Answer:
$36
Explanation:
Computation for comparable firm 1
Price earning = Share price / Earning per share
= $50 / 5 = $10
Computation for comparable firm 2
Price earning = Share price / Earning per share
= $28 / 2 = $14
Average price earning = (Price earning of firm 1 + Price earning of firm 2) / 2
= ($10 + $14) / 2
= $12
Computation of stock price For STU
Stock price = Average price earning × Earning per share of STU
STU = 12 × ($3 million / $1 million) = $36
Answer and Explanation:
A good number of problems usually arise with outsourcing from outside the country.
1. Different laws and regulations: this is one if not the greatest impediments to outsourcing staff for a business. The legal and tax implications of outsourcing to a different country creates the need to make sure business processes align with the legal frameworks or laws in these regions.
2. Language barriers: this aspect considers the challenges of communication when utilizing BPO services. There is the need for clear communication using US English from the example. Example outsourcing to an Asian country where English is somewhat a rarity.
3. There is also the need for increased data protection, privacy and security measures as there is more exposure to data breaches with this form of outsourcing.
4. However overall outsourcing makes available cheaper labour as well as more competent hands as is this case with US and China
Answer:
Innovative change
Explanation:
Innovation means change, hopefully a change for better. When a company decides to innovate its processes it means that it is trying to improve existing processes to make them more effective and more productive. In this particular case by starting to work weekend shifts they are trying to offer a better service.
Answer:
The amount of cash Carmen’s Dress Delivery expects to collect from accounts receivable during January is $299,000
Explanation:
The computation of the cash collection is shown below:
= Sales × remaining percentage + opening balance of accounts receivable - ending balance of accounts receivable
= $400,000 × 0.70 + $60,000 - $41,000
= $280,000 + $60,000 - $41,000
= $299,000
The remaining percentage equal to
= Percentage - drop percentage
= 100% - 30%
= 70%
Answer:
42 days
Explanation:
Given that
Inventory conversion period = 50 days
Average collection period = 17 days
Payable deferral period = 25 days
Now The computation of the cash conversion cycle is shown below:
The cash conversion cycle = Inventory conversion period + Average collection period - Payable deferral period
= 50 days + 17 days - 25 days
= 42 days
