Incomplete question. The options read;
Social identity theoryParasocial interaction theoryLeader-member exchange theoryVigilant interaction theoryExpectancy theoryAnswer:
Vigilant interaction theory
Explanation:
Remember, we are told that Alexa and David kept a running total of who is winning on a whiteboard for the entire team to see while also strategizing ways to beat the opposing team.
According to the vigilant interaction theory, the productivity of a team is usually dependent upon the group's attentiveness during their group interaction.
Hence, we can thus conclude that Alexa and David are employing vigilant interaction theory to increase productivity.
Ayayai Inc. had the following balance sheet at December 31, 2019.
AYAYAI INC.
BALANCE SHEET
DECEMBER 31, 2019
Cash $ 21,940 Accounts payable $ 31,940 Accounts receivable 23,140 Bonds payable 42,940 Investments 32,000 Common stock 101,940 Plant assets (net) 82,940 Retained earnings 25,140 Land 41,940 $201,960 $201,960 During 2020, the following occurred.
1. Ayayai liquidated its available-for-sale debt investment portfolio at a loss of $6,940.
2. A tract of land was purchased for $39,940.
3. An additional $30,000 in common stock was issued at par.
4. Dividends totaling $11,940 were declared and paid to stockholders.
5. Net income for 2020 was $36,940, including $13,940 in depreciation expense.
6. Land was purchased through the issuance of $31,940 in additional bonds.
7. At December 31, 2020, Cash was $72,140, Accounts Receivable was $43,940, and Accounts Payable was $41,940.
In an Excel spreadsheet:Prepare a statement of cash flows for the year 2015 for Lander.Prepare the balance sheet as it would appear as of December 31, 2015.
Answer:
(a) Increase in cash = $50,200
(b) Total Assets = Liabilities and Stockholders' Equity = $298,900
Explanation:
Note: There are errors as date and name inconsistency in the requirements in this question. The requirements are therefore correctly stated before answering the question as follows:
(a) Prepare a statement of cash flows for the year 2020 for Ayayai Inc.
(b) Prepare the balance sheet as it would appear as of December 31, 2020.
The explanation of the answer is now provided as follows:
(a) Prepare a statement of cash flows for the year 2020 for Ayayai Inc.
Note: See part (a) of the attached excel file for the statement of cash flows for the year 2020 for Ayayai Inc.
In the attached excel file, we have:
Increase in cash = $50,200
(b) Prepare the balance sheet as it would appear as of December 31, 2020.
Note: See part (b) of the attached excel file for the balance sheet as it would appear as of December 31, 2020.
In the attached excel file, we have:
Total Assets = Liabilities and Stockholders' Equity = $298,900
Naylor Company had $210,000 of net income in 2013 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000. Management expects per unit data and total fixed costs to remain the same in 2014. The president of Naylor Company is under pressure from stockholders to increase net income by $52,000 in 2014.Instructions(a) Compute the number of units sold in 2013.(b) Compute the number of units that would have to be sold in 2014 to reach the stockholders’ desired profit level.(c) Assume that Naylor Company sells the same number of units in 2014
Answer:
Results are below.
Explanation:
First, we need to calculate the number of units sold in 2013:
Units sold= (net income + fixed costs) / unitary contribution margin
Units sold= (210,000 + 570,000) / (150 - 90)
Units sold= 13,000
Now, to calculate the number of units to reach $262,000 in profit, 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= (570,000 + 262,000) / 60
Break-even point in units= 13,866.67 = 13,867
Easier:
Number of units= increase in profit / unitary contribution margin
Number of units= 866.67 = 867 increase
If the company sold the same number of units, net income would be the same. Nothing has changed.
