Your company has earnings per share of $ 4.19. It has 1.9 million shares​ outstanding, each of which has a price of $59. You are thinking of buying​ TargetCo, which has earnings per share of $ 2.10, 1.9 million shares​ outstanding, and a price per share of $ 21.You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction. If companies in the same industry as TargetCo are trading at multiples of 12 times​earnings, what would be one estimate of an appropriate premium for​TargetCo?
TargetCo has $2.10 in​ earnings, so if other companies in its industry are trading at 12 times​ earnings, then a starting point for a valuation of TargetCo in this transaction might be ________ per​share, implying a _________ premium

Answers

Answer 1

Answer:

If the current earnings per share of TargetCo. are $2.10, and the times earnings multiple is 12, the relative valuation should result in a $2.10 x 12 = $25.20 per stock. This means that the premium per stock = $25.20 - $21 = $4.20, and the total premium paid for all the 1.9 million shares = $7.98 million.


Related Questions

20 points to the best one !!

Answers

Answer:

The answer is "Knowledge discovery & predictions category or anomalous detention assessment or Data mining".

Explanation:

Regression is a type of analysis in which some parameters' relationships are determined by the values of other variables, whereas departure detection is a type of analysis wherein the goal is to find changes in data from previously observed values. Enigma detaining analysis, often known as knowledge discovery analysis, is a sort for anomaly incarceration analysis, while regression is classed as a forecast.

In spite of people living longer and healthier lives, stereotypes about older workers being hard to manage and slow to adapt to new technologies still persist. How do the media contribute to and reinforce these perceptions?
(your answer must be a minimum of 200 words) ​

Answers

Answer:

I think although older workers may need a rather difficult time learning new technological concepts, nothing takes from them the dedication and commitment they will bring back any company.

Explanation:

The media contributes to its idea pretty vastly. If the media promoted more within the older generation it'll help reinforce the commitment and drive of the elderly. They do not go to work, they prefer to work. they need to remain active, they need to continue doing what they love. sure being retired is great but they get bored. Not many of us just want to remain home, especially from that operation. The baby boomers and generation y workers want and wish for social interaction and need to continue mental stimulation.

Four fundamental factors affect the cost of money:
1. The return that borrowers expect to earn on their investments
2. The preference of savers to spend their income in the current period rather than delay their consumption until some future period
3. The risks associated with the investment
4. Expected inflation
Consider the following statements that address these factors, and indicate if you think each statement is true or false.
Statement
True
False
Investments providing cash flows that are more likely to equal their expected value are said to exhibit more risk.
The actual relationship between the risk-free rate of return (r*r*) and the expected future inflation rate or inflation premium (IP) is actually multiplicative—that is, [(1 + rRFrRF) x (1 + IP)] – 1—but it is often simplified to reflect an additive relationship.
All things being equal, rational savers and investors prefer to invest in an asset that provides a 12% return rather than one that provides an 8% return.
All things being equal, savers and investors prefer more risk to less risk and prefer lower risk premiums on projects exhibiting higher levels of risk.
On average and everything else held constant, an investment that can provide a 4% return should attract more investment capital from savers/investors than an otherwise identical investment that can generate a 12% return.

Answers

Answer:

True statement is:

All thing being equal, savers and investors prefer more risk to less risk and prefer lower risk premiums on projects exhibiting higher levels of risk.

Explanation:

Investors wish to receive less risk and more return. They prefer from more risk to lesser risk and receive risk premium on project that exhibit higher level of risk and delayed compensation. A project with 12% return will be more riskier than a project with 8% return. Rate of return increases as the level of risk increases.

Erica Shotwell's company pays her $18.92 per hour for regular time up to 40 hours, and time-and-a-half for overtime. Her time card for Monday through Friday last week had 8.3 8.8, 7.9, 9.4, and 10.6 hours. What was Erica's gross pay?

Answers

Answer:

Erica Shotwell's Company

Erica's gross pay for working 45 hours during the last week is:

= $898.70

Explanation:

a) Data and Calculations:

Regular pay per hour = $18.92

Overtime pay per hour = $28.38 ($18.92 * 1.5)

Week Day        Hours worked

Monday                      8.3

Tuesday                     8.8

Wednesday               7.9

Thursday                   9.4  

Friday                       10.6

Total hours worked 45

Regular pay = 40 * $18.92 =         $756.80

Overtime pay = 5 * $28.38 =            141.90

Erica's gross pay for the week = $898.70

If you are a director of a tea company, what will you do with functional management (POLC)? You are required to make a detail plan which explains clearly about functional management.

