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Tatiana [17]
2 years ago
6

Paulo owns a few shares of stock in a large and diversified firm. He realizes that the CEO of the company is responsible for a m

ulti-billion dollar business, but is upset with what he feels is excessive compensation for the chief executive officer, particularly since the firm has reported losses for the past two years. Paulo's concerns are:
Business
1 answer:
Art [367]2 years ago
3 0

Answer: likely to be well-founded since CEO compensation at many U.S. companies has actually increased even when the company performed poorly

Explanation:

The options to the question are:

A. unfounded, since laws in the United States prevent firms from paying large salaries or bonuses to executives when a firm reports a loss.

B. based on an erroneous conclusion, because CEO pay is always based on a formula tied to the company's profits and losses.

C.likely to be well-founded since CEO compensation at many U.S. companies has actually increased even when the company performed poorly.

D. not entirely unfounded, but he needs to realize that the pay received by most chief executives must be reinvested in the company if it's unprofitable for three years in a row.

From the question, we are informed that Paulo owns a few shares of stock in a large and diversified firm na that he noticed that the CEO of the company is responsible for a multi-billion dollar business, but is upset with what he feels is excessive compensation for the CEO particularly since the firm has reported losses for the past two years.

Paulo's concerns are likely to be well-founded since CEO compensation at many U.S. companies has actually increased even when the company performed poorly.

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Patterson Company reported stockholders’ equity of $75,000 at the beginning of the year. During the year, the company recognized
fiasKO [112]

Answer:

stockholders equity at the end of the year is $95000

Explanation:

given data

equity = $75000

net income = $15000

additional investment = $10000

dividend = $5000

to find out

stockholders equity at the end of the year

solution

we will find here stockholders equity that is express as

stockholders equity = Net income + equity  - Dividends + Additional investment .....................1

put here value in equation 1 we get

stockholders equity = 15000 + 75000 - 5000 + 10000

stockholders equity = 95000

so stockholders equity at the end of the year is $95000

8 0
2 years ago
Jumbuck Exploration has a current stock price of $2.00 and is expected to sell for $2.10 in one year's time, immediately after i
fiasKO [112]

The equity cost of capital for the Jumbuck Exploration is 22%

Explanation:

Equity cost refers to the return offered to the customers in place of their investment in the organisation stocks. It is calculated by the formula

Rₐ = (D₁/P₀)+g

Where Rₐ= cost of equity

D₁= dividends announced

P₀=share price (current)

g= growth rate

Now given details-

Dividend announced (D₁)- $ 0.26

Current market price (P₀) - $ 2.00

Expected price= $ 2.10

growth rate= expected price- current price

growth rate (g) =$ 0.10

Putting the values to find Rₐ

Rₐ=(0.26/2.00)+0.10

Rₐ=0.23 or 23%

Nearest answer is 22%

Hence the equity cost of the capital is 22%

4 0
2 years ago
P2-2. The Golden Goals, a professional soccer team, prepares financial statements on a monthly basis. The soccer season begins i
disa [49]

Answer and Explanation:

The two adjusting entries are as follows:

On May 31

Rent expense ($1,200,000 ÷ 5 months) $240,000

       To Prepaid rent $240,000

(Being rent expense is recorded)

Here the rent expense is debited as it increased the expenses and credited the prepaid rent as it decreased the assets

On May 31

Unearned rent revenue Dr $148,800

       To Ticket revenue $148,800

(Being unearned revenue is recorded)

Here the unearned rent revenue is debited as it decreased the liability and credited the ticket revenue as it increased the revenue

5 0
1 year ago
Select the correct answer from each drop-down menu. Read the passage. What should Milo do? What customer service skills would he
ad-work [718]

Answer:

a. Milo should disclose all the information about the product

b. Milo is showing honesty about what the customers should expect about the product

Explanation:

a.

A customer service agent is someone who offers assistance to it's customers on behalf of the company. The agent covers issues like; answers questions about the product and guides the customers on how to use the product. Customer services has become more necessary in the recent past due to advancement in communication technology and high competition. Good customer service ensures that a company can retain and get more customers to purchase it's products. When more customers purchase a product, the sales also increase significantly. More sales translates to increased profits, which is the goal of most business organizations. Some of the customer service skills that can assist a company to achieve increased sales are;

1. Communication skills: a customer service has to be able to communicate clearly to the customers to ensure effective transfer of product information.

2. Good listening skills: they need to listen attentively and play keen attention to details to ensure that all the customer's needs are met. This enhances trust.

3. Knowledge about the product: a good agent has to have extensive knowledge about the product since customers will be expecting information about the product from the agents. An agent who seems to have little information about the product will definitely lose the customer's trust.

4. Honesty: the agent has to give the customer all the information about their product even if they will lose the customer. One needs to understand that lying to the customer in most cases takes the customers trust away. But being truthful about the product, might make one lose a customer at that moment but at least the customer will have some level of trust since the agent was honest.

In our case, Milo should disclose all the information about the cruise ship including the extra charges for bottled water. The couple might decline the offer on account of it being above their price range, but they will have some trust in Milo. This trust could make the couple interested in the cruise ship at another time when they can afford it. However, if Milo decides to keep the information away from them, the customers will feel cheated and will never trust Milo again. In this way, Milo loses the customers for life as opposed to losing the customers only once.

b.

In this case, Milo is showing honesty. By disclosing all the information about the product, Milo is being honest about what the product is going to offer and it's associated price. Honesty fosters trust in customers. When a customer fully trusts you, they would rather purchase your product at a slightly higher price than settle for a product whose qualities is not guaranteed.

8 0
2 years ago
Getting a college degree is a good idea because _____.
Aliun [14]
B. because having a degree could help you with money
5 0
2 years ago
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