Refer to the above supply and demand graph in the graph, point A is the current equilibrium level of output of this product and point B is the optimal level of output from society's perspective. S is the supply curve without a tax and S_t is the supply curve with a tax. The external cost to society from the production of this product is measured by: DE. EF. FG. AB.

Answers

Answer 1

The external cost to society from the production of this product is measured by DE.

The tax supply curve can be found in what way?

The supply curve after tax is P = Q/3 + 4 when producers are subject to a $4 tax. Since P = Q/3 + 4 and P = 20 - Q are equivalent, Q/3 + 4 = 20 - Q, which results in QT = 12, we can find the new equilibrium quantity after tax. Pre-tax supply equation Pnet = QT/3 = 12/3 = 4 determines the price that producers receive.

The unit cost of production increases when the government raises the unit tax on the manufacture of goods, which causes the firm to supply less at the same price than before. The supply would decline, indicating a leftward shift in the supply curve.

Therefore, Tax producers by the external amount of DE from the graph.

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Related Questions

The method of measuring long-lived assets at their estimated value in an input market is the: Multiple Choice expected benefit approach. economic sacrifice approach. discounted present value approach. net realizable value approach.

Answers

The economic sacrifices approach is a way to measure long-lived investments at their anticipated worth in an input market.

Who or what is an economist?

Economy is the study of limitation and how it affects how resources are used, how commodities and services are produced, how production and welfare increase over time, and a wide range of other complicated concerns that are extremely important to society.

What makes economics so crucial?

People who study economics are better able to comprehend their surroundings. It makes it possible for people to comprehend other people, organizations, markets, and governments, enabling them to better react to the challenges and possibilities that arise when circumstances change.

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if the demand for money and the supply of money both increase, then the new equilibrium: group of answer choices

Answers

The overall wealth owned by the home and businesses is referred to as the demand for money. A number of variables, including income levels, interest rates, price levels (inflation), and uncertainty, have an impact on the demand for money.

Transactions: This sum of money is required to complete transactions. An economy's need for money for transactions rises along with both the overall volume and quantity of transactions.

Precautionary: To be safe, you should set aside this amount of money for future requirements that are unclear, including unforeseen medical costs. As the economy gets bigger, there is a greater need for money for protection.

Speculative: People also keep money on hand in order to take advantage of potential investment possibilities in the future. People would choose to invest than hard money with a speculative intent if the existing returns on financial goods were high.

Supply of Money:

The central bank of a country, such as the US Fed, regulates the amount of money available in that country's economy. The Federal Reserve may alter reserve requirements or use open market operations to alter the money supply.

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Job rotation attempts to make a job more interesting and motivating by moving employees from one job to another.
True
False

Answers

By switching workers between jobs, job rotation aims to increase a job's interest and motivation. All of the above are accurate according to the equity theory, with the exception of this: make sure the employees think the award is fair.

What is job rotation?

The systematic switching of personnel between jobs inside an organisation is known as job rotation, and it serves a number of human resources goals, including onboarding new hires, training staff, fostering career growth, and minimising job burnout. An atmosphere with changing assignments can foster fresh thoughts and ideas on the work being done by the organisation and may improve employee satisfaction. For instance, a nurse may alternate between posts on the maternity and geriatric wards, exposing her to varied problems and gaining experience in caring for a variety of patients. Some employers utilise the practise of job rotation to change the jobs that are assigned to their staff members over the course of their employment. This tactic is used by employers for a variety of reasons.

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At the end of the car model year, what source of financing for a new car would probably have the best terms?​​​​​​​ Select only one answer.
1.) a collateral loan from a bank
2.) a collateral loan from the car company
3.) a home equity loan
4.) revolving credit line

Answers

The source of financing for a new car would probably have the best terms is a collateral loan from a bank. Thus, option first is correct.

Why do lenders ask for collateral while lending?

Collateral is an asset or kind of tangible wealth owned by the borrower, such as a home, cattle, or automobile. Banks make loans to borrowers on the basis of these assets. The collateral acts as a kind of security for the lender.

Banks are one of the most common forms of automobile finance, with around 40% of all car purchasers obtaining a loan from them. Because each bank analyzes risk differently, interest rates might vary significantly.

