Why do capital investment decisions require consideration of the time value of money?
Capital investment decisions are long-term decisions and often involve large sums of money. Time value of money calculations are based on the fact that a dollar received today is worth more than a dollar received in the future. Therefore, capital investment decisions should take into account the present value of future cash flows in order to reflect that the passage of time affects the value of a dollar.
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Which of the following statements is true of target pricing?
A) It starts with the price that customers are willing to pay. B) It uses the full product cost that a company estimates to arrive at the sales price. C) It does not consider the nonmanufacturing costs when calculating the target cost. D) It is the same as cost-based pricing.
Describe the principles of adult learning theory (andragogy) and their implications for training design and delivery.
What will be an ideal response?
Slater Co. has very old computers and manufacturing equipment and knows it needs to upgrade them or risk losing much of its business. Slater does not have the money to purchase the computers, so it will most likely need
A. a short-term loan. B. to keep using the old computers. C. to deduct the cost from employees' salaries. D. long-term financing. E. to use increased cash flow from sales.
A company had the following stockholders' equity on January 1: Common Stock - $1 par value; 1,000,000 shares authorized, 350,000 shares issued and outstanding ……….$ 350,000Paid-in capital in excess of par value, common stock ……....700,000Retained earnings ……………………………………………364,000Total stockholders' equity ……………………………………$1,414,000On January 10, the company declared a 40% stock dividend to stockholders of record on January 25, to be distributed January 31. The market value of the stock on January 10 prior to the dividend was $20 per share. What is the book value per common share on February 1?
What will be an ideal response?