how to calculate the existing wacc of all equity or unlevered firm?

Answers

Answer 1

The following formula can be used to calculate WACC.                                 WACC = Re * E/V + Rd * (1-T) * D/V    (   Where,     Re is the cost of equity, E is the market value of equity ,D is the market value of debt          , V is the total value of the firm ,  Rd is the cost of debt  ,  T is the corporate tax rate)

WACC (Weighted Average Cost of Capital) is the average cost of all of a company's capital sources, weighted by their relative importance in the company. It is used to evaluate investment options, including capital budgeting, stock analysis, and capital structure assessment. WACC can be calculated using a variety of methods, including All Equity or Unlevered Firm. The following are the steps to compute WACC of an all-equity or unlevered firm:                                          

 Step 1: Determine the risk-free rate of returnThe risk-free rate is the rate that an investor would anticipate on a risk-free investment. It is determined by the current yield on Treasury bills or bonds that are considered to be free of credit risk.            

 Step 2: Determine the expected return of the market.The expected return of the market is the return that an investor anticipates to receive from the overall market, which is frequently measured by the S&P 500. It is essential to identify the rate of return that is appropriate for the size of the company being evaluated.                                                                          Step 3: Determine the cost of equity. Determine the cost of equity by using the Capital Asset Pricing Model (CAPM). This formula will help you determine the cost of equity in order to include it in the WACC calculation. The formula is as follows:R = Rf + (Rm – Rf) β                              Step 4: Determine the WACC.All of the costs of a firm's capital sources are weighted in the WACC calculation. This includes the cost of equity as well as the cost of debt, among other things. The following formula can be used to calculate WACC.                                                                             WACC = Re * E/V + Rd * (1-T) * D/VWhere,Re is the cost of equityE is the market value of equityD is the market value of debtV is the total value of the firmRd is the cost of debtT is the corporate tax rate. Once you've calculated these four measures, you may plug in the values to calculate the all-equity WACC.

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Related Questions

Which two statements are characteristics of high-involvement purchases?.

Answers

The statements that depict high-involvement purchases include:

The purchase can reflect on one's social image. The purchase can have serious personal consequences.

What is a high involvement purchase?

A high involvement purchase simply means when a consumer buys a product that's expensive.

This poses a risk of emotional consequence when a mistake is made. The purchase can also reflect on one's social image and have personal consequences.

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PLEASE HELP RIGHT NOW
GIVING BRAINLESS!!!!!ONLY IF YOU HELP​

PLEASE HELP RIGHT NOWGIVING BRAINLESS!!!!!ONLY IF YOU HELP

Answers

Answer:

1)Flexible hours

2)Redistribution

3)Link

4)foundation

5)Nache

The long-run market supply curve Group of answer choices is always more elastic than the short-run market supply curve. is always less elastic than the short-run market supply curve. has the same elasticity as the short-run market supply curve. is always perfectly elastic.

Answers

The long-run market supply curve is always more elastic than the short-run market supply curve.

This is because in the long run, firms have more time to adjust their production levels and make changes to their inputs and processes, leading to a greater ability to respond to changes in market demand. In the short run, however, firms are more constrained by their fixed inputs, such as capital and labor, which limits their ability to adjust production levels.

As a result, changes in market demand in the short run have a greater impact on price and quantity supplied, making the short-run supply curve less elastic.

It's important to note that while the long-run market supply curve is more elastic, it is not always perfectly elastic. There may still be limits to a firm's ability to adjust production levels and respond to changes in demand, such as resource constraints or technological limitations.

Overall, understanding the elasticity of market supply curves is crucial in predicting how changes in market demand will affect price and quantity supplied in both the short and long run.

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can someone help with this?

can someone help with this?

Answers

Answer:

profit

Explanation:

Answer:

profit

Explanation:

Given the Iris flower dataset, reduce the features via a classifier. You can use linear discriminant analysis (LDA).

Answers

LDA is a dimensionality reduction technique that maximizes class separability. It transforms the data to a lower-dimensional space while preserving class information.

By applying LDA to the Iris flower dataset, we can reduce the features while retaining the discriminative power between different classes of flowers.

In LDA, we compute the mean vectors and scatter matrices for each class. Then, we calculate the between-class scatter matrix and within-class scatter matrix. Finally, we find the eigenvectors corresponding to the largest eigenvalues of the generalized eigenvalue problem to obtain the transformation matrix. Applying this matrix to the data reduces the feature dimensionality while maintaining class discriminability.