A bank collateral loan would most likely offer the finest conditions for financing a new automobile. As a result, option one is correct.

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2. Corporate income taxes are NOT imposed by which of the following?
O A. State governments
O B. Local governments
OC. Foreign governments
O D. Universal governments

Answers

foreign governments

the purchase and sale of government securities to fund government activities and alter the money supply involves which of the following monetary policies of the federal reserve?

Answers

The purchase and sale of government securities to fund government activities and alter the money supply involves Open-market operations

What do you mean by OMO?

The Federal Reserve uses open market operations (OMOs), which are central banks' purchases and sales of assets on the open market, as a key tool for carrying out monetary policy. The Federal Open Market Committee establishes the short-term goal for open market operations (FOMC).Open market operations are designed to alter the reserve balances of American banks and bring about reactionary adjustments to the current interest rates. The Fed can expand the money supply in the US by purchasing securities.

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What ways could Cuba and Honduras improve their economic growth?

Answers

Answer:

Economic growth is driven oftentimes by consumer spending and business investment. Tax cuts and rebates are used to return money to consumers and boost spending. Deregulation relaxes the rules imposed on businesses and have been credited with creating growth but can lead to excessive risk-taking.

people who choose a job or career because it offers them opportunities to express personal needs, interests, and values through their work have focused on which of the following motivations for working?

Answers

Active income is when you get paid to do work that is related to your job or career.

Who are the people who help you with your career or plans?

Mentors will give you free advice and may even have contacts in the industry who can assist you in achieving your career objectives, such as obtaining a new position or utilizing new resources in your current position.

How can your career choice be influenced by your personal and professional values?

Your personal satisfaction and professional success can be influenced by your career values, which are crucial. You can be deliberate in your career search and use your values to shape your future by determining your own values and what matters most to you.

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Why is data mining useful

Answers

Answer:

Explanation:

Helps to find things easily

Question Content Area
Flexible Budget for Assembly Department

Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produces filing cabinets in two departments: Fabrication and Assembly. Assume the following information for the Assembly Department:

Direct labor per filing cabinet 20 minutes
Supervisor salaries $108,000 per month
Depreciation $6,500 per month
Direct labor rate $18 per hour
This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

Prepare a flexible budget for 4,000, 10,000, and 16,000 filing cabinets for the month of August, similar to Exhibit 5, assuming that inventories are not significant. Enter all amounts as positive numbers

Answers

The preparation of a flexible budget for 4,000, 10,000, and 16,000 filing cabinets for the month of August, for Steelcase Inc. is as follows:

Steelcase Inc.

Assembly Department Budget

Month ending August 31

                                                 4,000      10,000       16,000

Variable costs:

Direct labor                         $24,000   $60,000    $96,000

Fixed Costs:

Supervisor salaries          $108,000  $108,000    $108,000

Depreciation                          6,500        6,500          6,500

Total fixed costs               $114,500    $114,500     $114,500

Total department costs  $138,500   $174,500     $210,500

What is a flexible budget?

A flexible budget adjusts the revenue and costs according to the activity level.

A flexible budget is the opposite of a static/planning budget, which does not change in accordance with the activity level.

In preparing a flexible budget, costs and revenues for different activity levels must be shown.

Direct labor per filing cabinet 20 minutes

Supervisor salaries $108,000 per month

Depreciation $6,500 per month

Direct labor rate $18 per hour

Direct labor cost per filing cabinet = $6 ($18/60 x 20)

Direct labor costs at different activity levels:

4,000 units = $24,000 ($6 x 4,000)

10,000 units = $60,000 ($6 x 10,000)

16,000 units = $96,000 ($6 x 16,000)

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using the percentage of sales method, forecasted retained earnings balance is equal to group of answer choices the ratio of retained earnings to sales for the current year multiplied by projected sales for next year prior year retained earnings plus projected net income less projected dividends the retained earnings balance for the current year as no changes are made to this financing account when using the percent of sales method the ratio of retained earnings to sales for the current year multiplied by projected sales for next year, minus dividends paid

Answers

The only obligations that change proportionally with sales are accrued costs and accounts payable.

