash inflows:
=PV(0.08,7,-X)
This formula calculates the present value of an annuity of X dollars per year for 7 years at a discount rate of 8%. We use a negative sign for X because it represents cash outflows (i.e., the investment).
Solving for X, we get:
X = -$133,190.10
Note that the negative sign indicates that the cash flows are inflows, not outflows.
Therefore, the minimum value of X that would make the project worthwhile is $133,190.10, which is option B).
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What other cost categories are not reflected in the budget above? And how much do you estimate they will cost
you per month?
Answers
The correct answer to this open question is the following.
Although there are no options attached we can say the following.
The other cost categories that are not reflected in the budget above are the following.
Monthly internet subscription, recreational center, laundry, school expenses, entertainment, home supplies, and drugstore. (which include, cream, shampoo, soap, toothpaste, etc.)
And how much do you estimate they will cost?
Monthly internet subscription $15
Recreational Center $25
Laundry $30
School expenses $20
Entertainment $100
Home supplies $25
Drugstore (which include, cream, shampoo, soap, toothpaste, etc.) $50
The key here is not only to have a good budget but respect it and follow through. Otherwise, you will have problems at the end of the month trying to make ends meet.
A Suspense Account was opened for an
error of $30 found in the Trial Balance. Later
it was observed that sales were understated
by $30. This item would be corrected in the
journal by
Answers
The main answer is: Debiting Sales Account and Crediting Suspense Account.
To correct the error of understating sales by $30 in the journal, the Sales Account should be debited and the Suspense Account should be credited. This will rectify the understatement of sales and ensure that the Trial Balance reflects the accurate financial information.
When an error is identified in the Trial Balance, a Suspense Account is created to temporarily hold the amount of the error until it is corrected. In this case, an error of $30 was found in the Trial Balance, indicating that the sales figure was understated. To correct this error, the Sales Account, which represents the revenue generated from sales, needs to be increased by $30. Hence, the Sales Account is debited.
On the other hand, the Suspense Account, which was initially created to balance out the Trial Balance, now needs to be reduced by $30 since the error has been identified and will be corrected. Therefore, the Suspense Account is credited to decrease its balance by $30.
By debiting the Sales Account and crediting the Suspense Account, the error of understating sales by $30 is rectified. The Trial Balance will now accurately reflect the corrected sales figure, ensuring the financial statements present a true and reliable representation of the company's financial position.
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You buy a new commercial stove for $9,000 and estimate that it will enable you to deliver 20 additional meals per night at an average price of $20. Assuming 25% food cost and no additional costs to using the new stove, how long will it take the stove to pay for itself? a)30 days, b) 90 days, c)180 days, d)365 days
Answers
Answer:
a)30 days
Explanation:
For the stove to repay itself, it will have to reach the break-even point.
the costs associated with the are the cost $9000
The gains from the stove: 20 meals per night at $20.
the cost per mean is 25% of the selling price
=25/100 x 20
=0.25 x20
=$5
The profits per meal = $20 -$5 = $15
Profits for 20 meals = $15 x 20 =$300
Dairy income from the stove is $300
To recover the cost, it will take $9000/$300 days.
=30 days
Answer:
30 days
Explanation:
Davenport Inc. offers a new employee a single-sum signing bonus at the date of employment. Alternatively, the employee can receive $33,000 at the date of employment and another $53,000 2 years later. Assuming the employee's time value of money is 8% annually, what single sum at the employment date would make her indifferent between the two options?
Answers
The single sum at the employment date that would make the employee indifferent between the two options is $79,296.30.
To determine the single sum at the employment date that would make the employee indifferent between the two options, we need to calculate the present value of receiving $33,000 at the date of employment and $53,000 two years later.
