Operating expenses are those incurred as a result of regular business operations, such paying rent and utilities.
An expense incurred by a business as part of ongoing operations is known as an operating expense. Operating costs, also known as OPEX, include rent, furniture, inventory costs, marketing, payroll, insurance, step costs, and money set aside for R&D.
Making decisions about how to cut operating costs without materially hurting a company's capacity to compete with rivals is one of the regular tasks that management must deal with.
Most businesses must incur operating costs because they cannot be avoided. Some companies are successful in lowering operating costs to acquire a competitive edge and boost profits. The integrity and Operating expenses excellence of operations may be jeopardized by cutting operating costs, though. Finding the ideal balance can be challenging, but doing so can have a big impact.
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To take a quick look at all past-due bills, you should follow these steps:In summary, to take a quick look at all past-due bills, you can either click on the orange "Past Due" section in the Expenses Center, create a Transaction List by Vendor report, check the balance in the accounts payable, or choose "New > Vendors > Pay Bills" in your accounting software.
These steps will help you identify and manage any bills that are overdue.
1. Click on the Expenses Center in your accounting software.
2. Look for the orange "Past Due" section on the Money Bar and click on it. This will filter the expenses and show you only the past-due bills.
3. Review the list of past-due bills that appears. This will give you an overview of all the bills that are overdue and need attention.
Another option that can help you identify past-due bills is to create a Transaction List by Vendor report. Here's how you can do it:
1. Access the reporting section of your accounting software.
2. Look for the option to create a Transaction List by Vendor report.
3. Select the date range you want to review, which should include the present day to capture any past-due bills.
4. Generate the report, and it will provide you with a list of all transactions related to each vendor, including any past-due bills.
Creating a chart of accounts and checking the balance in the accounts payable can also help you identify past-due bills. Here's what you can do:
1. Access the chart of accounts in your accounting software.
2. Locate the accounts payable account and check its balance. If the balance is higher than zero, it means there are outstanding bills that need to be paid.
Lastly, choosing "New > Vendors > Pay Bills" in your accounting software can also be a way to review and pay past-due bills. This option usually allows you to see a list of outstanding bills and select the ones you want to pay.
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(Principles of management is the class I am taking )
What is a management control system? give a example
A management control system gathers information used to evaluate the performance of:
HumanPhysicalFinancialOther organizational resources.What is a management control system?A management control system is a management technique that evaluates the achievement of performance goals in terms of:
ProductivityProfitabilityEfficiency.Thus, a management control system gathers information used to evaluate the performance of human, physical, financial, and other organizational resources.
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is a measurement of standard of living that includes education and clean running water. A. Material wealth B. Access to necessitie's C. Income D. Financial wealth
Access to necessities is a measurement of standard of living that includes education and clean running water.
What is standard of living?While quality of life is more ephemeral and intangible, such as personal freedom or environmental quality, standard of living often refers to affluence, comfort, material things, and necessities of particular classes in certain locations.
Standard of living is typically concerned with impersonal, objective measures such as economic, societal, political, and environmental issues. These are the kinds of elements that a person could take into account when deciding where to live in the world or how well an economic programme is working.
An "adequate level of life" was first defined in the International Covenant on Economic, Social and Cultural Rights and later in the Universal Declaration of Human Rights. Different disciplines have defined decent living standards in order to assess or compare relative living conditions in order to determine the influence of policies for sustainable development.
Supporting answer
Hence option B is correct answer
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Answer:
B. Access to necessitie's
Explanation:
Isn’t "corporate entrepreneurship" an oxymoron? Do the characteristics of an established organization, such as its routines and structure, increase efficiency but at the same time kill any entrepreneurial spirit? Is there any way that a company can have the best of both worlds?
Answer:
Isn’t "corporate entrepreneurship" an oxymoron?
I guess that most people would believe that corporations and entrepreneurs and completely opposite, and for the most part they are right. But some corporations actually do have entrepreneurial spirit or at least try to. E.g. 3M is famous for allowing their employees some creative time so that they can come up with new ideas. Google is another example of a large corporation that allows for creative time while at work.
