Answer:
The required rate of return is 10.09%
Explanation:
The computation of the required return is shown below:
As we know that
Price of the stock = Dividend ÷ (required rate of return - growth rate)
$78 = $4.49 × (1 + 4.1%) ÷ (required rate of return - 4.1%)
$78 = $4.67 ÷ (required rate of return - 4.1%)
After solving this, the required rate of return is 10.09%
We simply applied the above formula so that the correct value could come
And, the same is to be considered
You've found that few employees take advantage of free tests and screenings, including cholesterol tests. You don't have any hard numbers, but you estimate at least half of employees haven't had cholesterol tests during the past few years. You also know that many employees are nervous about getting this simple test because they think they don't want to confront the possibility of having high cholesterol. Which of the following statements is most likely to persuade employees to go to the fair and take the test?
A) • High cholesterol increases your risk of heart attack. At the benefits fair, you can receive free cholesterol tests. Our friendly nurses will discreetly provide the results, and if needed, explain the steps you can take to improve your cholesterol levels.
B) Are you scared to do a cholesterol test? Don't let this fear stop you from understanding your health situation. At the benefits fair, we are offering free cholesterol tests. Our nurses can give you immediate feedback about steps to take to reduce your cholesterol count.
C) Are you scared to do a cholesterol test? Most of us are, but it's certainly in your best interest to know where you stand. At the benefits fair, you can receive free cholesterol tests. Our friendly nurses will discreetly provide the results and, if needed, explain the steps you can take to improve your cholesterol levels.
D) Are you scared to do a cholesterol test? Don't risk a heart attack at the risk of your own pride or indifference. Now is the time to act. At the benefits fair, we are offering free cholesterol tests. Our nurses can give you immediate feedback about steps to take to reduce your cholesterol count.
Answer: C
Explanation:
In full truth, the rest either seem pushy, advertising, or non empathetic. Option C does not enduse fear or accuse the person of ignorance to their scared issues, it shares with empathy why they should continue for a screening.
5. The Federal Reserve's organization There are members of the Federal Reserve Board of Governors. Which of the following is a responsibility of the Federal Open Market Committee (FOMC)? Making decisions regarding monetary policy Buying and selling stocks Issuing mortgages to homeowners
Answer: Making decisions regarding monetary policy
Buying and selling stocks
Explanation:
The primary purpose of the federal open market committee is to look all the open market operations all over the nation. It ensures the buying and selling of government bonds. It reviews financial conditions of the nation and makes decisions for monetary policy. It looks for sustainable economic growth and also checks for price stability of goods in the market.
Sheridan Company received cash of $33300 on September 1, 2020 for one year’s rent in advance and recorded the transaction with a credit to Unearned Rent Revenue. The December 31, 2020 adjusting entry is
Answer and Explanation:
The adjusting journal entry is shown below:
Unearned Rent revenue ($33,300 ÷ 12 × 4 months) $11,100
To Rent Revenue $11,100
(Being the unearned rent revenue is recorded)
here we debited the unearned rent revenue as it decreased the liability at the same time it increase the rent revenue as it revenue contains normal credit balance
when a perpetual system is in used and transportation cot is incurred to obtain inventory, the transportation cost is:
Answer: a. added to Inventory.
Explanation:
A Perpetual Inventory system is one where the inventory records of a company are updated as soon as inventory is either received or sold thus ensuring that the inventory balance is more accurate.
When using a perpetual inventory system, a key feature is that the transportation costs of the inventory are added to the inventory as part of the costs of acquiring the inventory unlike with the periodic system where a separate account will be maintained.
30 points, please help
Answer: You didn’t post a picture can you please post it so I can answer it?
Explanation: I’ll help you but add a picture.
Answer:
Explanation:
? There’s no picture, :(
I F Passed Company (IFPC) purchased a new van on January 1, 2019. The van cost $40,000 with an estimated life of 5 years and $10,000 salvage value at the end of its useful life. The double-declining-balance method of depreciation will be used. What is the balance in the accumulated depreciation for 2020
Answer:
Accumulated depreciation= $19,200
Explanation:
Giving the following information:
The van cost $40,000 with an estimated life of 5 years and $10,000 salvage value at the end of its useful life.