Step 1: Calculate the present value of $33,000 at the date of employment:
PV1 = $33,000 / (1 + 0.08)^0 = $33,000
Step 2: Calculate the present value of $53,000 two years later:
PV2 = $53,000 / (1 + 0.08)^2 = $46,296.30
Step 3: Calculate the single sum at the employment date:
PV1 + PV2 = $33,000 + $46,296.30 = $79,296.30
In this scenario, the employee would be equally satisfied whether they receive $33,000 at the date of employment or a single sum of $79,296.30 at the employment date, taking into account the time value of money at an 8% annual interest rate.
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_________ is a communication standard that enables business partners to exchange routine documents electronically, however _____________________ is a major disadvantage
Answers
Answer:EDI
Explanation: I don’t know the second but the first one is 100% EDI
Online surveys can eliminate the effects of question order on responses because of their ability to randomize the order of questions. (True or False)
Answers
The given statement "Online surveys can eliminate the effects of question order on responses because of their ability to randomize the order of questions" is True because Online surveys have the ability to randomize the order of questions, which eliminates the effects of question order on responses.
Question order can have a significant impact on how people respond to surveys. For example, if a survey begins with a question that is difficult or confusing, it may negatively impact the rest of the responses. Similarly, if questions are grouped together by topic, it may influence how people respond to subsequent questions. This is because respondents may develop a pattern or bias in their responses based on previous questions.
By randomizing the order of questions, online surveys reduce the likelihood of such biases. This means that responses are more likely to be honest and accurate, as respondents are not influenced by previous questions. Additionally, online surveys can be designed to skip questions that are not applicable to a particular respondent. This further ensures that the questions asked are relevant and unbiased.
Overall, the ability to randomize question order in online surveys is an important feature that can improve the accuracy and validity of survey results. This is particularly important for research that requires a representative sample and accurate data.
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When calling a support line to request help with a computer problem, it is best to
provide as many details and information as possible.
keep information to a minimum to avoid confusion.
avoid attempting to name or identify the problem.
avoid first attempting simple fixes to the problem
Answers
Answer: Provide as many details and information as possible.
Explanation:
So they can identify the problems with your computer
Answer:
1.provide as many details and information as possible.
Explanation:
why is foreign employment important ?
Answers
Answer:
Foreign employment can be important for a number of reasons, including:
Economic growth: Foreign employment can bring in significant amounts of foreign currency to a country, which can help to boost the economy.
Poverty reduction: Foreign employment can provide individuals and families with higher wages than they would be able to earn in their home country, which can help to reduce poverty.
Career development: Foreign employment can provide individuals with opportunities to gain new skills and experiences, which can help to improve their career prospects.
Cultural exchange: Foreign employment can also provide an opportunity for cultural exchange, which can help to promote understanding and tolerance between different countries and cultures.
Remittances: Foreign workers often send money back to their home country, known as remittances, which can be a major source of income for families and communities.
Human Development: Foreign employment can provide individuals with better access to education, healthcare, housing and other essential services, which can improve their overall quality of life and human development.
All in all, Foreign employment can have a positive impact on the economy and society by providing people with better living conditions, opportunities and increasing the GDP.
Answer:
Explanation:
Here are three primary reasons why foreign employment is beneficial for your business.
1.More innovation
A foreigner, being from a different country and culture will bring new ideas and ways to challenges. These insights can be used to enhance processes and systems.
Availability to global markets
2.Access to global markets
Numerous firms leverage the links their overseas employees have to their native nations. Consider a corporation with a German employee that desires to explore the German or European market. The employer is in an ideal position to request insight or even contacts from the German employee in order to create partnerships in Germany.
3.Better fulfilling working atmosphere
Most individuals like learning from their peers. Foreign workers have so much to give their coworkers in this aspect. Not only from a financial standpoint, but also from a personal and cultural standpoint. This makes the workplace more engaging and rewarding for every employee.
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For a corporate restructuring to qualify as a tax-free reorganization, the step transaction doctrine must apply. True or False?
Answers
True. The step transaction doctrine is a legal principle used by the IRS to evaluate the tax implications of a series of related transactions.
If a corporate restructuring is structured in a way that meets the requirements of the step transaction doctrine, it may qualify as a tax-free reorganization under the tax code. However, if the restructuring does not meet the requirements of the doctrine, it may result in taxable events for the parties involved.