11. Purchased a parcel of land on March 1, 2020 for $950,000 by paying $490,000 in cash and signing a short-term note payable with the seller for $460,000. You must repay the $460,000 in exactly one year on March 1, 2021. You agree to pay the seller 5 percent interest (annual rate) on a quarterly basis (June 1, September 1, December 1, 2020, and March 1, 2021). [Adjusting Entry Required]
Answer:
Adjusting Entry:
June 1:
Debit Interest Expense $5,750
Credit Cash $5,750
To record the interest expense.
September 1
Debit Interest Expense $5,750
Credit Cash $5,750
To record the interest expense.
December 1, 2020
Debit Interest Expense $5,750
Credit Cash $5,750
To record the interest expense.
March 1, 2021:
Debit Short-term Note Payable $460,000
Debit Interest Expense $5,750
Credit Cash $465,750
To record the full settlement on account.
Explanation:
a) Data and Calculations:
Short-term note payable = $460,000
Interest expense = $5,750 ($460,000 * 5% * 1/4)
Seeing a movie at a theatre would be considered a(n)
want.
O unlimited
O economic
noneconomic
limited
Answer:
economic
Explanation:
pls mark me brainliest right
Item8 4 points Time Remaining 44 minutes 36 seconds00:44:36 Item 8 Time Remaining 44 minutes 36 seconds00:44:36 Information for Kent Corp. for the year 2021: Reconciliation of pretax accounting income and taxable income: Pretax accounting income $ 180,000 Permanent differences (15,000 ) 165,000 Temporary difference-depreciation (12,000 ) Taxable income $ 153,000 Cumulative future taxable amounts all from depreciation temporary differences: As of December 31, 2020 $ 13,000 As of December 31, 2021 $ 25,000 The enacted tax rate was 25% for 2020 and thereafter. What should Kent report as the current portion of its income tax expense in the year 2021
Answer: $38,250
Explanation:
Current portion of tax is the amount of tax payable on the current taxable income:
= Taxable income * tax rate
= 153,000 * 25%
= $38,250
Prepare the issuer's journal entry for each of the following separate transactions. On March 1, Atlantic Co. issues 47,000 shares of $3 par value common stock for $311,000 cash. On April 1, OP Co. issues no-par value common stock for $79,000 cash. On April 6, MPG issues 2,900 shares of $20 par value common stock for $48,000 of inventory, $180,000 of machinery, and acceptance of a $98,000 note payable.
Answer:
A. March 1
Dr Cash $ $311,000
Cr Common Stock
$ 141000
Cr To Paid in Capital in Excess of Par $ 170,000
B.April , 01
Dr Cash $79,000
Cr Common Stock $79,000
C. April, 06
Dr Inventory $48,000
Dr Machienary $180,000
Cr To Note Payable $98,000
Cr Common Stock $58,000
Cr Paid in Capital in excess of par (Balancing Figure) $72,000
Explanation:
Preparation of the issuer's journal entry for each of the separate transactions.
A. March 1
Dr Cash $ $311,000
Cr Common Stock
(47,000 Shares " $ 3) $ 141000
Cr To Paid in Capital in Excess of Par $ 170,000
(311,000-141,000)
B.April , 01
Dr Cash $79,000
Cr Common Stock $79,000
C. April, 06
Dr Inventory $48,000
Dr Machienary $180,000
Cr To Note Payable $98,000
Cr Common Stock $58,000
(2,900 Shares * $ 20)
Cr Paid in Capital in excess of par (Balancing Figure) $72,000
($48,000+$180,000-$98,000-$58,000)
It is the least expensive automobile insurance coverage.
A) Liability
B) Collision
C) Comprehensive
D) Full
Answer:
C
Explanation:
As far as coverages goes, Comprehensive is the least expensive. However, liability is the basic coverage required on most insurance policies. Many states require a minimum insurance coverage of liability.
6x²+x-28
solve this everyone
Answer:
x = 2.0785 and x = -2.245
Explanation:
The following is the step by step solution to the problem.