Do the characteristics of an established organization, such as its routines and structure, increase efficiency but at the same time kill any entrepreneurial spirit?
Routines, schedules and corporate structure not only kill, but they rather massacre and exterminate entrepreneurial spirit and creativity. One great example of how corporations do not allow people to think or act differently can be seen in the movie about Ford competing in Le Mans.
Is there any way that a company can have the best of both worlds?
I guess that it is difficult, but not impossible for a company to have corporate entrepreneurship. The problem is that corporations will probably believe that it is a waste of money to pay for their employees to do nothing and just wander around thinking about new ideas. Creativity has a cost and not everyone is willing to pay for it.
richard has two investment opportunities. He can invest in the sunglasses company or the umbrella company. if he diversifies his investment by putting 50% of his money into each company, what is the expected return and standard deviation of his portfolio
Answer:
Some information was missing, so i looked it up:
State of Prob. of the state Sunglasses Umbrella
the economy of the economy Company Corporation
Sunny .50 25% 0%
Rainy .50 0% 25%
expected returns:
Sunglasses Company = 0.5 x 25% = 12.5%
Umbrella Corporation = 0.5 x 25% = 12.5%,
so the expected return of the portfolio = (12.5% x 0.50) + (12.5% x 0.50) = 12.5%
standard deviation:
Sunglasses Company = √{[(0% - 12.5%)² + (25% - 12.5%)²] / 2} = √156.25 = 12.5%
Umbrella Corporation = √{[(0% - 12.5%)² + (25% - 12.5%)²] / 2} = √156.25 = 12.5%
so the standard deviation of the portfolio = 12.5%
Instead of investing a lump of sum of $25000,Brittany Royer decides to svae the money in a vault for 2years. Assuming the inflation being 2.5%per year,how much will her purchasing power decline in 2years
Answer:
$1265.63
Explanation:
Inflation is a persistent rise in the general price levels
Types of inflation
1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise
2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect
Loss in purchasing value = future value of the amount saved - amount saved
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$25000 (1.025)² = $26.265.625
Amount lost = $26.265.625 - $25,000 = $1265.63
Randy owns a landscaping businessAt the beginning of the season, Randy must decide how many commercial lawn mowers he should purchase. Assume that each additional lawn mower costs $10,000 and that Randy's investment will be financed by a bank loan Randy has estimated his rate of return, as shown in the table below
From the table we can see that if the interest rate is 6 % the lawn mowers that is bought would be 5
What is real interest rate?The real interest rate is the rate of interest adjusted for inflation. It represents the actual increase in purchasing power that an individual or organization earns on their savings or investments, after accounting for the impact of inflation.
In other words, the real interest rate is the nominal interest rate (the rate of return before adjusting for inflation) minus the rate of inflation. For example, if the nominal interest rate is 5% and the inflation rate is 2%, the real interest rate would be 3% (5% - 2%).
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explain 5 ways in which business studies is a living subject
Five ways in which business studies is a living subject:
Evolving technologiesEconomic shiftsChanging consumer preferencesSustainability and ethical issuesGlobalizationHow is business studies a living object ?Business studies is an ever-evolving subject that continuously updates itself to reflect the latest developments and trends in the contemporary business environment. The dynamic global economy, characterized by recessions, inflation, and changing trade policies, can have significant consequences on businesses. It compels them to adapt quickly in order to remain profitable.
Furthermore, as society shows a growing inclination towards sustainability and ethical concerns, businesses must incorporate these principles into their practices. This highlights the importance of keeping up-to-date with these changes for students studying in business studies so they can gain success in today's innovative business world.
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Sheller Company estimates that its pension plan asset will earn a return of 10%. The beginning balance of plan assets was $500,000 and the ending balance was $560,000. During the year, the plan earned an actual return of 8%. As a result of this, pension expense will decrease by
Answer: $50000
Explanation:
From the question, we are informed that Sheller Company estimates that its pension plan asset will earn a return of 10% as the beginning balance of plan assets was $500,000 and the ending balance was $560,000.