Why is sales strategy crucial?

Each sales team needs a sales methodology to help them cooperate toward the same objective—gaining more clients and closing more transactions. It serves as the foundation of effective selling since it provides answers to the "What to do" and "How to accomplish it" questions inside a sales process.

What steps comprise the sales process?

Here are the seven major steps in the sales process: prospecting, making contact, qualifying your lead, nurturing your lead, putting forth your offer, dealing with objections, and closing the deal.

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The Worker Adjustment and Retraining Notification (WARN) Act requires that
companies meet notice requirements of how many days before reducing a
workforce?
OA. 60 days
B. 30 days
C. 90 days
OD. 14 days

Answer: A. 60 days

Answers

The Worker Adjustment and Retraining Notification (WARN) Act requires that companies meet notice requirements of  60 days. Option A

What is meant by the  (WARN) Act ?

Mass layoffs and qualified plant closings are now more likely to be announced in advance according to the Worker Adjustment and Retraining Notification (WARN) Act. To help employees and employers understand their rights and obligations under the terms of WARN, the U.S. Department of Labor has compliance support materials available.

Provides protection for workers, their families, and communities by mandating the majority of firms with 100 or more employees to notify affected parties about plant closures and mass layoffs 60 days in advance.

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What is the process of dividing a group of customers into smaller sub-groups,
based on similarities within the sub-groups?

Sentiment analysis
Data mining
Customer segmentation
A/B testing

Answers

The practice of segmenting a client base into groups of people who are similar in particular aspects significant to marketing, such as age, gender, interests, and purchasing patterns, is known as customer segmentation.

What are the benefits of customer segmentation?

Customer segmentation is a powerful tool that firms can use to more closely align their strategy and tactics with their customers and more effectively target them.

Since every customer is unique and every customer journey is unique, a single strategy frequently won't be effective for everyone. This is when consumer segmentation proves to be an effective strategy.

The subject of creating a marketing persona can also be introduced using these customer segmentation groupings.

This is because, in order for marketing personas to be effective, they must be closely related to the consumer groups that are often used to guide a brand's messaging, positioning, and efforts to increase sales.

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the cost of controlling emissions at a firm rises rapidly as the amount of emissions reduced increases. here is a possible model: c(q)

Answers

We the cost of controlling emissions at a firm rises rapidly will be 8000.

q= 6000+ 100q² = 40

Now, we can find C

C(q)= 0+100+2q

C (40) = 0+100+2*40

C (40) = 8000

What is cost?

A cost is the worth of money that has been expended to produce something or provide a service and is therefore no longer available for use in production, research, retail, and accounting. In the case of an acquisition cost, the money spent on the acquisition is considered the cost.

What are the two main types of cost?

Costs come in two types: fixed and variable. Although fixed and variable costs have different effects on the business, both are crucial to its profitability.

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frames, inc. provided a report of standard and actual total cost for direct labor during the month. based on the following report, what is the direct labor efficiency variance?

Answers

Based on the following report,  the direct labor efficiency variance will be $212.50 F

What was the labor efficiency variance?

The quality of the work hours used in the production process is the major focus of the labor efficiency variance. The production manager is typically in charge of the labor efficiency variance.A production manager is a specialist who oversees the production process and plans every action to guarantee there are enough resources on hand.They may plan worker schedules, anticipate costs, and create budgets to ensure that process is completed by the deadline.The production department is usually in charge of any direct labor efficiency variance. The variance, however, may also be influenced by other variables.

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You have collected data for the 50 U. S. states and estimated the following relationship between the change in the unemployment rate from the previous year ( Delta ) and the growth rate of the respective state real GDP (gy). The results are as follows Delta ur = 2.81 - 0.23 times gy, R2 = 0.36, SER = 0.78 Assume that the estimator has a normal distribution, the 95 % confidence for the slop is approximately the interval

Answers

In the given case,

[-0.31, -0.15] [-0.23-0.04 x 1.96, -0.23+0.04x1.96]. per convention, the number in parentheses underneath

of the parameter estimate is its standard error.

