Answer:
488.88
Explanation:
In finance, a forward contract or simply a forward is a non-standardized contract between two parties to buy or sell an asset at a specified future time at a price agreed on at the time of conclusion of the contract, making it a type of derivative instrument.
DATA
Interest rate = e = 3%
time = 9 months
F1 = 1,2
F0 = 1.25
euro to purchase = 10,000
The present value of this forward contract to this investor = (F1 - F0) x Euro to be purchased x e-r x t
The present value of this forward contract to this investor = USD (1.20 - 1.25) per Euro x 10,000 x 3% x 9/12
The present value of this forward contract to this investor = USD (1.20 - 1.25) x 10,000 x 3% x 9/12
The present value of this forward contract to this investor = - USD 488.88
What is the amount of Byron’s deduction assuming that he had purchased the stock for $10,500 last year on August 7, and the stock had a fair market value of $13,800 when he made the donation?
Answer: $10500
Explanation:
In a situation whereby an ordinary income property is being contributed for charitable purpose such as in the case of Bryon in the question, the deduction will be limited to the adjusted basis of the stock purchased.
The stock hasn't met the requirement for long term capital gain as it's for a short period and also less than a year. Assuming the stock was sold at that particular time the donation was made, he'll have made a gain of ($13,800 - #10,500 = $3,300).
Based on the above explanation, Byron’s charitable contribution deduction will then be:
= $13,800 – $3,300
= $10,500
A bond with a face value of $1,000 matures in 12 years and has a 11% semiannual coupon. The bond has a current yield of 8%. Based on the information, you would expect the bond price to _____________ in one year. (Hint: Find bond price and YTM) Select one: a. Decrease by 1.54% b. Increase by 1.45% c. Decrease by 0.77% d. Decrease by 5.68% e. Increase by 0.77%
Answer:
a. Decrease by 1.54%
Explanation:
The computation fo the change in the price in one year is shown below:
The bond price is
= $1,000 × 11% ÷ 0.08
= $1,375
Now the YTM is
Given that
Par value = $1,000
PMT = $1,000 × 11% ÷ 2 = $55
NPER = 12 × 2 = 24
PV = $1,375
The formula is shown below:
= RATE(NPER;PMT;-PV;FV;TYPE)
AFfter applying the above formula, the rate is
= 3.2304% × 2
= 6.46%
And, the current yield is 8%
So, there is a decrease of
= 6.46% - 8%
= 1.54%
Hence, the first option is correct
Vanilla Bean Restaurant is considering a project with an initial cost of $525,000. The project will not produce any cash flows for the first three years. Starting in year 4, the project will produce cash inflows of $721,000 a year for three years. This project is risky, so the firm has assigned it a discount rate of 16 percent. What is the project's net present value
Answer:
Vanilla Bean Restaurant
The project's net present value (NPV) is:
$511,798
Explanation:
a) Data and Calculations:
Initial project cost = $525,000 in year 1
Project's inflows in Year 4, 5, & 6 = $721,000 each
Discount rate = 16%
Present value of inflows:
Year 4 = $721,000 * 0.552 = $397,992
Year 5 = $721,000 * 0.476 = $343,196
Year 6 = $721,000 * 0.410 = $295,610
Total present value = $1,036,798
Therefore, the NPV = $511,798 ($1,036,798 - $525,000). The present value is the difference between the present value of the project's cash inflows and the present value of project's cash outflows during the project's life.
. What is meant by international competitiveness? How does this concept apply to a firm, an industry, and a nation?
Answer: International competitiveness compares the economy at the national, firm and regional levels.
Explanation:
International competitiveness at the national level measures the degree to which a country can observe the free and fair market conditions and expand the income of the citizens.
International competitiveness at the firm level is the ability of the firm and industry is to concentrate their strength to compete with other firms or industries in the international market.
