Answer: 4 years
Explanation:
A four-year maturity zero percent coupon corporate bond with a required rate of return of 12 percent has a duration of 4 years.
The duration of a zero coupon bond is the life of the bond. In this case, the life of the bod is given in the question as 4 years.
Therefore, the answer will be 4 years.
On April 1, Robert LLC purchased two units of inventory, A and B. The cost of unit A was $650, and the cost of unit B was $625. On April 30, Robert LLC had not sold the inventory. The net realizable value (NRV) of unit A was now $685 while the net realizable value of unit B was $550. The adjustment associated with the lower-of-cost-or-NRV method on April 30 will be: Multiple Choice
Answer:
$1,200
Explanation:
purchase cost net realizable value LCM
unit A $650 $685 $650
unit B $625 $550 $550
total $1,275 $1,200
When you apply the lower of cost or market value, you must value your inventory at whichever is lower between historic cost (purchase cost) and the net realizable value (NRV). Any adjustments made will increase cost of goods sold and decrease inventory. In this case, the adjusting journal entry should be:
Dr Cost of goods sold 75
Cr Inventory 75
Your phone stopped working and you use your phone for calls, texting and checking emails. You went to the store to buy a cheap phone that just serves your needs but ended up buying a $1500 top of the line phone that does way more than what you need and also is very stylish. What need did the new phone satisfy
Answer:
Psychological needs
Explanation:
Since in the question it is mentioned that suddenly your phone stop working and you use the mobile for various reasons so you went to the store for purchase a cheap mobile that serves your needs so here the psychological needs would be considered as it is likely additional fulfilling needs i.e. luxury or expensive items
Therefore the same is to be considered
Otis Corp. uses a periodic system and the FIFO method. Otis had beginning inventory of 30 units purchased at $120 each and made the following purchases during the year: Jan. 15: 34 units at $110 May 30: 61 units at $84 Oct. 20: 160 units at $60 Sales during the year totaled 271 units. What is the cost of ending inventory
Answer:
the cost of ending inventory is $840
Explanation:
The computation of the cost of ending inventory is shown below:
Total units available for sale is
= (30 units + 34 units + 61 units + 160 units)
= 285 units
And,
Sales units = 271 units
So,
Ending inventory units is
= 285 units - 271 units
= 14 units
Finally
Ending inventory cost is
= 14 units × $60
= $840
hence, the cost of ending inventory is $840
For the Dividend Growth Model, the equation can be written as follows: P0 = =D1/(RE – g). How can this equation be rearranged?
Answer:
Re = (D1 ÷ P0) + g
Explanation:
The rearrangement of the equation is as follows:
Given equation is:
P0 = D1 ÷ (Re - g)
where,
P0 = Price of the stock
D1 = Dividend at year 1
Re = Required rate of return
g = Growth rate
It can be rearrange as
Re - g = (D1 ÷ P0)
Or
Re = (D1 ÷ P0) + g
The Re = (D1 ÷ P0) + g is the correct answer and the same is to be considered
Book sales on the Internet (in billions of dollars) in year x are approximated by f(x) = 1.84 +2.1. In x, where x = 0 corresponds to 2000. How much will be spent on Internet book sales in 2008? Round to the nearest tenth.
a. 6.2 billion
b. 8.0 billion
c. 3.9 billion
d. 6.7 billion
Answer: 6.2 billion
Explanation:
f(x) = 1.84 +2.1 In x
where
x = 0 corresponds to 2000.
In 2008, x will be = 8
Therefore,
f(x) = 1.84 +2.1 Inx will be:
f(x) = 1.84 +2.1 In8
= 1.84 + 4.366
= 6.206
= 6.2 billion
As a top manager, Joanna works with others on her team every day in making important corporate decisions. Her preferred decision-making approach is to generate as many alternatives to problems as possible in a short amount of time. This approach is referred to as _____.
Answer:
Brainstorming.
Explanation:
Brainstorming is a creativity and problem-solving technique adopted by individuals or group of people by spontaneously gathering ideas through intensive thinking.