What do you mean by standard error?
The standard deviation of a statistic's sample distribution, or an approximation of that standard deviation, is the statistic's standard error. The term "standard error of the mean" is used when referring to a statistic that is the sample mean.You may determine the accuracy of the comparison between the mean of any given sample from a population and the actual population mean by looking at the standard error. Any given mean is more likely to be an inaccurate depiction of the genuine population mean as the standard error rises, or as the means grow more dispersed.

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Which of the following reflects sustainable competitive advantage?
OA. A nail salon that does unique nail designs
OB. A shoe company that has the lowest prices in the area
C. A clothing company that has been around for decades
OD. A coffee shop that is known for having the strongest coffee

Answer: C. A clothing company

Answers

A clothing company that has been around for decades reflects sustainable competitive advantage. The appropriate response is option C.

What is sustainable competitive advantage?

A group of resources, traits, or skills that enable a firm to outperform its rivals in satisfying the demands of its customers are known as sustainable competitive advantages. The ability to copy or recreate sustainable competitive advantages is tough.

Three types of sustainable advantages may be identified: greater access to resources or consumers, scale in the targeted market, and limitations on rivals' alternatives.

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One of the core beliefs of Hoover is that the Republican Party should resist injecting __________ into business:

Answers

One of the core beliefs of Hoover is that the Republican Party should resist injecting government into business.

What is business?A business refers to as an organization engaged in commercial, industrial, professional activities.A company can be either a commercial entity or a non-profit entity. Legal forms range from limited liability companies to sole proprietorships, corporations and partnerships. Business Fundamentals is the first step to success. Surveying your customers and understanding their needs and expectations can help you build a sustainable business, but you must  start with the basic business skills you need. The word business comes from the word busy, which means to do things. Works regularly. Business plays an important role in our lives. First, they produce goods and services that meet our needs and desires. It also recruits households as a labor force and provides rewards such as wages, salaries and benefits. Therefore, it becomes a source of income that they can use to sustain their livelihoods.

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which of the following strategies should a multinational company use to deal with its lack of detailed or experiential knowledge of the foreign markets the company wants to enter?

Answers

a. start with low-commitment transactions.

THE LOW-COMMITMENT TRANSACTIONS

Starting with low-commitment transactions is a strategy that a multinational company can use to gain experiential knowledge of a foreign market without committing significant resources. Low-commitment transactions are activities or investments that do not require a significant financial or time commitment and can help a company test the waters and gather information about a new market.

Some examples of low-commitment transactions that a company might consider include the following:

- Participating in trade shows or exhibitions in the target market to gather information about the market and make initial contacts with potential customers or partners.

- Conduct market research through online surveys or focus groups to gather insights about consumer preferences and behaviors in the target market.

- Establishing a small sales office or distribution center in the target market to test the viability of the market and gather firsthand experience.

- Partnering with a local company or distributor to sell the company's products or services in the target market, allowing the company to gain exposure without committing significant resources.

Overall, starting with low-commitment transactions can help a company gain a better understanding of the foreign market and assess the potential for success before committing significant resources.

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100 POINTS PLEASE HELP Supply curves shift to the left when a product is more expensive to create. All of the following are examples of scenarios that would cause this EXCEPT:
A. higher materials cost
B. higher minimum wage for employees
C. higher demand from customers

Answers

Answer: C

Explanation:

under which of the following circumstances would a cost-benefit analysis be most likely to result in a person offering helpful assistance?

Answers

When the costs of helping are low and the rewards are high (A) could a cost-benefit analysist be most likely to result in a person offering helpfull assistance.

Cost-Benefit analysis helps business to analyze which decision to make in the decision making process. Cost-benefit analysis provides a company with the potential rewards to be expected from an action relative to the total costs associated with taking that action. Cost-benefit analysis requires measurable financial metrics such as revenue earned or costs saved as a result of the decision.