Answers

Answer:

Make someone else director

Explanation:

I would be too lazy to do that. ;)

The four primary functions of managers are planning, organizing, leading, and controlling. By using the four functions, managers work to increase the efficiency and effectiveness of their employees, processes, projects, and organizations as a whole.

Cost of Production Report: No Beginning Inventories Atlanta Paper Company produces newsprint paper through a special recycling process using scrap paper products. Production and cost data for October 2017, the first month of operations for the company's new Brunswick plant, follow: Units of product started in process during October 80,000 tons Units completed and transferred to finished goods 75,000 tons Machine hours operated 7,000 Direct materials costs incurred $ 486,000 Direct labor costs incurred $ 190,800Raw materials are added at the beginning of the process for each unit of product produced, and labor and manufacturing overhead are added evenly throughout the manufacturing process. Manufacturing overhead is applied to Work-in-Process at the rate of $24 per machine hour. Units in process at the end of the period were 65 percent converted.Prepare a cost of production report for Oregon Paper Company for October. (Round answers to the nearest whole number unless otherwise noted.)Oregon Paper CompanyCost of Production ReportFor the Month Ending October 31, 2009Summary of units in process (tons): Beginning Answer Units started Answer In process Answer Completed (Enter as a negative number.)Answer Ending Answer Equivalent units in process: Materials Conversion TotalUnits completed Answer Answer Plus equivalent units in ending inventory Answer Answer Equivalent units in process Answer Answer Total cost to be accounted for andcost per equivalent unit in process: Beginning work-in-process $Answer $Answer $AnswerCurrent costs Answer Answer AnswerTotal cost in process $Answer $Answer $AnswerEquivalent units in process

Answers

Answer:

Atlanta Paper Company

Atlanta Paper Company

Cost of Production Report

For the Month Ending October 31, 2009

a. Summary of units in process (tons):

Beginning  0

Units started 80,000

In process     80,000

Completed  (75,000)

Ending            5,000

b. Equivalent units in process:    Materials    Conversion  Total

Units completed                        75,000        75,000

Plus ending inventory                 5,000          3,250

Equivalent units in process      80,000        78,250

c. Total cost to be accounted for and cost per equivalent unit in process:

                                                Materials    Conversion         Total

Beginning work-in-process               $0                $0                 $0

Current costs                         $486,000    $358,800     $844,800

Total cost in process             $486,000    $358,800     $844,800

Equivalent units in process       80,000        78,250

Cost per equivalent unit           $6.075        $4.585

d. Cost accounted for:

                                                Materials    Conversion         Total

Units completed                    $455,625      $343,875    $799,500

Ending work in process             30,375           14,901          45,276

Total costs accounted for     $486,000     $358,776     $844,776

Explanation:

a) Data and Calculations:

Units of product started in process during October 80,000 tons

Units completed and transferred to finished goods 75,000 tons

Ending work in process inventory, October ending   5,000 tons (80,000  - 75,000)

Machine hours operated 7,000

Direct materials costs incurred $486,000

Direct labor costs incurred $190,800

Manufacturing overhead cost = $168,000 (7,000 * $24)

Total conversion costs = $358,800 ($190,800 + $168,000)

Ending work in process 65% converted.

Given D: Annual use of a particular item, in number of items per year Q: Number of items ordered in one purchase order, in units SS: Safety stock, in units L: Lead time, in fraction of a year I: Current inventory on hand, units Reorder point can be expressed as ______ (x below denotes the multiplication sign).

Answers

Answer:

D×L + SS

Explanation:

The reorder point (ROP) is the inventories or stock level for a certain product that, when attained, initiates the reordering of more inventories. The lead time it will take to refill inventories is taken in when computing the reorder points for different stock holding units. This ensures inventory levels do not approach zero.

Computing reorder points necessitates a thorough understanding of purchase habits over a specific time period. The more ROP you compute for each product, the better you'll be able to anticipate future demand and guarantee you're using the reorder quantity calculation appropriately.

From the given information in the question:

The reorder point can be determined by using the formula:

Reorder point = Demand (D) at the point of leas time (L) with the addition of safety stock (SS)

Reorder point = D×L + SS

A popular hotel has continued to lose business in its room service food sales over the last five years. Using the Six Sigma DMAIC process explain what you would do in each step of the process to improve the sales - provide relevant, practical details. What statistics would you apply and why?

Answers

The correct answer to this open question is the following.

