As a financial manager you must choose between three alternative investments. Each investment is expected to provide cash inflows for the next four years as described below. Based on the goal of shareholder wealth maximization, you would ________. Year Investment A Investment B Investment C 1 $25,000 $17,500 $10,000 2 $20,000 $17,500 $15,000 3 $15,000 $17,500 $20,000 4 $10,000 $17,500 $25,000 Total $70,000 $70,000 $70,000

Answer:

Explanation:

Where is the main question?

Answer:

12.3%

Explanation:

The stock Ernst electric has beta of 0.87 percent

The market risk premium is 8.6 percent

The risk free rate is 3.7 percent

Therefore the expected return can be calculated as follows

= risk free rate + risk premium

= 3.7 % + 8.6%

= 12.3 %

Hence the expected rate of return on Ernst electric stock is 12.3%

Answer:

Daisy King Ice Cream Company

General Journal

1. Debit Cash Account $23,000

Credit Capital Stock $23,000

To record the issue of 10,000 shares for cash.

2. No journal entry required.

3. Debit Prepaid Rent $3,180

Credit Cash Account $3,180

To record the payment in advance of six months' rent.

4. Debit Equipment $5,700

Credit Cash $2,000

Credit Notes Payable $3,700

To record the purchase of equipment for cash and 10% two-year notes.

5. Debit Supplies $2,100

Credit Accounts Payable $2,1000

To record the purchase of supplies on account.

6. Debit Cash Account $1,100

Credit Sales Revenue $1,100

To record the sale of goods for cash.

Debit Royalties Expense $55

Credit Royalties Payable $55

To record 5% royalties payable on sales.

7. Debit Salaries and Wages Expense $470

Credit Cash Account $470

To record the payment of weekly salaries and wages.

8. Debit Accounts Payable $2,100

Credit Cash Account $2,100

To record the payment for supplies purchase on account.

9. Debit Royalties Payable $55

Credit Cash Account $55

To record the payment of royalties due.

10. Debit Depreciation Expense $70

Credit Accumulated Depreciation $70

To record the depreciation expense for the period.

Explanation:

For Daisy King Ice Cream Company, the recording of business transactions in the journal is the first step of maintaining the double-entry system of book-keeping.  In it, the accounts to be debited and credited are identified and recorded for onward posting to the general ledger.

Answer:

C

Explanation:

Inflation is a persistent rise in general price level

Rise in Inflation rate = 220 / 200 - 1 = 10%

Rise in tuition fees = 115 / 100 - 1 = 15%

From the calculations, the percentage change in tuition fees is higher than the percentage change in inflation rate

Answer:

a. Debit Insurance Expense. $660, credit Prepaid Insurance, $660.

Explanation:

The adjusting entry is shown below:

Insurance expense Dr $660 ($3,300 ÷ 5 years)

          To Prepaid insurance

(Being the insurance expense is recorded)

here we debited the insurance expense as it increased the expense and credited the prepaid insurance as it decreased the assets

Therefore the option a is correct

Answer:

The net income will increase by $15,340 due to hiring of extra worker.

Explanation:

Salary of extra worker = $55,577

Extra production = 7,700 units

Selling price per unit = $13

Direct material per unit = $2.56

Direct labor per unit = $1.00

Variable overhead per unit = $0.23

Fixed overhead = $3.90. Due to extra production, fixed overhead will not increase.

Particulars                                       Amount

Sales revenue (7,700 * 13)             $100,100

Expenses:

Direct material (7,700 * $2.56)     -$19,712

Direct labor (7,700 * $1.00)           -$7,700

Variable overhead (7,700* 0.23)  -$1,771

Salary of extra worker                   -$55,577

Net income                                     $15,340

Thus, due to hiring of extra worker net income income will increase by $15,340

Answer:

When the purchase price is lower than the fair market value, accountants generally refer to this as negative goodwill. All negative goodwill must be reported as a gain.

the net fair market value of assets = $1,069,200 + $2,494,800 - $594,000 = $2,970,000

gain = fair market value - purchase price = $2,970,000 - $2,178,000 = $792,000

Another way to refer to this type of situation is a bargain purchase.