Cost-benefit anaysis is a form of data-driven decision making. Cost-benefit analysis helps a company to parse out critical information such as organiation's value chain or project's ROI. Cost-benefit analysis could be done by the following steps:

Establish a frameworkIdentify costs and benefitsAssign value to each cost and benefitTally the total value of benefits and costs and compare them

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Complete Question:

Under which of the following circumtances would a cost-benefit analysis be most likely to result in a person offering helpful assistance?

a. When the costs are low and the rewards are high

b. when the costs are high and the rewards are low

c. when both the costs and rewards are both high

d. when both the costs and rewards are both low

a company uses the aging of receivables method. during the year, the company recorded credit sales of $620,000. before adjusting entries at year-end, the company has accounts receivable of $340,000, of which $56,000 is past due, and the allowance account had a credit balance of $2,700. the company expects it will not collect 8% of the amount not yet past due and 24% of the past due accounts. which of the following adjusting entries will the company record at year-end?

Answers

$33,460  of the following adjusting entries will the company record at year-end.

What do you mean by sales?

A sale is an agreement between a buyer and a seller during which the seller exchanges money for the sale of physical or intangible products, assets, or services. There are a number of people involved in a sale. A sale, or a contract between a number of parties, such as the buyer and seller, can be thought of in larger terms.

Briefing:

Credit sales = $620,000

Accounts receivable = $340,000

Past due = $56,000

Credit balance = $2,700

Rate = 8 %

Rate = 24 %

solution

so here Not yet past due is = $340,000 - $56,000 -

Not yet past due = $284,000

and

past due = $56,000

so  Required provision is

Required provision = $284,000 × 8% + $56,000 × 24 %

Required provision = $36,160

and

Opening balance is $2,700

Required expense for year = $36,160 - $2,700

Required expense for year  = $33,460

so here

correct entry is

Bad Debt Expense Dr. $33,460    

Allowance for Uncollectible accounts Cr. $33,460

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Which of the following ratios increases when inventory is sold on account for a price equal to itsoriginal cost?
A. Current
B. Quick
C. Return on assets
D. Return on equity

Answers

Quick ratios would increases when inventory is sold on account for a price equal to itsoriginal cost.

About quick ratio

Quick ratio  is one of the financial ratios used to measure the liquidity position of a company, project, investment center or profit center.

The special feature of this ratio from other Liquidity Ratios is that the Quick Ratio only takes into account cash and cash equivalent items for calculation and interpretation.

It ignores other items that may not be quickly converted to easy cash from the calculations.

For example, inventory is not included in the calculation because it takes so long to convert into cash. This ratio is sometimes called the Acid Test Ratio or the acid-test ratio but the meaning is still the same.

If the ratio is higher than one, it means that the current assets of the entity after deduction of inventories are higher than the current liabilities. This further means the entity can use current assets to pay off current liabilities.

Or we can say that the entity is financially sound on the basis of what this ratio tells us.

Likewise, if the ratio is lower than one, the entity may not be able to pay off its current liabilities using current assets. It can be said that the entity is not financially sound.

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Business risk is concerned with the operations of the firm. Which of the following is not associated with or not a part of business risk?
A ) Demand variability.
B ) Sales price variability.
C ) The extent to which operating costs are fixed.
D ) Changes in required returns due to financing decisions.

Answers

The correct option that is not associated with business risk is the letter D) changes in required returns due to financing decisions. We are supposed that these decisions were taken by the company owners, considering factors to mitigate possible risks. Therefore, in this case, do not represent a risk.

Instead, variability of demand, sales price, and operating costs are business risk factors that could cause uncertainty and possible losses if there are unforeseen and negative events.

What is business risk?

It is the possibility that a company has financial losses or bankruptcy due to unforeseen internal or external events in the future. For this reason, organizations must establish permanent risk mitigation plans.

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this financial recovery plan gave 13 billion dollars worth of materials to european countries to stabilize their economies after wwii.

Answers

Marshall plan gave 13 billion dollars worth of materials to European countries to stabilize their economies after WWII.

What is the marshall plan?

The Marshall Plan was a 1948 American effort designed to give Western Europe foreign assistance. After World War II, the United States gave Western European economies about $13 billion in economic recovery projects. Following the devastation of World War II, the United States launched a program known as the Marshall Plan, commonly referred to as the European Recovery Program, to aid Western Europe. It was passed in 1948 and offered more than $15 billion to aid in financing the continent's reconstruction operations. the increase in agricultural and industrial products throughout Europe; the re-establishment of stable currencies, budgets, and financial systems in each particular European nation; and the promotion of global trade within Europe and between Europe and the rest of the globe.

