One of the themes that came out of the survey responses is that employees feel bored and unchallenged because they only do a narrow job. According to the job characteristics theory, What should you do to address this issue?

Answers

Answer 1
Answer:

Answer: Improve skill variety

Explanation:

The logic behind improving skill variety in job design is that it will reduce boredom and also better challenge employees, this way, it will make the job for challenging thereby providing motivation and also increasing job satisfaction. Employees opinion can also be included in the formation of the job design as this will give them a sense of importance while incorporating those ideas that will make them perform the job effectively.


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Mira Mesa Appliances makes and sells kitchen equipment for offices and hotel rooms. Mira Mesa management believes that a new model of refrigerator made out of a synthetic material would sell well at a price of $260 per unit. Labor costs are estimated at $32 per unit and overhead costs would be $24 per unit. The major uncertainty is the price of the synthetic material. Mira Mesa is in negotiations with several suppliers for the material. Because of the risk associated with the new product, Mira Mesa will only proceed if the estimated return is at least 30 percent of the selling price.Required:What is the most Mira Mesa can pay for the synthetic material per unit (refrigerator) and meet its profitability goal?
What role do individuals play in a capitalist system?
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Which of the following factors has the LEAST influence on an individual’s core belief system? a. Physical appearance c. Religious background d. Family upbringing e. Life experiences Personality
In preparing a statement of cash flows using the indirect​method, the Depreciation Expense​ ________. A. is shown as a negative cash flow under operating activitiesB. is added back as an adjustment to Net Income in the operating activities sectionC. is added back to Purchases of Plant Assets under investing activitiesD. is shown as a negative cash flow in the investing activities section

Dawson Corporation has the following information available for 2014: (in millions) Issued common stock $45 Retired common stock $65 Paid dividends $75 Net income $130 Beginning Common Stock balance $625 Beginning Retained Earnings balance $475 Based on this information, what is Dawson's Retained Earnings balance at the end of the year? a. $680 b. $530 c. $420 d. $605

Answers

Answer:

b. $530

Explanation:

As provided retained earnings opening balance = $475

Add net income for the year = $130

Balance = $605

Further dividend is paid, which reduces the balance of retained earnings = $75

Balance after paying dividends = $605 - $75 = $530

All the other information provided in question relates to common stock and has no relevance on retained earnings balance.

Therefore, balance of retained earnings at the end of period = $530

Blitz Industries has a debt-equity ratio of .6. Its WACC is 9.1 percent, and its cost of debt is 6.4 percent. The corporate tax rate is 22 percent. a. What is the company's cost of equity capital?
b. What is the company's unlevered cost of equity capital?
c-1. What would the cost of equity be if the debt-equity ratio were 2?
c-2. What would the cost of equity be if the debt-equity ratio were 1.0?
c-3. What would the cost of equity be if the debt-equity ratio were zero?

Answers

Answer: a. WACC = Ke(E/V} + kd(D/V)(1-T)

                            9.1 = ke(100/160) + 6.4(60/160)(1-0.22)

                            9.1 = ke(0.625) + 2.4(0.78)

                            9.1 = 0.625ke + 1.872

                  9.1-1.872 = 0.625ke

                        7.228 = 0.625ke

                              ke = 7.228/0.625

                               ke = 11.56%

                b. WACC = Ke(E/V)

                          9.1   = ke(100/160)    

                          9.1   = 0.625ke

                           ke = 9.1/0.625

                           ke = 14.56%

                 c-1.    WACC = Ke(E/V} + kd(D/V)(1-T)

                                 9.1  = ke(1/3) + 6.4(2/3)(1-0.22)

                                 9.1  = 0.3333ke + 3.328

                     9.1 - 3.328 = 0.3333ke

                            5.772   = 0.3333ke

                                 ke = 5.772/0.3333

                                 ke = 17.32%

   

                    c-2.     9.1 = ke(1/2) + 6.4(1/2)(1-0.22)  

                                9.1 = 0.5ke   + 2.496

                   9.1 - 2.496 = 0.5ke

                           6.604 = 0.5ke

                                ke = 6.604/0.5

                                ke = 13.21%

             

                   c-3.  9.1 = ke (0/0) + kd (0/)

                            ke = 0%

Explanation:

a. in the a part of the question, the debt-equity ratio was 0.6 ie 60/100. Thus, the value of the firm equals 160. The figures given in the question were substituted in the formula. Cost of equity was not provided, therefore, it becomes the subject of the formula. The variables are defined as follows:

ke = Cost of equity = ?

kd = Cost of debt  = 6.4%

 E = Value of equity = 100

 D = Value of debt = 60

 V = Value of the firm ie E + D = 100 + 60 = 160

 T = Tax rate = 22% = 0.22

b. In this part of the question, only equity would be considered since we are calculating unlevered cost of equity. The part of the formula that deals with debt will be ignored.

c-1.  In this case, the debt-equity ratio is 2. Therefore, debt equals 2 while equity is 1. The value of the firm becomes 3. There is need to substitute these values in the original formula while other variables remain constant.

c-2. In this scenario, the debt-equity ratio is 1. Thus, equity is 1 and debt is also 1. The value of the company changes to 2. These new values would be substituted in the formula in order to obtain the new cost of equity.

c-3. since the debt-equity ratio is 0, therefore, the cost of equity equals 0.