Using the Six Sigma DMAIC process, I will explain what I would do in each step of the process to improve the sales.

DMAIC stands for Define, Measure, Analyze, Improve, and control.

What I would do first is, of course, define the nature of the problem. To define exactly what is the root of the drop in sales in the hotel. That would allow me to establish proper goals and define a strategy to implement. If a need to do surveys to customers or unsatisfied clients, I would do that. Listening to customer feedback would provide the necessary information.

Then, I have to measure the performance of my employees. Monitoring and evaluate the productivity of the people who work in the organization.

I have to analyze if the productivity ratio of each employee to know if they are performing to the maximum of their capabilities.

In this case, I could use a Pareto chart or the 80-20 rule, to assess productivity in the company.

I have to pay attention to the causes of poor performance and poor quality service. There is an interesting analysis called Root Cause Analysis (RCA) that can be useful in this case.

Once identified and eliminated the root or causes of the problems, then it comes de Improve the process to enhance the performance in every area of the organization. I would have to get people on the same page and focus on one problem at a time to doing things right.

Another model that could be useful in this scenario would be Design of Experiments, commonly known as DOE, which helps resolve complex issues

Finally, the control of everything implementation and solution to confirm it has been established the right way with the desired results. This could be part of the continuing Quality Control process- The poke yoke system would be a good option to be contemplated.

Red Co. recorded a right-of-use asset of $140,000 in a 10-year finance lease. Payments of $22,784 are made annually at the end of each year. The interest rate charged by the lessor and known by Red was 10%. The balance in the lease payable after two years will be: (Round your final answer to the nearest whole dollar.)

Answers

Answer: $121554

Explanation:

Lease liability = $140,000

Less: Lease liability in 1st year= $8784

Lease payable after one year = $131216

Less: Lease liability in 2nd year = $9662.40

Lease payable after 2nd year = $121553.60 = $121554

Note:

Lease liability in 1st year:

= $22,784 - (10% × $140000)

= $22784 - $14000

= $8784

Lease liability in 2nd year:

= $22784 - (10% × $131216)

= $22784 - $13121.60

= $9662.40

"All three levels are required to run an organization or a business smoothy"Justify the statement.​

Answers

Answer:

"All three levels are required to run an organization or a business " according to my point of view it is true without anyone levels (sector) business or organization not imagine to run

The San Pedro Company forecasts that total overhead for the current year will be $10,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours. If the company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate

Answers

Answer:

the  overhead rate is $50 per machine hour

Explanation:

The computation of the overhead rate is shown below:

Predetermined overhead rate

= Estimated total Overhead ÷ Estimated total machine hour

= $10,000,000 ÷ 200,000 hours

= $50 per machine hour

hence, the  overhead rate is $50 per machine hour

The same should be considered and relevant

XYZ Corporation manufactures orange safety suits for road workers. The following information relates to the corporation's purchases and use of material for April: Material purchased 12,000 yards Material used in production 10,000 yards Standard material allowed for suits produced 10,800 yards The company's materials price variance for April was $3,000 Favorable. Its materials quantity variance for April was $5,000 Favorable. What does the company use as a standard price per yard of material for its safety suits

Answers

Answer:

$6.25 per yard

Explanation:

The computation of the standard price per yard of material for its safety suits is shown below:

Material quantity variance = Standard Price × (Actual quantity - Standard quantity)

-$5,000 = Standard price × (10,000 - 10,800)    

Standard price  = -$5,000 ÷ (-800)  

= $6.25 per yard

Hence, the standard price per yard of material for its safety suits is $6.25 per yard

You manage an equity fund with an expected risk premium of 13% and a standard deviation of 44%. The rate on Treasury bills is 6.6%. Your client chooses to invest $90,000 of her portfolio in your equity fund and $60,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.)

Answers

Answer and Explanation:

The computation of the expected return and the standard deviation is given below:

the expected return is

= $90,000 × 13% + $60,000 × 6.6%

= $15,660.00

And,

standard deviation of return is

= $90,000 × 13% × 44% + $60,000 × 6.6%

= $5,148 + $3,960

= $9,108.00

In this way it should be calculated

The makers of Whirlpool washers and other electrical appliance manufacturers need to be concerned about the kind and availability of electricity in the global marketplace. If there were a compatibility problem, it would be the result of a _____________difference.
a. technological
b. cultural
c. societal
d. economic

Answers

Answer:

a. technological

Explanation:

since in the given situation it is mentioned that the manufactured are concerned with respect to the availability of the electricity in the global marketplace. Now when the compatibility problem is there so this is the technological difference as here the compatibility is to be seen whether it is fiited or not

Therefore the option a is correct

The contribution margin ratio is:_______.
a. contribution margin divided by sales.
b. sales divided by variable expenses.
c. sales divided by contribution margin.
d. sales divided by fixed expenses.