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What are some jobs you can get before 16?​

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Answer:

Babysitting.

You can work at a lot of places, normal jobs, you're just required to takes breaks because you're a minor. You really just have to check with businesses in your area and see where you can work.

My friends work at a pizza place in our town, they were all under 16 when they started working there.

Explanation:

A parcel of corporate land was recently dedicated as the new plant site. What is the opportunity cost of land that should be considered, based on the following: original cost of $200,000, market value of $300,000, net book value of $200,000, a recent offer to purchase for $250,000.

Answers

Answer: $300,000

Explanation:

Opportunity cost is the value of the best available to you .An opportunity cost is mostly equal to the current market value.

Given, original cost of $200,000, market value of $300,000, net book value of $200,000, a recent offer to purchase for $250,000.

Highest value = market value =  $300,000

Hence, the opportunity cost of land that should be considered as $300,000.

Choose a country other than the United States— maybe a country you would like to visit someday, or a country that speaks a language you have learned or that someone you know speaks.
Respond to the following:

1.Research the real GDP per capita of that country and compare it to the real GDP per capita of the United States.
2.Explain how the costs of production and the standard of living for residents of the two countries might be different based on the different values for real GDP per capita.

Answers

The comparison that would be made here is the Real GDP of the United States and that of Ni/geria per capita in the year 2021. The US has the real GDP per capita as 69,287.54 USD, while Ni/geria has theirs as 2,085.03 USD.

The cost of production is low in USA nd high in Ni/geria

The standard of living is high in USA and very low in Ni/geria

The standards of living in these nations

From the figure that we have here, even though the figure for Ni/geria is a bit exaggerated, I would say that the United States has been able to create a system where the people have a better standard of living by creating all of the means that businesses would thrive.

The cost of production in the USA would be lower and the standard of living would be high obviously.

In Nigeria, the cost of production id high and the standard of living is very low for the people

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Morganton Company makes one product and it provided the following information to help prepare the master budget: The budgeted selling price per unit is $70. Budgeted unit sales for June, July, August, and September are 8,200, 13,000, 15,000, and 16,000 units, respectively. All sales are on credit. Thirty percent of credit sales are collected in the month of the sale and 70% in the following month. The ending finished goods inventory equals 20% of the following month’s unit sales. The ending raw materials inventory equals 10% of the following month’s raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $2.50 per pound. Thirty percent of raw materials purchases are paid for in the month of purchase and 70% in the following month. The direct labor wage rate is $14 per hour. Each unit of finished goods requires two direct labor-hours. The variable selling and administrative expense per unit sold is $1.40. The fixed selling and administrative expense per month is $63,000. 5. If 76,000 pounds of raw materials are needed to meet production in August, how many pounds of raw materials should be purchased in July?

Answers

July:

Raw materials needed for July production = 8,200 units x 5 lbs/unit = 41,000 lbs

Ending raw materials inventory = 10% of August production needs = 10% x 76,000 lbs = 7,600 lbs

Total raw materials needed in July = 41,000 + 7,600 = 48,600 lbs

Purchases in July = 48,600 - 41,000 (raw materials needed for July production) = 7,600 lbs

"Monetary policy can be described either in terms of the money supply or in terms of the interest rate." This statement amounts to the assertion that a. the activities of the Federal Reserve’s bond traders are irrelevant if the Federal Reserve decides to target an interest rate. b. our analysis of monetary policy is not fundamentally altered if the Federal Reserve decides to target an interest rate. c. changes in monetary policy aimed at expanding aggregate demand can be described either as increasing the money supply or as increasing the interest rate. d. rightward shifts of the money-supply curve cannot occur if the Federal Reserve decides to target an interest rate.

Answers

Answer:

b

Explanation:

The monetary policy is not fundamently altered

Salt foods purchases forty $1,000, 7%, 10-year bonds issued by pretzelmania, incorporated, for $37,282 on january 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt foods receives interest semiannually on june 30 and december 31.

Answers

The market interest rate for bonds of similar risk and maturity is 8%. Salt foods receives interest semiannually on june 30 and December 31. The appropriate journal entry is: Debit Investment $37,282, Credit Cash $37,282.

How to prepare the journal entry?

a. Debit Investment $37,282

Credit Cash $37,282

(To record the purchase of bonds)

b. Debit Cash $1,400

[($1,000 × $40) × 0.07 × 6 ÷ 12)]

Credit Investment  $91

Credit Interest revenue

($37,282 ×8% × 6 ÷ 12) $1,491

(To record semi- annual interest revenue)

Therefore the entry is the appropriate journal entry is: Debit Investment $37,282, Credit Cash $37,282.