6x² + x - 28 = 0
Where,
a = 6
b = 1
c = -28
Using the formula,
x = [(-b + √((b)² - 4ac)) / 2a] and x = [(-b - √((b)² - 4ac)) / 2a]
x = [(-1 + √((1)² - 4(6)(-28))) / 2(6)] and x = [(-1 - √((1)² - 4(6)(-28))) / 2(6)]
x = [(-1 + 25.94) / 12 and x = [(-1 - 25.94) / 12
x = 2.0785 and x = -2.245
According to Herzberg, which of the following is NOT a Hygiene factor?
Answer:
Herzberg's Motivation Theory model, or Two Factor Theory, provides two factors that affect motivation in the workplace. These factors are hygiene factors and motivating factors. Hygiene factors will cause an employee to work less if not present. Motivating factors will encourage an employee to work harder if present.
Explanation:
The factor that is NOT a Hygiene factor, according to Herzberg, is Responsibility.
Responsibility is not a Hygiene factor, unlike Salary, Working Conditions, and Company's Policy.
Hygiene factors are job characteristics that must be satisfied by the employer to motivate employees to achieve superior performance.
In the absence of the Hygiene factors, there is high level of job dissatisfaction and lack of motivation to achieve goal congruence.
Thus, unlike Salary, Working Conditions, Company's Policy, Responsibility is not a Hygiene factor per Herzberg's categorization.
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Complete Question:
According to Herzberg, which of the following is NOT a Hygiene factor?
O Salary
O Working Conditions
O Company's Policy
O Responsibility
Aggies Candle Factory has recently been awarded a new contract with a large retailor in Doylestown. Demand for the candles is 25,0000 which a larger order than the company has ever handled before. They have called a business strategy meeting to ensure success of this project.; the Operations Manager has presented two different manufacturing options for consideration by the board:
Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.
Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
Which option should the board select and why?
Answer: Option A
Explanation:
From the question, the demand given is 250,000
For Option A,
Fixed cost = $25000
Variable cost = $0.1 per candle
Total cost = Fixed cost + Variable cost
Total cost = $25000 + ($0.1 × 250,000)
= $25,000 + $25,000
= $50,000
For Option B,
Fixed cost = $10000,
Variable cost = $0.5 per candle
Total cost = Fixed cost + Variable cost
Total cost = $10000 + ($0.5 × 250,000)
= $10,000 + $125,000
= $135,000
Therefore, the board should select option A as the total cost is cheaper than option B.
Steve and Craig have been shipwrecked on a deserted island in the South Pacific. Their economic activity consists of either gathering pineapples or fishing. We know Steve can catch four fish in one hour or harvest two baskets of pineapples. In the same time Craig can reel in two fish or harvest two baskets of pineapples. Assume Craig and Steve both operate on straight-line production possibilities curves. What is Steve's opportunity cost of producing a basket of pineapples
Answer:
His opportunity cost of a basket of pineapples is 2 fish
Explanation:
Opportunity cost is defined as the forgone alternative that a person must make when he makes a decision to do something.
So in economics apart from the cost of a product being purchased there is also consideration of the alternative that was ignored.
In the given scenario there are two activities they undertake. That is gathering pineapples or fishing.
Steve can either catch four fish or gather two baskets of pineapples in one hour.
This can be simplified as:
2 baskets of pineapples ÷ 4 fish = 1 basket of pineapples per 2 fish
So if Steve gathers 1 basket of pineapples he is letting go of opportunity to get 2 fishes
On December 31, 2019, the ledger of Lopez Company contained the following account balances: Cash $ 66,000 Maria Lopez, Drawing $ 52,000 Accounts Receivable 5,800 Fees Income 107,500 Supplies 4,200 Depreciation Expense 5,500 Equipment 52,000 Salaries Expense 34,000 Accumulated Depreciation 5,000 Supplies Expense 6,000 Accounts Payable 6,000 Telephone Expense 5,200 Maria Lopez, Capital 121,500 Utilities Expense 9,300 Prepare the closing entries for the above transactions.