Due to this, then the pension expense will decrease by:
= 10% × $500,000
= $50,000
It should be noted that the expected return on plan assets will reduce pension expense by $50000.
Which of the following is not one of the factors that change demand?
A.
Consumer income levels
B.
Consumer attitudes toward risk
C.
Population, or the number of consumers in the market
D.
Consumer expectations
E.
Consumer tastes and preferences
All of the factors listed can change demand such as Consumer income levels, Consumer attitudes toward risk, Population, or the number of consumers in the market, Consumer expectations and Consumer tastes and preferences
What are the types of change in demand?Demand can change in two different ways: it can move along the demand curve or it can shift. A shift in the quantity demanded as a result of a change in the good or service's price is referred to as a movement along the demand curve. The quantity demanded will rise when a good or service's price drops, and vice versa. An indicator of this movement is a point on the demand curve. A shift in the demand curve, on the other hand, describes a change in demand brought on by a factor other than the cost of the good or service. Changes in consumer income levels, tastes, preferences, expectations, population, and attitudes towards risk are a few of these factors. The quantity demanded changes at each price level when the demand curve shifts, creating a new market equilibrium point.
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(1) What is the problem you are seeing in your local community that needs addressed?
(2) What is the solution to this problem, and how will it create change in your community?
(3) What is the timeline that would be needed to implement your solution?
(4) What is the estimated cost for your plan?
(5) Have you secured any resources for your plan, or consulted with any community leaders who may help with your plan?
The fundamental issue in your community (clean water and no pollution) must be addressed.
What is community?A community is a social group of people who have something in common, such as a shared government, geography, culture, or heritage. A community is the primary focus of a certain organization. Communities are classified as rural, urban, or suburban.A local community as the primary concern was the sighting.The problem was solved when they began camping and publicizing the communal concern.The deadline as the issue should be addressed as soon as possible, or else the problem would worsen in the future.As the situation was solved, the local community leaders were consulted.To learn more about the community, click
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You decide to decrease the price of your product to increase total sales revenue, because you believe your product's demand is
A) perfectly inelastic
B) unit elastic
C) price elastic
D) price inelastic
Answer:
C) price elastic.
Explanation:
nam and explain two recent CSR/CSI initiatives of Woolworths
The two recent CSR/CSI initiatives of Woolworths
MySchool MyVillage MyPlanet Woolworths Educational ProgrammeWhat are the CSR initiatives for Woolworths?For a long time now, Woolworths is known to have worked using a structured charity organizations to engage CSI initiatives as they often donate their surplus food from food saved to communities that are known to need the support.
Note that they tend to contributes to the reduction of hunger in local communities as well as lower food waste to landfill from their own operations.
Hence, The two recent CSR/CSI initiatives of Woolworths
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Click this link to view O*NET’s Skills section for Hotel, Motel, and Resort Desk Clerks.
Note that common skills are listed toward the top, and less common skills are listed toward the bottom.
According to O*NET, what are common skills needed by Hotel, Motel, and Resort Desk Clerks? Select four options.
science
social perceptiveness
service orientation
speaking
active listening
equipment maintenance
Answer:
getting information - interacting with computers - communicating with supervisors, peers, or subordinates - organizing, planning, and prioritizing work.
Explanation: or in other words b, c, e, f :)
Answer:B,C,D,E
Explanation:if it's not the other dudes
Forecast the 2019 Cost of goods sold on the previous year’s number and the assumptions. 2018 Actual 2019 Estimate Sales Growth 6% 8% Gross Margin 40% 40% Revenues 50,000 Cost of Goods Sold 30,000
Answer:
hi
Explanation:
One's personality is shaped by a combination of nature (genetic) and nurture (environmental) influences. Recent studies conducted among birds have demonstrated that environment plays a bigger role in forming personality than genetics, but obviously there are differences when translating these results to humans.