Answers

Answer:

a. contribution margin divided by sales

Explanation:

The contribution margin ratio is the relationship between contribution and sales. The contribution margin ratio is determined by dividing contribution with the sales amount.

Swifty Corporation took a physical inventory on December 31 and determined that goods costing $215,000 were on hand. Not included in the physical count were $27,000 of goods purchased from Marigold Corp., FOB, shipping point, and $20,000 of goods sold to Concord Corporation for $34,000, FOB destination. Both the Marigold purchase and the Concord sale were in transit at year-end.

Required:
What amount should Swifty report as its December 31 inventory?

Answers

Answer:

$262,000

Explanation:

Ending inventory = Goods on Hand + Cost Goods purchased from Marigold Corp + Cost of goods sold to Marigold Corp.

Ending inventory = $215,000 + $27,000 + $20,000

Ending inventory = $262,000

So, the amount that should Swifty report as its December 31 inventory is $262,000.

Kaluzniak Corporation leased equipment to Moeller, Inc. on January 1, 2020. The lease agreement called for annual rental payments of $1,137 at the beginning of each year of the 3-year lease. The equipment has an economic useful life of 7 years, a fair value of $7,000, a book value of $5,000, and Kaluzniak expects a residual value of $4,500 at the end of the lease term. Kaluzniak set the lease payments with the intent of earning a 6% return, though Moeller is unaware of the rate implicit in the lease and has an incremental borrowing rate of 8%. There is no bargain purchase option, ownership of the lease does not transfer at the end of the lease term, and the asset is not of a specialized nature.

Required:
a. Explain (and show calculations) how Kaluzniak arrived at the amound of the rental payments used in the lease agreement.
b. Prepare the entries for Kaluzniak for 2017.
c. How would Kaluzniak's accounting in part (a) change if it incurred legal fees of $700 to execute the lease documents and $500 in advertising expenses for the year in connection with the lease?

Answers

Solution :

a). Fair value of the leased asset                                        $ 7000

Less: [tex]\text{Present value}[/tex] of unguaranteed residual                   $ 3778.29

value [4500 x PV(6,3%)]

Amount to be recovered through lease payment              $ 3221.71

Three periodic lease payment                                              $ 1137.05

Rental payments                                                                    $ 1137.00

b).  Journal entries in the books of Kaluzniak.

Date                       Particulars                                             Debit($)      Credit($)

2020 Jan 1  Cash account                                                    1137          

                    To unearned lease revenue                                               1137

Jan 1             Unearned lease revenue                                 1137          

                    To lease revenue                                                                1137

Dec 31          Depreciation expense                                     714.29      

                    To accumulated depreciation equipment                         714.29

c).  

Date                       Particulars                                           Debit($)     Credit($)

Jan 1, 2020       Legal fee                                                      700          

                           To cash                                                                         700

Jan 1                   Advertisement                                              500

                            To cash                                                                        500

hãy lựa chọn 1 công ty sử dụng dịch vụ nghiên cứu của marketing của các nhà cung cấp bên ngoài.
1. tìm hiểu lý do công ty phải thuê ngoài
2. những tổ chức nào đã cung cấp dịch vụ marketing cho công ty?
3. công ty thuê một phần hay thuê toàn bộ các hoạt động nghiên cứu marketing

Answers

Answer:

may I know which language

One way marketing intermediaries improve marketing efficiency is by reducing the number of exchange relationships necessary to move goods through the channel of distribution.
a) true
b) false

Answers

True you have to have a way to move things so other things can get better

Assume that Germany and China can produce beer and cloth. If the MPLc/MPLb for Germany is 2/5 and the MPLc/MPLb for China is 1, then Germany should: _______

Answers

Answer: c. specialize in producing beer and export beer.

Explanation:

As per the Theory of Competitive Advantage posited by David Ricardo, a country should specialize in the good that it has a competitive advantage in. A country has a competitive advantage if it incurs a less opportunity cost in producing the good.