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The complete question is:

Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on January 1. The market interest rate for bonds of similar risk and maturity is 8%. Salt Foods receives interest semiannually on June 30 and December 31.

Record the investment in bonds.2. Record receipt of the first interest payment on June 30.

1/The process of ethical decision-making or ethical algorithm typically begins with: Select one: a. identifying which stakeholders a decision would affect and in what ways. b. judging the ethics of the proposed strategic decision. c. managers establishing a moral intent. d. auditing a decision to check for its consistency with ethical principles. e. reviewing a decision to check for its consistency with Rawls�s veil of ignoran

Answers

The process of ethical decision-making involves a systematic approach to evaluating and making decisions based on ethical principles. The first step in this process is typically identifying which stakeholders a decision would affect and in what ways. The correct option is option a.

When faced with an ethical dilemma, it is essential to consider the potential impact of the decision on various stakeholders. This step involves identifying the individuals, groups, or entities who may be influenced or affected by the decision and understanding how their interests, rights, and well-being might be impacted.

By considering the stakeholders and their interests, one can gain a clearer understanding of the ethical implications of the decision and make a more informed judgment.

Once the stakeholders and their interests are identified, the decision-maker can proceed to evaluate the ethical aspects of the proposed decision, establish a moral intent, audit the decision for consistency with ethical principles, or review it for consistency with philosophical frameworks such as Rawls's veil of ignorance.

However, these subsequent steps can only be effectively undertaken after considering the stakeholders and their potential impact, making option a the initial step in the ethical decision-making process.

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Can anyone help me?
Saving money allows u to set more aside in a(n) ____ fund

Emergency
Bond
Exchange

Can anyone help me? Saving money allows u to set more aside in a(n) ____ fund Emergency BondExchange

Answers

Answer:

Saving money allows you to set more aside in an Emergency fund.

It’s a good idea to use a _____ to track your job hunting efforts.


map

scrapbook

journal

calendar

Answers

answer is journallll

A limited liability company is created through filing the ________ with a state official.

Answers

The formation of a limited liability company is accomplished by filing the limited liability company (with a state official.

A limited liability company is a corporate structure that protects its owners from being personally sued for repayment of the company's debts or liabilities (LLC).

How we form an LLC?

Although the rules for LLCs differ per state, there are some broad similarities. The first step for owners or members is to pick a name.Articles of incorporation are filed, together with a fee paid to the state. After that, the articles of incorporation can be recorded and filed with the state. These articles define each LLC member's rights, responsibilities, powers, liabilities, and other obligations. The paperwork also include the names and addresses of the LLC's members, the name of the registered agent, and the company statement of purpose.

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Chris is about to give a speech on social media marketing to a room of professional marketers. How can he enhance his credibility?.

Answers

A way that Chris can enhance his credibility on the speech on social media marketing is to:

Point out the marketing challenges that he and the audience share when doing their jobs.Speak passionately on the subjectTell the audience about his background and experience concerning social media marketing.

What is social media marketing?

This is a branch of marketing that has to do with the use of the social media to create awareness for the services and the products of a business.

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Which model argues that economic growth relies on consumption trends? -Keynesian economics -Discretionary spending -Mandatory spending -Smithian economics

Answers

Keynesian economics model argues that economic growth relies on consumption trends. It argues that government intervention is necessary to ensure stable economic growth and full employment. The answer is A- Keynesian economics.

Keynesian economics is an economic theory that argues that government intervention is necessary to ensure stable economic growth and full employment. One of the key principles of Keynesian economics is the concept of aggregate demand, which is the total demand for goods and services in an economy.

According to Keynesian economics, economic growth relies on consumption trends. In other words, when people spend money, this stimulates economic growth. The theory is that by increasing demand for goods and services, businesses will have to produce more, leading to economic growth and increased employment.

Keynesian economics suggests that in times of economic recession or depression, the government should intervene by increasing spending to stimulate demand and create jobs. This can be done through government investments in infrastructure, education, and other public services.

Additionally, Keynesian economics proposes the use of monetary policy, such as adjusting interest rates, to control inflation and stabilize the economy. In contrast to Keynesian economics, Smithian economics emphasizes free markets and individual self-interest as the key drivers of economic growth.

Smithian economics argues that government intervention in the economy should be minimal and that the market should be allowed to regulate itself.