To calculate the depreciation expense for each year, we need to use the following formula:
Annual depreciation= 2*[(book value)/estimated life (years)]
2019:
Annual depreciation= 2*[(40,000 - 10,000)/5]= 12,000
2020:
Annual depreciation= 2*[(30,000 - 12,000)/5]= 7,200
Accumulated depreciation= 12,000 + 7,200= $19,200
2. A bank offers a savings account with a 6% annual interest rate, compounded monthly. Stu wants to open a savings account and make one deposit now that will enable him to withdraw $700 to go on vacation 5 months from now and $2000 for a deposit on a rental apartment when he starts working in 3 years from now. How much money does Stu need to deposit now
Answer:
2354.048
Explanation:
To calculate the Present Value we need to use the Present Value formula
Present Value = Future Value (1/1+Required Return)^number of periods
Required return = 0.5%.
For the vacation,
Present Value = 700/1.005^5
Present Value = 682.759.
Similarly, for rent,
Present Value = 2000/1.005^36
Present Value = 1671.289.
Hence, the total amount will be = 1671.289 + 682.759 = 2354.048
The introduction of risk-free borrowing and lending changes the nature of the original Markowitz efficient frontier by turning the efficient frontier into a straight line true or false
Answer: True
Explanation:
The efficient frontier consists of the investment portfolios which gives the highest return for a certain level of risk or the lowest risk for the return. The returns that are gotten depends on the portfolios investment combination.
The introduction of risk-free borrowing and lending changes the nature of the original Markowitz efficient frontier by turning the efficient frontier into a straight line.
The statement in the question is true.
Calculate the present value for the following assuming that the money can be invested at 12% percent. (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)
Answer and Explanation:
The computation of the present value in the following cases are as follows
As we know that
A = P × (1 + interest)^number of years
a) P = $50,000
b) $75,000 = P × (1.12)^6
P = $37,998
c) P = $12,000 × [ 1 ÷ 1.12 + 1 ÷ 1.12^2 + 1 ÷ 1.12^3 + 1 ÷ 1.12^4 + 1 ÷ 1.12^5 + 1 ÷ 1.12^6 ]
= $12,000 × [ 1 ÷ 1.12] [1- (1 ÷ 1.12)^6] / (1 - 1 ÷ 1.12)
= $12000 × [0.893] [0.493] ÷ 0.107
= $12,000 × 4.111
= $49,332
Option A would be chosen
A company's postretirement health care benefit plan had an APBO of $220,000 on January 1, 2021. During 2021, retiree benefits paid were $35,500. The discount rate for the plan for this year was 10%. Service cost for 2021 was $75,500. Plan assets (fair value) increased during the year by $37,800. The amount of the APBO at December 31, 2021, was:
Answer:
$282,000
Explanation:
APBO means Accumulated post retirement benefit obligation
Computation of amount of the APBO at December 31, 2021
APBO at the beginning $220,000
Add: Service cost $75,500
Add: Interest cost $22,000 (220,000*10%)
Less: Benefit paid $35,500
APBO at December 31 $282,000
Assume that the current price of a market basket of goods is $2,500 and the base year price of the same market basket is $2,000. The current price index is
Answer:
125
Explanation:
Calculation for the current price index using this formula
Current price index =Current price/Base year price
Let plug in the formula
Current price index=$2,500/$2,000
Current price index=1.25*100
Current price index=125
Therefore the Current price index is 125
A company reported the following amounts and balances: Beginning capital balance $45,000, Net Sales $420,000, Cost of Goods Sold $273,000, Total Expenses $112,000, Net Income $35,000, Ending Cash Balance $22,000, Withdrawals $7,200, Ending Accounts Receivable $27,000. What is the Ending Capital Balance
Answer:Ending Capital Balance= $72,800
Explanation:
Ending Capital Balance is is the amount left in an account whether , positive or negative, at the end of an accounting period and calculated as Beginning Capital Balance+Net Income-Withdrawals
Particulars Amount
Beginning Capital Balance $45,000
Add:
Net Income $35,000
deduct:
Withdrawals $7,200
Ending Capital Balance $72,800
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,200 of direct materials and used $3,700 of direct labor. The job was not finished by the end of the month, but needed an additional $2,700 of direct materials and additional direct labor of $5,900 to finish the job in October. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B
Answer:
$11,450
Explanation:
Given the data below;
Direct materials requisitioned = $2,200
Direct labor = $3,700
Overhead = 150% of $3,700 = $5,550
•Total job costs added to work in process at the end of September
= $2,200 + $3,700 + $5,550
= $11,450
Costs added during October
Direct materials = $2,700
Direct labor = $5,900
Overhead = 150% × $5,900 = $8,850
Total job costs added to work in process in October
= $2,700 + $5,900 + $8,850
= $17,450
Find the duration of a 6% coupon bond making annual coupon payments if it has four years to maturity and a yield to maturity of 5%. (assuming a face value of $1,000)
Answer:
3.703716
Explanation:
The duration can be calculated by dividing the present value of cash flow over time by the present value of cashflow.