The Cost of Goods Sold for 2019 is forecasted to be $30,600.
What is Cost of Goods sold?This refers to total amount that a firm paid as a cost directly related to the sale of products.
The Sales Growth between the years 2018 and 2019 is 2% (8%-6%).
Because the 2018 Cost of Goods Sold equals $30,000, then, it will be adjusted according to the sales growth recorded in the subservience year.
Cost of Goods Sold (2019) = $30,000 *(1+0.02)
Cost of Goods Sold (2019) = $30,000 *1.02
Cost of Goods Sold (2019) = $30,600
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Your Submission:
1
Which of the following is not an objective of compensating employees?
To motivate employees
To be fair and consistent to all categories of international employees
To attract valuable personnel
To facilitate the transfer of employees no matter the cost
2
What is the first and most frequent international HR concern?
Training programs
O Expatriate com
Answer:
An organization do not need to compensate employee in order to be fair. If there's someone doing that it is not totally wrong though, it will encourage haziness and uncared attitude in such organization.
Who is pressuring Mr. Patil to
increase quotas of his dealers fast
or get them replaced?
Marketing Manager
A
Answer:
This Question Isnt specifying if there is someone else involved with the Pressuring
Explanation:
Pybus, Inc. is considering issuing bonds that will mature in 21 years with an annual coupon rate of 7 percent. Their par value will be $1,000, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds and, if it does, the yield to maturity on similar AA bonds is 8 percent. However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A rating, the yield to maturity on similar A bonds is 9 percent. What will be the price of these bonds if they receive either an A or a AA rating?
The price of the Pybus bonds if they receive a AA rating will be $
Answer:
The price of the bonds if they receive an A rating is $1,062.77, and if they receive a AA rating is $1,110.84.
Explanation:
To determine the price of the bonds if they receive either an A or AA rating, we can use the bond pricing formula:
Price = (C / r) * (1 - (1 + r)^-n) + (F / (1 + r)^n)
where C is the annual coupon payment, r is the yield to maturity, n is the number of periods to maturity, and F is the face value.
First, let's calculate the annual coupon payment:
C = 7% * $1,000 = $70
Next, we'll calculate the number of periods to maturity:
n = 21 years * 2 (because interest is paid semi-annually) = 42
Now, if the bonds receive a AA rating, the yield to maturity is 8%. We can use this yield to maturity to find the price of the bonds:
Price = ($70 / 0.08) * (1 - (1 + 0.08)^-42) + ($1,000 / (1 + 0.08)^42) = $1,110.84
Alternatively, if the bonds receive an A rating, the yield to maturity is 9%. We can use this yield to maturity to find the price of the bonds:
Price = ($70 / 0.09) * (1 - (1 + 0.09)^-42) + ($1,000 / (1 + 0.09)^42) = $1,062.77
In conclusion, the price of the bonds if they receive an A rating is $1,062.77, and if they receive a AA rating is $1,110.84.
what is your analysis on walmart financial health as of january 2021 compare to 2022
Calculating Income Tax Expense
Given the following.
Taxable Income $400k
Future taxable amounts $30k
Future deductible amounts $50k
Beginning Balances DTA $10k
Beginning Balances DTL $40k
Tax rate 30%.
1. What is the income tax expense?
2. What is the DTA year end balance?
3. What is the DTL year end balance?
4. What is the income tax expense?
5. What is the originating/reversing amount for the future taxable amount and for the deductible amount of the current year?
The income tax expense is $120k
The DTA year-end balance is $10k
The DTL year-end balance is $40k
The origination amount for the future deductible amount is $15k, and the reversing amount is also $15k.
How to Solve the Problem?1. To calculate the income tax expense, we need to first calculate the taxable income.