Opportunity cost of producing beer for Germany = MPLc/MPLb = 2/5

Opportunity cost of producing beer for China = MPLc/MPLb = 1

Germany has a lower cost of producing beer so they should specialize in this and export it.

we flew to ___Dublin Airport in ___ Ireland. correct determiners​

Answers

Answer:

we flew to the Dublin Airport in the Ireland


33. ĐỘ CO GIÃN CỦA CẦU Khi một mặt hàng được
định giá p đô-la mỗi đơn vị, cầu của người tiêu
dùng là q đơn vị, trong đó và q liên hệ với nhau
bởi phương trình q+ 3pq = 22.
a. Tính độ co giãn của cầu theo giá đối với mặt
hàng này.
b. Với đơn giá là $3, cầu là co giãn, không co giãn
hay co giãn đơn vị?

Answers

Answer:

yyyyyyyyyyyuuuuuuuuu

Assume you are Andy Pforzheimer, owner of Barcelona Restaurants, and you are involved in intense conflict with one of your restaurant managers. You realize that the conflict has escalated to the point at which it is no longer functional conflict and you wish to de-escalate it. Which of the following actions should you avoid to help de-escalate the conflict?

a. Stay focused on issues, not emotions
b. Communicate hostility verbally or through body language
c. Reject all requests from the Start
d. Raise your voice to get attention about important points

Answers

Answer:

Barcelona Restaurants

Actions to avoid to help de-escalate non-functional conflicts are:

b. Communicate hostility verbally or through body language

c. Reject all requests from the Start

d. Raise your voice to get attention about important points

Explanation:

While functional conflicts are viewed as positive and beneficial to an organization because of the role they play to improve performance, therefore, efforts should be made to de-escalate non-functional workplace conflicts.  The efforts should hover around adapting effective communication skills, avoiding immediate reactions, and setting appropriate parameters for acceptable conflicts.

Donna Clark has $15,000 that she can deposit into a savings account for five years. Bank A compounds interest annually, Bank B twice a year, and Bank C quarterly. Each bank has a stated interest rate of 5 percent. What account balance would Donna have at the end of the fifth year if she left all the interest paid on the deposit in each bank

Answers

Answer:

$19,144.22

$19,201.27

$19,230.56

Explanation:

The formula for calculating future value:

FV = P (1 + r) n

FV = Future value  

P = Present value  

R = interest rate  

N = number of years  

Bank A = 15,000(1.05)^5 = $19,144.22

Bank B = 15,000(1.05/2)^10 = $19,201.27

Bank C = 15,000(1.05/4)^20 = $19,230.56

Darkover Inc., as part of its strategic planning process, is considering making some policy changes. What effect (i.e. Increase, Decrease, No Effect) would each the following changes have on Darkover's Net Cash Flow from Operating Activities? Assume that in each case, the change only affects the account or accounts mentioned (i.e. all other accounts are not changed by the action).

Answers

Question Completion:

_____(a) Increase investment in new plant and equipment.

_____(b)Change the collections policy to insure that receivables are collected sooner.

_____(c)Change inventory policy to increase the amount of raw materials kept on hand (work in process and finished goods inventory will remain unchanged).

_____(d)Sell long term bonds and use the proceeds to reduce notes payable

._____(e) Begin paying all employees every week instead of every two week, effectively decreasing accruals.

_____(f)Change accounts payable policy to pay bills in 20 days instead of 10 days.

Answer:

Darkover Inc.

Effects of Changes on Darkover's Net Cash Flow from Operating Activities:

_No Effect____(a) Increase investment in new plant and equipment.

Increase_____(b) Change the collections policy to insure that receivables are collected sooner.

Decrease_____(c) Change inventory policy to increase the amount of raw materials kept on hand (work in process and finished goods inventory will remain unchanged).

Decrease_____(d) Sell long term bonds and use the proceeds to reduce notes payable

Decrease_____(e) Begin paying all employees every week instead of every two week, effectively decreasing accruals.

Increase_____(f) Change accounts payable policy to pay bills in 20 days instead of 10 days.

Explanation:

Darkover's net cash flow from operating activities is the result of accumulating the cash inflows and outflows from its operating activities.  Operating activities are the normal activities that Darkover carries out from which it earns its revenues and incurs related expenses.  They are the day-to-day activities through which the mission of the entity is carried out.