As a top manager, Joanna works with others on her team every day in making important corporate decisions. Her preferred decision-making approach is to generate as many alternatives to problems as possible in a short amount of time. This approach is referred to as brainstorming.
A learning organization is one which is typically characterized by creating an enabling environment for growth, training, and development of its employees. This opportunity and incentives help employees to engage in critical and creative thinking, research, and development. Consequently, employees would become more confident, brilliant, intelligent, knowledgeable and professionals in their assigned positions or roles, thus helping the organization to achieve its aim, goals and objectives.
In a nutshell, this ultimately implies that it's very important and necessary that organizations sponsor brainstorming sessions and reward employees awesomely, when an out-of-the box idea leads to organizational improvements.
Based on the provides information, for Joanna to generate as many alternatives to problems as possible in a short amount of time, she needs a brainstorming approach .
Brainstorming can be regarded as a technique used which serves as group discussion to produce ideas or solve problems.
Therefore, Joanna to generate as many alternatives to problems as possible in a short amount of time.
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Consider a portfolio with 80% invested in asset X and 20% invested in asset Y . The volatility of each asset is the same and equals to 0.2. The correlation coefficient between the two asset returns is 50%. What is the portfolio volatility
Answer:
The portfolio volatility is 26.83%.
Explanation:
The portfolio volatility refers to the standard deviation of the rate of return of an investment portfolio.
To calculate the standard deviation, the variance of the of the return on the portfolio is first calculated using the following formula:
Portfolio return variance = (WX^2 * SDX^2) + (WY^2 * SDY^2) + (2 * WX * SDX * WY * SDY * CFxy) ......................... (1)
Where;
WX = Weight of Stock X = 80%
WY = Weight of Stock Y = 20%
SDX = Standard deviation of stock X return = 0.2
SDY = Standard deviation of stock Y return = 0.2
CFxy = The correlation between stock X and stock Y = 50%
Substituting all the values into equation (1), we have:
Portfolio return variance = (80%^2 * 0.2^2) + (20% * 0.2) + (2 * 80% * 0.2 * 20% * 0.2 * 50%)
Portfolio return variance = 0.072
The standard deviation of the return on this portfolio can be calculated as using the following formula:
[tex]PRSD =\sqrt{PRV}[/tex] ........................... (2)
Where;
PRSD = Portfolio return standard deviation = ?
PRV = Portfolio return variance = 0.072
Substituting the values into equation (2), we have:
[tex]PRSD=\sqrt{0.072}[/tex]
PRSD = 0.2683, or 26.83%
Therefore, the portfolio volatility is 26.83%.
An nn-year 1,000 par value bond with 8 percent annual coupons has an annual effective yield of ii, i>0i>0. The book value of the bond at the end of year 3 is 1,099.84 and the book value at the end of year 5 is 1,082.27. Calculate the purchase price of the bond.
Answer:
the purchase price of the bond is $1,106.125
Explanation:
The computation of the purchase price of the bond is shown below:
But before that we have to find the following amount
= ($1,082.7 - $1,099.84) ÷ ( 5 years - 3 years)
= - 6.285
Now the purchase price of the bond is
= $1,087.27 + (-6.285) × (-3)
= $1,106.125
hence, the purchase price of the bond is $1,106.125
The same is to be considered
Partners Acer and Barr have capital balances in a partnership of $40,000 and $60,000, respectively. They agree to share profits and losses as follows: Acer Barr As salaries $10,000 $12,000 As interest on capital at the beginning of the year 10% 10% Remaining profits or losses 50% 50% If income for the year was $50,000, what will be the distribution of income to Barr
Answer:
$27,000
Explanation:
Acer's allocation of partnership's profits:
salary = $10,000
interest on capital = $40,000 x 10% = $4,000
remaining income = $18,000 x 50% = $9,000
total distribution = $23,000
Barr's allocation of partnership's profits:
salary = $12,000
interest on capital = $60,000 x 10% = $6,000
remaining income = $18,000 x 50% = $9,000
total distribution = $27,000
Braxton's Cleaning Company stock is selling for $35.50 per share based on a required return of 11.2 percent. What is the the next annual dividend if the growth rate in dividends is expected to be 3.6 percent indefinitely?