On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $4,200 Net sales: $71,000 Net purchases: $69,000 The company's gross margin ratio is 25%. Using the gross profit method, the estimated ending inventory value would be:
Answer:
$19,950
Explanation:
The formula for determining the estimated ending inventory value is given below:
estimated ending inventory value=cost of goods available for sale -cost of goods sold
cost of goods available for sale=beginning inventory+purchases
cost of goods available for sale=$4,200+$69,000=$73200
Cost of goods sold=net sales-(net sales*gross margin)
Cost of goods sold=$71000-($71000*25%)=$53250
estimated ending inventory value=$73200 -$53250 =$19,950
Mary wants to invest her recent bonus in an 12-year, 8 percent coupon bond that pays semiannual coupon payments. The bonds are selling at $1,043.24 today. If she buys this bond and holds it to maturity, what would be her yield-to-maturity
Answer:
7.48%
Explanation:
yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]
yield to maturity = {40 + [(1,000 - 1,043.24)/24]} / [(1,000 + 1,043.24)/2] = 38.2 / 1,021.62 = 0.03739 x 2 = 0.07478 x 100 = 7.48%
whenever you purchase a bond at a premium (price higher than face value), the yield to maturity will be lower than the coupon rate
You own a fixed income asset with a MaCaulay duration of 5 years. If the level of required yields, which is currently at 8%, goes down by 0.10%, how much do you expect the price of the asset to change (in
Answer:
The price of the asset to change (in percentage ) is 0.463%
Explanation:
As per given data
Duration = 5 years
Chnage in the yield rate = -0.10%
Price of the asset change can be calculated using following formula
Percentage price change = -Duration x [tex]\frac{Change in the yield rate}{( 1 + Yield rate)}[/tex]
Placing values in the formula
Percentage price change = -5 years x [tex]\frac{-0.0010}{( 1 + 0.8)}[/tex]
Percentage price change = 0.00463
Percentage price change = 0.463%
The first edition hardcover of a new book by a popular writer has a demand which is uniformly distributed between 1 and 2 million. The production and transportation costs per hardcover are $10, and the sale price in bookstores is $25. When the paperback version comes out, the hardcover books go on sale for $5. How many hardcovers should be produced
Answer: 1,750,000
Explanation:
From the question, the cost per unit for the underestimated demand is given as: $25 - $10 = $15; while for the overestimated demand is given as $5.
The probability of optimal production will be calculated as:
= 15/(15+5)
= 15/20
= 3/4
= 0.75
The optimal production will then be:
= (2,000,000 - 1,000,000) × 0.75 + 1,000,000
= (1,000,000 × 0.75) + 1,000,000
= 750,000 + 1,000,000
= 1,750,000
The number of hardcovers produced is 1,750,000
Assume that two units are sold on May 23 for $313 total. Determine the gross profit for May and ending inventory on May 31 using (a) FIFO, (b) LIFO, and (c) weighted average cost methods.
Answer:
(a) Gross profit for May = $360; and Ending inventory on May 31 = $142
(b) Gross profit for May = $348; and Ending inventory on May 31 = $130
(c) Gross profit for May = $354; and Ending inventory on May 31 = $136
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Three identical units of merchandise were purchased during May, as follows:
Date Magnesium XP Units Cost
May 3 Purchase 1 $130
10 Purchase 1 136
19 Purchase 1 142
Total 3 $408
Assume that two units are sold on May 23 for $313 total. Determine the gross profit for May and ending inventory on May 31 using (a) FIFO, (b) LIFO, and (c) average cost methods. The perpetual inventory method is used.
The explanation to the answer is now given as follows:
(a) Determine the gross profit for May and ending inventory on May 31 using FIFO.
First In First Out (FIFO) refers to the inventory method under which the inventory purchased first is sold first.
Based on the above, we have:
Cost of goods sold = Cost of May 3 Purchases + Cost of May 10 Purchases = (1 * $130) + (1 * $136) = $130 + $136 = $266
Sales revenue = Units sold * Price per unit = 2 * $313 = $626
Gross profit for May = Sales revenue - Cost of goods sold = $626 - $266 = $360
Ending inventory on May 31 = Cost of May 19 Purchases = 1 * $142 = $142
(b) Determine the gross profit for May and ending inventory on May 31 using LIFO.
Last In First Out (FIFO) refers to the inventory method under which the inventory purchased last is sold first.
Based on the above, we have:
Cost of goods sold = Cost of May 19 Purchases + Cost of May 10 Purchases = (1 * $142) + (1 * $136) = $142 + $136 = $278
Sales revenue = Units sold * Price per unit = 2 * $313 = $626
Gross profit for May = Sales revenue - Cost of goods sold = $626 - $278 = $348
Ending inventory on May 31 = Cost of May 3 Purchases = 1 * $130 = $130
(c) Determine the gross profit for May and ending inventory on May 31 using average cost method.
Average cost method can be described as an inventory costing technique under which the average cost per unit is obtained by dividing the total cost of the goods available for sale by the total number of units available for sales.