Taxable Income = $400k
Tax rate = 30%
Income tax expense = Taxable Income * Tax rate
Income tax expense = $400k * 30% = $120k
2. The DTA (Deferred Tax Asset) year-end balance can be calculated as follows:
Beginning Balance DTA = $10k
Future deductible amounts = $50k
Origination amount for the deductible amount = $50k * 30% = $15k
Reversing amount for the deductible amount = $15k
DTA year-end balance = Beginning Balance DTA + Origination amount - Reversing amount
DTA year-end balance = $10k + $15k - $15k = $10k
3. The DTL (Deferred Tax Liability) year-end balance can be calculated as follows:
Beginning Balance DTL = $40k
Future taxable amounts = $30k
Origination amount for the taxable amount = $30k * 30% = $9k
Reversing amount for the taxable amount = $9k
DTL year-end balance = Beginning Balance DTL + Origination amount - Reversing amount
DTL year-end balance = $40k + $9k - $9k = $40k
4. The originating/reversing amount for the future taxable amount and the future deductible amount of the current year have already been calculated in questions 2 and 3. The origination amount for the future taxable amount is $9k, and the reversing amount is also $9k. The origination amount for the future deductible amount is $15k, and the reversing amount is also $15k.
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the period before the trial takes place is called the
Answer:
Explanation:
Pretrial Stage - discovery process, finding of facts. ... Trial Stage - seating of the jury, testimony on behalf of the plaintiffs and testimony on behalf of the defendants
Answer:
Pretrial Stage - discovery process, finding of facts. ... Trial Stage - seating of the jury, testimony on behalf of the plaintiffs and testimony on behalf of the defendants.
The following information on selected cash transactions for 2011 has been provided by Mancuso Company:
Proceeds from sale of land $160,000
Proceeds from long-term borrowings 400,000
Purchases of plant assets 144,000
Purchases of inventories 680,000
Proceeds from sale of Mancuso common stock 240,000
What is the cash provided (used) by investing activities for the year ended December 31, 2011, as a result of the above information?
a. $16,000.
b. $256,000.
c. $160,000.
d. $800,000.
Answer:
a. $16,000.
Explanation:
The computation of the cash provided or used by the investing activities is shown below:
Cash flow from investing activities
Proceeds from the sale of land $1,60,000
Less:
Purchase of plant asset -$1,44,000
Net cash flows provided by investing activities $16,000
hence, the correct option is a. $16,000
Which are examples of a person changing careers? Check all that apply.
a home insurance salesman decides to start selling home warranties instead
a farmer decides to start practicing real estate and selling local land
a biology teacher moves to teach the elective cooking classes for that school year
a factory worker who manufactures linens moves to a new factory that manufactures pencils
a crab fisherman decides to start a business maintaining local boats
Answer:
A c e
Explanation:
I got it right on the exam
Answer:
Explanation:
Which are examples of a person changing careers? Check all that apply.a home insurance salesman decides to start selling home warranties insteada farmer decides to start practicing real estate and selling local landa biology teacher moves to teach the elective cooking classes for that school yeara factory worker who manufactures linens moves to a new factory that manufactures pencilsa crab fisherman decides to start a business maintaining local boats
classify business communication
There are 4 main types of business communication in any organization or business i.e
Types of business communication
1. Internal Business Communication
Internal Business Communication means communication that occurs among the members of the organization. This communication includes both formal and informal communication. Also, different departments that transmit communication by different means to employees come under internal communication. Internal communication should be effective as it is a vital source of viewing and representing organizational issues. Effective internal business communication may increase job satisfaction levels, productivity, and the efficiency of employees by decreasing their turnover and grievances and helping in increasing profits.
It is further categorized as internal (upward) communication and internal (downward) communication.
a. Internal (Upward) Communication: This type of internal communication involves the bottom-to-the-top management approach. Here, the information flows from subordinates to managers or any person that is at the upper in the hierarchy level.
b. Internal (Downward) Communication: In downward communication, the information flows from the top-level management to the employees in an organization. This information is related to passing on instructions to subordinates or employees to do their respective tasks. Downward communication is being used by managers to communicate different goals, procedures and policies, guidelines, decisions, instructions, etc. to their subordinates.