Time Cash flow PV of CF PV of CF X t
1 60 $59.41 $59.41
2 60 $58.82 $117.64
3 60 $58.24 $174.71
4 1060 $1,018.64 $4,074.56
Total $1,195.10 $4,426.30
Duration = 4426.30/1195.1
Duration = 3.703716
The party responsible for the preparation of financial statements is:_______
a. external auditors
b. management
c. stockholders
d. Financial Accounting
e. Standards Board
Answer:
The party responsible for the preparation of financial statements is:_______
b. management
Explanation:
Company B's financial statements are prepared by its management (board of directors) the under the applicable reporting framework, such as the international financial reporting standards (IFRS) or the US GAAP (generally accepted accounting principles). The external auditors verify that the financial statements have been so prepared and issue their audit opinion as to their true and fair view and in compliance with auditing standards. Financial statements are prepared for the stockholders mainly and other stakeholders.
3. Assume that on January 2, 2022, the copyrighted item was impaired in its ability to continue to produce strong revenues. The other intangible assets were not affected. Starn estimated that the copyright would be able to produce future cash flows of $22,700. The fair value of the copyright was determined to be $21,700. Compute the amount, if any, of the impairment loss to be recorded.
Answer:
Explained
Explanation:
The impairment loss can be calculated by comparing the carrying value and the higher of recoverable amount and value in use assets. In this question, the carrying value of the copyrighted item is not given. But we have the recoverable amount (FV) and the Value in use( i.e Future cashflows).In this question, the value in use is higher than the recoverable amount. so we will deduct value in use from the carrying amount of the copyrighted asset.
Impairment loss = Carrying value - Value in use
What are two examples of "non-store" retailing?
Answer:
vending machine
Explanation:
If the actual demand for the months of January, February and March are 10, 11 and 15 units respectively; the forecast for April using 3-period weighted moving average technique is (weights are 0.2, 0.3, 0.5) Group of answer choices
Answer: 12.8 units
Explanation:
Using the weighted moving average technique means using calculating a weighted average of the demands for the past 3 months using their weights and demand.
April forecast = (January sales * January weight) + (February sales * February weight) + (March sales * March weight)
= (10 * 0.2) + (11 * 0.3) + (15 * 0.5)
= 2 + 3.3 + 7.5
= 12.8 units
During recessionary periods: a outlays decrease and tax revenue increases. b outlays and tax revenue stay the same. c outlays decrease and tax revenue falls. d outlays increase and tax revenue falls. e outlays increase and tax revenue increases.
Answer:
D
Explanation:
A recession is when the GDP of an economy for two consecutive quarters is negative.
In a recessionary period, income falls and as a result tax falls. this makes tax is an automatic stabilizer.
The government would also increase spending in order to stimulate the economy
A parent uses the initial value method, sells inventory to the subsidiary, and intra-entity gross profits exist in beginning inventory. What is the effect of Consolidation Entry
Answer: The cost of goods sold and the retained earnings of the subsidiary decreases.
Explanation:
Subsidiary simply means when an entity is owned by another entity which can either be fully or partly owned. depending on its ownership shares.
It should be noted that cash basis is being used in the recognition of inform in the initial value method and that when an investment in a subsidiary is to be accounted for, such investments will remain at the initial value.