Based on the above, we have:
Average cost per unit = $408 / 3 = $136
Cost of goods sold = Average cost per unit * Units sold = $136 * 2 = $272
Sales revenue = Units sold * Price per unit = 2 * $313 = $626
Gross profit for May = Sales revenue - Cost of goods sold = $626 - $272 = $354
Ending inventory on May 31 = Average cost per unit * Units remaining unsold = $136 * 1 = $136
Which of the following editors would handle a copyright issue?
a: managing editor
b: assignment editor
c: macro editor
d: micro editor
Answer:
Managing Editor
Explanation:
Im a smart boy
Answer:
a
Explanation:
Novak Imports is a merchandising Firm. Last year they reported sales of $677000 and cost of goods sold of $405100. The company's total variable selling and administrative expense was $60750, and fixed selling and administrative expense was $54350. The total contribution margin for the firm is:
Answer:
Contribution margin = $211,150
Contribution margin ratio = 31.19%
Explanation:
total sales revenue $677,000
variable costs:
Cost of goods sold $405,100S&A expenses $60,750 ($465,850)Contribution margin $211,150
Fixed expenses ($54,350)
Operating income $156,800
Contribution margin ratio = $211,150 / $677,000 = 31.19%
Big-Mouth Frog Corporation had revenues of $330,000, expenses of $200,000, and dividends of $45,000. When Income Summary is closed to Retained Earnings, the amount of the debit or credit to Retained Earnings is a:
Answer: Credit of $130,000
Explanation:
If Income summary is closed to Retained Earnings, it means that the Income for the period is sent to the Retained earnings account.
The amount to be sent is;
= Revenue - expenses
= 330,000 - 200,000
= $130,000
As the Retained Earnings account will be increasing as a result of this, it will be a credit.
On your first day at your new company you notice a large sign stating that ethics is one of the company’s core values. Of what is this an example? An assumption An espoused value or norm An enacted value or norm An artifact
Answer:
A. Espoused value or norm
At the beginning of December, Global Corporation had $2,400 in supplies on hand. During the month, supplies purchased amounted to $3,500, but by the end of the month the supplies balance was only $2,500. What is the appropriate month-end adjusting entry?
Answer and Explanation:
The appropriate month-end adjusting entry is shown below:
Supplies expense Dr $3,400
To Supplies $3,400
(being supplies expense is recorded)
Working note:
= Supplies on hand at the beginning + purchase - end of the month
= $2,400 + $3,500 - $2,500
= $3,400
Here the supplies expense is debited as it increased the supplies and credited the supllies as it decreased the assets
Organizational management is
Answer:
it is the process of structuring, planning and directing the resourxes and members of the organization to ahieve its goal.
Explanation:
basically, planning and organizing a company so it can reach its goals
Answer:
Organizational management is the process of structuring, planning, and directing the resources and members of the organization to achieve its goal. In the world of business, the end goal is pretty much the same - to make a profit for the organization's owners.
Explanation: In simpler terms, ... is the art of getting people together (gathering) on one or a common platform (place) and work towards a goal. The process of doing so in order to get to your goal.
On January 1, 2016, your sister's pet supplies business obtained a 30-year amortized mortgage loan for $275,000 at a nominal annual rate of 7.0%, with 360 end-of-month payments. The firm can deduct the interest paid for tax purposes. What will the interest tax deduction be for 2016
Answer:
$52,259
Explanation:
debt = $750,000
monthly payment = $750,000 / 150.3075 (PV annuity factor, 360 periods, 0.583%) = $4,989.77
I prepared an amortization schedule using an excel spreadsheet. Total interest expense for the first 12 months = $52,259.
Mr. Lathrop refuses to pay income taxes because his conscience will not allow him to support a government that spends billions of dollars on military weapons. Mr. Lathrop's reasoning best illustrates Kohlberg's ______ level.
Answer:
Mr. Lathrop is in the sixth and final level of the Kohlberg's theory of moral deveolopment. This stage is known as the individual principles of conscience stage.
In this stage, actions are carried out under the guidance of individual ethical and moral principles, regardless of social conventions and laws.
And this can be seen in this case: Mr. Lathrop refuses to pay income taxes, because he does not want to fund military weapons, even if he is compelled by law to do so, and could end up in jail for his refusal. He prefers to be coherent with his views.