Answer:
1. Dec 31, 2019
Dr Fees Income $107,500
Cr Income Summary $107,500
2. Dec 31, 2019
Dr Income summary 60,000
Cr Salaries expense 34,000
Cr Supplies expense 6,000
Cr Utilities expense 9,300
Cr Telephone expense 5200
Cr Depreciation expense 5500
3. Dec 31, 2019
Dr Income summary 47,500
Cr Retained earnings 47,500
4. Dec 31, 2019
Dr Maria lopez, capital 52,000
Cr Maria lopez, drawing 52,000
Explanation:
Preparation of the closing entries for the above transactions
1. Dec 31, 2019
Dr Fees Income $107,500
Cr Income Summary $107,500
(To close revenue account)
2. Dec 31, 2019
Dr Income summary 60,000
(5500+5200+9300+6000+34000)
Cr Salaries expense 34,000
Cr Supplies expense 6,000
Cr Utilities expense 9,300
Cr Telephone expense 5200
Cr Depreciation expense 5500
(To close expenses account)
3. Dec 31, 2019
Dr Income summary 47,500
($107,500-60,000)
Cr Retained earnings 47,500
(To close income summary account)
4. Dec 31, 2019
Dr Maria lopez, capital 52,000
Cr Maria lopez, drawing 52,000
(To close drawings account)
Mariano Manufacturing can issue a 25-year, 8.8% annual payment bond at par. Its investment bankers also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 25% tax bracket. The corporate investors require an after-tax return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would represent an after-tax risk premium. What coupon rate must be set on the preferred in order to issue it at par
Answer: 10.13%
Explanation:
The after-tax return on the preferred shares would be:
= After-tax return + Premium required
= (8.8% * (1 - 25%)) + 1%
= 7.6%
For the preferred stock to be issued at par with the above after tax return:
= After tax return / ( 1 - tax)
= 7.6% ( 1 - 25%)
= 10.13%
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 47,000 Units sold 42,000 Selling price per unit $ 84 Selling and administrative expenses: Variable per unit $ 4 Fixed (per month) $ 560,000 Manufacturing costs: Direct materials cost per unit $ 17 Direct labor cost per unit $ 7 Variable manufacturing overhead cost per unit $ 3 Fixed manufacturing overhead cost (per month) $ 893,000
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Calculate the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Calculate the unit product cost.
b. Prepare a contribution format income statement for May.
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary product cost= 17 + 7 + 3 + (893,000 / 47,000)
Unitary product cost= 27 + 19
Unitary product cost= $46
Now the income statement:
Sales= 42,000*84= 3,528,000
COGS= (42,000*46)= (1,932,000)
Gross profit= 1,596,000
Total Selling and administrative expenses= (42,000*4) + 560,000= (728,000)
Net operating profit= 868,000
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Unitary variable product cost= 17 + 7 + 3
Unitary variable product cost= $27
Now, the income statement:
Sales= 3,528,000
Total variable cost= 42,000*(27 + 4)= (1,302,000)
Total contribution margin= 2,226,000
Total fixed manufacturing cost= (893,000)
Total Selling and administrative expenses= (560,000)
Net operating profit= 773,000
Item13 Time Remaining 45 minutes 57 seconds00:45:57 Item 13 Time Remaining 45 minutes 57 seconds00:45:57 The world's largest manufacturer of peppermint candy canes was located in Albany, Georgia, until it could no longer afford to buy the sugar needed for its operation. It moved its manufacturing business to Mexico where there are no restrictions (like those that exist in the United States) on the amount of sugar that can be brought into the nation. The business moved to Mexico because of __________ established by the U.S. government.
Answer:
Quota
Explanation:
The world's largest manufacturer of peppermint candy canes moved its manufacturing business from Albany, Georgia to Mexico as there are no restrictions on the amount of sugar that can be brought into this nation (like those that exist in the United States.
The business moved to Mexico because of Quota established by the U.S. government.