Answer:
The next annual dividend is $2.70
Explanation:
The computation of the next annual dividend is shown below:
= Selling price of a stock × ( Expected rate of return - growth rate)
= $35.50 per share × (11.2% - 3.6%)
= $35.50 per share × 7.6%
= $2.70
Hence, the next annual dividend is $2.70
We simply applied the above formula
And, the same is to be considered
Sanfran Company purchased inventory for . In addition they had purchase returns of and paid freightin of . Sanfran Company's net cost of purchases would be:
Answer:
The net cost of purchase is $123,000
Explanation:
The computation of the net cost of purchase is shown below:
Purchase cost of inventory $120,000
Less: Purchase return -$9,000
Add: Freight in cost $12,000
Net cost of purchases $123,000
hence, the net cost of purchase is $123,000
We simply applied the above equation so that the correct value could come
and the same is to be considered
You bought a STRIP at 96 dollars with maturity of 3 years. Calculate the yield to maturity of this STRIP _______% (keep two decimal points)
Answer: 0.0136
Explanation:
The following information can be gotten from the question:
Current price = $96
Par Value = $100
Time to Maturity = 3 years
Semiannual Period = 3 × 2 = 6
The yield to maturity of this STRIP will be calculated as:
Let the semiannually yield to maturity be represented by y.
96 = 100/(1 + y)^6
Cross multiply
96(1+y)^6 = 100
Divide both side by 96
(1+y)^6 = 100/96
(1+y)^6 = 1.0417
1 + y^6 = 1.0417
y^6 = 1.0417 - 1
y^6 = 0.0417
y = 0.0068
Therefore, the semiannual YTM = 0.0068
Annual YTM will now be:
= 2 × Semiannual YTM
= 2 × 0.068
Annual YTM = 0.0136
On December 31, 2021, Coolwear Inc. had balances in Accounts Receivable and Allowance for Uncollectible Accounts of $49,000 and $2,150, respectively. During 2022, Coolwear wrote off $700 in accounts receivable and determined that there should be an allowance for uncollectible accounts of $5,900 at December 31, 2022. Bad debt expense for 2022 would be:______
Answer:
$4,450
Explanation:
Bad debt expense is the expenses that a company incur as a result of the debt owned to the company by its customers, which are not recoverable.
The bad debt expenses for Coolwear inc. would be calculated as;
Bad debt expense = Allowance for uncollectible accounts - (Uncollectible account balance - accounts receivable written off)
= $5,900 - ($2,150 - $700)
= $4,450
Therefore, bad debt expense for 2022 would be $4,450
Last year your company compiled employee satisfaction results using employee retention data. This year, they will use the scores from employee surveys. Which problem will you face when analyzing the data
Answer:
The are hard or not possible to compare since you are not looking at the same data.
You will face recency issues or recency bias when analysing the data.
The recency bias happens when we remember the last ideas, arguments or items more clearly than other things that were said first or happened first.
Employee retention simply has to do with a firms ability to retain its workers. Employee retention is important because of the following reasons:
It creates opportunities for workers to growIt gives job fulfillmentIt gives room for more experienced workersImproves culture of the firmCuts costs and it raises benefits.When analyzing the data, You would be better able to retain data from more recent surveys compared to older ones.
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Paying a premium of $10 per bond, Ms. Tracey Pringle bought 10 municipal bonds with 20 years to maturity. Ten years later, she sold the bonds for 103. For tax purposes, she has a:___________A) $300 loss.B) $250 gain.C) $200 loss.D) $200 gain.
Answer:
B) $250 gain.
Explanation:
The cost per bond is $1,010.
The amortization amount each year is 10/20 years = $0.50 per year. $0.50 per year × 10 years = $5 per bond.
After 10 years, the adjusted cost basis is $1,005 per bond.
