The rate of return provided by a project. The value is compared with a company's rate of return to determine viability of a project.
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Which of the following statements about multinational corporations (MNCs) is true?
A) MNCs operate on a global scale with strong ties to the nation in which they were founded. B) MNCs are inherently unethical and always do harm in the countries in which they operate. C) MNCs are characterized by a global strategy of focusing on opportunities throughout the world. D) Most MNCs use licensing or franchising rather than opening up wholly owned subsidiaries in different countries. E) Because of their power, MNCs usually increase the standard of living within the countries in which they operate.
The first factor is ability.As the limits of a person's ability are approached,performance tends to level off.The second factor,goal commitment,refers to an individual's determination to reach a goal,regardless of whether the goal was set by that person or someone else.The third factor,feedback,provides information to the employee and others about outcomes and the degree of employee performance.The fourth factor is task complexity.For simple tasks,challenging goals lead directly to high performance.For complex tasks,effort does not lead directly to high performance.
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In the first chapter, it was stated that financial managers should act to maximize shareholder wealth. Why are the efficient markets hypothesis (EMH), the CAPM, and the SML so important in the accomplishment of this objective?
In simple terms, one could say that maximizing shareholder wealth by maximizing the current share price (File: Chapter 1) is a reasonable objective if and only if we have some assurance that observed prices are meaningful; i.e., that they reflect the value of the firm. This is a major implication of the EMH. Further, if we are to be able to assess the wealth effects of future decisions on security and firm values, we must have a valuation model whose parameters can be shown to be affected by those decisions (Chapters 7 & 8). Finally, any valuation model we employ will require us to quantify return and risk (Chapters 12 and 13).
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Heather owns a hair accessory company. She is looking to negotiate with her fabric supplier, which provides swimsuit material scraps, to reach a mutually beneficial agreement. Heather wants the supplier to consistently provide it with high-quality fabrics at a fair price within the allotted time frames. The fabric supplier would also be able to sell its otherwise unused scraps. The fabric supplier agrees and a formal contract is arranged. In the end, Heather has negotiated a long-term contract with the fabric supplier at a fair price, and the fabric supplier is guaranteed a new stream of business from Heather. Which type of bargaining does this scenario illustrate?
A) distributive bargaining B) competitive bargaining C) compromise bargaining D) integrative bargaining
Prior to liquidating their partnership, Samuel and Brian had capital accounts of $60,000 and $240,000, respectively. The partnership assets were sold for $120,000. The partnership had no liabilities. Samuel and Brian share income and losses equally.Required (a) Determine the amount of Samuel's deficiency. (b) Determine the amount distributed to Brian, assuming Samuel is unable to satisfy the deficiency.