Choose an enterprise with which you are familiar that has undergone significant recent reorganization. Compare the new and old organizations with regard to (a) size and influence of specialized staff, (b) management levels, (c) typical spans of control, and (d) responsibility delegated to nonmanagerial professionals. What other changes occurred in the reorganization
Answer:
In 2015, G-oogle went for an reorganization, the company have a new CEO which enabled the two co-founders to focus on new business opportunities.
a. Each business unit have its own CEO which makes a great influence.
b. G-oogle restructured its organization by adding management levels which helps in ease in day to day operation.
c. Narrow span of control is better for the managers to control its subordinates and is currently practiced at G-oogle.
d. Responsibility is delegated to each unit CEO who is responsible for his/her business unit.
Explanation:
In 2015, G-oogle went for an reorganization, the company have a new CEO which enabled the two co-founders to focus on new business opportunities.
a. Each business unit have its own CEO which makes a great influence.
b. G-oogle restructured its organization by adding management levels which helps in ease in day to day operation.
c. Narrow span of control is better for the managers to control its subordinates and is currently practiced at G-oogle.
d. Responsibility is delegated to each unit CEO who is responsible for his/her business unit.
Acquisition Cost Desert State University installed a HD video board with an invoice price of $5,000,000 in its football stadium. Desert State paid an additional $100,000 of delivery and installation costs relating to this board. Because this is one of the largest boards in the world, Desert State also installed ten S-tonas conditioning units at a total cost of $120,000 to keep the board cool in the desert heat.
Required:
Determine the cost of the video board.
Answer: $5,220,000
Explanation:
The cost of the video board will be the total amount spent on the video board. This will be:
Invoice price = $5,000,000
Add: Delivery and Installation costs = $100,000
Add: Air conditioning units = $120,000
Cost of the video board = $5,220,000
Therefore, the cost of the video board is $5,220,000
A certain town in the Midwest obtains all of its electricity from one company, North-star Electric. Although the company is a monopoly, it is owned by the citizens of the town, all of whomsplit the profits equally at the end of each year. The CEO of the company claims that because all ofthe profits will be given back to the citi- zens, it makes economic sense to charge a monopoly price forelectricity. True or false
Answer:
False
Explanation:
Therefore, since the monopoly price is higher than marginal cost and also less than the competitive quantity is produced, there will be a deadweight loss even if all the profits are given back to the citizens.
A monopolist market qualities includes the charge of a higher price, produces a smaller quantity of output and gives or generate a dead weight loss to society. Usually for a monopoly to be achieved, price does not need to equal marginal cost. Monopolies is therefore not or cannot charge any price they want. .
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $401,400; materials of $413,000 and direct labor of $223,000. During the year Adams incurred $424,000 in materials costs, $418,900 in overhead costs and $227,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
Answer:
an under applied of $10,300
Explanation:
The computation of the over applied or under applied is shown below;
Difference in overhead = Actual overhead - applied overhead
= $418,900 - ($227,000 × ($401,400 ÷ $223,000))
= $418,900 - $408,600
= $10,300
Since actual overhead is more than the applied overhead so it is an under applied of $10,300
CDF Inc. is contemplating the acquisition of Pogo Company. The values of the two companies as separate entities are $20 million and $10 million, respectively. CDF estimates that by combining the two companies, it will reduce marketing and administrative costs by $500,000 per year in perpetuity. CDF can either pay $14 million cash for Pogo or offer Pogo a 55% holding in CDF. If the opportunity cost of capital is 10%,a. What is the gain from merger? b. What is the cost of the cash offer? c. What is the cost of the sock alternative? d. What is the NPV of the acquisition under the cash offer? e. What is the NPV under the stock offer?
Answer: See explanation
Explanation:
a. What is the gain from merger?
This will be calculated by dividing the cost savings by the opportunity cost of capital. This will be:
= $500,000 / 10%
= $500,000 / 0.1
= $5,000,000
= $5 million
b. What is the cost of the cash offer?