She sells the bonds for $1,030 per bond. $1,030 − $1,005 = $25 per bond
25 × 10 = $250 gain.
llieis evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $11,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Elliebelieves that she should earn an annual rate of 8percent on this investment. How much should Elliepay for this investment
Answer:
Ans 1 : 76 percent
Ans 2 : the eliepay must be all the numbers HCF for the investment = 340
Explanation:
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Suppose an economy has a real interest rate of 3% and an inflation rate of 5%. What's the exact nominal interest rate, and what's the approximate value of it
Answer:
Nominal interest rate= 0.08 = 8%
Explanation:
Giving the following information:
Real interest rate= 3%
Inflation rate= 5%
To calculate the nominal interest rate, we need to use the following formula:
Real interest rate= nominal interest rate - inflation rate
Nominal interest rate= real interest rate + inflation rate
Nominal interest rate= 0.03 + 0.05
Nominal interest rate= 0.08 = 8%
Amber is interested in investing her money in a mutual fund that invests in short-term debt securities issued by governments and large corporations. She also wants to be able to write checks and reinvest interest income from her investments. Which institution would Amber most likely choose for her investments
Question Completion:
Options to choose from:
a brokerage firm
a money market bank account
a money market fund
an insurance company
a pension fund
Answer:
Amber will likely choose for her investments:
a money market fund
Explanation:
For example, Amber can invest in the Vanguard Treasury Money Market or the Fidelity Money Market. These are money market funds or mutual funds that invest in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity (such as U.S. Treasuries).
Amber should choose for her investment is a money market fund.
The information regarding the money market fund is as follows:
It should be invested in highly liquid. It involved the cash, cash equivalent having short-term maturity period. It is like the mutual funds that are issued by the government and the large corporations.Therefore we can conclude that Amber should choose for her investment is a money market fund.
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rue or False: Wages in the auto manufacturing industry would be less than those in the aircraft manufacturing industry. True False
Answer:
False
Explanation:
The wages who are offering in auto industry would be more than the aircraft industry as the wages between these two industries i.e. auto and aircraft would be equivalent to each other. But in that case if they are not equal so the workers who are getting high wages would select those industries
Hence, the given statement is false and the same is to be considered
what factors do you think led to the rise of this additional source of income for composers and musicians
Answer: See explanation
Explanation:
The factors that led to the rise of this additional source of income for composers and musicians were due to the fact that music began to be widely accepted and the publicity also helped.
In the classical era, it should be noted that the kings supported musicians as music was played at palace and were also part of rituals. Musicians were called to different ceremonies and were rewarded handsomely for their music.
It was then widely accepted among the people in the society. The number of musicians increased as well and they became popular, made more money and also became popular.
.
At the last minute, Jenna considers investing in Coca-Cola stock at a price of $55.55 per share. The stock just paid an annual dividend of $1.76 and she expects the dividend to grow at 4% annually. If the next dividend is due in one year, what expected return is Coca-Cola stock offering
Answer:
the expected return is Coca-Cola stock offering is 7.3%
Explanation:
The computation of the expected return is shown below:
Expected return is
= (D1 ÷ Current price) + Growth rate
= [($1.76 × 1.04) ÷ 55.55] + 0.04
= (1.8304 ÷ 55.55) + 0.04
= 7.3%
Hence, the expected return is Coca-Cola stock offering is 7.3%
The same is to be considered
We simply applied the above formula
Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The noncontrolling interest shares of Float Corp. are not actively traded. 5) What is the total amount of goodwill recognized at the date of acquisition? A) $0. B) $150,000. C) $170,000. D) $120,000. E) $250,000.