Regarding the scenario in the question, when the initial value method is used by the parent company, the cost of goods sthst are sold and the retained earnings of the subsidiary would decrease.
All else equal, which of the following bond has the lowest market price? Select one: a. A bond with a 7% coupon. b. A bond with a 6% coupon. c. A bond with a 5% coupon. d. A bond with a 9% coupon. e. A bond with a 10% coupon.
Answer:
b. A bond with a 6% coupon.
Explanation:
All else equal, the bond with the lowest coupon payment (in this case, the bond with a 6% coupon) is the bond that will have the lowest price, simply because the coupon represents the periodic interest that the bondholder will get, and in general terms, the less interests a bond pays, the cheaper its price.
Besides, a lower coupon rate is more likely to be lower than the prevailing interest rate in the market, which is one of the most important factors when determining the price of a coupon.
Answer: c) A bond with a 5% coupon.
Explanation: All else equal, the bond with the lowest coupon rate has the lowest market price, whereas the bond with the highest coupon rate has the highest market price. As a result, a bond with a 5% coupon has a lower market price than a bond with a 6% coupon, which has a lower market price than a bond with a 7% coupon, and so on.
A bond with a 9% coupon has a higher market price than a bond with a 7% coupon, which has a higher market price than a bond with a 6% coupon, and so on. Furthermore, a bond with a higher coupon rate is less vulnerable to interest rate fluctuations because its coupon payments are larger.
As a result, high-coupon bonds have less interest rate danger than low-coupon bonds. As a result, in general, bond prices and yields move in the opposite direction.
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Christopher is a self-employed cash-method, calendar-year taxpayer, and he made the following cash payments related to his business this year. Calculate the after-tax cost of each payment assuming Christopher has a 37 percent marginal tax ra
Answer:
a. The After-tax cost is $1,080 because this cost is not deductible
b. Municipal bonds provide returns that are tax deductible which means that half of of this interest will be tax deductible.
After-tax cost = 465 - (465 *0.5 * 37%)
= $379
c. Office supplies are full deductible for tax reasons so after-tax cost is;
= 965 * ( 1 - 37%)
= $608
d. The work boots are not deductible so the after-tax cost is the same as the cost of $675.
Rising relative strength indicates a. lack of investor conviction b. the security is performing better than the market or entity being compared c. the market is performing better than the security d. positive price momentum e. both b and d
Answer:
b. the security is performing better than the market or entity being compared
Explanation:
In the case when the relative strength is rising so that means the stock maintain its present price i.e. better as compared with the general market
In the given situation, the option B is correct as it mentioned that the security which is performed is better as compared with the market or entity.
Therefore option B is correct
And, all the other options are wrong
Revenues Low (0.30) Medium (0.50) High (0.20) A 120,000 255,000 390,000 B 130,000 295,000 460,000 C 100,000 300,000 480,000 What is the best decision if you prefer the mini-max regret approach
Answer:
B
Explanation:
The computation is shown below:
Decision S1 S2 S3
A 10000 45000 90000
(120,000 - 130,000) (295,000 - 255,000) (480,000 - 390,000)
B 0 5000 20000
C 30000 0 0
Based on the above table, the minimum value is for the decision B
So, the best decision should be taken for B only
Read the following training evaluation problem, then carefully answer the questions that follow. Before beginning, you should be familiar with Kirkpatrick’s (1976) four levels of criteria for evaluating training programs:
Walstart" has recently designed a training program for their employees on crime prevention. Employees will attend a two-hour workshop designed to train them to watch for shoplifters. They will also be taught procedures that should be used when identifying a potential shoplifter. This workshop primarily includes videos of Walstart’s policies, conducted in large rooms that can accommodate up to 150 trainees at a time. You are called in to help Walstart evaluate the effectiveness of their training program.
Required:
You first ask Walstart whether they conducted an organizational needs assessment with respect to designing this training. What factors might be particularly important for you to know with respect to this type of needs assessment?
Answer:
The variables that would need to be weighed for this kind of evaluation of need will be given below.