For a corporate restructuring to qualify as a tax-free reorganization, the step transaction doctrine must apply. This doctrine combines a series of related transactions into one, ensuring they meet the requirements of a tax-free reorganization under the Internal Revenue Code.
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The least applicable argument for protecting american industry from foreign competition would be the ________ argument. multiple choice low-wage employment infant industry national security
Answers
The least applicable argument for protecting american industry from foreign competition would be the infant industry argument.
According to the infant-industry theory, emerging industries in underdeveloped nations require protection from market pressures until they mature and achieve economies of scale that can compete with those of their rivals. The baby industry justification, which was created by Friedrich List and Alexander Hamilton, is frequently used as a defense of protectionism.
According to the infant-industry idea, until local rising industries are established and stable, they must be shielded from foreign competition. An infant industry, as used in economics, is one that is young, developing, and thus not yet ready to compete with other established industries.
The infant-industry idea, which Alexander Hamilton and Friedrich List first proposed in the early 19th century, is frequently used as justification for protectionist trade policy.
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who buys and sells stocks on the exchange
Answers
Answer:
i do
Explanation:
Mariana works in the human resources department of Seeker, makers of outdoor clothing, shoes, and accessories. Celebrity climbers and mountain bikers are regularly spotted wearing Seeker gear, but the company’s slogan—"For the Adventurer in All of Us"—is designed to appeal to the ordinary buyers who account for a large portion of revenues. Mariana has been assigned to train a group of new employees, and she intends to begin with an informative talk that includes a story about the company. Given this information, the best choice for Mariana would be an account of
Multiple Choice
the challenges one of the company’s leading executives overcame in order to live up to the company slogan, training relentlessly for weeks and months and going on to appear on a wilderness survival show
how the company’s founder and CEO turned a struggling, unprofitable firm into one of the most prominent competitors in the outdoor apparel and equipment market
a wounded veteran who got a job as a cashier at a local Seeker store and who, despite having a prosthetic arm, won the company’s annual Seeker Games
Seeker’s emerging understanding of its market and the corporate values it needs to uphold in order to maintain its position—knowledge it has gained by interviewing hundreds of ordinary people and professional adventurers of all kinds
the time when a local store manager had a problem keeping up with inventory and, after attempting to solve it on his own, took the issue to company headquarters and got the help he needed
Answers
Given the information, the best choice for Mariana would be an account of how the company’s founder and CEO turned a struggling, unprofitable firm into one of the most prominent competitors in the outdoor apparel and equipment market.
What is Seeker?
Seeker is the maker of outdoor clothing, shoes, and accessories. The company slogan is "For the Adventurer in All of Us," and it is designed to appeal to the ordinary buyers who account for a large portion of revenues. Celebrity climbers and mountain bikers are frequently seen wearing Seeker gear. Mariana works in the human resources department of Seeker.
What is the purpose of the story?
Mariana, an employee of the human resources department at Seeker, has been tasked with training new staff. The purpose of the tale Mariana will tell is to offer an informative talk that includes a story about the company. According to the context, the best choice for Mariana would be an account of how the company's founder and CEO transformed a struggling, unprofitable firm into one of the most prominent competitors in the outdoor apparel and equipment market.
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3. The owner of a specialty delicatessen buys baskets, decorates and fills them with food items, and
sells them as one of the products in the shop. The entrepreneur sells an average of 130 baskets a
month The basket supplier charges $0.50 per basket. The entrepreneur would like to reduce his
variable costs and has found a basket supplier who will charge only $0.40 per basket. How much
will the delicatessen owner save in a year by changing suppliers?
Answers
Answer:
$156
Explanation:
he old price per basket is $0.50 per basket
the new supplier has a price of $0.40 per basket
Savings per basket is $0.10 ($.50- $0.40)
The average sales per month are 130 baskets.
