<span>If the business opts to raise shirt production by 100 units, the corresponding opportunity cost will be 200 pairs of pants. Should the firm be at point E and choose to boost shirt output by 500 units, the opportunity cost rises to 400 pairs of pants.</span>
Answer:
A) $1.82
Explanation:
The dividends discount model calculates stock value based on dividends distributed and the required return rate:
current dividend $0.20 per share
dividends for year 1 = $0.23 per share
dividends for year 2 = $0.2645 per share
dividends for year 3 = $0.3042 per share
dividends for year 4 = $0.35 per share
After year 4, we compute the growing perpetuity as follows: dividend / (return rate - growth rate) = $0.35 / (17.4% - 2.5%) = $0.35 / 14.9% = $2.35
Next, we find the present value of the cash flows:
PV = $0.23/1.174 + $0.2645/1.174² + $0.3042/1.174³ + $0.35/1.174⁴ + $2.35/1.174⁵ = $0.1959 + $0.1919 + $0.188 + $0.1842 + $1.0537 = $1.82
Without control, wrongdoings can escalate rapidly, as there are no checks in place to monitor activities, allowing misconduct to go unnoticed by management. Control is crucial for analyzing misdeeds against established standards. Thus, without control, understanding the scope of wrongdoings in the organization becomes challenging.
A) he is unable to identify the proper problem
B) he neglects to assign numerical values to various criteria
C) he resolves the issue ineffectively
D) he does not correctly identify the procedure steps
Response:
A. He fails to identify the proper problem.
Clarification:
In option B, assigning numerical values to decision criteria could assist in the decision-making process, yet it's not essential for achieving a successful outcome.
Regarding option C, solving a problem ineffectively is not optimal, but it does hold some value.
As for option D, recognizing the procedure's steps doesn't significantly impact the success of the process.
This directs us to option A as the correct response; addressing a problem is futile if it's the incorrect one. Resolving an erroneous problem yields no benefit for the organization.
Thus, Tyler's company has acquired a new customer who is willing to purchase 20% of the annual production at a 40% discount.