In summary, Keynesian economics argues that economic growth relies on consumption trends and that government intervention is necessary to ensure stable economic growth and full employment.

This stands in contrast to Smithian economics, which emphasizes free markets and minimal government intervention. Thus, the correct answer is A- Keynesian economics.

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a father and his son are shareholders in a public liability company.The father invest 4× as much as his son ,if there investment amount up to ¢9600 at ¢2 per share,find the total number of shares each has in a company​

Answers

The number of total shares that the father and son have in the company is :

Father - 3, 840 sharesSon - 960 shares

How to find the total shares ?

First, find the total number of shares that the father and son own together in the company :

= Value of shares / Price of one share

= 9, 600 / 2

= 4, 800 shares

The Father invested 4 times as much as the son which means the Son's investment is:

= 4, 800 / 5

= 960 shares

Which leaves the father's as :

= 960 x 4

= 3, 840 shares

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The firm wants to maximize its profits over 0 to T period and the mine is worth nothing after the firm ceases operations. a) set up the firm's optimization problem, F.O.C and derive the hotelling efficiency condition .b) interpretation results in a). c) drwa an appropriate phase diagram which will show the solution to the above depletion model. Explain how each phase can be a solution. d) shos the effect of increasing known stock size on

Answers

Firm’s optimization problem can be expressed as follows:Maximize P(Q)t-bQ(t), with respect to Q(t),Where P(Q) is the market price of ore and b represents extraction cost.The first-order condition of the problem is:d[P(Q)t-bQ(t)]/dQ(t) = 0,which simplifies toP'(Q)t=b, which is the first-order condition for the profit-maximization of the firm.

In the depletion model, the firm's aim is to maximize profits over the 0 to T period, as the mine is of no value after the firm ceases operations. The problem can be optimized through the following:Firm's optimization problem: Maximize P(Q)t-bQ(t), with respect to Q(t), where P(Q) is the market price of ore, and b represents the extraction cost. The first-order condition of the problem is d[P(Q)t-bQ(t)]/dQ(t) = 0, which simplifies to P'(Q)t=b, which is the first-order condition for the profit-maximization of the firm.

The hotelling efficiency condition can be derived as dQ/dP=-1/ε.The first-order condition, P'(Q)t=b, specifies that the firm should increase the rate of extraction if the price of ore increases. The hotelling efficiency condition specifies that the rate of extraction will increase as the price of the commodity increases. However, this cannot continue indefinitely since the total quantity of ore in the mine is limited. Therefore, the extraction rate must eventually reach zero as the mine becomes depleted.

The appropriate phase diagram has three different phases, depending on the location of the intersection point. Phase 1, where the initial stock is low, represents a low level of extraction initially, followed by a steady increase as the stock decreases. Phase 2, where the initial stock is medium, represents a high level of extraction initially, followed by a steady decrease as the stock decreases. Phase 3, where the initial stock is high, represents a high level of extraction initially, followed by a steady increase as the stock decreases.

Therefore, the firm's optimization problem can be solved through the first-order condition and the hotelling efficiency condition. The optimal extraction rate depends on the rate of interest and the price of the commodity. A phase diagram can be used to determine the optimal extraction policy for different initial stock sizes. An increase in the known stock size can lead to an increase in the initial extraction rate in phase 2.

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which of the following statements is true about the relationship between business processes and information systems? group of answer choices information systems incorporate all business process activities and hence, should be developed before business processes. the relationship between business processes and information systems is one-to-one. developing information systems before business processes ensures that all activities are considered in the development process. a business process need not relate to any information system, but an information system relates to at least one business process.

Answers

A business process need not relate to any information system, but an information system relates to at least one business process, this statements is true about the relationship between business processes and information systems.

A business process is a logically related sequence of actions that specify how particular business tasks are carried out. It is a distinctive method of coordinating work, information, and knowledge inside an organization. Business processes are important for managers to be aware of since they affect how well a firm can conduct its operations and could provide a competitive edge. Each of the main business functions has its own unique business processes, but many of them are cross-functional. Information systems assist firms restructure and streamline business operations by automating certain of these procedures.

The official organizational division in charge of information technology services is the information systems department. It is in charge of maintaining the networks, data storage, hardware, and software that make up the company's IT infrastructure. The department is often led by a CIO and is made up of professionals including programmers, systems analysts, project managers, and information systems managers.

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Explain the difference between co-signing, a joint account, and an authorized user.

Answers

Answer:

Co-signing, a joint account, and an authorized user are all ways in which multiple people can be involved in managing a single account, but they have some key differences.