Answer: $150,000
Explanation:
The total amount of goodwill that'll be recognized at the date of acquisition will be calculated as follows:
First, we need to calculate the goodwill of controlling interest. This will be:
= $1600000 - ($1850000 × 80%)
= $1600000 - ($1850000 × 0.8)
= $1600000 - $1,480,000
= $120000
Then, we calculate the total amount of goodwill that'll be recognized at the date of acquisition which will be the goodwill of controlling interest divides by the percentage of ownership. This will be:
=$120000/80%
= $120000/0.8
= $150,000
Leverage Corporation sells two products: Regular and Supreme. Leverage sells three Regulars for every two Supremes. The Regular sells for $20 each with variable costs of $11 each, whereas the Supreme sells for $25 each with variable costs of $15 each. If fixed costs are $21,000, what is the breakeven point in unit
Answer:Break even points of the two propduct =2,234.04 units With each product having 1,340 .4 units for regular and supreme with 893.6units
Explanation:
Product--- Regular
Contribution Margin per unit = Selling price - variable price
=$20-$11=$9
Product--- Supreme
Contribution Margin per unit = Selling price - variable price
=$25-$15=$10
Product mix are in the ratio 3: 2 therefore
Supreme contains 3/3+2 x 100 = 60 %
Regular = 2/3+2 x 100 = 40%
Weighted Average Contribution Margin for each product becomes
Regular =$9 x 60%= 5.4
Supreme =$ 10x 40%-=4.0
Total= 9.4
Break even points of the two propduct =Total Fixed Cost /Weighted Average Contribution Margin
$21,000.00 /9.40 = 2,234.04 units
`With each units having
Regular Supreme
3 : 2
60% 40%
2,234.04 x 60% 2,234.04 x 40%
1,340.4 units 893.6units
What is the change in the cost of sales for the year if the company had used FIFO to value its inventories. (Enter your answer in millions.)
Answer:
If the company used FIFO instead of LIFO then the Cost of Sales would lower and value of inventory would higher.
Explanation:
FIFO method is used widely by many organizations. This method involves selling the goods that are bought first. The good bought earlier would be at low price than the goods bought later on due to increase in price. The cost of sales therefore would be lower in FIFO than in LIFO. The value of inventory would be higher in FIFO as the good bought at a higher price are not sold first.
n the purchase of a new computer monitor, which of the following is an example of a user? Multiple Choice a supply manager who helps write specifications a secretary whose computer monitor is being replaced an IT manager who supplies information for evaluating alternatives a purchasing manager who arranges the terms of the sale a receptionist who controls the flow of information
Answer:
A secretary whose computer monitor is been replaced.
Explanation:
As it been discussed in the scenario above, a secretary is mostly the frequent user to a monitor as the case may be as it allows in focusing of the eye in an exceedingly proper and cozy manner, not having to place up with a rather fuzzy image while typing or a movie/game that appears as if the most character features a shadowy ghost following them. an honest monitor should allow you to work out what you're doing without having to strain your eyes or tilt your head to urge to the simplest viewing angle.
what is the change in total profit of cleaning the fifth driveway if the price Mr. Plow can charge is $10 per driveway
Answer:
Explanation:-1
Sally’s Hair Salon purchases hair dye and records the dye as an asset. As they are used, they are expensed. This is an example of:
Answer:
Matching
Explanation:
The scenario mentioned in the question is based on the accounting principle of Matching which requires that the asset (which is recorded at the time of its purchases) to be distributed and matched over the time of its useful life in order to balance the cost over a period (in the form of expenses). This recording of the asset as an expenses when it is used is known as depreciation.
Sunshine Inc. reported net credit sales of $360,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $650. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense
Answer: $3,600
Explanation:
Bad Debt expense using the percentage of sales method is the percentage of net sales that is usually lost to bad debts and that percentage in this case is 1%.
Bad debt expense will therefore be;
= Net credit sales * Bad debt percentage
= 360,000 * 1%
= $3,600
World Spice Salsa, a manufacturer of salsa, sells its product throughout the United States and all over the world. The company has developed region-specific salsas like Five Spice Salsa for its customers in China, saffron and cumin salsa for customers in India, and even red beans and rice salsa for its customers in New Orleans. World Spice Salsa has employed ________ segmentation in this case.
a. behavioral
b. psychographic
c. lifestyle
d. demographic
e. geographic
Answer:
World Spice Salsa has employed ________ segmentation in this case.
e. geographic
Explanation:
Geographic segmentation is the grouping of potential customers by country, state, region, city, or even neighborhood. It is one of the four main types of market segmentation employed by marketers. Market segmentation is the process of separating a market into sub-groups, in which its members share common characteristics, such as geographic, demographic, psychographic, and behavioral.
Two machines, A and B, which perform the same functions, have the following costs and lives. Type PV Costs Life Machine A $6,000 5 yr Machine B $8,000 7 yr Which machine would you choose
Answer:
Machine A
Explanation:
See attachment for tabulation