This will be the difference between the cash cash paid and the value of the firm acquired which will be:
= $14 million - $10 million
= $4 million
c. What is the cost of the sock alternative?
First, we calculate the value of the merged company which will be:
= $20 million + $10 million + $5 million
= $35 million
Then, cost of stock alternative will be:
= (35 million x 55%) – $10 million
= ($35 million × 0.55) - $10 million
= $19.25 million - $10 million
= $9.25 million
d. What is the NPV of the acquisition under the cash offer?
This will be:
= $5 million - $4 million
= $1 million
e. What is the NPV under the stock offer?
This will be:
= $5 million - $9.25 million
= -$4.25 million
The cash flows of a project should: Multiple Choice be computed on a pretax basis. include all sunk costs and opportunity costs. include all incremental and opportunity costs. be applied to the year when the related expense or income is recognized by GAAP. include all financing costs related to new debt acquired to finance the project.
Answer:
Include all incremental and opportunity costs
Explanation:
Incremental cash flows from a project is usually said to be a firms cash flows with the project minus firms cash flows without the project. It includes the sales captured from the firm's competitors, incremental sales brought to the firm as a whole, retained sales that would have been lost to new competing products.
Opportunity costs are included as incremental costs when evaluating capital projects because they directly relates to a project, and theexpenses that are incurred in oder to improve a firm's production facility in order to invest in a project, investments in working capital that is related to a project in a direct way.
Noncash investing and financing activities may be disclosed in: Multiple Choice A note in the financial statements or a schedule attached to the statement of cash flows. The operating activities section of the statement of cash flows. The investing activities section of the statement of cash flows. The financing activities section of the statement of cash flows. The reconciliation of cash balance section.
Answer:
(A note in the financial statements or a schedule attached to the statement of cash flows.
Explanation:
Noncash investing and financing transactions do appear as a separate schedule on the statement of cash flows. They are are notable investing and financing activities that do not affect cash directly. The IFRS and US GAAP mandates companies to disclose all notable or significant non-cash investing and financing activities either at the bottom of the statement of cash flows usually in a form of a footnote or in the notes to the financial statements.
Noncash investing and financing activities may be disclosed in "a note in the financial statements or a schedule attached to the statement of cash flows". The correct option is A.
Noncash investing and financing activities refer to transactions that do not involve the direct use or receipt of cash but have significant financial implications for a company.
This statement of cash flows itself typically segregates cash flow information into three sections: operating activities, investing activities and financing activities.
While the noncash activities are not part of the operating, investing or financing activities sections, they are important to provide a comprehensive view of a company's financial health.
It can be included in a separate note or schedule to ensure transparency and proper understanding by stakeholders.
Therefore, the correct option is A.
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Ruthanna is the project manager of the HGB project for her organization. This project is a remodeling of a client's dentist office. Ruthanna and the project team have identified several tasks which can happen in any order. For example, the team could install the new light fixtures before or after the carpet is installed. What term is given to activities that have this type of dependency
Answer:
Discretionary
Explanation:
Discretionary
You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $10.0 million today and $5.0 million in one year. The government will pay you S20.O million in one year upon the building's completion. Suppose the interest rate is 10.0%.
Required:
a. What is the NPV of this opportunity?
b. How can your firm turn this NPV into cash today?
Answer:
a. Net Present Value = Present value of cashflows - Investment
Year 1 cash inflow = Receipts - Additional investment figure
= 20 million - 5 million
= $15 million
Net Present Value = (15,000,000 / (1 + 10%)) - 10,000,000
= $3,636,363.64
b. The total that the firm will receive from the government in today's value is:
= 20,000,000 / ( 1 + 10%)
= $18,181,818.18
The company can borrow this $18,181,818.18 now, assuming they can get it at a rate of 10%. When they are to pay it off in the next year, they will use the $20,000,000 that the government then pays them to pay off the loan.