Explanation:
Reaction: The trainees could believe that the experience has been beneficial for them anyway. This assessed some basic questions via asking the trainees, such as-did you enjoy the training? Is it going to be useful here for some on-job role? Was it possible to comprehend the vocabulary used?Learning: Evaluate the performance including its trainees by basic tests to see if the teaching needs have indeed been fulfilled. Behavior: The next step would be to see how the workers put the studying into effect to be used on the job. The procedures learned to be themselves for capturing or picking a shoplifter could now be successfully applied by the educated workers to work.Results: The assumption as well as perception including its training results will now be measured throughout this phase and therefore any shortcomings need to be reviewed and addressed during the next module for something like a successful training result.A company paid its annual dividends of $4.40 per share last week. The company expects to grow its dividends at the rate of 5.0 percent per year for four years, after which the dividends are expected to remain constant at the level of $5.68 per share per year in perpetuity. If investors require a rate of return of 11.5 percent on this company's stock, what should be the price of one share of this stock today
Answer:
$47
Explanation:
Calculation for what should be the price of one share of this stock today
First step is to calculate Year 1 dividend
Year 1 dividend = 4.4 (1 + 5%)
Year 1 dividend= 4.62
Second step is to calculate Year 2 dividend
Year 2 dividend = 4.62 (1 + 5%)
Year 2 dividend= 4.851
Third step is to calculate Year 3 dividend
Year 3 dividend = 4.851 (1 + 5%)
Year 3 dividend= 5.09355
Fourth step is to calculate Year 4 dividend
Year 4 dividend = 5.09355(1 + 5%)
Year 4 dividend= 5.34823
Now let calculate the year 4 value using this formula
Year 4 value = Year 5 dividend / Required rate - Growth rate
Let plug in the formula
Year 4 value = 5.68 / 0.115
Year 4 value=49.3913
Last step is to calculate the Present value using this formula
Present value = Future value / (1 + rate)^time
Let plug in the formula
Price today = 4.62 / (1 + 0.115)^1 + 4.851 / (1 + 0.115)^2 + 5.09355 / (1 + 0.115)^3 + 5.34823 / (1 + 0.115)^4 + 49.3913 / (1 + 0.115)^4
Price today = $47
Therefore what should be the price of one share of this stock today will be $47
The Hart-Scott-Rodino Act requires certain competing business entities who are contemplating mergers involving dollar amounts of a certain size to give advance notice to the: I. Federal Trade Commission. II. Federal Antitrust Bureau. III. Department of Justice. IV. Secretary of Commerce. Multiple Choice III only. III and IV. I only.
Answer:
I. Federal Trade Commission.
III. Department of Justice.
Explanation:
The Hart-Scott-Rodino Act of 1976 is actually a complement of prior antitrust laws that already existed but were incomplete or outdated. Its main focus is set on a pre-merger notification report that must be given by the parties involved to the Federal Trade Commission (FTC) and the Department of Justice (DOJ). The HSR Act only applies to mergers or acquisitions that are relatively large, e.g. the transaction must involve at least $90 million.
What is the major accounting difference between interest incurred during a period and cash dividends declared during the same period
Answer: b. Interest reduces net income while dividends declared do not affect net income
Explanation:
The interest incurred during a period is deducted from the Net Income before tax is calculated as it is a tax deductible expense to the business.
Dividends on the other hand are not paid from the Net income and so do not affect it. They are rather paid from the Retained earnings which a company is only able to derive after the Net Income has been calculated.
If the securities market is efficient, an investor need only throw darts at the stock pages to pick securities and be just as well off as they would be with a professionally-developed portfolio. This statement is:
Answer: This statement is false.
Explanation:
An efficient security market simply means a market whereby the prices of the securities that are available rovides the investors with the necessary information and all available information.
The statement given in the question isn't true. This is due to the fact that a desirable combination of risk return may not be held by such investors which could bring about loss to the investor.
A company has $46,000 today to invest in a fund that will earn 4% compounded annually. How much will the fund contain at the end of 6 years
Answer:
$58,204.67
Explanation:
The computation of the fund contains at the closing of six years is shown below:
Given that
Present value = $46,000
Compound interest rate, i = 4%
Period = 6 years
Based on the above information
As we know that
Future value = Present value × (1 + interest rate)^number of years
So,
= $46,000 × (1 + 0.04)^6
= $58,204.67