The average savings per months will be
=$0.10 x 130
=$13
yearly savings will be
=$13 x 12 months
=$156
What is the opportunity cost of the first 20 computers? dvd(s) c. between which two consecutive points along the ppc is the opportunity cost of dvds the highest?
Answers
10 WRONG
B and A
Two consecutive points along the PPC is the opportunity cost of DVDs increasing.
What is the opportunity cost of moving from point C to D?The opportunity cost of moving from point C to D is 40 tons of oranges. The per-unit opportunity cost of moving from point C to point D is 1/2 ton of oranges (40 tons of oranges/80 tons of pears). Economic growth is shown by a shift to the right of the production possibilities curve.What is the opportunity cost of computers?Opportunity cost is a different metric for cost. The amount of wheat that could be produced using the labor required to make one computer, in our example, is the opportunity cost of a computer. Comparative advantage is the capacity to produce a good at a lower opportunity cost than another producer.To learn more about Opportunity Cost, refer
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Which of the following accounts would normally have a credit balance and appear in the balance sheet?
A. Dividends.
B. Salary expense.
C. Revenue.
D. Uneamed revenue.
E. Accounts receivable.
Answers
The account that contains a normal credit balance & the same appears in the balance sheet is unearned revenue.
The following information is relevant:
The dividend contains the normal debit balance and the same is to be shown under the stockholder equity statement.The salary expense is to be shown under the income statement and contains a normal debit balance.The revenue is to be shown under the income statement & contains a normal credit balance.Unearned revenue is a liability account and contains a normal credit balance. Also, it is to be shown under the balance sheet.The account receivable is an asset account & it contains a normal debit balance. Also, it is to be shown under the balance sheet.Therefore we can conclude that the account that contains a normal credit balance & the same appears in the balance sheet is unearned revenue.
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Why doesn't the Lorax do anything to stop the Once-ler (hint: he's a symbol)? What does this tell us
about the future of business decisions?
Answers
Answer:
The Lorax is a symbol of environmental consciousness and his inaction in stopping the Once-ler represents the failure of society to prioritize the environment over economic growth. This tells us that if we do not take steps to balance economic growth and environmental sustainability, it could lead to long-term negative consequences for the environment and future business decisions.
Explanation:
The Lorax is a children's book by Dr. Seuss that explores the environmental impact of economic growth and consumerism. In the story, the Once-ler begins cutting down Truffula trees to make a product called Thneeds, despite the warnings of the Lorax, who speaks for the trees and the animals that depend on them.
The Lorax represents environmental consciousness and his inaction in stopping the Once-ler represents the failure of society to prioritize the environment over economic growth. The Once-ler's actions are driven by his desire for profit, and he continues to cut down trees despite the negative impact it has on the environment. The Lorax, as a symbol of environmental awareness, is unable to stop the Once-ler from destroying the ecosystem, which ultimately leads to the disappearance of the Truffula trees and the animals that depend on them.
This lack of balance between economic growth and environmental sustainability is a lesson that has implications for future business decisions. If businesses prioritize profit over environmental sustainability, it could lead to long-term negative consequences for the environment, which could ultimately harm the economic viability of those businesses. It is important for businesses to consider the environmental impact of their decisions and take steps to balance economic growth and sustainability for the long-term health of the environment and economy.
the system for grouping businesses that grew out of the nafta accord is known as the:
Answers
The system for grouping businesses that grew out of the NAFTA (North American Free Trade Agreement) accord is known as the NAFTA Certificate of Origin.
It is a document that certifies that a good being exported from Canada, Mexico or the United States is a product of those countries. The certificate is required to qualify for reduced or eliminated tariffs under the NAFTA agreement. The system helps to promote free trade among the three countries and ensures that businesses benefit from the reduced trade barriers. It is an important tool for businesses engaged in cross-border trade and allows them to take advantage of the benefits offered under the NAFTA agreement.
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(ANSWERED) Which of the following techniques can be used to evaluate a job candidate's qualifications?
done
A.
Call and talk with the applicant's references.
B.
Evaluate applicant's private correspondence.
close
C.