The Dow Jones is currently valued at $24,000 and the 1-year Dow Jones Mini Future contract has a price of $24,750. Note Dow Jones future contracts are for 5 times the value of the contract price. The risk free rate is 3% per annum and the Dow Jones dividend yield is 0.75% per annum. You are managing a portfolio that is worth $15 million and has a beta of 1.25.A) What position in futures contracts on the S&P 500 is necessary to hedge the portfolio?
B) 6 months have passed and the Dow Jones is now valued at $24,720 and the future price is now $25,100. What is our portfolio value of your portfolio with the hedge from part a?
Answer:
a) 152
b) $15,310,562.50
Explanation:
A) What position in futures contracts on the S & P 500 is it necessary to hedge the portfolio
The position is to short
The number to be shorted can be calculated using the formula below:
= ( β * value of portfolio) / (one futures contract size * number of times the value of the contract price)
where ; value of portfolio = $15 million , Beta = 1.25 , one future contract size = $24750, number of times = 5
= ( 1.25 * 15,000,000) / ( 24,750 * 5) = 151.5 ≈ 152 contracts
b) What is our portfolio value of your portfolio with the hedge from part a
Given that 6 months has passed
Dow Jones now valued at $24720
Future price now $25,100
first step : calculate loss from position in part a
= 152 * 5 * ( 24,750 - 25,100 ) = - $266,000
next : calculate Gain on index
= 24,720 - 24,000 / 24,000 = 0.03 = 3.00%
Total gain = Gain on index + annual dividend / 2
= 3% + 0.75 / 2 = 3.375%
where risk free rate ( 6 months ) = gain on index / 2 = 1.5%
Calculate Return with the use of CAPM
= 1.5% + 1.25* ( 3.375% - 1.5% ) = 3.8438%
Hence value of portfolio after 6 months will be calculated as
= Current portfolio value * ( 1 + return )
= 15,576,562.50
Therefore the
Net value = portfolio value - loss from futures position
=$15,310,562.50
What was the opening price of Coca-Cola on Jan 1, 1962?
Answer:
I'm not 100 %sure but but I think 49 cents
Answer:
6.5 oz glass
Explanation:
a pharmacist and former confederate soldier produced the first Coca cola syrup on May 1886. Although most soda fountain drinks cost seven or eight cents at the time(for a 6.5 oz glass)
M. Abadie and S. Collier combine their individual sole proprietorships to start the Abadie - Collier partnership. M. Abadie and S. Collier invest in the partnership as follows Book Value Fair Value Abadie Collier Abadie Collier Cash $20400 $6600 $20400 $6600 Accounts Receivable 10000 5400 10000 5400 Allowance for Doubtful Accounts (1600) (650) (2010) (820) Equipment 14400 23600 13100 8600 Accumulated Depreciation (3900) (8300) The entries to record the investment will include a credit to: Abadie, Capital of $40900. Collier, Capital of $19780. Abadie, Capital of $39300. Collier, Capital of $26480.
Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (8,400 units)$ 764,400 Variable expenses445,200 Contribution margin319,200 Fixed expenses250,900 Net operating income$ 68,300 If the company sells 8,200 units, its total contribution margin should be closest to:
Answer:
$319,200
Explanation:
Total Contribution Margin = Total Sales - Total Variable Costs
therefore,
Total Contribution Margin = $ 764,400 - $445,200
= $319,200
Conclusion
Escareno Corporation total contribution margin should be closest to $319,200.
. What happens when the domestic interest rate is lower than foreign interest rates?Foreign investment shift domestically
Answer:
Lower domestic interest rates should help to boost the economy, by increasing lending and investment. It also should depreciate the currency of the country, increasing exports and decreasing imports. This temporary depreciation of the currency should be offset in the short run, as more exports will eventually result in an appreciation. Foreign direct investment should also increase (at least temporarily) due to cheaper currency.
what is the definition of bond?