Answer and Explanation:

The total deductible expense is for tax purpose is shown below:

The income that is earned from gambling and winning lotteries via legal or illegal the same is to taxable

Also the nonrecorded and illegal expenses would be ignored

The following expenses should be considered as deductible

(1) Rent paid of $41,500

(2) Travel expenses  $4,150

(3) Utilities of $24,900

(4) Wages $356,750

(5) Payroll Taxes $20,750

(6) Property insurance $2075

Bribes and illegal kickbacks are not taxable

Answer:

a) A maker of custom cabinets ⇒ TIME, generally goods that are custom made take longer to produce and clients are aware of this.

b) A producer of automotive spare parts ⇒ CAPACITY, if more parts are needed, you will have to use spare capacity.

c) A hospital emergency room ⇒ CAPACITY, services cannot be stocked, therefore, the only possible buffer is capacity since they cannot make their patients wait in line (a dead person waiting in line is no longer a patient).

d) Wal-Mart ⇒ INVENTORY, whether a store is a brick and mortar or internet retailer, its cheapest safety stock (buffer) is generally inventory.

e) Amazon ⇒ INVENTORY, whether a store is a brick and mortar or internet retailer, its cheapest safety stock (buffer) is generally inventory.

f) A government contractor that builds submarines ⇒ TIME, submarines are very expensive and it takes years to build them, so a week more wouldn't make a difference.

h) A maker of lawn mowers for K-mart and Target ⇒ INVENTORY, the company probably knows when it is going to sell more, so it can add to its inventory of finished goods just in case.

i) A freeway ⇒ CAPACITY and then TIME, services cannot be stocked, and since it takes years to plan and build a highway or freeway, the only possible initial buffer is capacity. But once full capacity is reached, then the only buffer is time.

j) The space shuttle ⇒ INVENTORY, since you cannot go back to Earth just to get refueled, you must carry extra fuel just in case. The same for the rest of the stuff.

k) A business school ⇒ CAPACITY, services cannot be stocked, and no student will wait a few extra years just to get into the school that they love.

Answer:

$900,000

Explanation:

The first step is to calculate the percentage completed

= 600,000/2,000,000

= 0.3

The revenue can be calculated as follows

= 5,000,000 × 0.3

= 1,500,000

Therefore the gross profit for 2020 can be calculated as follows

=1,500,000 -600,000

= $900,000

Answer:

It will take 11.90 years for the funds to double

Explanation:

Here we want to calculate the time it will take for the invested amount to be doubled.

Mathematically;

t = ln(future value/ Present value)/ln(1 + rate)

From the question;

Future value = 2 * invested amount = 2 * 2500 = $5,000

Present value = $2,500

Rate = 6% = 6/100 = 0.06

Substituting these values, we have

t = ln(5000/2000)/ln (1 + 0.06)

t = ln2/ln1.06

t = 11.90 years

Answer:

B) E-commerce

Explanation:

E-commerce is a method by which buying and selling of products occurs electronically over the internet.

This is the most convenient way for large companies for the efficient procurement of products by facilitating the exchange documents with established and authorized vendors.

Technologies such as internet marketing, online transaction processing, electronic funds transfer, and supply chain management are used to ease large transactions by companies.

Answer:

Casino and Press Release

a) This casino can afford to give away $30 million on a $3 bet since it has garnered enough from a base amount of $7 million severally before the jackpot is won.  In my own calculations, for two weeks, the casino could have gathered more than $140 million.  After all, jackpots are not won on a daily basis, but casinos obtain millions in bet proceeds.  So for the waitress winning $30 million, it is simply payback time for the casino.

b) The press release announcing the jackpot is an avenue for cheap publicity and media authentication of the business.  Casinos are not allowed to advert their services.  A way around this ban is to issue press releases when a jackpot is won in order to publicize their services.  Moreover, that a waitress won the jackpot of $30 million is not even a business loss.  It is simply paying back some fraction of the proceeds.

Explanation:

With the statistical advantages enjoyed by casinos, they surely make more money than the betters.  Casino is a gambling game of chance, where the advantage is skewed in favor of casino businesses who gather so much in bets from their patrons.

Answer:

Follows are the solution to this question:

Explanation:

[tex]\text{Equity expense = free risk rate+beta} \times \text{market risk premium}[/tex]

                        [tex]=3 \% + 1.2 \times 5 \% \\\\= 0.03 + 1.2 \times 0.05 \\\\= 0.03 +0.06 \\\\= 0.09\\\\=9 \%[/tex]

[tex]\text{Preferred inventory cost} = \frac{\text{annual dividend}}{( price - floation \ rate)}[/tex]

                                     [tex]= \frac{(100 \times 5.46 \%)}{(100-100 \times 5 \%)}\\\\=5.75 \%[/tex]

[tex]\text{Excel feature = RATE(nper, PMT, PV, FV)}[/tex]

                     [tex]=(RATE( \frac{20 \times 2,1000 \times 12 \%}{2,-1100,1000})) \times 2 \\\\=10.77 \%[/tex]

[tex]\text{Debt expense after tax}= 10.77 \% \times (1-40 \%)[/tex]

WACC from Preston   = Capital weight [tex]\times[/tex]  Capital equity costs+cost of common stock [tex]\times[/tex] cost of common shares [tex]\times[/tex] debt cost [tex]\times[/tex] (1-tax rate)

[tex]=60 \% \times 9 \%+20 \% \times 5.75 \%+20 \% \times 6.46 \% \\\\=7.84 \%[/tex]

Answer:

d. APB

Explanation:

Carolyn is looking over published accounting opinions based primarily on research studies. What organization is Carolyn researching?