Observe the applicant in his or her present job situation.
D.
Call and talk with applicants' friends and family.
ANSWER: A - Call and talk with the applicant's references.
Answers
Explanation:
.
Evaluate applicant's private correspondence.
close
which of the following past events provides an example of the role that small businesses can play in fostering innovation?
Answers
One example of the role that small businesses can play in fostering innovation is the development of personal computers by Industry like Apple and Microsoft in the 1970s.
Industry refers to a specific sector or category of economic activity that involves the production, provision of goods, services. It can encompass various businesses and organizations operating within a particular field or market. Industries can be classified based on different criteria, such as the type products or services they offer, technologies they utilize, or the target markets they serve. Examples of industries include automotive, technology, healthcare, hospitality, and retail. Each industry typically has its own characteristics, trends, and competitive dynamics that shape its overall structure and functioning.
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which one of these is an example of a necessary debt
Answers
Answer:
An example of unnecessary debt is when you change your clothes and don't really need on a high-interest score. Thus option C is correct.
What is unnecessary debt?
An unnecessary debt can be caused by a variety of issues such as expensive life events, having children, or moving to a new house. It may also be due to poor money management. The debt is due to those things that are not needed and hence are unnecessary.
Explanation:
Tina, a sales manager, is interviewing a worker who applied for a sales job. She likes the applicant so much that she says, "This is a great place to work. If you are loyal to us, we will be loyal to you, and you can count on a job here." Phil, the HR manager, learns what Tina said. He asks her not to make this kind of statement again. What reason best explains why Tina's comment was unwise?
Answers
The reason why the comment by Tina was unwise was because A. Tina's statement could be taken as an implied contract to keep the worker in future, making it hard to dismiss the worker if problems arise.
Why should Tina not have said that?Tina essentially gave the applicant an implied contract because she gave the applicant terms that they needed to abide by in order to get the job and to keep it.
Those terms revolved around loyalty. This means that if the company needed to dismiss the worker in future, the worker could go to court and argue that they deserve to keep their job because they have given the loyalty that was a requisite according to Tina.
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Answer:
Tina's statement could be taken as an implied contract to keep the worker in the future making it hard to dismiss the worker if problems arise
According to the General Electric Portfolio Model, what should an organization do with its strategic business units (SBUs) that fall into the red zone?
A.
Hold share and build share
B.
Harvest or divest
C.
Produce and divest
D.
Build share and harvest
Answers
According to the General Electric Portfolio Model, an organization should harvest or divest its strategic business units (SBUs) that fall into the red zone.
The General Electric (GE) Portfolio Model, also known as the GE–BZ, is a strategic planning tool used to assess and manage a company's portfolio of SBUs.
It classifies SBUs based on their market attractiveness and competitive position.
In the GE Portfolio Model, the red zone represents SBUs that have low market attractiveness and weak competitive positions.
These SBUs are considered to be underperforming and have limited growth potential. Therefore, the recommended strategy for SBUs in the red zone is to either harvest or divest them.
Harvesting an SBU means extracting as much value as possible from the business unit while minimizing further investment.
This may involve reducing costs, optimizing operations, or generating short-term cash flows. Harvesting allows the organization to maximize returns from the SBU before eventually phasing it out.
Alternatively, divesting an SBU involves selling or discontinuing the business unit altogether.
This decision is made when the SBU no longer aligns with the organization's strategic goals or when it is unlikely to achieve profitability in the future.
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The owner of a chicken processing plant makes $1,000,000 per year from his chicken processing plant, and $1,000,000 per year from other sources. He notices that a total of $30,000 worth of chickens per year are being taken home by his 100 employees to supplement their minimum wage living standards (this works out to less than $6 per week per employee). These chickens are being taken out through the fire safety doors, so the owner is considering blocking the doors permanently. This is against the law because any reasonable person knows that sealing fire doors kills people in the event of a fire. The probability of a fire is 0.01 per year (one percent per year). If a fire breaks out it will be discovered that the owner sealed the safety doors, and the owner will have to pay $F = 700, 000 worth of fines and legal fees. The owner's von NeumannMorgenstern utility function is u(x) = √x where x is the owner's income in a given year. The owner cares only about x.