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if people win every day in las vegas gambling casinos, why do the casinos always take in more money than they pay out? use a specific probability example to explain your answer.

Answers

The best-case scenario will be the 10th position because it has the most favorable cases and a high probability of winning if you carefully choose your numbers.

The worst-case scenario will be 3rd since it has the most unfavorable case scenarios (17 out of 18) and the lowest victory probability (1/18).

What is Probability?

The area of mathematics known as probability deals with numerical descriptions of how likely it is for an event to happen or for a claim to be true. A number between 0 and 1 is the probability of an event, where, broadly speaking, 0 denotes the frequency event's impossibility and 1 denotes its frequency certainty. The likelihood of an event occurring increases as its probability increases. The fundamental principles and patterns of complex systems are also explained by probability theory. An objective or physical condition of affairs is described by a number of objectivists. Frequentist probability, which asserts that the likelihood of a random event indicates the likelihood that the results of an experiment would occur on average frequently when the experiment is repeatedly run, is the most widely accepted interpretation of objective probability. In this perspective, the probability is viewed as the proportional frequency of outcomes "over the long run."

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Question:

To win at these games seems quite easy! Use you knowledge of probability to compute the likelihood of winning each of these games and rank them from best to worst odds. Explain your answer.

How would a probability to win of .42 translate into an expected amount won if you had $5.00? Assume that each time you win, you double your money, and each time you lose, you lose what you bet.

Imagine a scenario where you'd put one dollar on each of five games, each with a probability of winning of .42, and you do NOT roll your winnings into another game. (Hint: Your expected "winnings" would always be negative, but how much would you expect to lose?)

If people win every day in Las Vegas gambling casinos, why do the casinos always take in more money than they pay out? Use a specific probability example to explain your answer.

There are many ways to win each of these games. Some of these "wins" are harder and thus provide better payoffs (for example, spinning a number between 1-4 in Roulette is harder, and thus pays better odds, than simply spinning a number between 1-18). Here are two modified game scenarios:

You win if you spin a 3, 13, 23, or 33 in Double Roulette. You lose on any other roll.

You win if you roll two or more of your chosen value (you choose 3 and roll 2+ 3's) in a roll of Chuck-A-Luck. You lose with any other combination of the dice.

In which scenario do you have the best chance of winning? In which scenario do you have the worst chance of winning? In which scenario would you be willing to bet the largest amount of money?

the job-specific knowledge you need to perform well in a specialized field, known as skills, appear to be most important for first-line managers. multiple choice question.

Answers

The job-specific knowledge you need to perform well in a specialized field, known as skills, appear to be most important for first line managers are technical skills.

Who are first-line managers?

The entry-level managers who carry out management tasks on the ground are known as first-line managers. They are the managers who work most closely with the team members, and they are usually in charge of making sure that the team successfully carries out organisational goals every day. Anyone who is responsible for one or more employees but does not hold a people management post is considered a first-line manager. Team Leader is one example of a line manager with a standard title. Supervisor.

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Edwards Construction currently has debt outstanding with a market value of $67,000 and a WACC of 10 percent. The company has EBIT of $6,750 that is expected to continue in perpetuity. Assume there are no taxes. (Please show all related working steps)
a. What is the value of the company's equity? What is the debt-to-value ratio?
b. What are the equity value and debt-to-value ratio if the company's growth rate is 2 percent?
c. What are the equity value and debt-to-value ratio if the company's growth rate is 4 percent?

Answers

There are 3 questions that need to be solved.

a. The debt-to-value ratio for Edwards construction is 1 (based on $6,750 company EBIT, market value of $67,000 and a WACC of 10%).

b. The equity value if the company's growth rate at 2% is  $18,562.5

The debt-to-value ratio if the company's growth rate at 2% is 0.784.

c. The equity value if the company's growth rate at 4%

The debt-to-value ratio if the company's growth rate at 4% is 0.576

What is EBIT?