Data concerning Bedwell Enterprises Corporation's single product appear below:
Selling price per unit $ 185.00
Variable expense per unit $ 94.00
Fixed expense per month $ 437,240
The unit sales to attain the company's monthly target profit of $24,000 is closest to:__________ (Do not round intermediate calculations.)
a. 5,069
b. 4,907
c. 4,805
d. 2,493
Answer:
Number of units= 5,069
Explanation:
Giving the following information:
Selling price per unit $ 185.00
Variable expense per unit $ 94.00
Fixed expense per month $ 437,240
Desired profit= $24,000
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= 461,240 / (185 - 94)
Break-even point in units= 5,069 units
Answer:Unit sales to attain the company;s monthly target = 5,069---A
Explanation:
Total desired Contribution =Fixed cost+Target profits
= $437,240 + $24,000 =$461,000
Contribution margin = Selling price per unit -variable expense per unit
= $185 -$94 =$91
of $24,000
Break even point / unit sales to attain= Total desired Contribution/ Contribution margin
= $461,240/ $91
= 5,068.57
rounded to 5,069 units
For 2021, Rahal's Auto Parts estimates bad debt expense at 1% of credit sales. The company reported accounts receivable and an allowance for uncollectible accounts of $89,500 and $2,700, respectively, at December 31, 2020. During 2021, Rahal's credit sales and collections were $410,000 and $414,000, respectively, and $3,240 in accounts receivable were written off. Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021, is: Multiple Choice $4,100. $4,700. $5,840. $3,560.
Answer: $3560
Explanation:
Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021, will be calculated thus:
Step 1: $410,000 × 1%
= $410,000 × 0.01
= $4100
Step 2: $2700 - $3240
= ($540)
Step 3: $4100 + ($540)
= $4100 - $540
= $3560
Rahal's final balance in its allowance for uncollectible accounts at December 31, 2021, is $3560.
Robinson's has 34,000 shares of stock outstanding with a par value of $1.00 per share and a market price of $50 a share. The balance sheet shows $34,000 in the common stock account, $455,000 in the paid in surplus account, and $410,000 in the retained earnings account. The firm just announced a 2-for-1 stock split. How many shares of stock will be outstanding after the split?
Answer:
The number of shares after the split is 68,000 shares
Explanation:
The computation of the number of shares of stock will be outstanding after the split is shown below:
= Oustanding shares × stock split ratio
= 34,000 shares × 2 ÷ 1
= 68,000 shares
hence, the number of shares after the split is 68,000 shares
We simply applied the above formula
And, the same is to be considered
Describe the process of conducting a performance appraisal review and when disciplinary action is necessary.
Answer:
Performance appraisal is a method of evaluating an employees work production.
Explanation:
Performance appraisal is also known as performance evaluation or performance review in an organization. It is defined as a method of evaluation and documentation of an employees work performance or productivity in the organization.
The process of conducting performance appraisal review in the organization includes :
1. In conducting a performance appraisal review a formal system should be in place and it should be used consistently.
2. Establishing performance standards.
3. The tools used for performance appraisal should always reflect the job description of the employees and it should based on various surveys or scales.
4. Data should be collected so as to ensure unbiased evaluation and thorough evaluation over time.
5. Compare the performance of an employee in the organization to all the employee metrics.
6. Employee feedback is also taken regarding their job description and the key areas that they are working.
Disciplinary action is taken in an organization in order to correct a work related behavior. It is not meant for giving punishment to the employees but to correct their behavior and ethics. Every employees are expected to work according to the company policy and maintain the work ethics and company secrets. If an employee fails to maintain the work ethics, disciplinary action is taken against him so as to correct his actions.
Mariota Industries has sales of $380,080 and costs of $178,290. The company paid $32,390 in interest and $14,500 in dividends. It also increased retained earnings by $69,626 during the year. Of the company's depreciation was $19,820, what was its average tax rate
Answer:
tax rate = 43.76%
Explanation:
Mariota's net income before taxes = $380,080 - $178,290 - $19,820 - $32,390 = $149,580
Mariota's net income after taxes = $69,626 + $14,500 = $84,126
$149,580 x (1 - tax rate) = $84,126
1 - tax rate = $84,126 / 149,580 = 0.5624
1 - tax rate = 0.5624
1 - 0.5624 = tax rate
tax rate = 0.4376 = 43.76%
g Suppose the risk-free rate is 2.79% and an analyst assumes a market risk premium of 5.07%. Firm A just paid a dividend of $1.38 per share. The analyst estimates the β of Firm A to be 1.24 and estimates the dividend growth rate to be 4.04% forever. Firm A has 259.00 million shares outstanding. Firm B just paid a dividend of $1.51 per share. The analyst estimates the β of Firm B to be 0.84 and believes that dividends will grow at 2.12% forever. Firm B has 181.00 million shares outstanding. What is the value of Firm A?