Suppose the population of a country is 1.1 million and the labor force is 800,000. 760,000 are employed. Assume that full-employment occurs at a 4 percent unemployment rate at a real GDP level of $100 billion. Based on the information above, what is the unemployment rate

Answers

Answer: 5%

Explanation:

Unemployment rate = Number unemployed / Labor force * 100%

The number of people who are unemployed are:

= Labor force - Employed people

= 800,000 - 760,000

= 40,000 people

Unemployment rate = 40,000 / 800,000 * 100%

= 5%

When an Accounts Payable department improves their information system resulting in faster payments to vendors, without the Accounts Receivable Department doing the same, leading to a cash flow crunch, what can we say happened in decision-theoretic terms

Answers

Answer: C) suboptimization

Explanation:

The Accounts Payable department's system has been optimized yet the Accounts receivable's system has not been optimized. This means that the company as a whole is suboptimized because only one department was optimized and the other was not.

It can lead to problems such as a credit crunch because the company is paying cash faster than it is receiving it. If both departments were optimized, this wouldn't be the case as the payments and receipts would tally.

The demand curve for Widgets is given by QD = 6000 - 2y - 200p + 30pG, where QD is the quantity of widgets demanded, y is the per capital income and pG is the price of Gizmos. An increase in per capital income will cause A) demand shifts left. Can you explain this step by step. How do i go about solving such problems?

Answers

Answer:

An increase in y which is per capital income will cause demand curve to shift left.

Explanation:

In theory of demand, the following are two categories that can happen to the demand curve:

1. Change in quantity demanded: This is a movement along the demand curve which is caused only by the change in the price of the commodity. When the price falls, there will be a movement to the right along the demand curve indicating an increase in quantity demanded. But when the price increases, there will be a movement to the left along the demand curve indicating a decrease in quantity demanded.

2. Change in demand: This is a bodily shift of demand curve caused by others factors affecting the demand of a commodity except price. The demand curve will shift to the right when there is an increase in any of the factors that has positive effect on the demand for the commodity to indicate an increase in demand for the commodity. However, the demand curve will shift to the left when there is an increase in any of the factors that has negative effect on the demand for the commodity to indicate a decrease in demand for the commodity.

From the question, y falls into the second category which is Chang in Demand. Since the sign before 2y in the demand curve for Widgets is negative, that implies that y as a factor affecting the demand for Widgets has a negative effect on the demand for Widgets. Therefore, an increase in y which is per capital income will cause demand curve to shift left.

Howard Bowen is a large-scale cotton farmer. The land and machinery he owns has a current market value of $11 million. Bowen owes his local bank $9 million. Last year Bowen sold $10 million worth of cotton. His variable operating costs were $8 million; accounting depreciation was $40,000, although the actual decline in value of Bowen's machinery was $60,000 last year. Bowen paid himself a salary of $50,000, which is not considered part of his variable operating costs. Interest on his bank loan was $400,000. If Bowen worked for another farmer or a local manufacturer, his annual income would be about $30,000. Bowen can invest any funds that would be derived if the farm were sold to earn 10% annually. (Ignore taxes.)

Required:
a. What is Bowen's accounting profit?
b. What is Bowen's economic profit?

Answers

Answer:

A. $1,510,000

B. -$10,000

Explanation:

a. Calculation to determine Bowen’s Accounting profits

Using this formula

Accounting profits = Total revenue - Explicit cost

Let plug in the formula

Accounting profit = $10 million - $8 million - $40,000 - $400,000 - $50,000

Accounting profit= $1,510,000

Therefore Bowen’s Accounting profits is $1,510,000

b. Calculation to determine Bowen’s Economic profit

Using this formula

Economic profits = Accounting profit - Implicit cost

Let plug in the formula

Economic profits = $1,510,000 - [($11,000,000*0.1) + $30,000 + ($60,000 - $40,000)]

Economic profits =$1,510,000 - [$1,100,000+ $30,000 + $60,000 - $40,000)]

Economic profits =$1,510,000-$1,150,000

Economic profits =-$10,000

Therefore Bowen’s Economic profit is -$10,000

As Laura checks items off her meeting agenda and various individuals provide input and insight, she beams at her team. She is so proud of the work they do at her clinic every day. They have always been a very high performing team, and for that, she has always been thankful.
Select the statement that is true about high performing teams.
a) High performing teams are able to come up with more rapid solutions and have increased productivity.
b) High performing teams never face obstacles.
c) High performing teams should only have about 4-6 members.
d) High performing teams are most effective when all members share the same skills and experience.

Answers

Answer: a) High performing teams are able to come up with more rapid solutions and have increased productivity.

Explanation:

A high performing team is as the term implies, one that is productive. To be productive one has to be able to come up with solutions to problems as fast as possible and implement those solutions so as to continue or even increase production.

A high performing team is one that would do the above. Laura's team provides inputs and insights which means they come up with solutions and they also show up to work every day to be productive. They are indeed a high performing team.

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