EBIT stands for Earning Before Interest and Taxes. It is a common measure of a company's operating profitability. As its name suggests, EBIT is net income excluding the effect of debt interest and taxes. Both of these costs are real cash expenses, but they are not directly generated by the company's core business operations.

Now, let's answer the question.

a. From the question given

Market value = $67,000

WACC = 10%

EBIT = $6,750

Interest payment = Market value * WACC

= $67,000 * 10%

= $6,700

So, Cash flow to shareholders = EBIT - interest paid

= $6,750 - $6,700

= $50

Debt to value ratio = Total debt / Total value of firm

As there is no default, then total debt = total value of firm

So, the debt-to-value ratio of Edward's construction company is 67,000/67,000 = 1

b. the equity value and debt-to value ratio at growth rate 2%

EBIT for next year = EBIT + (1 + growth rate)

= $6,750 * (1 + 0.02)

= $6,885

Since there will be no risk the required return for any shareholder, then it will be equal as the return on company's debt.

Payment made to shareholders will increase by 2%

Value of equity = total assets - total liabilities

Value of equity = EBIT next year / (WACC - growth rate) - (EBIT / WACC)

= $6,885 / (10%-2%) - ($6,750 / 10%)

= 86,062.5 - 67,500

= $18,562.5

Debt to value ratio = total liabilities / (total liabilities + value of equity)

= $67,500 / (67,500 + 18,562.5)

= 0.784

c. the equity value and debt-to value ratio at growth rate 4%

EBIT for next year = $6,750 * (1 + 0.04) = $7,020

So, value of equity = total assets - total liabilities

= EBIT next year / (WACC - growth rate) - (EBIT / WACC)

= $7,020 / (10% - 4%) - ($6,750 / 10%)

= $117,000 - $67,500

= $49,500

debt to value ratio = total liabilities / (total liabilities + value of equity)

= $67,500 / ($67,500 + $49,500)

= $67,500 / $117,000

= 0.576

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Inside the boxes of a new brand of cereal is a short survey that can be mailed back for free to the manufacturer. The survey asks the consumer if he/she likes the cereal or not. What, if any, bias might affect the survey results? a.sampling bias b.nonresponse bias c.sampling and nonresponse bias d.unbias

Answers

When a research study does not employ a representative sample of a target population, sampling bias—a sort of survey bias—occurs.

Types of sampling bias:

Undercoverage:

When a segment of the population of interest is not fairly represented in the sample, this is also known as exclusion bias. In the preceding example of the presidential election, this was true.

Voluntary response bias:

This kind of bias occurs when participants in study are more likely to exhibit certain features in respondents. In this instance, research participants provide their consent to take part. Volunteers are more likely to have an opinion on the subject under investigation.

Survivorship bias:

In survivorship bias, the sample is concentrated on those who meet the requirements for selection. Those that fail are disregarded, which results in underrepresentation.

Non-response bias:

When a group of respondents declines to participate in a study or leaves during the study period, this is known as non-response, or participation bias. This may be as a result of the survey's length, the way the questions are organized, or the survey's sensitive subject matter.

Recall bias:

Recall bias occurs when survey participants' memories are inaccurate due to human memory limitations. By getting replies immediately after the event you're researching, you might be able to lessen recall bias. However, memory bias is often unavoidable and there is little you can do about it. Some responders might not remember certain events as well as others.

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which of these psychological pricing tactics is likely going on when a seller positions a dress among expensive competitors and away from the less-expensive garments in the store?

Answers

Through the quality-price assumption, the vendor is attempting to affect the reference pricing of the customers.

What is quality-price assumption?

By essentially charging more for a commodity, the price quality-based positioning strategy aims to give buyers the impression that the product is of higher quality than the competition. In actuality, it is a strategy that is quite effective. There are many various pricing tactics, but four are frequently employed by small business owners: competitive pricing, cost-plus pricing, markup pricing, and demand pricing. To remain competitive in marketplaces under rising volume and price pressure, the proper pricing strategy is crucial. It gives you the compensation you are due for the goods and services you provide and ensures the earnings you need to make investments in change and expansion.

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