These are the options for the question

a. CAP

b. AICPA

c. SEC

d. APB

We are informed Carolyn who is looking over published accounting opinions based primarily on research studies. The organization Carolyn researching is Accounting Principle Board.

APB( Accounting Principle Board) belongs to a body of American institute of Certified public accountant in US.

it was been run and organised by American Institute of Public Accountants. APB can be regarded as organization which is a forerunner of

Financial Accounting Standards Board. This APB usually offer discounts on professional training with them as well insurance on journal subscription to their member. They are good in offering research on Accounting and finance.

Answer:

Recall, that we represent economic laws and theory using models; in this case we can use a demand schedule or a demand curve to illustrate the Law of Demand.  The demand schedule shows the combinations of price and quantity demanded of apples in a table format.  The graphical representation of the demand schedule is called the demand curve

When graphing the demand curve, price goes on the vertical axis and quantity demanded goes on the horizontal axis. A helpful hint when labeling the axes is to remember that since P is a tall letter, it goes on the vertical axis. Another hint when graphing the demand curve is to remember that demand descends.

The demand curve reflects our marginal benefit and thus our willingness to pay for additional amounts of a good.  It makes sense that our marginal benefit, or willingness to pay for a good, would decline as we consume additional units because we get less additional satisfaction from each successive unit consumed. For example, at lunch time you decide to buy pizza by-the-piece.  You'd be willing to pay a lot for that first piece to satisfy your hunger.  But what about the second piece?  Perhaps a little less.  If we keep considering each additional piece, we might ask what the 3rd, 4th or 5th piece is worth to you.  By that point, you'd be willing to pay less, perhaps much less.  The law of demand and our models illustrate this behavior.

Explanation:

Answer:

The right solution is "$900".

Explanation:

Thus, the GDP seems to be $900.

Answer:

$958.78

Explanation:

The computation of the present value is shown below:

Given that

Future value = $1,000

NPER = 25

PMT = $1,000 × 7.5% = $75

RATE = 8%

The formula is shown below:

= -PV(RATE;NPER;PMT;FV;TYPE)

After applying the above formula, the present value is $958.78

The same is to be considered

Answer:

C. You have more credits than debits.

Explanation:

In the financial world, certain terms are used that are understood by those in the financial world. One such word is the phrase "being in the black".

This phrase "being in the black" means when someone of a company has more credits than debits. This means that the inflow of money is more than outgoing. So, it is a good thing and that the company or the person is in a stable condition, not in debt, and financially solvent and safe.

Thus, the correct answer is option C.

Answer:

C

Explanation:

You have more credits than debits.

Explanation:

A page of acknowledgements is usually included at the beginning of a Final Year Project, immediately after the Table of Contents.

Acknowledgements enable you to thank all those who have helped in carrying out the research. Careful thought needs to be given concerning those whose help should be acknowledged and in what order. The general advice is to express your appreciation in a concise manner and to avoid strong emotive language.

Note that personal pronouns such as 'I, my, me …' are nearly always used in the acknowledgements while in the rest of the project such personal pronouns are generally avoided.

The following list includes those people who are often acknowledged.

Note however that every project is different and you need to tailor your acknowledgements to suit your particular situation.

Main supervisor

Second supervisor

Other academic staff in your department

Technical or support staff in your department

Academic staff from other departments

Other institutions, organizations or companies

Past students

Family *

Friends *

Answer: Check attachment

Explanation:

Miscellaneous expenses are the small and infrequent expenses which a business incurs.

Based on the question, the miscellaneous expenses is calculated as:

= $2200 - $223

= $1977

Check the attachment for further details

Explanation:

Marketing management is the act of choosing and targeting different markets and creating good relationships with them, regarding the resources of the company.

The marketing managers are the responsible for directing and entering a company to different markets by setting a marketing plans and strategies based on information allocated by studying the markets and defining the needs and wants of customers and come up with products that satisfy the needs of customers and gain the market.