Final answer:

a. The company's cost of equity capital is 8.6014%. b. The company's unlevered cost of equity capital is 5.8729%. c-1. If the debt-equity ratio were 2, the cost of equity would be 8.6788%. c-2. If the debt-equity ratio were 1.0, the cost of equity would be 8.8894%. c-3. If the debt-equity ratio were zero, the cost of equity would be 5.8729%.

Explanation:

a. The formula to calculate the cost of equity capital is: Cost of Equity = WACC - (Debt/Equity) * (WACC - Cost of Debt) * (1 - Tax Rate). So, by plugging in the given values, we get Cost of Equity = 9.1% - 0.6 * (9.1% - 6.4%) * (1 - 0.22) = 9.1% - 0.6 * 2.7% * 0.78 = 9.1% - 0.4986% = 8.6014%.

b. The unlevered cost of equity capital can be calculated using the formula: Unlevered Cost of Equity = Cost of Equity / (1 + (Debt/Equity) * (1 - Tax Rate)). So, by plugging in the given values, we get Unlevered Cost of Equity = 8.6014% / (1 + 0.6 * 0.78) = 8.6014% / 1.468 = 5.8729%.

c-1. If the debt-equity ratio were 2, the new cost of equity can be calculated using the same formula as in part a. By plugging in the new debt-equity ratio, we get Cost of Equity = 9.1% - 2 * (9.1% - 6.4%) * (1 - 0.22) = 9.1% - 2 * 2.7% * 0.78 = 9.1% - 0.4212% = 8.6788%.

c-2. If the debt-equity ratio were 1.0, the new cost of equity can be calculated using the same formula as in part a. By plugging in the new debt-equity ratio, we get Cost of Equity = 9.1% - 1.0 * (9.1% - 6.4%) * (1 - 0.22) = 9.1% - 1.0 * 2.7% * 0.78 = 9.1% - 0.2106% = 8.8894%.

c-3. If the debt-equity ratio were zero (meaning no debt), the new cost of equity would be the same as the unlevered cost of equity calculated in part b, which is 5.8729%.

Learn more about Cost of Equity Capital here:

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4. You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in inventory of $8700, an increase in accounts payables of $2300, and an increase in property, plant, and equipment of $48,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is ________.

Answers

Answer:

$6400

Explanation:

Working capital is the net of current asset and current liabilities. it is a financial measure that gives insight into how liquid a company is considering that it shows whether or not the current assets can be used to settle the current obligations or liabilities of the company adequately.

The change in property, plant, and equipment of $48,000 is not an element of working capital, Hence change in working capital

= $8700 - $2300

= $6400

At the beginning of the year, Ann and Becky own equally all of the stock of Whitman, Inc., an S corporation. Whitman generates a $120,000 loss for the year. On the 189th day of the year, Ann sells her half of the Whitman stock to her son, Scott. Becky's stock basis is $41,300 How much of the Whitman loss belongs to Ann and Becky? In your computations, round any divisions to four decimal places. Round the final answer to the nearest dollar. Assume a 365 day year. Ann's share of Whitman's loss is $_______ and Becky's share of the loss is $______ However,______ loss is limited to $__________.

Answers

Answer:

1. Share of Ann's Loss: $31,048

2. Share of Becky's Loss: $60,000

3. Maximum Loss Allowed: $41,300

Explanation:

The total loss for the year is $120,000 and both Ann and Becky own 50% each.

1. Share of Ann's Loss:

Ann had ownership of Whitman Inc. for 189 days which means the 50% of the total loss would be further lessened by 189/365 factor.

Mathematically:

Ann's Loss = $1,20,000 * 50% *  (189/365) = $31,048 Loss

2. Share of Becky's Loss:

This means that the share of loss for Becky would be = $120,000 * 50%

= $60,000

3. Maximum Loss Allowed:

As the stock basis is $41,300, hence the maximum loss for Becky would be $41,300.

Brody Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,030 units that were 75% completed. 10,000 units were started into the process during January. On January 31, the inventory consisted of 400 units that were 40% completed. What would be the equivalent units for conversion cost using the weighted average method

Answers

Answer:

Equivalent units for conversion cost is 10,790 units

Explanation:

Completed and Transferred (1,030 + 10,000 - 400) x 100 % = 10,630

Ending Work In Process 400 x 40%                                         =     160

Total  equivalent units for conversion cost                              = 10,790

The December 31, 2018, balance sheet of Whelan, Inc., showed $136,000 in the common stock account and $2,610,000 in the additional paid-in surplus account. The December 31, 2019, balance sheet showed $146,000 and $2,910,000 in the same two accounts, respectively. The company paid out $141,000 in cash dividends during 2019.Required:

What was the cash flow to stockholders for the year?

Answers

Answer:

$169,000 negative

Explanation:

Equity = Common stock + Additional paid in surplus

Total equity at beginning= Common stock + Additional paid in surplus

=136,000+2,610,000=$2,746,000

Total equity at end= Common stock + Additional paid in surplus

=146,000+2,910,00)=$3,056,000

Hence new equity = Total equity at End - Total equity at beginning

3,056,000-2,746,000=$310,000

Cash flow to stockholders = Dividends paid - New equity

= 141,000-310,000

= -169,000

=$169,000 negative