2. Horizontal/Lateral Business Communication
Lateral or horizontal communication is related to communication among co-workers i.e. either verbal communication or written communication. This may include inter-departmental communication or communication between cross-departments and can be between people of the same or similar rank in a company. This is crucial communication to achieve the desired results. So, this communication happens among employees having an equal hierarchy level. To achieve the functional effectiveness of different organizational units, horizontal or lateral communication is required for seeking mutual cooperation and mutual help.
3. External Business Communication
Communication with people who are external to the organization is known as external business communication. These people can be customers or shareholders or suppliers or partners or regulatory bodies, etc.
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2.2 List any TWO characteristics of public goods.
Answer:
non-excludable and Non-rivalrous
Does a depression always follow a recession?
Yes, the trough is always considered a depression.
No, a depression is indicated when the recession is exceptionally long.
Yes, for recovery to occur, the trough must be reached.
No, the economy could decline quickly and bypass recession.
Answer: No, a depression is indicated when the recession is exceptionally long.
Explanation:
Apart from a job search, a also helps in job advancement.
Apart from a job search, a job portfolio also helps in job advancement.
What is a job portfolio ?A job portfolio is a collection of documents and materials that demonstrate your skills, achievements, and experiences in your field of work. It can include items such as your resume, letters of recommendation, examples of your work, certificates and awards, and other relevant documents.
Having a well-organized and comprehensive job portfolio can help you stand out from other candidates when applying for promotions or new job opportunities. It can provide evidence of your abilities and accomplishments, and demonstrate to potential employers that you are a qualified and capable professional. Additionally, a job portfolio can help you to keep track of your career progress and achievements, and provide a reference for your own personal and professional development.
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1 typewritten reviews of a Business Management, or Marketing
Article of the students choosing that appeared in the required Online
readings, You may also select articles from the New York Times.
The articles due on the assign due date. The News Article Review must
be printed out and attached to the student’s Typewritten review in Pdf.
The review must summarize the article in the student’s own words and
discuss how the subject matter of the News Article Review relates to
topics covered in the course.
THE ARTICLE SHOULD NOT BE
MORE THAN 14 DAYS OLD AND MUST BE RETRIVED FROM A
BUSINESS, OR MARKETING JOURNAL PUBLICATION
Explanation:
Title: "Digital Marketing Strategies for Small Businesses: A Case Study"
Article Source: Harvard Business Review
Summary:
The article "Digital Marketing Strategies for Small Businesses: A Case Study" discusses how small businesses can effectively utilize digital marketing strategies to compete in today's highly competitive business landscape. The case study presented in the article focuses on a small boutique clothing store that implemented various digital marketing tactics to increase their online visibility and drive more sales.
The article highlights the importance of having a strong online presence for small businesses, as consumers increasingly rely on digital channels to discover and purchase products and services. The case study outlines the steps taken by the boutique store, including optimizing their website for search engines, creating engaging social media content, and implementing email marketing campaigns to engage with customers.
The article also emphasizes the need for small businesses to adapt their digital marketing strategies based on changing consumer behaviors and market trends. For example, the boutique store in the case study shifted their focus to social media advertising when they noticed that their target audience was spending more time on social media platforms.
Relation to Course Topics:
The article aligns with several topics covered in the Business Management or Marketing course. It highlights the importance of digital marketing for small businesses and the need to adapt strategies to changing consumer behaviors, which are key concepts in modern marketing. The case study also provides practical examples of how small businesses can implement digital marketing tactics, such as search engine optimization, social media marketing, and email marketing, which are commonly covered in marketing courses.
The article also emphasizes the significance of understanding consumer behavior and market trends, which are important considerations in business management. It underscores the need for small businesses to continually assess and adjust their marketing strategies to remain competitive in the ever-evolving digital landscape.
Overall, the article provides a relevant and practical case study that showcases the application of digital marketing strategies for small businesses, making it a valuable resource for students studying business management or marketing.