Answers
Answer:
1. 1,403.567
2. 1,411.473
3. Algebraic expression 0.99*2,000,000^0.5+0.01*(2,000,000-F)^0.05
4. 1,877,600
5. 1411.761
Explanation:
1. Computation for the owner’s expected utility if he leaves the fire doors unsealed.
First step is to calculate the Owner's income if he leaves the doors unsealed
Owner's income if he leaves the doors unsealed=1,000,000 +1,000,000-30,000
Owner's income if he leaves the doors unsealed=1,970,000
Now let determine the expected utility if he leaves the doors unsealed
Expected utility=1,970,000^0.5
Expected utility=1,403.567
Therefore the expected utility if he leaves the doors unsealed will be 1,403.567
2. Calculation to determine the owner’s expected utility if he permanently seals the doors
First step is to calculate the The Owner's expected income if he seals the door
Owner's expected income if he seals the door=1,000,000 +1,000,000-700,000*0.01
Owner's expected income if he seals the door= 1,993,000
Now let calculate the Expected utility if he leaves the doors sealed
Expected utility if he leaves the doors sealed= 0.99*2,000,000^0.5+0.01*1,300,000^0.05
Expected utility if he leaves the doors sealed=1,411.473
Therefore The Expected utility if he leaves the doors sealed is 1,411.473
3. Calculation to determine the algebraic expression for the owner’s expected utility as a function
First step is to calculate the The owner's expected income with a fine F
Owner's expected income with a fine F= 1,000,000 +1,000,000-F*0.01
Owner's expected income with a fine F = 2,000,000-0.01F
Now let determine The algebraic expression for the owner's expected utility if he seals the door with a fine F
Algebraic expression= 0.99*2,000,000^0.5+0.01*(2,000,000-F)^0.05
Therefore The Algebraic expression is 0.99*2,000,000^0.5+0.01*(2,000,000-F)^0.05
4. Calculation to solve for the minimal fines and legal fees that will make the owner decide not to seal the doors using the expression from the previous problem and the owner’s expected utility if he leaves the fire doors unsealed
Based on the information given the owner may decide that he won't seal the door In a situation where the expected utility from sealing is as well equal to the expected utility from not sealing the door which was Calculated as:
0.99*2,000,000^0.5+0.01*(2,000,000-F)^0.05=1403.567
Now let calculate Fines and legal fees
Fines and legal fees=(2,000,000-F)^0.05=100(3.49857)= 349.857
Fines and legal fees=2,000,000-349.857^2=1,877,600
Therefore based on the above calculation in a situation were the Fines as well as the legal fees are equal to or higher than F=1,877,600 which means that the owner may decide not to seal the doors.
5. Calculation to Find the C that gives the plant owner complete coverage
First step is to calculate the owner expected utility will in a situation were the owner contributes $C to state politicians
Expected utility= 0.99*(2,000,000-C)^0.5+0.01*(1,300,000+100C)^0.05
Second step is to calculate the The plant owner complete coverage when 100C=700,000
Plant owner complete coverage=700,000/100
C=7000
Third step is to calculate what the owner will likely make this contribution if the expected utility is:
0.99*(2,000,000-C)^0.5+0.01*(1,300,000+100C)^0.05 is greater than 0.99*2,000,000^0.5+0.01*1,300,000^0.05
=1411.473
Hence,
0.99*(1,993,000)^0.5+0.01*(2,000,000)^0.05= 1411.761
Therefore the owner expected utility in a situation were the owner contributes $C to state politicians is 1411.761
briefly explain the term gross value added at basic prices
Answers
Gross value added (GVA) is defined as output (at basic prices) minus intermediate consumption (at purchaser prices); it is the balancing item of the national accounts' production account. GVA can be broken down by industry and institutional sector.
hope this helped, good luck <3