Co-signing refers to when two or more people are responsible for repaying a loan or debt. The co-signer is not the primary borrower, but they are responsible for the debt if the primary borrower fails to make payments. Co-signing is commonly used when the primary borrower has little credit history or a low credit score and needs someone with a better credit profile to co-sign in order to get the loan.

A joint account is a bank or credit account that is owned by two or more people. Each person has full access to the account and can make deposits or withdrawals, write checks, and make purchases. Joint accounts are commonly used by married couples or partners, but can also be used by business partners or family members.

An authorized user is someone who is added to a credit card account by the primary cardholder. The authorized user can use the card to make purchases, but they are not responsible for repaying the debt. The primary cardholder is responsible for all the charges on the card. Authorized users are commonly used to help a person who has no credit or poor credit to establish a credit history, or as a convenience for a parent or partner.

In a nutshell:

Co-signing: A Co-signer guarantees the debt but not a full access.

Joint account: Both have full access and are responsible for the debt

Authorized user: Has access to the account but only primary user is responsible for the debt.

When it comes to the management of finances or funds in an organization there are various solutions accessible, each with its own set of benefits and drawbacks based on which selection is made.

What is an authorized user?

When is someone who has been granted authorization to use a credit card or bank account but is not liable for the debt or the funds in the account is called an authorized user.

A joint account is a bank account shared by two or more people. Each account holder has identical access to the account's funds and is accountable for its management.

A co-signer is someone who agrees to be liable for the loan if the primary borrower is unable to pay it back. Borrowers with a limited credit history or a history of loan defaults often choose this option.

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Which of these statements about a business plan is true?

A. Businesses do not need to document a business plan.
B. Established businesses do not create a business plan.
C. A business plan is a business’s roadmap for the future.
D. A business plan guarantees a business’s success.​

Answers

Answer:

The correct answer would be option C, A business plan is a business's road map for the future.

Explanation:

A business plan is basically a written document, in which the goals of the company are written down. The methods to achieve those goals are also written down and the time to achieve the goals are specified. Goals with timelines and deadline are written. This helps a business in setting up a road map to move towards the set goals of the company. Established businesses always create and follow business plans as business plans guarantee a business's success.

Answer: C. A business plan is a business’s roadmap for the future.

true or false: a company may record an asset called goodwill if it has developed a brand new product.

Answers

False. Goodwill is an intangible asset that represents the value of a company's reputation, brand, and customer relationships. It is not directly related to the development of a new product.

False. A company may not record an asset called goodwill if it has developed a brand-new product.

What is goodwill?

Goodwill is an intangible asset that represents the excess of the purchase price over the fair value of the identifiable assets and liabilities of the acquired business. When a company acquires another business, goodwill arises. Goodwill can arise when a business is purchased for more than its book value, resulting in a premium over the fair market value of its net assets. It is classified as an intangible asset that represents the value of a company's brand name, customer relations, patents, proprietary technology, or any other identifiable intangible asset not individually recognized.This means that goodwill cannot arise solely from the development of a new product. Instead, it is a result of acquiring an existing business at a premium over its net assets. Therefore, the statement "A company may record an asset called goodwill if it has developed a brand new product" is false.

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A flexible budget performance report indicates a sales variance of $200 unfavorable. the variance was likely caused by:_____.

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A flexible budget performance report indicates a sales variance of $200 unfavorable, the variance was likely caused by using more materials than expected to produce each unit .

Favorable sales variances arise while actual sales are extra than predicted income. negative income variances occur when real income are less than expected sales. The differences among the flexible finances and the static planning budget are interest variances. The differences between the real results and the flexible finances are the sales and spending variances.

The flexible price range variance for revenues is known as the selling rate variance as it arises only from the difference between the actual promoting price and the budgeted promoting fee. If revenues have been higher than anticipated, or charges have been decrease, the variance is favorable. If revenues were lower than budgeted or charges were better, the variance is unfavorable.

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Answer:

selling units for less than the budgeted price

Explanation:

Navel County Choppers, Inc., is experiencing rapid growth. The company expects dividends to grow at 19 percent per year for the next 8 years before leveling off at 5 percent into perpetuity. The required return on the company’s stock is 10 percent. If the dividend per share just paid was $1.52, what is the stock price?

Answers

Answer:

Price of stock = $74.636

Explanation:

The Dividend Valuation Model is a technique used to value the worth of an asset. According to this model, the worth of an asset is the sum of the present values of its future cash flows discounted at the required rate of return.  