Review:
The "Digital Marketing Strategies for Small Businesses: A Case Study" article is a well-written and informative piece that provides practical insights into how small businesses can effectively leverage digital marketing strategies. The case study presented in the article is relevant and relatable, making it easy to understand the challenges faced by small businesses in the digital marketing realm.
The article is concise, yet comprehensive, covering key concepts such as search engine optimization, social media marketing, and email marketing in a clear and understandable manner. The use of a real-life case study adds credibility and practicality to the article, making it more engaging for readers.
The author's writing style is engaging and easy to follow, with a good balance of theoretical concepts and practical examples. The article is well-structured, with clear headings and subheadings that make it easy to navigate and locate specific information.
One potential improvement could be the inclusion of more recent data or statistics to support the author's points and provide additional evidence of the effectiveness of the digital marketing strategies discussed. However, overall, the article is a valuable resource for students studying business management or marketing, as it provides relevant and practical insights into how small businesses can navigate the digital marketing landscape to achieve their business goals.
In conclusion, the "Digital Marketing Strategies for Small Businesses: A Case Study" article is a recommended read for students studying business management or marketing. It offers valuable insights into the challenges and opportunities of digital marketing for small businesses and provides practical examples that can be applied in real-world business settings. The article's alignment with course topics and its clear and engaging writing style make it a useful resource for students looking to deepen their understanding of digital marketing strategies.
Why are there a lot of construction jobs opening up for Millennials (younger
workers)?
Answer:
I'm assuming because they need more construction workers because nobody wants to have a job like that anymore
Answer:
A lot of the workforce in the construction industry tend to be on the older side and will retire within the next decade or two
Explanation:
QUESTION ONE
ABC Ltd wishes to expand its business. On 31 Dec 2021, the company had
the following existing and proposed capital structures to support the
expansion programme.
1. The existing 8% debt capital has a book value of Ksh 50 000 000 and
matures in 10 years. The market value of debt at the close of business on
31 Dec 2021 was Ksh 40 000 000
2. A ten year loan of Ksh 300 000 000 is to be raised at an interest of 10
percent p.a. A cost of Ksh 20 000 000 will be incurred in raising this loan
3. A 12% preference stock capital stands in the books at Ksh 100 000 000
( 1 000 000 shares) and has a total market value of Ksh 150 000 000.
4. There are 40 000 000 ordinary shares with a current market price of Ksh
1500 each. The firm’s expected earnings per share (EPS) stand at Ksh
200, its growth rate is 6% and has a dividend payout of 60%.
5. The company plans to issue 10 000 000 ordinary shares at a market price
of Ksh 1 500 per share. The cost of floating the shares is estimated at Ksh
10 000 000.
Required:
i) Firm’s current weighted average cost of capital (10 marks)
ii) Firm’s expected weighted average cost of capital after the expansion
programme (i.e. marginal cost of capital) (5 marks)
QUESTION TWO
An investor intends to place Ksh 112,000,000 in the 91 days Treasury bill at a quoted rate/yield of 7.65%
p.a.
Required:
a) Compute the investor’s return, assuming that he is withholding tax-payer
b) Compute the investor’s return, assuming that he is non-withholding taxpayer (6 marks)
Answer:
rat
Explanation:
Calculate your month 1 expenses by adding the contents of column 8, your month 1 expenses. What is the total amount?
The total amount after adding month 1st expenses in the 8th column is 53,900$.
How to find?Lets add all the values in column 8-
= 2000+3000+3500+3250+4700+5575+6500+7500+8375+9500
= 53,900$
Hence, the total amount is 53,900$.
What are those expenses, exactly?Wages, salaries, repairs, rent, and depreciation are all examples of expenses. Profits are calculated by subtracting expenses from revenue. To lessen the tax burden and increase profits, businesses are permitted to deduct certain costs from taxes.
What are costs and expenses?Expenses are ongoing payments, whereas costs are one-time payments. Cost typically appears on the balance sheet, whereas expense appears on the profit and loss statement.
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