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According to Richard Branson, the founder and owner of Virgin Company, one of the richest and famous entrepreneurs in the United Kingdom and worldwide, “A business has to be involving, it has to be fun and it has to exercise your creative instinct”.

In marketing we almost use the four P’s, (product, price, promotion, place), these four P’s represent a convenient way to summarize the main factors involved in any marketing strategy.

Often, marketing strategy will evaluate a marketing plan in order to specify how able the company to implement the strategy decided and meet the business objectives.

The purposes of marketing plan to help you state your vision, mission and values, it needs to include your marketing budget, marketing strategy and the advertising plan you will use to market your business, and you need to keep it flexible to be sure you rich you goals and inve

Answer:

1. 31 Dec 2021

Dr Net unrealized holding gain/loss 25,000

Cr Fair value adjustment 25,000

2. None

Explanation:

Preparation of Journal entry

First step is to calculate for the unrealized loss

Unrealized loss=Short term loss-Long term gain

Unrealized loss=45,000-20,000

Unrealized loss=25,000

Journal entry

31 Dec 2021

Dr Net unrealized holding gain/loss 25,000

Cr Fair value adjustment 25,000

(To record unrealized loss on available for sale securities)

2. No amount would be reported in the income statement at December 31, 2021 because the Net unrealized holding gain/loss will be reported in other comprehensive income .

Answer:

No option is correct.

Explanation:

According to Arthur Laffer, a direct and sometimes inverse relationship exists between tax rates and government revenue. Sometimes a lower tax rate can result in higher government revenue. But that is not always the case. Sometimes an increase in the tax rate can increase government revenue. The optimal tax rate (T*) is equal to the tax rate that will allow the government to collect the highest amount of revenue. Any lower or higher tax rate will decrease government revenue.

Answer:

D. Sole proprietorships are taxed at the owner's personal tax rate

Explanation:

Sole Proprietorship can be defined as a simplest form of owning and starting any business. As the term suggests, this business is onwed by an individual only or shared by married couples.

Sole properietorship is easy to set up because the owner need not to register itself to state government, therefore, because of absence of governmental involvement, it is easy to set up or deconstruct sole proprietorship.

From the given options, the statement which is most accurate about a sole proprietorship is option D. The owner of sole proprietorship pays personal taxes on the profits earned by his/her business.

Therefore, option D is correct.

Answer:

hehe

Explanation:

hehe

Answer:

4.91%

Explanation:

CDB stock is currently priced at $85

The company will pay a dividend of $5.69

The required return is 11.6%

There for the dividend growth rate on this stock can be calculated as follows

11.6/100= (5.69/85) + growth rate

0.116= 0.0669 + growth rate

0.116 - 0.0669 = growth rate

0.0491 × 100 = growth rate

Growth rate = 4.91%

Answer:

Missing question is "a. Compute the net proceeds to the Presley Corporation. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Net proceeds

b. Compute the earnings per share immediately before the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share

c. Compute the earnings per share immediately after the stock issue. (Do not round intermediate calculations and round your answer to 2 decimal places.) Earnings per share "

a. Net proceeds = Shares issued * Share price*(1-0.04) - Direct cost

Net proceeds = 500,000 * $25*(1-0.04) - $250,000

Net proceeds = 500,000*$24  - $250,000

Net proceeds = $12,000,000 - $250,000

Net proceeds = $11,750,000

b. EPS = Earnings / Shares

EPS = $7,000,000 / 2,000,000 shares

EPS = $3.50 per share

c. EPS = After tax earnings / Total shares

EPS = $7,000,000 / (2,000,000 + 500,000)

EPS = $7,000,000 / 2,500,000 shares

EPS = $2.80 per shares

Answer:

$11.33

Explanation:

According to the Gordon growth model

V₀=D₀ (1 + g) / r - g

D₀ =  $1.42

r = 14%

g= 1.3%

$1.42 x (1.013) / 0.127 = $11.33

Answer and Explanation:

Given that correlation between the monthly changes of the spot price and futures price of a commodity = 0.95

standard deviations of monthly changes of the spot price = 0.25

standard deviations of monthly changes of the futures price = 0.30

Futures contract =1000 units of commodity

To calculate how many futures contracts long or short if company needs to purchase 50,000 units of the commodity in 1 month using the futures contract hedge the price risk:

We calculate Hedge ratio = correlation * Spot price changes Standard deviation/ Futures contract price changes standard deviation

= 0.95 * 0.25/0.30

=0.7917

=79.17%

Calculate how many futures contracts the company should short =

50000 * 79.17%/1000

=39.58

= -39 contracts(negative shorts as from question)