The price of the stock will the sum of the present value of the growing annuity and the growing perpetuity

Present value of dividend  from year 1 to 8

The PV of the growing annuity  = A/r-g) ( 1- (1+g)/(1+r)^n   )

A- dividend payable now , r- required of return, g-growth rate, number of years

PV  = 1.52×(1.19)/(0.1-0.19) × (1 -(1.19/1.1)^8)= 17.605

PV of Dividend from year 9 and beyond:

P = D× g/(r-g)

This will be done in two steps:

Step 1: PV(in year 8)of dividend = (1.52× 1.19^8× 1.05)/(0.1-0.05)= 122.250

Step 2 : PV in year 0 = 122.25× 1.1^(-8)= 57.030

Price of stock = 17.60 +  57.030= 74.63

Price of stock = $74.636

Unlike for-profit organizations, operating non-profit organizations is more challenging because ____. unlike for-profit organizations, operating non-profit organizations is more challenging because ____. nonprofits are government-based nonprofits need to network with charities nonprofits need more funds the cost of operating nonprofits is greater than their revenue nonprofits need to meet a set of objectives while maintaining steady revenue

Answers

Answer:

Explanation:

need more funds i think

A ______ organization is defined as one with an organizational structure with few or no levels of middle management between top managers and those reporting to them.

Answers

A flat organization is defined as one with an organizational structure with few or no levels of middle management between top managers and those reporting to them.

An organization with few or no levels of middle management between top managers and those reporting to them is defined as a "flat" organization.  In a flat organization, there is a reduced hierarchy, which encourages open communication, faster decision-making, and increased employee empowerment. This type of structure is typically found in small to medium-sized companies or startups where communication flows more easily between top management and employees. The lack of middle management allows for quicker decision-making and a more agile response to changes in the market. However, this type of structure may lead to a lack of career growth opportunities for employees and may result in top managers being overwhelmed with day-to-day tasks.
In contrast to a hierarchical organization, a flat organization promotes collaboration, innovation, and a more efficient flow of information, making it an attractive option for certain businesses or industries.

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What is one way a person can increase the wages he or she expects to
earn?
O A. By advocating against minimum wage regulations
B. By deciding not to get a high level of education
C. By choosing a job with a high market value
O D. By reducing overall productivity in a year

What is one way a person can increase the wages he or she expects toearn?O A. By advocating against minimum

Answers

Answer:

C. By choosing a job with a high market value

Explanation:

Wage is the price for labor services provided. Like any other commodity, the price of labor is influenced by demand and supply. Certain jobs offer better wages than others. To increase the chances of better pay, one has to select their job carefully.

Conducting market research about jobs is a good starting point.  Before negotiating for wages, one should know the market rates for that job. Again, one should acquire skills that employers require. There are high chances that an employer will pay wages above market rates if they find a skill they desperately need.

Veronica was hosting a party for her pals but forgot to warn them that the far end of her deck had rotted and
was in drastic need of repair. Her friend Craig decided to admire the city skyline from the far end of her deck
and headed that way. The other guests heard a loud exclamation as Craig fell through the deck. Veronica is
liable to Craig under
fraud
O strict liability
battery
O negligence

Answers

Answer:

strict liability

Explanation:

just took the test

Anne, a manager at Punst, increases the salary of Susan, one of her employees, by 30 percent because she likes Susan. But for the other employees, she increases the salary by only 20 percent regardless of their performance. In this scenario, Anne's behavior is unethical as it violates the criterion of:

Answers

By increasing Susan's salary by a higher percentage solely because she likes her, Anne demonstrates favoritism and discrimination, which goes against the principles of equitable treatment in the workplace.

Fairness is a fundamental ethical principle that should guide decision-making in organizations. It involves treating all employees equally and impartially, considering their performance, qualifications, and contributions. Anne's decision to grant Susan a larger salary increase based solely on personal preference undermines the fair and just treatment of other employees. It creates an unfair advantage for Susan and disregards the principle of meritocracy, where rewards and promotions should be based on objective criteria and performance evaluations.

In summary, Anne's behavior violates the ethical criterion of fairness and impartiality. By giving preferential treatment to Susan in the form of a larger salary increase, solely because she likes her, Anne undermines the principle of equitable treatment and fairness in the workplace. Such actions erode employee trust, demotivate other employees, and can lead to a toxic work environment. Ethical managers should strive to make decisions based on objective criteria and merit, ensuring fairness and equality among their employees.

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