Answer:
Firm A's total value = $7,378,170,000
Explanation:
Firm A:
equity cost (Re) = 2.79% x (1.24 x 5.07%) = 9.08%
Div₀ = $1.38
Div₁ = $1.435752
g = 4.04%
P₀ = $1.4358 / (9.08% - 4.04%) = $1.435752 / 5.04% = $28.48714286
total outstanding stocks = 259,000,000
Firm A's total value = $28.48714286 x 259,000,000 = $7,378,170,000
Aggregate Planning is a. the activity of developing a plan that combines the efforts of the firm and its suppliers. b. the activity of developing a plan that combines the efforts of the firm and its distributors. c. the activity of matching supply of output with demand over the medium time range. d. the activity of matching supply of output with demand over the short time range. e. All of the above.
Answer:
C. the activity of matching supply of output with demand over the medium time range.
Explanation:
Aggregate Planning is the activity of matching supply of output with demand over the medium time range through the use of information gotten from the inventory levels.
This ultimately implies that, an aggregate planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.
Hence, aggregate planning is an attempt to forecast consumer demands within the criteria set by product, production process and distribution methods i.e within the intermediate range of its capacity.
When a bill is paid in QuickBooks using the Pay Bills window, QuickBooks: Multiple Choice Increases the Accounts Payable account and increases the Checking account Increases an Expense account and increases the Accounts Payable account Decreases an Expense account and decreases the Checking account Decreases the Accounts Payable account and decreases the Checking account
Answer:
Decreases the Accounts Payable account and decreases the Checking account
Explanation:
In the case when the bill is paid in quick books by using the window of pay bills so the liabilities would be reduced also the liquid asset would be decreased
Since the liabilities is reduced i.e. account payable so automatically the checking account would also be reduced
hence, the last option is correct
The same is to be considered
Answer:
You would decrease the accounts payable (paying the bill relieves part of the balance in this account) and decreases the cash account (when you pay the bill, you use or reduce the cash)
Explanation:
see my answer for explanation
Suppose that a bond has one year to maturity. The yield to maturity on the bond if it was bought for $1110.00 and has a $1100 face value with a coupon rate of 11% is__________ %. (Round your response to the nearest whole number)
Consider a coupon bond with a face value of $1350, one year to maturity and a coupon rate of 8%. Given a yield to maturity of 7%, the price the bond will sell for is $________ .
Answer:
1. Face value = $1,100, Coupon rate = 11%, Nper = 1, PMT = $121 (1,100*11%), PV = $1,110
Yield of maturity = Rate(NPER. PMT, -PV, FV)
Yield of maturity = Rate (1, $121, -$1110, $1100)
Yield of maturity = 10%
2. Face value = $1,350, Coupon rate = 8%, Nper = 1, PMT = 108(1350*8%), Yield = 7%
Price of the bond = PV(rate, nper, pmt, fv)
Price of the bond = PV(7%, 1, 1,108, 1350)
Price of the bond = $1,362.62
At what wage rate will there be excess labor supplied in the market?
If the wage is free to adjust in response to market forces it will move to We, where the demand for labor equals the supply. When the wage is above We, more labor will be presented for employment than firms in the industry can profitably hire. It will pay workers to lower their wages to obtain employment in the industry.
Consignment goods are: Multiple Choice Goods shipped to the consignor who sells the goods for the owner. Always paid for by the consignee when they take possession. Reported in the consignee's books as inventory. Goods shipped by the owner to the consignee who sells the goods for the owner. Not reported in the consignor's inventory since they do not have possession of the inventory.
Answer: Goods shipped by the owner to the consignee who sells the goods for the owner.
Explanation:
In a Consignment type of sale, a dealer known as a Consignee sells goods on behalf of the owner of the goods who is known as the Consignor.
The Consignor will always maintain ownership of the goods until sale which means that whatever the Consignee does not sell goes back to the Consignor/ owner.
As already inferred, the goods to be sold on consignment will be shipped by the owner to the consignee who will then sell the goods for the owner.
A newly issued 20-year, $1,000, zero coupon bond just sold for $311.05. What is the implicit interest, in dollars, for the first year of the bond's life
Answer: $18.70
Explanation:
Based on the information given in the question, let the yield be represented by i
The beginning value of the coupon is $311.05.
The ending value is calculated as $329.75
Implicit interest will now be:
= $329.75 - $311.05
= $18.70
Check attachment for further explanation.
You expect KT industries (KTI) will have earnings per share of $3 in one year and expect that they will pay out $2 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 15% and their equity cost of capital is 10%. The expected growth rate for KTI's dividends is _______ .
Answer:
The growth rate is 5%
Explanation:
The computation of the expected growth rate is shown below:
= Return on new investment × Retention ratio
= 15% × ($3 - $2) ÷ 3
= 5%
We simply multiplied the return on new investment with the retention ratio so that the growth rate could come
hence, the growth rate is 5%
And, the same is to be considered